Service Options for Public Transit in Emmet County final

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Prepared by JDrury Consulting LLC

John Drury P.O. Box 454

Boyne City, MI 49712 May 2012

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Service Options for Public Transit in Emmet County

The majority of the Emmet County residents live in the southern portion the County with 61.3

percent of the County’s population living in the communities that border Little Traverse Bay.

Communities with highest levels of transit dependent populations (low income, low household

auto ownership, elderly, and disabilities (physical or mental) include: Petoskey, Harbor Springs,

Bear Creek Township, Littlefield Township, Little Traverse Township, Springvale Township, and

Resort Township. While there are persons needing assisted transportation throughout the

County, background studies and data clearly show the need to focus greater transportation

resources into the areas with the highest needs. In support of this conclusion is the fact that

human services, medical services, shopping, employment, recreation, senior housing, and

multi-family housing are concentrated around the bay area communities.

Any scenario for a public transit system in Emmet County requires a local funding option. The

funding option can be via 1) county or other appropriation (as is done in Cheboygan County) or,

2) a dedicated transit millage. The following system options are predicated on the assumption

that local funding from one of the 2 above options is in place, and the Michigan Department of

Transportation (MDOT) provides state and federal operating funds.

Three service options will be proposed. The first system proposal is basically an expansion of

the Straits Regional Ride service to provide countywide transit services in Emmet County. The

second proposal would be a stand-alone county wide public transit service for Emmet County,

and the third proposal is a limited public transit service in the City of Petoskey and some

surrounding townships. MDOT historically has transferred vehicles from Specialized Services

agencies (such as the Friendship Centers) to newly formed public transit agencies in counties

that receive state operating funds. This analysis assumes the vehicles will be transferred to any

new public system. Detail and budgets for the proposed options are below.

System 1: The proposed system will be based on using the current public transit provider,

Straits Regional ride, to provide “around town” demand response (dial-a-ride) service combined

with scheduled out-county flexible routes. Straits Regional currently has routes into Petoskey

from Indian River through Alanson and from Mackinaw City south along US-31 to Petoskey.

These existing routes would be incorporated into an out county flexible service for Emmet

County. The existing services provided by the Friendship Centers, along with their vehicles,

would likely be folded into the new system. A demand response Dial-A-Ride system would be

developed to serve Petoskey, Harbor Springs, and the Bay area townships, using the existing

vehicle resources of the Friendship Centers. Some demand response service could also be

provided on a scheduled basis to Northern townships of the county, and scaled up over time.

The recommended service model for a small-scale start up is based on using existing services

and resources to provide a basis for phased system growth. As vehicles are normally provided

via the Michigan Department of Transportation capital grants, obtaining additional buses may

take up to 3 years, so a gradual start up is advised due to the lead time involved in procuring

bus capital.

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It is anticipated the system will grow as ridership and opportunities increase. Service will be

provided five days per week, from approximately 6:00 am to 6:00 p.m. The early morning and

early evening hours concentrate on taking riders to and from work and educational/ training

destinations (although any trip purpose is allowed). The midday hours normally focus on

providing service to health care, shopping, social/recreational, and other destinations. This

service operation will present opportunities for agency contracts and individual subscriptions

for daily use.

Service Detail

Bay Area Communities/Southeast Demand Response

Hours of Operation: 7:00 am - 6:00 pm (Mon - Fri)

No. of Vehicles: 6

Type of Service: Demand Response/Subscriptions within Bay Area

Communities: A demand response (dial-a-ride) system would provide service to Petoskey,

Harbor Springs, Alanson, and adjacent townships.

Total Vehicle Hours/Day: 55

US-31 Corridor Rural Flex-Routes


No. of Vehicles: 2

Type of Service: Flexible route on demand/subscriptions: A demand response system would

provide service to the communities of Mackinaw City and Pellston to Petoskey.


Northern Demand Response

Areas with dispersed low density population and few small population centers lend

themselves to a reservation or call in demand response service. The northern two-thirds

of the County would be serviced by demand response service.

Hours of Operation: 9:00 am - 4:00 pm (Tue - Th)

No. of Vehicles: 2

Type of Service: Reservation/Subscriptions:

The north loop would provide service through Cross Village, Bliss, Carp Lake, Pellston and

northern communities with the focus of bringing persons into Petoskey/Harbor Springs for

work, medical, shopping, and recreation. Buses would only run if there are reservations on the

scheduled days. Once regular ridership has been established, identified bus stops could be

established at select locations


Estimate for all Service Total Vehicle Hours/Day: 67

Total Annual Vehicle Hours (246 Days/Yr.): 17,314 hours

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System 1 Resource Requirements

The buses projected for use in demand response service in the Petoskey, Harbor Springs/Bay

Area would come from the Friendship Centers’ fleet, so no additional bus capital would be

needed to provide that service. Straits Regional currently has buses in service that would meet

the need of the flexible routes. Straits Regional has cutaway buses that it would put in service

to provide the demand response service in the northern townships of the County.

Once Straits Regional expands service in Emmet County, additional vehicles will need to be

applied for through MDOT to meet replacement and expansion needs.

System 1 Projected Operating Costs

Under the scenario of providing additional operating funds to Straits Regional Ride to provide

enhanced transit services, any local funds in the form of a millage would increase the amount of

state and federal operating funds that Straits would be able to leverage. With a millage in the

range of .15-.25, that equates into $397,746 to $662,911 in local funding from Emmet County.

Refer to the table “Emmet Phase 1-3 Budget Detail.”

System 2: The proposed system will be a stand-alone, county wide system based which

would provide “around town” demand response (dial-a-ride) service combined with scheduled

out-county flexible routes. As in proposed system 1 above, the existing services provided by

the Friendship Centers, along with their vehicles, would be folded into the new system. A

demand response Dial-A-Ride system would serve Petoskey, Harbor Springs, and the Bay area

townships, using the existing vehicle resources of the Friendship Centers. Some demand

response service could also be provided on a scheduled basis to Northern townships of the

county, and scaled up over time. Some flexible routes to the Northern areas of the county

could be developed once vehicles can be secured to provide the service, but for start up it is

assumed that the system would contract with Straits Regional Ride (utilizing their current

routes) to provide service to the northern areas of the county on a long term or short term

basis.

Similar to the first proposed service, the recommended service model for a small-scale start up

is based on using existing services and resources to provide a basis for phased system growth.

As vehicles are normally provided via the Michigan Department of Transportation capital

grants, obtaining additional buses may take up to 3 years, so a gradual start up is advised due to

the lead time involved in procuring bus capital.

Under System 2, service hours and area are the same as with System 1, other than operations

will be under the new system. Only the flexible route service is anticipated to be contracted to

SRR for the short term.

Service Detail

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No. of Vehicles: 6



Harbor Springs, Alanson, and adjacent townships.


US-31 Corridor Rural Flex-Routes


Number of Vehicles: 2 (Contracted service from Straits Regional Ride)

Type of Service: Flexible route on demand/subscriptions: A demand response system would

provide service to the communities of Mackinaw City and Pellston to Petoskey.


Northern Demand Response

Areas with dispersed low-density population and few small population centers lend

themselves to a reservation or call in demand response service. The northern two-thirds

of the County would be serviced by demand response service.

Hours of Operation: 9:00 am - 4:00 pm (Tue - Th)

Number of Vehicles: 2

Type of Service: Reservation/Subscriptions:

The north loop would provide service through Cross Village, Bliss, Carp Lake, Pellston and

northern communities with the focus of bringing persons into Petoskey/Harbor Springs for

work, medical, shopping, and recreation. Buses would only run if there were reservations on

the scheduled days. Once regular ridership has been established, identified bus stops could be

established at select locations


Estimate for all Service Total Vehicle Hours/Day: 67



The buses projected for use in demand response service in the Petoskey, Harbor Springs/Bay

Area would come from the Friendship Centers’ fleet, so no additional bus capital would be

needed to provide that service. Straits Regional currently has buses in service that would meet

the need of the flexible routes. The stand-alone system will need to apply for additional

vehicles through MDOT in order to meet replacement and expansion needs. Location for

administrative offices and bus storage/maintenance would need to be determined, which could

be via lease or rental until funding is secured to construct a transit facility.

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Under this system scenario, the system costs would be based at the same cost as contracting

with Straits Regional Ride, so costs would be approximately the same.

Refer to the table “Emmet Phase 1-3 Budget Detail.”

However, there are likely to additional capital costs associated with proposed System 2, as

proposed System 1 already has administrative and staffing infrastructure in place. Start up

capital costs for proposed System 2 are projected at a minimum of $80,000 to a maximum of

$150,000 for administrative and operational needs (eg. computers, radios, maintenance

equipment, office furniture, maintenance and computer dispatch software, uniforms, etc.).

These costs assume a facility for operations/maintenance can be rented or leased.

System 3: This system scenario is proposed in the event the Emmet County Board of

Commissioners decides not to support the formation of a county wide Act 196 transit authority.

It also presumes that the City of Petoskey would take the lead on forming an Act 196 Authority

(which in reality may not be the case). The proposed system will be a stand-alone; City (and

possibly townships) based system, which would provide “around town” demand response (dial-

a-ride) service within the promulgating entity’s legal jurisdiction only. Depending on the

number of townships that chose to be a part of the system, some express route service could

be offered between those townships and the City of Petoskey. It is likely the existing services

provided by the Friendship Centers, along with their vehicles, would be folded into this system.

A demand response Dial-A-Ride system would serve Petoskey, possibly Harbor Springs and the

Bay area townships, using the existing vehicle resources of the Friendship Centers. It is unlikely

that northern townships of the county would be served via demand response service, though

some flexible routes to the northern areas of the county could be available via contract with

Straits Regional Ride utilizing their existing routes.

Similar to previous proposed services, the recommended service model for a small-scale start

up is based on using existing services and resources to provide a basis for phased system

growth. As vehicles are normally provided via the Michigan Department of Transportation

capital grants, obtaining additional buses may take up to 3 years, so a gradual start up is

advised due to the lead time involved in procuring bus capital.

Under System 3, service hours and areas served are more limited. The flexible route service

could be contracted to SRR if there is a desire on the forming entities to bring people in to

Petoskey and surrounding areas. As which political entities would be interested in partnering

to form a transit authority, it is difficult to determine service detail, but it is assumed for this

projection that the City of Petoskey and the Bay Communities would be part of an authority.

Service Detail



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No. of Vehicles: 6



Harbor Springs, and adjacent townships.


US-31 Corridor Rural Flex-Routes (Optional)


Number of Vehicles: 2 (Contracted service from Straits Regional Ride)

Type of Service: Flexible route on demand/subscriptions.



Demand response reduced to 28 hours per day

with optional contracted flex routes)


The buses projected for use in a demand response service in the Petoskey, possibly Harbor

Springs/Bay Area would come from the Friendship Centers’ fleet, so no additional bus capital

would be needed to provide that service. Straits Regional currently has buses in service that

would meet the need of the flexible routes. As with the other proposed system scenarios, this

system will need to apply for additional vehicles through MDOT in order to meet replacement

and expansion needs. A space for administration and vehicle storage/maintenance will need to

be determined.


Refer to the table “Petoskey/Townships Phase 1-3 Budget Detail.”

System 3 will also have significant capital costs associated with it. Start up capital costs for

proposed System 3 are similar to those for System 2, and are projected at a minimum of

$80,000 to a maximum of $150,000 for administrative and operational needs (eg. computers,

radios, maintenance equipment, office furniture, maintenance and computer dispatch

software, uniforms, etc.). Again, these costs assume a facility for operations/maintenance

can be rented or leased.

Key Issues:

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• Emmet County is currently served by Straits Regional Ride, is a part of its service area,

and has members on the Straits Regional Ride Board. If an authority is formed, there

would be 3 boards potentially involved in the oversight of public transportation in

Emmet County; 1) the Emmet County Board of Commissioners, who currently appoint 2

of their board members to serve on the Straits Regional Ride Board, and would also

likely be responsible for appointing board members to any Public Transportation

Authority they would be responsible for forming. 2) The Public Transportation

Authority, whose board would oversee the distribution of funds to Straits Regional Ride,

and 3) the Straits Regional Ride Board, who sets the policy for the transit system.

Another board to consider is the Cheboygan County Board, who is currently the

fiduciary for the system, and employs the transit system staff.

• Should a millage pass and the desire exist for Emmet County to form a ‘stand-alone’

transportation authority, the current arrangement with Straits Regional should be

revisited, and either opt to have members on the Straits Board appointed by the new

authority board, or; remove Emmet County from the Straits Regional Ride, and strictly

contract service from Straits Regional. These legal issues should be explored prior to

formation of an authority.

• If a public transit system is formed in the county, MDOT will in all likelihood fold the

Friendship Centers’ buses into a new system. The bus storage building on the

Friendship Centers’ property becomes an issue, as it will no longer be used for

transportation purposes (as required via the Federal Transit Administration (FTA) and

MDOT) by the Friendship Centers. Historically, MDOT has transferred ownership of

these types of facilities to the new transit agency or the existing owner has been offered

the opportunity to purchase the facility for the current fair market value. In either

scenario, the facility issue becomes problematic for Friendship Centers.

Steps to Service Options:

1) The County Board of Commissioners forms an Act 196 Authority. The new Authority

holds a millage election. If the millage passes, the authority contracts with Straits

Regional Ride (SRR) to provide service at SRR’s hourly cost. Funding would be used

to pay for the contracted service.

2) The County Board of Commissioners forms an Act 196 Authority to run a new transit

system in Emmet County. The County Commissioners can put a millage on the

ballot prior to forming an authority, or once the Authority is formed it can put a

millage proposal on the ballot.

3) If the County Board of Commissioners decides not to form an Act 196 Authority, the

City of Petoskey and neighboring townships could form one. A system such as this

would operate only within the jurisdiction of the entities forming the authority (i.e.

Petoskey city limits, township borders). The City could place a millage request on

the ballot prior to forming an authority, or the Authority could place the millage

proposal on the ballot after formation.

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Recommendations:

Of the three system scenarios presented, the recommended option is System 1. With this

option, essentially a transit system is already in place. There are adequate vehicles available to

operate the system at start up and until other vehicles can be procured. Administration

familiar with transit operations, a trained staff familiar with the county, and infrastructure are

in place. By purchasing services from Straits Regional Ride, the system could be up and running

from almost day one of receipt of an operational millage.

While System 2 is an option if Emmet County desires its own transit system, management and

staff will have to be hired, and offices, bus storage and maintenance facilities will need to be

located. In short, a complete transit infrastructure will need to be developed, which is

redundant with one already in place. Hiring a manager/director with transit experience would

be important in this case, to ensure that staff hiring conforms to MDOT/FTA requirements. As a

result, a new, stand-alone system will likely take some time to get up and running. Capital costs

for administration and operations will be needed to set the system up, which would come from

local millage funds.

System 3 is a last case scenario, both from a FEET and MDOT perspective. MDOT prefers to

fund systems that are county wide, and this system would be essentially a ‘city’ system, which

will not be available for all residents of the county. This is not to say that MDOT would refuse

to fund such a system if it was demonstrated that the county was not interested, but it would

be a localized system, which really doesn’t meet the goal of access to all county residents. The

residents of Petoskey (and presumably some other member entities) could be levying a tax,

which their residents may not want being spent to provide service in other areas of the county.

As in proposed System 2, capital costs for administration and operations will be needed to set

the system up, which would come from local millage funds.

Documents

Service Options for Public Transit in Emmet County final