Analyzing the Effectiveness of Commuter Benefits Programs (2005)

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T R A N S P O R T A T I O N R E S E A R C H B O A R D WASHINGTON, D.C. 2005 www.TRB.org T R A N S I T C O O P E R A T I V E R E S E A R C H P R O G R A M TCRP REPORT 107 Research Sponsored by the Federal Transit Administration in Cooperation with the Transit Development Corporation SUBJECT AREAS Planning and Administration • Public Transit Analyzing the Effectiveness of Commuter Benefits Programs ICF CONSULTING Fairfax, VA CENTER FOR URBAN TRANSPORTATION RESEARCH Tampa, FL

TRANSIT COOPERATIVE RESEARCH PROGRAM The nation’s growth and the need to meet mobility, environmental, and energy objectives place demands on public transit systems. Current systems, some of which are old and in need of upgrading, must expand service area, increase service frequency, and improve efficiency to serve these demands. Research is necessary to solve operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the transit industry. The Transit Cooperative Research Program (TCRP) serves as one of the principal means by which the transit industry can develop innovative near-term solutions to meet demands placed on it. The need for TCRP was originally identified in TRB Special Report 213—Research for Public Transit: New Directions, published in 1987 and based on a study sponsored by the Urban Mass Transportation Administration—now the Federal Transit Admin- istration (FTA). A report by the American Public Transportation Association (APTA), Transportation 2000, also recognized the need for local, problem-solving research. TCRP, modeled after the longstanding and successful National Cooperative Highway Research Program, undertakes research and other technical activities in response to the needs of transit service providers. The scope of TCRP includes a variety of transit research fields including plan- ning, service configuration, equipment, facilities, operations, human resources, maintenance, policy, and administrative practices. TCRP was established under FTA sponsorship in July 1992. Proposed by the U.S. Department of Transportation, TCRP was authorized as part of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). On May 13, 1992, a memorandum agreement outlining TCRP operating procedures was executed by the three cooperating organizations: FTA, The National Academies, acting through the Transportation Research Board (TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit educational and research organization established by APTA. TDC is responsible for forming the independent governing board, designated as the TCRP Oversight and Project Selection (TOPS) Committee. Research problem statements for TCRP are solicited periodically but may be submitted to TRB by anyone at any time. It is the responsibility of the TOPS Committee to formulate the research program by identifying the highest priority projects. As part of the evaluation, the TOPS Committee defines funding levels and expected products. Once selected, each project is assigned to an expert panel, appointed by the Transportation Research Board. The panels prepare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooperative research programs since 1962. As in other TRB activ- ities, TCRP project panels serve voluntarily without compensation. Because research cannot have the desired impact if products fail to reach the intended audience, special emphasis is placed on disseminating TCRP results to the intended end users of the research: transit agencies, service providers, and suppliers. TRB provides a series of research reports, syntheses of transit practice, and other supporting material developed by TCRP research. APTA will arrange for workshops, training aids, field visits, and other activities to ensure that results are implemented by urban and rural transit industry practitioners. The TCRP provides a forum where transit agencies can cooperatively address common operational problems. The TCRP results support and complement other ongoing transit research and training programs. TCRP REPORT 107 Project H-25A ISSN 1073-4872 ISBN 0-309-08840-2 Library of Congress Control Number 20055933939 © 2005 Transportation Research Board Price $21.00 NOTICE The project that is the subject of this report was a part of the Transit Cooperative Research Program conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. Such approval reflects the Governing Board’s judgment that the project concerned is appropriate with respect to both the purposes and resources of the National Research Council. The members of the technical advisory panel selected to monitor this project and to review this report were chosen for recognized scholarly competence and with due consideration for the balance of disciplines appropriate to the project. The opinions and conclusions expressed or implied are those of the research agency that performed the research, and while they have been accepted as appropriate by the technical panel, they are not necessarily those of the Transportation Research Board, the National Research Council, the Transit Development Corporation, or the Federal Transit Administration of the U.S. Department of Transportation. Each report is reviewed and accepted for publication by the technical panel according to procedures established and monitored by the Transportation Research Board Executive Committee and the Governing Board of the National Research Council. Published reports of the TRANSIT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national-academies.org/trb/bookstore Printed in the United States of America Special Notice The Transportation Research Board of The National Academies, the National Research Council, the Transit Development Corporation, and the Federal Transit Administration (sponsor of the Transit Cooperative Research Program) do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the clarity and completeness of the project reporting.

The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished schol- ars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. On the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and techni- cal matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Acad- emy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achieve- ments of engineers. Dr. William A. Wulf is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, on its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Acad- emy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both the Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. William A. Wulf are chair and vice chair, respectively, of the National Research Council. The Transportation Research Board is a division of the National Research Council, which serves the National Academy of Sciences and the National Academy of Engineering. The Board’s mission is to promote innovation and progress in transportation through research. In an objective and interdisciplinary setting, the Board facilitates the sharing of information on transportation practice and policy by researchers and practitioners; stimulates research and offers research management services that promote technical excellence; provides expert advice on transportation policy and programs; and disseminates research results broadly and encourages their implementation. The Board’s varied activities annually engage more than 5,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. www.TRB.org www.national-academies.org

COOPERATIVE RESEARCH PROGRAMS STAFF FOR TCRP REPORT 107 ROBERT J. REILLY, Director, Cooperative Research Programs CHRISTOPHER W. JENKS, TCRP Manager DIANNE S. SCHWAGER, Senior Program Officer EILEEN P. DELANEY, Director of Publications ELLEN M. CHAFEE, Assistant Editor NATASSJA LINZAU, Associate Editor PROJECT PANEL H-25A Field of Policy and Planning DONNA MURRAY, Washington Metropolitan Area Transit Authority (Chair) STUART M. BAKER, Commuter Benefits Management, Inc., Oakland, CA STACY R. BARTELS, Delaware Valley Regional Planning Commission WAYNE BERMAN, Federal Highway Administration PAUL CASEY, Big Blue Bus, Santa Monica, CA CHRISTOPHER HAMILTON, Arlington County (VA) Department of Public Works DAVID JUDD, Commuter Check Services Corporation, Englewood, NJ JARVIS KEYS, Minnesota DOT DONALD S. SHOUP, University of California—Los Angeles ELIZABETH A. STUTTS, Florida DOT WILLIAM B. MENCZER, FTA Liaison PETER SHAW, TRB Liaison AUTHOR ACKNOWLEDGMENTS This report reflects the work of a number of people. The project team consisted of Michael Grant, Will Schroeer, Liisa Ecola, and Keri Funderburg at ICF Consulting, and Phil Winters, Chris Hagelin, and Ajay Joshi at the Center for Urban Transportation Research (CUTR). We also owe many thanks to the people who contributed their knowledge of commuter benefits to this research. In the three com- mute trip reduction regions, we are indebted to Ed Hillsman of the Washington State Commute Trip Reduction Program; Carol Gomez, Marie Ellingson, Antonio Thomas, and Roosevelt Brown of the South Coast Air Quality Management District; and Rita Hildebrand and Zane Dowling of the Pima County Association of Governments. We also thank the following transit agency staff members: Lorraine Taylor, Sales Manager at the Washington Metropolitan Area Tran- sit Authority; Tanya Mayfield, Marketing Specialist for the MARTA Partnership Program in Atlanta; Jeff Wong, Market Development Planner and FlexPass Program Manager, Lois Watt, Lead Customer Service Coordinator, and Caleb Swift, Program Manager for the Voucher Program—all at King County Metro in Seattle; Susanne Henry, Senior Research Analyst at the Denver Regional Transporta- tion District; Robert Gibbons, Director of Customer Service and Marketing at Metro in Minneapolis/St. Paul; Scott Haywood, Sales Program Manager at the Santa Clara Valley Transportation Author- ity; Talaya Sapp, Business Development Supervisor, and Alex Pot- ter, Business Outreach Coordinator, at Valley Metro in Phoenix; and Dolly Camachol-Watson of Capital Metro in Austin, Texas. These practitioners collectively spent many hours with us on the phone, and we are grateful for their time and generosity in sharing their insights.

FOREWORD By Dianne S. Schwager Staff Officer Transportation Research Board TCRP Report 107: Analyzing the Effectiveness of Commuter Benefits Programs will be of interest to employers, transit agencies, and other stakeholders interested in commuter benefits programs and, in particular, the potential of these programs to increase transit ridership and transit agency revenues, reduce parking demand, and lower air-pollutant emissions. This report is designed to help employers, transit agen- cies, policy makers, and organizations that promote commuter benefits to better under- stand what effects they might expect from a commuter benefits program and how to quantify these effects. However, this report focuses mostly on transit benefits, a sub- set of commuter benefits, because more information is available on transit benefits than on vanpool benefits. TCRP Report 107 offers readers: • A guide for evaluating the effectiveness of a transit benefits program and infor- mation on how a transit benefits program can be designed and implemented to more effectively meet goals and objectives. The report also explains why evalua- tion is important and how to go about conducting a program evaluation. • A summary of research on the impacts of transit benefits programs on travel behav- ior and on transit agencies’ systemwide ridership, revenues, and costs. The research findings are based on a review of 21 surveys conducted by transit agencies and other organizations in 12 metropolitan areas, analysis of worksite trip reduction records from three regions with mandatory commute trip reduction programs, and inter- views with seven transit agencies. Overall, the report finds that transit benefits programs can be effective at meeting various goals for employers, transit agencies, and governments. However, it is critical for these stakeholders to set realistic expectations and conduct valid evaluations in order to assess these effects. Appendixes A through G of TCRP Report 107 are published online as TCRP Web- Only Document 27. To access this document, go to www4.trb.org/trb/onlinepubs.nsf and click on “TCRP Web Documents.”

1 SUMMARY Guidance for Evaluating the Effectiveness of Transit Benefits Programs, 2 Research on the Effectiveness of Transit Benefits Programs, 3 Effects on Travel Behavior, 3 Effects on Transit Agency Ridership, Revenues, and Costs, 4 6 CHAPTER 1 Introduction Overview of the Issue, 6 Study Objective and Report Organization, 6 8 CHAPTER 2 Evaluating the Effectiveness of Transit Benefits Programs Strategic Planning and Program Evaluation, 8 Why Evaluate Programs? 8 Relationship Between Planning and Evaluation, 8 Setting Realistic Expectations, 10 Developing a Baseline, 10 Understanding Program Context and Factors That Influence Effectiveness, 10 Implementing a Transit Benefits Program to Meet Strategic Goals and Objectives, 11 How Goals and Objectives Can Shape Program Design, 11 Role of Transit Benefits Program Type and Pricing, 12 Considerations in Developing a Transit Benefits Program, 12 Considerations in Marketing a Transit Benefits Program, 20 Defining and Measuring Success, 22 Measures of Effectiveness, 22 Using Surveys to Measure Impacts, 27 Conclusion, 34 36 CHAPTER 3 Understanding the Impacts of Transit Benefits Programs Impacts on Employee Travel Behavior, 36 Data Sources and Approach, 36 Effects of Transit Benefits Programs on Employee Travel Behavior, 42 Factors Affecting Employee Travel Behavior Response, 51 Impacts of Vanpool and Other Financial Benefits on Employee Travel Behavior, 57 Comparison of Study Findings with Other Literature, 58 Data Gaps on Travel Impacts, 58 Impacts on Transit Agencies’ Ridership, Revenues, and Costs, 59 Data Sources and Approach, 60 Effects of Transit Benefits Programs on Transit Agencies, 60 Data Gaps on Transit Agency Impacts, 72 Conclusion, 73 73 REFERENCES 75 APPENDIXES A THROUGH G CONTENTS