ANNUAL REPORT A DRIVING FORCE IN CENTRAL TEXAS

2014 ANNUAL REPORT A DRIVING FORCE IN CENTRAL TEXAS

A DRIVING FORCE IN CENTRAL TEXAS 2014 A N N UA L R E PO R T

Contents Letter From Linda 4 MetroRapid: Reinventing the Ride 6 MetroBus & MetroExpress: Go Local! 8 MetroRail: On the Fast Track 10 MetroAccess: Door-to-More Service 12 MetroRideShare: The Power of Together 14 Innovation: Leading the Way 16 MetroWorks: New Approaches That Work 18 Transit-Oriented Development: Building Community 20 Special Events: Special Attention for Special Events 22 Community Programs: Moving People Forward 24 Bike Programs: Pedal Power 26 Safety Programs: Getting There Safely 28 Financials: Investing in the Future 30 Project Connect: Focused on the Big Picture 32 2014 Board of Directors 34 Contacts 35 Next Up 36 2 2014 Annual Report 2014 Annual Report 3

Capital metropolitan transportation transportation authority Letter From Linda Looking back on 2014, I am again awed by all that Capital Metro has achieved. Our employees and contractors continued to work tirelessly to provide more choices for our riders, stakeholders and community. Building on our successes in 2014, we are well on our way to providing even more connected and sustainable transportation options for our fast-growing region. 2014 was marked by tremendous progress for Capital Metro. Here are just a few of the year s highlights: Provided 32.9 million rides system-wide. Launched MetroRapid, Austin s first Bus Rapid Transit (BRT) service, on time and under budget. Introduced the award-winning CapMetro Mobile App, which was downloaded by more than 100,000 riders, making it easier than ever to buy passes, plan trips and check arrival times on smart devices. Secured a $50 million grant from the Texas Department of Transportation for improvements to MetroRail. Worked with the City of Austin and surrounding communities on regional transportation system studies as part of Project Connect. Provided 400,000 rides to low-income customers through our Basic Transportation Needs Fund. Participated in 370 briefings, webinars, workshops, stakeholder meetings and outreach activities to engage more people in shaping the region s transportation future. Piloted MetroWorks, enabling 6,000 employees from more than 30 participating businesses to buy discounted transit passes through their workplace. Expanded participation in our MetroRideShare program by over 37%. Selected Endeavor Real Estate Group through a competitive process to redevelop Plaza Saltillo as a bustling, transit-oriented, mixed-use community. Added six new MetroBike Shelters at MetroRail Stations and major transit centers to make it easy for cyclists to safely and conveniently store their bikes. These and other Capital Metro successes are a direct result of our commitment to the people of Central Texas, the valuable partnerships we ve developed, the long-term strategy and investments we ve undertaken, and the continued feedback we receive from our riders. On behalf of Capital Metro, I thank you for your ongoing support as we continue to pursue the important goal of developing a comprehensive transit system for Central Texas. RECOGNIZED FOR EXCELLENCE! IN 2014, CAPITAL METRO: Earned the Texas Comptroller Leadership Circle Award for the fifth consecutive year for financial transparency. Chosen as the recipient of the Best of Texas Mobile/Wireless Award for the new CapMetro Mobile App. Received the American Institute of Architects Austin Chapter Design Award for our high-tech MetroRapid Shelters. Awarded four major industry accolades by the American Public Transportation Association for innovation, marketing, sustainability and digital government achievement. Attained Green Business Leaders Platinum status for our commitment to environmentally friendly and sustainable business practices. 4 2014 Annual Report 2014 Annual Report 5

METRORAPID Reinventing the Ride MetroRapid buses don t just bend in the middle, they make the entire riding experience more flexible. Launched in 2014, MetroRapid offers more comfort, convenience and frequency. And with free onboard Wi-Fi, the new service helps riders make the most of their time. The Austin Chronicle awarded MetroRapid the Best Way to Get from Point A to B as part of its annual Critics Choice Awards. 9,200 average weekday trips. 77 custom-designed stations on two routes, connecting two of the busiest transit corridors in Austin. 80% of the total cost came from a federal grant, bringing our tax dollars back to the local economy. Both routes continue attracting new riders, with Route 803 already exceeding ridership expectations. Real-time signage at stations lets riders know when the next vehicle will arrive. Bus priority lanes and traffic signal priority keep people moving. 2 million RIDES TAKEN ON METRORAPID DURING ITS 2014 LAUNCH YEAR 6 2014 Annual Report 2014 Annual Report 7

METROBUS & METROEXPRESS Go Local! MetroBus, the workhorse of our fleet, offers the most extensive service throughout Capital Metro s 535-square-mile service area. Nearly 350 vehicles and over 760 operators serve 2,700 local stops, offering virtually 24-hour service on weekdays. With affordable fares, convenient schedules and a great safety record, MetroBus accounts for over 75% of our average weekday ridership. MetroExpress provides fast service between seven suburbs and Park & Rides to employment centers in Austin, such as the Downtown Business District, Capitol Complex and the University of Texas. TOTAL BUS RIDERSHIP: 29,238,511* Average 2.1 million trips a month. 22% increase in MetroExpress ridership, bringing more people from surrounding communities into Austin s core. 12% increase in weekday Night Owl ridership. Moved buses off Congress Avenue, and installed the first 10 redesigned MetroBus Shelters, making Guadalupe and Lavaca an efficient transit corridor. Repainted the entire fleet of MetroExpress buses to distinguish them from other services. MetroBus: 24,176,371 UT Shuttle: 4,068,977 MetroExpress: 748,030 MetroAirport: 320,173** Night Owl: 234,248** * Total fixed-route, special events and UT shuttle trips ** Estimated annual trips 8 2014 Annual Report 2014 Annual Report 9

METRORAIL On the Fast Track For a convenient, stress-free commute between downtown and Leander, MetroRail is an easy choice. Since its 2010 launch, MetroRail ridership has more than quadrupled, and is at capacity during peak as more and more riders opt out of heavy commuter traffic. Record ridership occurred in 2014 when MetroRail service was extended during several special events. 795,400 total rides. Average 66,000 trips a month. 13% increase in SXSW ridership. Increased service by 250 hours during F1, Pecan Street Festival and SXSW. $50 million received from TxDOT for additional rail cars and a larger, permanent downtown station. 4% INCREASE IN METRORAIL RIDERSHIP IN 2014 METRORAIL RIDERSHIP 100,000 94,364 100,378 NUMBER OF RIDERS PER MONTH 80,000 60,000 40,000 20,000 0 70,037 59,534 19,827 2010 2011 2012 2013 2014 M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 10 2014 Annual Report 2014 Annual Report 11

METROACCESS Door-to-More Service In 2014, Capital Metro proudly celebrated 22 years of being 100% accessible. MetroAccess provides door-todoor service to customers unable to ride regular buses and trains. Our 150 MetroAccess vehicles and skilled staff of nearly 300 operators provide more than 1,700 rides each day. This safe, comfortable and convenient service ensures our customers with the greatest need are able to stay mobile and remain independent. 54,000 AVERAGE METROACCESS TRIPS PER MONTH 653,000* total trips. 4% increase in ridership over 2013. 5.7 million service miles driven. 93% average on-time customer pick-up. 35 new MV-1 vehicles added to fleet, offering easier boarding and front-seat availability for passengers in wheelchairs. 90 participants in the Travel Training program, which offers free lessons in how to ride the bus and train. * Represents ADA Paratransit service only. Non-ADA Access-a-Ride program data is not included. 12 2014 Annual Report 2014 Annual Report 13

Capital metropolitan transportation transportation authority METRORIDESHARE The Power of Together The math behind MetroRideShare is compelling. Riders spend less on gas, car maintenance and parking. They also experience less stress and more productivity, while helping reduce carbon emissions and traffic congestion. No wonder more businesses and their employees are using MetroRideShare vanpool service, with participating groups up 37% from the previous year. MetroRideShare is another example of Capital Metro s commitment to implementing best practices that foster more and better transportation options. 259,000 passenger trips. 98% of MetroRideShare commuters said they would recommend the service to others. 22,000 average monthly trips. 178 rideshare groups. 63% conversion rate of group participants in the Try It! vanpooling pilot program. 19% INCREASE OF TOTAL METRORIDESHARE PASSENGER TRIPS OVER 2013 14 2014 Annual Report 2014 Annual Report 15

INNOVATION Leading the Way In 2014, Capital Metro was one of the nation s first transit agencies to launch a mobile app, enabling customers to buy and use passes, and plan trips on-the-go. This is just one of many technology investments we are making to enhance the rider experience. Real-time arrival information and dynamic message signs were introduced at all new MetroRapid Stations to positive rider feedback. Free Wi-Fi, previously only available on MetroRail and MetroExpress, is now also on MetroRapid, and it will be implemented on the entire fleet next year. 100,000+ DOWNLOADS OF THE CAPMETRO APP IN ITS LAUNCH YEAR 77 high-tech MetroRapid Stations opened. 267,000 average monthly Wi-Fi connections on vehicles. $1 million generated in new app transit pass sales. 95,000 people visited our special event pages to find out how to get around during SXSW, ACL and F1. Equipped all 40 MetroRapid vehicles with back door scanners for faster and easier boarding. 16 2014 Annual Report 2014 Annual Report 17

METROWORKS New Approaches That Work When it comes to helping local businesses succeed, we re ready to lead the way. MetroWorks is a great example. Under the pilot program, employees of participating organizations can receive discounted Capital Metro transit passes, helping them to save money on gas and parking, and avoid driving in congested traffic. Employers benefit too: employees have reliable transportation and parking spaces are freed up for customers. 4 companies participated in the May pilot program. 30 additional businesses came on board during the first six months. 6,000 passes sold through MetroWorks from July to December. 900 individual passes sold on average each month. $112,000 generated in pass sales the first six months of program. 18 2014 Annual Report 2014 Annual Report 19

TRANSIT-ORIENTED DEVELOPMENT Building Community Transit inspires neighborhood growth and sustainability. Capital Metro actively partners with communities to plan and create business and residential developments in growth-ready areas. These transit-oriented developments (TODs) support transit-friendly, walkable communities with a vibrant mix of people, jobs, retail businesses and services. Capital Metro understands and embraces its role in fostering neighborhoods and sustainable growth. $153 million in private development has been generated around rail stations. Over $800 million in added value within the nine MetroRail Station areas. More than $1 billion planned or under development. A 200-unit multifamily project, currently under construction, will connect to the Leander MetroRail Station with a newly expanded pedestrian and bike trail. Endeavor and Columbus Realty were selected to redevelop 11 acres around the Plaza Saltillo MetroRail Station, just east of I-35 downtown. Austin Community College held a successful bond election for a new campus at Leander Station, slated to open in 2018. 20 2014 Annual Report 2014 Annual Report 21

Capital metropolitan transportation transportation authority Capital metropolitan transportation transportation authority 17% INCREASE IN SHUTTLE RIDES PROVIDED DURING AUSTIN CITY LIMITS SPECIAL EVENTS Special Attention for Special Events Austin is clearly a center for fun and memorable events, from F1 and ACL to SXSW and dozens of other music, cultural and sporting events. Every year, we expand our services to make sure locals and visitors get around safely. As a convenient alternative to steep parking fees and stop-and-go traffic, riding the train or bus has become a key ingredient in keeping Austin weird, fun and safe. 245,000 total rides during special events, up 6% from 2013. 44,500 bus rides during F1. 34,000 MetroRapid rides during ACL. 55,000 MetroRail rides during SXSW, up 13% over the previous year. 132,500 shuttle rides during Austin City Limits, up 17% from 2013. Extended SXSW MetroRail service to 2 a.m. for the first time. 22 2014 Annual Report 2014 Annual Report 23

above: Gifts donated to Brooke Elementary School students by Capital Metro employees for the annual Giving Tree program. opposite page: Gerardo Castillo, Capital Metro's SVP, Chief of Staff, hands over keys to a retired MetroRideShare van donated to Marbridge, a nonprofit residential community that offers transitional and lifetime care to adults with a wide range of cognitive abilities. 1 million RIDES PROVIDED THROUGH THE BASIC TRANSPORTATION NEEDS FUND SINCE 2012 COMMUNITY PROGRAMS Moving People Forward Capital Metro is always ready to lend a hand. We invest time, money and transportation services to assist those in need. Each year, Capital Metro helps more than half a million people gain access to basic necessities: transportation, food, shelter and safety. We partner with various nonprofits, the Austin Police Department, Austin Fire Department, and Department of Homeland Security and Emergency Management to help out during emergencies and times of need. HERE S WHAT WE CONTRIBUTED IN 2014: Invested $350,000 in our Basic Transportation Needs Fund (BTNF) to increase transit access for low-income, transit-dependent members of the community, up 29% from 2013. Donated 59 retired Capital MetroRideShare vehicles to more than 20 local organizations through our new Community Mobility Vehicle Grant Program to meet transportation needs. Contributed 400 used cell phones, or 9,000 talk-time minutes, to Cell Phones for Soldiers. Collected enough food to provide 30,000 meals for Central Texans facing hunger through the holiday Stuff the Bus campaign with Whole Foods Market, benefitting the Capital Area Food Bank of Texas. Donated gifts to 85 area children in need through employee participation in Capital Metro s annual Giving Tree program. Delivered turkey dinners and toys to 30 low-income families as part of Operation Blue Santa, in partnership with the Austin Police Department. Provided bus transportation for 50 children to the annual Shop with a Cop holiday event. Delivered over 150 people out of harm s way during 15 emergencies. Provided 6,000 rides to homeless shelters during extreme hot and cold weather. 24 2014 Annual Report 2014 Annual Report 25

BIKE PROGRAMS Pedal Power Combining bikes and transit is a great way to promote exercise while reducing congestion and saving money. Capital Metro actively partners with the Central Texas biking community and the City of Austin to provide more options for cyclists. We strive to make cycling a safe, enjoyable and convenient solution to the first and last mile challenge. 342,000 TIMES COMMUTERS BROUGHT THEIR BIKES ALONG FOR THE RIDE Built and opened six additional MetroBike Shelters, making it even easier to combine cycling with transit. Continued installing three-bike racks on our entire bus fleet so more bikes can be carried on buses. Worked with the city to develop additional bike lanes for safer sharing of the road. Participated in several cycling events like Viva! Streets, Austin BikeFest and Be Kind to Cyclists Rally for Respect. Partnered with B-cycle to install a bike sharing station in east Austin near Capital Metro headquarters. 26 2014 Annual Report 2014 Annual Report 27

Capital metropolitan transportation transportation authority SAFETY PROGRAMS Getting There Safely We are proud of all we have done to expand transportation options in our service area, but safety remains our ultimate priority. Every day, our skilled drivers must safely navigate heavy traffic on the road, and be prepared for unexpected obstacles on the train tracks. Capital Metro also partners with a variety of community groups to ensure safe roads for all Central Texans. Partnered with Safer Streets ATX to promote safe and sober transportation options. Promoted our safe latenight transportation options with special service maps, available at businesses in the entertainment district. Gave 4,500 free rides on MetroRail and MetroRapid New Year s Eve. Extended MetroRail and MetroRapid services during Halloween and F1 to give people safe options. Partnered with KEYE to produce a transit safety video and establish a No Text Zone campaign, and appeared monthly to promote safety on the station s "We Are Austin" lifestyle show. 28 2014 Annual Report 2014 Annual Report 29

REVENUE* (TOTAL: $268,003,037) FINANCIALS Investing in the Future We are fortunate to live and work in one of the nation s most dynamic cities. But that economic growth continually expands our need for alternative transportation choices. To meet those needs, Capital Metro has developed a 20-year financial forecast and long-range capital improvement program. As a steward of public funds and public trust, Capital Metro strives for financial accountability and transparency. Our current financial plans and transactions can be found at capmetro.org/transparency. Sales Tax: $193,818,456 Grant Income: $43,481,920 Fares: $23,146,250 Rail Freight: $5,119,927 Other Income: $2,343,535 Investments: $92,949 OPERATING EXPENSES* (TOTAL: $236,204,506) Fixed Bus Route: $125,295,542 Administrative & Support Services: $47,387,283 MetroAccess: $29,584,172 MetroRail: $16,730,440 Rail Freight: $10,373,659 Mobility Programs: $4,975,704 Build Central Texas: $756,097 MetroRideShare: $1,101,609 CAPITAL SPENDING* (TOTAL: $29,604,016) Vehicles: $151,053 Facilities: $3,160,224 IT: $7,457,182 MetroRapid: $13,205,381 Vehicle Maintenance: $96,921 Rail Infrastructure: $4,997,485 Misc. Projects: $535,770 30 2014 Annual Report *Fiscal Year 2014 2014 Annual Report 31

2014 MILESTONES: Launched MetroRapid, one of the first phases of the envisioned Project Connect integrated system. Collaborated with our partners to develop a Central Corridor study that resulted in a proposed urban rail plan connecting rapidly growing East Riverside Drive and ACC-Highland to downtown Austin and UT. Finalized a locally preferred alternative plan to connect Georgetown, Pflugerville, Round Rock and other communities to Austin s core. Worked with North Corridor communities to create three-year transit development plans. PROJECT CONNECT Focused on the Big Picture It s no secret; traffic congestion is a big challenge in Central Texas. And Capital Metro is looking for solutions. We are leading the regional effort to plan future investments for a high-capacity regional transit system with our partners: the City of Austin, Lone Star Rail District and the Capital Area Metropolitan Planning Organization (CAMPO). To better define regional transportation challenges and opportunities, we held more than 200 meetings, open houses, webinars and other opportunities to engage residents and businesses in the planning process this year. 32 2014 Annual Report 2014 Annual Report 33

2014 Board of Directors Contacts Transit Store: 209 W. 9th Street, Austin, Texas 78701 (512) 389-7454 Website: capmetro.org Email: customer.service@capmetro.org GO Line: (512) 474-1200 Mike Martinez Chris Riley Ann Stafford Norm Chafetz Wade Cooper Chairman Vice Chair Secretary Social Media: facebook.com/capitalmetro twitter.com/capmetroatx capmetroblog.com youtube.com/user/iridecapmetro pinterest.com/capitalmetro John Langmore Terry Mitchell David Siebold Beverly Silas Juli Word Board & Customer Satisfaction Advisory Committee (CSAC) meetings: capmetro.org/csac Access Advisory Committee (AAC) meetings: capmetro.org/aac * 2015 board members can be found at capmetro.org/leadership. 34 2014 Annual Report 2014 Annual Report 35

Next Up Capital Metro is leading the way to develop solutions to Central Texas mobility problems. Over the next few years, we'll concentrate on creating an integrated plan for a regional high capacity mass transit system, while making our current services more convenient and efficient. Here s what you can look forward to METRORAIL BUILD OUT 4x Since its 2010 launch, MetroRail ridership has more than quadrupled. To meet record ridership, we're purchasing additional rail cars, upgrading the Downtown Station and expanding Park & Rides along the line to double the capacity, increase frequency and make connecting easier than ever. EXPRESS LANES 45 mph + travel speeds during peak. 1 Tired of being stuck in stop-and-go traffic? We're adding Express service in 2016 that operates in newly created managed lanes so that long-distance commuters have easier access to the city in less time. HIGH FREQUENCY TRANSIT NETWORK With our new network of bus routes with more frequent service, you ll spend less time waiting for the bus and more time doing what you enjoy. METRORAPID UPGRADES & EXPANSION 2 million rides on just 2 routes in 2014, the launch year. We re exploring ways to expand the service to additional corridors, optimize these two existing MetroRapid routes and protect the service from increasing congestion. 15 mins. REGIONAL TRANSIT PLAN: PROJECT CONNECT Only 47% of working-age residents live near a transit stop in our region. 2 So that more people have access to greater opportunities, we're partnering with the Project Connect North Corridor communities on three-year transit development plans to connect those areas with the larger transportation system, and developing additional corridor studies for a complete regional transit system. FIRST AND LAST MILE CONNECTIONS Nearly 70% of surveyed millennials reported using more than one transportation mode to get to their destinations a few times each week. 3 That s why we're helping riders bridge the first and last mile through expanded partnerships with services like Car2Go, Austin B-Cycle and others. TRANSIT-ORIENTED DEVELOPMENT $1 billion in new or planned development along the MetroRail Red Line. Because transit drives a community s economy, we're working with a private partner to revitalize the 11 acres surrounding the Plaza Saltillo MetroRail Station. COMMUNITY ENGAGEMENT 370 The number of community meetings and workshops Capital Metro participated in during 2014. And we plan to actively engage even more people in our community to help shape our growing region s transportation future and build a complete, connected transportation system. In 2016, we'll launch Service Plan 2025, a comprehensive, community-based plan for new and improved bus service. PARK & RIDES 6 New Park & Rides We want it to be easier to catch a ride into Austin for work or play. To meet the growing ridership from outlying communities, we re adding more Park & Rides to our system. We re also increasing the number of parking spaces at the busiest locations. P TECHNOLOGY SOLUTIONS 91% of adults use a cellphone. 4 75% of transit riders in nine major cities said travel would be easier with electronic ticketing. 5 With statistics like this, Capital Metro knows we're moving in the right direction. We'll continue to work with Austin s tech community to make transit easier and more convenient, system-wide, through innovations like the CapMetro App and real-time departure information. Mobile Ticket 1 Federal Highway Administration (FHWA) requirement 2 Brookings Institution 3 The American Public Transportation Association (APTA) 4 Pew Research Center 5 Accenture