THRU: Larry Rubio, Chief Executive Officer

RIVERSIDE TRANSIT AGENCY 1825 Third Street Riverside, CA 92507

May 5, 2004

TO: BOARD OPERATIONS COMMITTEE

FROM: Jim Kneepkens, Director of Marketing

SUBJECT: COMMUTERLINK ROUTE 202 PROMOTION

Summary: On September 2, 2003, RTA launched CommuterLink bus service. The new service includes four routes offering direct, limited stop commuter bus service between Riverside, San Diego, and San Bernardino counties. Below are route descriptions and ridership data (boardings) for each route. September 2003 ridership data for Route 202 is not available.

Routes Route 202 Murrieta -Temecula - Oceanside Transit Center Route 204 Downtown Riverside - Montclair Transit Center Route 206 Temecula - Murrieta - Lake Elsinore - Corona Metrolink Route 208 Temecula - Menifee - Sun City - Perris - Moreno Valley - Riverside Metrolink

Boardings per month

Sep ‘03 Oct ‘03 Nov ‘03 Dec ‘03 Jan ‘04 Feb ‘04 Mar ‘04 Route 202 N/A 411 434 451 446 445 587 Route 204 2,045 2,404 2,015 2,315 2,651 2,252 2,728 Route 206 1,579 2,130 1,566 1,745 2,059 2,106 2,232 Route 208 844 1,211 1,127 1,247 1,392 1,437 1,719

The fare to ride Route 202 is $4 per boarding with no 31-day passes or youth, senior, or disabled discounts available. Routes 204, 206, and 208 use RTA’s standard fare structure of $1 per boarding with 31-day passes and youth, senior, and disabled discounts available. As seen in the chart, Route 202 ridership has not performed well compared to Routes 204, 206, and 208. No significant ridership increases have occurred on the route except in March 2004 when ridership was up significantly on all RTA routes. Through informal surveys and customer comments, it appears the fare structure may deter customers from riding the route. Although $4 per boarding is fair and reasonable, and still less expensive than operating a car for the 37 mile one-way trip, existing and potential customers have indicated that ridership will increase if the fare is reduced and a 31-day pass is offered.

At its March 2004 meeting, the Board approved the award of an agreement with Booz Allen Hamilton to conduct a comprehensive fare policy study of all RTA routes. That fare study is currently in process and is expected to be complete by September 2004. Route 202 fares will be evaluated during the study.

In response to low ridership on Route 202, staff recommends an aggressive marketing campaign targeting residents in Temecula, Murrieta, Lake Elsinore, and surrounding communities to increase awareness and ridership of Route 202. The promotion will offer a discounted fare consistent with other CommuterLink routes; $1 per boarding with 31-day passes and youth, senior, and disabled discounts available. The fare promotion will run through December 30, 2004 at which time the fare study will be complete and permanent fare recommendations for all routes including Route 202 will be made. The marketing program will launch in early June 2004 and continue through late October 2004. The proposed marketing program will include the following:

 Newspaper Advertising: Weekly ¼ page print ads will be placed in The Press Enterprise and The Californian in June, September, and October  Direct Mail: Free standing inserts will be mailed directly to over 60,000 households in Murrieta and Temecula via the PennySaver and Advo  Coaster Seatdrop: Working with North County Transit District, flyers will be distributed aboard Coaster trains  Website: The promotion will be highlighted on the RTA website homepage and a dedicated webpage will be developed dedicated to the promotion and CommuterLink bus service.  Employer Mailings: Letters and promotional items will be sent to some major employers known to employ commuters from Murrieta and Temecula.  Transit Center Promotion: A CommuterLink bus will be parked at the Oceanside Transit Center during peak hours offering commuters an opportunity to tour the bus while they wait for their bus or train connection. Route and schedule information brochures will be distributed to customers at the transit center.  Press releases: Press releases announcing the promotion will be issued to all local media outlets

Fiscal Implication:

The cost to implement the proposed marketing program will not exceed $34,000. Sufficient funding is available in the Bus Marketing Program budget, Account 2800-508150, approved by the Board on June 26, 2003.

Recommendation: Approve and recommend this item to the full Board of Directors for their consideration as follows:

 Authorize staff to implement the Route 202 marketing promotion including the discounted fare structure of $1 per boarding with 31- day passes and youth, senior, and disabled discounts available through December 30, 2004.