In January 2016, MET Transit's planning consultant, LSC Transportation Consultants, Inc., completed the August 2015 Route and Schedule Analysis' final report.  From the report, MET staff determined that service modifications were needed to increase ridership while enhancing services.  Staff completed an in-house comprehensive operational review and found areas for improvement that could be implemented by first eliminating routes providing unproductive service and reallocating those resources to enhance the overall system.

Staff reviewed current and projected ridership, as well as operational and financial  data, and shared their findings at the April 4, 2016 City Council work session, two Aviation and Transit Commission meetings, the Metropolitan Planning Organization's (MPO) Transit Advisory Committee (TAC) meeting, four public community meetings, and two Driver meetings.  Public "Take One" notifications announcing the meetings, route modifications, and fare adjustments were posted on all buses and distributed throughout the City.  This information was also posted on MET's Website and social media pages.

Staff has now completed their analysis and recommends four unproductive routes be eliminated with those resources reallocated for enhancements to other bus routes, the addition of two new routes, and minor service and schedule adjustments on other routes.  Staff believes the recommended route and schedule adjustments (Attachment A) will enhance the overall ridership and productivity of MET.

As part of the financial review, MET compared its fare structure to peer transit systems in the Mid West and Western regions of the nation.  This comparison led to recommendations to increase MET Transit's one-way cash fares and monthly bus pass fares.  Additionally, staff recommends adding a new fare media, a "One Day" pass, to its category of passes.  The "One Day" pass would have unlimited rides for the day of purchase.  After these proposed fare increases (Attachment B), the Billings transit fares will continue to be lower than the average fares of the peer transit agencies surveyed. The monthly bus pass rates will still offer a significant value to our core customers. During the March and April 2016 presentations, a four-year phased-in approach regarding fare increases was presented at all meetings.  A very small number of public comments were made regarding the fare adjustments and service modifications. 

In order to establish new fares and to implement the new proposed routes, a public hearing with an approved resolution is required (Attachment C).  Notices were published in the Billings Times on April 21, April 28, and May 5, 2016 advertising the public hearing to be held on May 23, 2016.

City Council may:

• Approve the proposed MET route changes, the addition of the new "One Day" pass, and a resolution authorizing the new fares through 2020; or
• Disapprove the proposed MET route changes, the addition of the new "One Day" pass, and a resolution authorizing the the new fares.

Met Transit receives funding through a local transit mill levy, Federal and State grants, and fares.  The proposed route and schedule changes are anticipated to be cost neutral or to provide a small operational savings.  Staff estimates that the recommended fare increases will generate, accumulatively over the four year period (2017-2020 fiscal years), approximately $712,000.  This figure is based on fiscal year 2016 pass sales and fare collections.  These revenues will help offset potential higher fuel costs and wage increases, and provide local match funds for replacement bus and van purchases.

Staff recommends that following the public hearing, Council approve the recommended route and schedule changes to be implemented on August 1, 2016, as well as a resolution authorizing the four-year gradual fare increases to be implemented on Friday, July 1, 2016 through fiscal year 2020.