Chief Communications Officer Report

Executive Management and Audit CommitteeNovember 19, 2009

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Eastside Opening Recap

2

• Grand Opening – 50,000 boardings

• Ridership campaign begins– Print ads, outdoor, eblast, e-marketing

The Source goes live

• Real-time online transportation news– Breaking news

– Service alerts

– News coverage

– project updates

• Steve Hymon

• LA Blogger “Fred Camino”

3

New metro.net launching

• Complete site rebuild• New CMS and web technology• New features include:

– Google Maps– The Source– Flash interactive maps, timelines– ADA compliant– User-friendly layout

• Additional features still being planned– Mobile alerts, interactive timetables, social networking

sites & more

4

7 Awards for Metro Campaigns

• How Magazine (Oct 09 Issue) – Design Award for Opposites campaign

• Public Relations Society of America – 6 Prism Awards (Measure R, Opposites & Eastside)

5

6

Employer Program Sales bring in revenue

• 10 New Accounts in October 2009– $19,000 Revenue– 113 New Passes

• 60% Contract Renewals to date

Measure R Communications

• Updated information on website

• “Source” pushing out information to media networks

• Oversight Committee guidelines coming in February

• LAEDC monitoring economic impact

7

Extensive Outreach Continues

• Corridor Studies– Crenshaw Transit Corridor

– Eastside Phase 2

– Harbor Subdivision

– I-710 EIR/S

– Regional Connector

– Westside Subway Extension

• I-405

• Express Lanes

• High Speed Train

8

TAP Update

9

Actions to date

• Reviewed KPMG findings

• Conducted various stakeholder meetings

• Legal review

• Project management review

• Identified potential program costs

• Diagramed issues

10

KPMG basic findings

• Complex/dynamic project

• Unclear and agreed to goals

• Inadequate controls

• Insufficient resources

• Undefined program costs

11

Beyond KPMG

• Operating issues/costs

• Labor concerns

• Regional issues

• Contract concerns

• Return on investment concerns

12

TAP dissected

TAP Project Map

13

Four-pronged approach

Operating Costs Day Pass Transaction

Implementation Schedule Fare Disputes

Declining Revenues Labor

Fare Inspection Fare Policy

Training Financial Controls

Reliability Fare Media Costs

Operating

Gating Completion Cost

Maintenance Labor

Contracts Schedule

System Performance

Capital

Customer Service TAP Distribution

Purchasing Operator Disputes

Reduced Fare Programs

Customer

Reconciliation Fare System Complexity

Transfers Governance/Decision Rules

Clearing/Reconciliation Rules Business Rules

Regional Application Municipal Operator Issues

Policies

Regional

14

Customer Recommendations

• Improve customer service

• Address operator disputes

• Improve tracking of customer complaints

• Address immediate operational issues

• Review fare media distribution

• Review ACS contract

• Review reduced fare applications

15

Operational Recommendations

• Evaluate fare policy

• Consider Day Pass alternatives

• Isolate operating costs

• Address training needs

• Identify revenue impacts

• Address labor issues

16

Regional Recommendations

• Recommit to regional program

• Seek common regional goals

• Build credibility in clearing

• Make program sustainable

• Simplify fare complexities

• Investigate regional fare structure

• Gain agreement on program charter

17

Capital Recommendations

• Clean up contracts and resolve issues

• Evaluate associated operating costs

• Reach consensus on direction

• Identify completion costs

18

Gating is moving forward

Status

• Installation continues – free spinning

19

41 stations being gated

41 Gates being installedJAN-FEB completionMAY-JUN gate locking

20

Gating/Monitoring Impacts (Ticket & Day Pass)

Date Transactions Variance Revenue Variance Date TAPS Variance2009 Weekly Average* 5,674 9,909 2009 Weekly Average* 8,059June 28 - July 4 6,180 9% 11,386 15% June 28 - July 4 10,299 28%July 5 - July 11 6,471 14% 11,913 20% July 5 - July 11 11,842 47%July 12 - July 18 5,818 3% 10,396 5% July 12 - July 18 10,876 35%July 19 - July 25 6,236 10% 11,571 17% July 19 - July 25 11,090 38%July 26 - August 1 6,264 10% 11,197 13% July 26 - August 1 11,071 37%August 2 - August 8 7,086 25% 13,003 31% August 2 - August 8 11,926 48%August 9 - August 15 7,160 26% 12,985 31% August 9 - August 15 15,653 94%August 16 - August 22 6,757 19% 12,292 24% August 16 - August 22 15,219 89%August 23 - August 29 6,311 11% 11,443 15% August 23 - August 29 13,928 73%August 30 - September 5 7,515 32% 13,051 32% August 30 - September 5 15,837 97%September 6 - September 12 6,361 12% 11,047 11% September 6 - September 12 13,213 64%September 13 - September 19 7,108 25% 12,214 23% September 13 - September 19 15,472 92%September 20 - September 26 6,227 10% 10,659 8% September 20 - September 26 14,564 81%September 27 - October 3 6,554 16% 10,964 11% September 27 - October 3 13,978 73%October 4 - October 10 6,296 11% 10,525 6% October 4 - October 10 14,334 78%

Union Station - West Portal

Day Passes and One Way Total TAPSUnion Station - West Portal

Gates + Agents: 22% increase on Day Pass/Ticket

Free-spinning Gates: 10% increase on Day Pass/Ticket

21

Up to $6 million/year in new revenue

0

50

100

150

200

250

300

350

Total Rail TVM Gate/Agent Gates Only

Increase from gating22% DP+T = 2.1% total revenue

22

Operating gates

• Revenue increase may cover capital costs

• TBD enforcement/customer service/monitoring

• Cost $4-$22 million per year

• Final conversion of paper media required

• Tickets/transfers/passes

• Cost approximately $8 million per year

23

Expanding Gates

• $177k - $345k avg. cost per station

• Civil costs greatly reduced

• Enforcement/customer service/monitoring increase (depending on model)

• Fare media costs not impacted

24

Enforcement/Customer Service/Monitoring

Components

• Customer service (station agents)

• Fare enforcement (sheriffs)

• Gate monitoring (video)

Formulating recommendation

• Initial operating estimates range from $4 – 22 million per year

25

Decentralized Concept

26

10-Year Operating Scenarios

$0

$50

$100

$150

$200

$250

$300

$350

$400

Gates RovingMonitors

StationAgents

MaxRevenueGained

Revenue

Agents

Monitor

Fare Media

Gates

Millions

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Next steps

• Continuing with gate installations

• Working with stakeholders to resolve issues

• Restructuring program management

• Identifying operating alternatives

• associated costs

28