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SERVICE PLANNING AND DESIGN – BUDGET CUT PREPARATION
Presented by Robbie L. Sarles
RLS & Associates, Inc.3131 South Dixie Highway, Suite 545
Dayton, OH 45439
Ph: (937)299-5007
2
The Challenge
♦ Tough Times ○ Pressure on All Funding Sources○ Less Available Local Match○ Rising Costs○ Greater Demand for Services○ Higher Expectations○ Increasing Benefits/Demands of Technology○ Aging Work Force
3
A Perfect Storm?
♦ For Some It May Be—We Have Already Begun to See the Impact
4
What Is Different?
♦ Uncertainty is Part of a Transit Manager’s Life
♦ There Never Has Been Enough Funding♦ Crisis Come and Go♦ Political Pendulum Is Always Swinging
5
What Is Different?
♦ Downturn of Nation’s Economy♦ All Funding Sources are Impacted♦ Matching Sources Are Evaporating♦ Competition for Funding is Unparalleled♦ Infrastructure Deteriorating
6
What Is Different?
♦ Stop Gap Measures Will Not Be Enough♦ Long-term Solutions Are Needed♦ We Can’t Do More With Less
7
Our Response?
♦ The Transit Industry Can’t Be Part of the Solution If It Is Part of the Problem
♦ Must Practice Sound Financial Management
♦ Must Avoid Common Pitfalls♦ Must Be Proactive
8
Top Ten Truths of Transit Financial Management
♦ Just Because You Have Checks In the Checkbook Doesn’t Mean You Have Money
♦ You Can’t Spend Next Year’s Money on This Year’s Expenses
♦ Don’t Borrow Unless You Have A Way to Pay It Back
9
Top Ten TruthsContinued
♦ Just Because They Need It, Doesn’t Mean You Have To Provide It . . . Every Service Has A Cost
♦ You Can’t Use the Same Money to Match Multiple Grants
♦ Don’t Assume That There Is No Theft . . . Borrowing
10
Top Ten TruthsContinued
♦ If There Is No Documentation, it Doesn’t Exist
♦ Strings Are Always Attached to Federal Dollars . . . It Is Not Yours to Do With As You Please—Even if it is a Good Idea
♦ Shell Games Will Catch Up With You
11
Top Ten TruthsContinued
♦ Deferring Maintenance and Training will Prove to Be More Costly In the Long Run
♦ Regulatory Compliance Is Not An Option
12
Be Proactive
♦ Know Your Agencies Finances and Understand Its Short- and Long-term Financial Health
♦ Solicit Support and Input○ Board Members○ Management Team○ Employees○ Others—State and Local Partners
13
Do More With Less
?
14
Seek Out New Revenue Sources
?
15
Service and Fares
♦ Be Prepared to Make Tough Decisions
16
Tough Decisions
♦ Realize You Can’t Do Everything for Everybody—Learn How to Say “No”
♦ Objectively Evaluate Service Design○ Minimize Emotional Connection○ Utilize Updated, Accurate Data As Basis For
Decisions♦ Plan for Future—Even if Informal
17
Service Planning
♦ Where Do You Start?
18
19
Mission
♦ What Are You Doing That is Consistent With Your Mission Statement?
♦ What Are You Doing That IS NOT Consistent With Your Mission Statement?
20
MISSION STATEMENT
Who Are You? What Do You Want to Do?
21
SAMPLE MISSION STATEMENTS
to provide customer-focused mobility solutions for our local communities through strategic partnerships, innovative planning, and implementation options.
to provide all citizens and visitors with safe, reliable, and efficient transportation, which continues to grow to meet their needs through the efforts of dedicated and well-trained employees.
22
GOALS AND OBJECTIVES
Reflect system’s mission Means to achieve broader community goals Provides framework for designing and
evaluating existing and proposed service
23
POTENTIAL GOAL AREAS
Service quality and quantity Effectiveness and efficiency Responsiveness Financial Community participation
24
? ? ?♦ Are Resources Being Used Most Efficiently to
Deliver Service?♦ Are the Services Being Delivered in the Most
Effective Manner?♦ Are the Resources Being Used Most Efficiently
to Deliver the Most Effective Services?
25
PERFORMANCE EVALUATON AS A TOOL
♦ To Measure and Assess Performance♦ To Evaluate the Progress Towards
Transportation Goals and Objectives♦ To Serve as a Basis for Decision-Making♦ Diagnostic Tool to Identify Performance
Problems♦ To Assess Policy, Procedures, and Service
Implications
26
TARGET AUDIENCE of PERFORMANCE MEASURES
♦ System Management♦ Governing Boards♦ General Public♦ Passengers
27
TYPES OF PERFORMANCE MEASURES
♦ Cost Efficiency♦ Service Effectiveness♦ Cost Effectiveness
28
COST EFFICIENCY
♦ The Amount of Service Provided for the Amount of Money Spent
Service Provided
Cost of ServiceCost Efficiency=
29
PRIMARY COST EFFICIENCY MEASURES
♦ Total Operating Cost Per Vehicle Service Hours
♦ Total Operating Cost Per Vehicle Service Miles
30
SECONDARY COST EFFICIENCY MEASURES
♦ Examples Include:○ Driver Operating Cost Per Vehicle Service Hour○ Vehicle Service Hours as a Percent of Driver Pay
Hours○ Maintenance Cost Per Vehicle Mile○ Administrative Cost Per Vehicle Service Hour
31
SERVICE EFFECTIVENESS
♦ The Consumption of Service in Relation to the Amount of Service Available
Service Consumed
Service Provided
ServiceEffectiveness
=
32
PRIMARY SERVICE EFFECTIVENESS MEASURES
♦ Passengers Per Vehicle Service Hour♦ Passenger Revenue Per Vehicle Service Hour♦ Passengers Per Vehicle Service Mile♦ Passenger Revenue Per Vehicle Service Mile
33
COST EFFECTIVENESS
♦ Consumption of Service in Relation to Resources Expended
Service Consumed
Resources Expended=
CostEffectiveness
34
PRIMARY COST EFFECTIVENESS MEASURES
♦ Passenger Revenue Plus Local Contributions as a Percent of Total Operating Cost
♦ Passenger Revenue as a Percent of Total Operating Cost
♦ Total Operating Cost Per Passenger
35
Formulate Performance Measures
InputsTransit System
Service Output
s
Cost Efficiency
Service Effectiveness
Cost Effectiveness
Public Consumptions
36
SERVICE QUALITY
♦ The Relationship of Service Delivery and Customer Expectations○ ACCESSIBILITY - Ability to Accommodate
the Disabled Percent of Service Hours With Lift-
Equipped Vehicles○ AVAILABILITY - Span of Service,
Frequency of Service and/or Percent of Population Within Walking Distance
37
SERVICE QUALITY (CONT’D)
○ COMFORT - Seat Availability, Climate Control, and Smooth Ride Operations
○ RELIABILITY - On-Time Performance○ SAFETY - Vehicle Miles Per Accident;
Passenger Injuries Per 100,000 Passenger Boardings
38
PERFORMANCE MEASUREMENTS
♦ Controllable Factors○ Decisions, Policies, and Actions of
Governing Board, Managers and Employees
♦ Non-Controllable Factors○ Physical, Economic, and Social Factors not
under the Control of the Transportation System
39
40
SERVICE AREA CHARACTERISTICS
Service area size Socioeconomic characteristics Land use characteristics Travel characteristics Geographic and topographical characteristics
41
SERVICE AREA CHARACTERISTICS (CONT’D)
Weather Availability of other services
- Public sector - Non-profit - Private sector
History
42
SOCIOECONOMIC CHARACTERISTICS
Auto availability Income level Age Gender Employment status Minority Education level Disability – mobility status Expectations
43
TYPICAL TRANSIT USER
No car available Lower income Minority Female Work trip
44
LAND USE CHARACTERISTICS
Density of origins - Residential development - Elderly housing - Subsidized housing
Density of destinations - Employment sites - Job training sites - Day care facilities - Schools - Universities/colleges - Shopping/retail centers - Social service agencies
45
LAND USE CHARACTERISTICS (CONT’D)
Service area size Proximity to regional medical and retail centers
46
47
48
49
50
51
52
TRAVEL CHARACTERISTICS
Peak periods – AM, PM, midday - Varies by type of trip
Off-peak periods – evening, weekends - Trip purpose
- Work - School - Social service agencies - Shopping - Personal business - Medical - Recreational
53
GEOGRAPHIC AND TOPOGRAPHIC FEATURES
Water bodies and bridge weight restrictions Street widths and direction Pavement quality Parking Grades/hills - topography Railroad tracks and overpasses Traffic restrictions and signals
54
GEOGRAPHIC AND TOPOGRAPHIC FEATURES (CONT’D)
Congestion – roadway capacity, peak pattern changes
Community boundaries Speed limits Inhospitable walking environment Greater building setbacks Long distance between generators
55
56
DATA COLLECTION PROCEDURES
Service area characteristics - U.S. Census - Chamber of Commerce - Department of Development - Metropolitan planning organizations - Local planning agencies - Department of Transportation
57
58
EXISTING SERVICE CHARACTERISTICS – SERVICE TYPE
Demand response - Advanced reservations (1 – 48 hours) - Door to door, curb to curb, or door through
door - Pickup window (+/- minutes from scheduled pickup time - Standing orders - Contract services - Paratransit vehicles - Area coverage - Productivity
59
EXISTING SERVICE CHARACTERISTICS – SERVICE TYPE (CONT’D)
Demand response (Cont’d) - Eligibility requirements - Funding sources and levels
- Personal involvement- Technology applications
Fixed route, fixed schedule - Types of routes
- Express - Local - Crosstown - Circulator
- Radial, Grid, Hub
60
EXISTING SERVICE CHARACTERISTICS – SERVICE TYPE (CONT’D)
Fixed route, fixed schedule (Cont’d) - Fixed guideway, rail, or surface - Complementary paratransit service (see demand response) - Headway – average and maximum - Transfer rate
Directness of travel - Circuitousness - Interlining - Transfers - Through-routing - Shared ride
61
EXISTING SERVICE CHARACTERISTICS – SERVICE TYPE (CONT’D)
Service availability – area coverage - Percentage of population with access to service
Service level/volume - Vehicle revenue hours - Vehicle revenue miles
Policy headway – fixed route Pickup window – demand response Advanced reservation period – demand
response
62
EXISTING SERVICE CHARACTERISTICS
– SERVICE TYPE (CONT’D) Span of service
- Days of service - Hours of service
Usage patterns Ridership
63
SERVICE QUALITY
Response time – demand response - On-time performance - Pickup window - Advance reservation requirements - % general public
Response time – fixed route - On-time performance - Average headway - Maximum headway - % of transfers - Service mix
64
SERVICE QUALITY (CONT’D)
Service reliability Loading standard Safety Infrastructure Accessibility
65
EXISTING SERVICE POLICIES
Fleet accessibility Group trip potential Door-to-door vs. curb-to-curb Labor contract Personnel policies Experience and competence of scheduling and
dispatch staff Experience and competence of vehicle operators Vehicle condition and maintenance
66
EXISTING SERVICE POLICIES (CONT’D)
Mobility training History/community perception Use of volunteers Policy headway (fixed route) Pickup window (demand response) Advanced reservation period (demand
response) Bus stop spacing (fixed route) Scheduling pickup increments (demand
response)
67
DATA COLLECTION PROCEDURES FOR EXISTING SERVICES - FIXED ROUTE
SERVICES Route maps and timetables Point checks
- Maximum load count - Arrival time
Ride checks - On/off counts by stop - Average trip length - Running speed - Load profile diagrams - Passenger miles
Boarding counts - Fare category by trip
68
DATA COLLECTION PROCEDURES FOR EXISTING SERVICES - FIXED ROUTE
SERVICES (CONT’D) Farebox readings
- Total cask - Ridership - Average fare
Revenue counts Transfer counts
- Transfer activity - O/D Pairs
Passenger surveys - Passenger travel patterns, characteristics, and opinions
69
SELECTION OF TECHNIQUES
Availability of technology Availability of personnel Union rules Ridership levels Number of vehicles Route structure (degree of interlining) Transfer tickets Availability of smart fare cards
70
DATA COLLECTION PROCESS
Develop baseline - On/off counts - Farebox readings, average fare - Onboard survey
Monitor changes - Point checks - Arrival times - Total boardings or revenue
71
DEMAND RESPONSE SERVICES
Dispatch logs Driver manifest analysis
- O/D pairs - Travel time analysis - Trip denial logs
Vehicle utilization chart Passenger surveys
72
73
74
75
76
77
78
79
80
81
Exhibit 3.9: Logan County Vehicle Utilization
Vehicle AM PMNumber 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Agencies that provide transportation
Transportation for Logan County
96-03
97-05
98-06
98-07
98-08
99-11
00-12
01-13
02-01
00-02
02-16
96-14
96-15
Subscription Demand Response
Monday - Friday
Monday - Friday
Monday - Friday
Monday through Friday
Monday through Friday
Monday through Friday
Monday through Friday
Monday through Friday
Monday through Friday
Monday through Friday
Monday through Friday
Monday through Friday
Monday through Friday
82
Logan County MR/DD
school buses
1
2
3
4
5
6
7
Green Hills Retirement Community
1
2
Logan Acres
1
2
West Liberty-Salem Schools
school buses
* TLC also provides transportation for Dialysis at 6:00 a.m., 11:00 a.m., and 5:00 p.m. with two vehicles
Subscription Demand Response
Community Employment
Community Employment
Community Employment
Community Employment
Community Employment
Community Employment
Community Employment
83
84
PUBLIC INVOLVEMENT – NEEDS AND EXPECATIONS
Public meeting Rider surveys Stakeholder interviews Household surveys Employer survey Elected official interviews Focus groups Driver input
85
STAKEHOLDERS
Human service agencies Higher education institutions Employers/business community Retailers Governmental entities Seniors
86
STAKEHOLDERS
Medical community Children of older adults Youth Developers Minority populations Non-English speaking populations General public
87
88
89
60.9%
48.3%
60.9%
48.9%
57.8%
61.1%
63.4%
54.2%
50.3%
71.0%
43.2%
64.3%
67.1%
70.4%
68.2%
70.6%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Frequency of service
Cleanliness of the buses
Connections between buses
Safety and security at bus stop
Safety on bus
Buses running on time
Hour buses stop running
Distance to bus stop
Having a shelter at bus stops
Current bus fare
Bus schedule information
Bus driving skill
Driver assistance
GDRTA telephone information
Bus route coverage
Overall service rating
Excellent and Good Ratings
90
DEMAND ESTIMATION METHODOLOGIES
Survey response Similar routes method Elasticity models Regression models – transit propensity
91
SURVEY METHOD
Request travel itineraries Assess perceptions and attitudes of new service Identify sensitivities Extrapolate the response to potential user group Adjust patronage estimates for noncommittal
bias x 20%
92
SIMILAR ROUTES METHOD
Identify similar routes Utilize same trip rates Elasticity models
- Wide variation by market segment, mode, time
period, and trip purpose Fare changes elastic Services change inelastic
93
REGRESSION MODELS
Associates independent factors to ridership Requires calibration to specific site Based on socioeconomic variables, land use
variables, or transit service variables
94
TRANSIT PROPENSITY
Model derived from 1986 study “Financing and Sustaining Rural Mobility in Rural Areas: A Manual” by Theodore A. Wallin and Alice Kidder
Transit Propensity = ((12 * X) + (19 * Y))/0.8where X = population aged 65+and Y = Number of zero vehicle households
95
96
Block GroupLand Area (Sq.
Mi.)Total
Population
Total Population Aged 65+
Total Households
Households Beneath
Poverty Level
Total Occupied Housing Units
(OHUs)Zero-Vehicle
OHUs
170370001001 26.8 603 73 190 0 219 0170370001002 0.8 1,249 140 480 24 506 35170370001003 2.5 1,527 170 575 17 621 15170370001004 8.6 2,211 173 798 35 772 15170370002001 50.9 1,808 164 614 33 633 6170370002002 6.8 1,239 134 466 29 474 20170370002003 12.1 1,308 80 437 18 454 13170370003001 52.4 776 101 265 13 292 4170370003002 47.0 638 68 246 7 244 5170370003003 11.0 1,152 164 452 30 476 6170370004001 29.6 1,760 175 602 20 690 20170370004002 23.6 2,821 229 972 21 964 0170370005001 0.5 1,734 270 736 42 754 7170370005002 3.7 1,658 184 630 22 668 25170370005003 3.9 132 24 49 0 47 0170370006001 1.2 1,257 177 471 12 491 18170370006002 0.2 1,087 131 417 8 411 15170370006003 0.3 1,295 140 588 43 599 89170370006004 0.6 1,510 160 551 21 635 25170370007001 1.1 2,654 247 1,015 32 1,054 41170370007002 0.4 921 129 349 25 359 12170370008001 0.2 1,110 115 402 5 430 7170370008002 1.2 1,341 494 423 29 479 23170370008003 5.4 1,564 255 727 92 688 96170370008004 0.2 1,449 95 468 34 513 58170370009001 0.5 1,021 122 413 0 431 0170370009002 0.2 848 127 372 19 382 15170370009003 0.5 4,672 153 582 179 567 34170370009004 0.6 1,271 216 467 7 491 13170370010001 5.2 625 18 230 15 219 0170370010002 0.2 2,761 4 921 521 1,022 173170370010003 0.1 1,396 31 635 331 654 100170370010004 2.6 3,614 23 1,681 811 1,749 110170370010005 0.2 1,381 11 677 315 722 49
Transit Propensity for DeKalb County, IL
97
Block GroupLand Area (Sq.
Mi.)Total
Population
Total Population Aged 65+
Total Households
Households Beneath
Poverty Level
Total Occupied Housing Units
(OHUs)Zero-Vehicle
OHUs
170370011001 0.1 2,364 0 15 0 19 0170370011002 0.1 22 0 20 20 13 0170370012001 0.1 983 1 100 54 106 14170370012002 0.2 4 0 0 0 0 0170370012003 0.1 568 16 222 121 225 17170370013001 0.1 827 65 297 32 335 20170370013002 0.1 674 67 283 38 332 20170370013003 0.1 1,222 61 444 139 496 18170370013004 0.3 1,201 162 535 69 537 69170370013005 0.1 785 76 380 28 406 27170370013006 0.1 873 144 509 87 441 132170370014001 0.6 1,320 230 433 12 432 0170370014002 0.4 899 146 348 9 342 6170370014003 0.5 694 61 347 61 357 10170370014004 12.1 1,544 70 517 13 578 7170370015001 0.1 698 46 273 42 269 13170370015002 0.5 1,746 283 727 23 782 88170370015003 13.3 310 56 135 21 129 8170370015004 1.0 1,035 90 374 32 409 29170370016001 18.4 545 57 198 11 190 0170370016002 10.4 2,285 162 783 27 835 20170370017001 51.5 892 115 312 6 320 13170370017002 6.3 2,105 202 786 32 820 32170370017003 27.9 431 54 140 9 146 0170370018001 39.1 529 60 203 20 195 2170370018002 19.8 1,206 228 417 20 450 36170370018003 34.6 311 32 120 1 117 0170370018004 33.4 280 36 109 2 119 0170370018005 19.5 1,464 213 541 45 558 28170370019001 33.9 833 88 278 6 289 0170370019002 1.6 1,277 163 471 27 487 22170370020001 2.1 1,085 175 376 30 387 13170370020002 1.4 2,075 297 695 6 768 14170370020003 0.3 959 130 372 25 334 14
170370021001 1.8 1,034 156 414 19 422 28170370021002 1.1 1,496 172 594 75 633 84
Transit Propensity for DeKalb County, IL
98
REGULATORY REQUIREMENTS
Americans with Disabilities Act - Complementary paratransit service - Service area - Days and hours - Fare - Trip priorities - Response time - Advance reservation - Capacity constraint - Trip denial - Trip negotiated +/- 1 hour - Excessively long wait time
99
REGULATORY REQUIREMENTS (CONT’D)
Americans with Disabilities Act (cont’d) - Complementary paratransit service (cont’d) - Capacity constraint (cont’d) - Excessively long transit time - Equivalency of service
100
REGULATORY REQUIREMENTS (CONT’D)
Charter Regulations (49 CFR Part 604) - Charter definition - Group of persons - Common purpose - Single contract (written or oral) - Fixed charge - Exclusive use of service or vehicle
101
CHARTER REGULATION EXEMPTIONS
♦ FTA excludes from charter regulations coverage of recipients under the Section 5310, Section 5311,
Section 5316, and Section 5317 if the service to provided is for program purposes.
○Transportation that serves the needs of either human service agencies or targeted populations(elderly, individuals with disabilities and/or low income individuals)
102
REGULATORY REQUIREMENTS (CONT’D)
Charter Regulations (49 CFR Part 604) (cont’d) - Charter definition (cont’d) - Specialized itinerary - Uses FTA-funded vehicle - Must identify willing and able private charter operations - If exists, charter is prohibited unless
exception applies - No willing and able operator - Service and accessibility requirements
exceed private operator’s capacity - Special events or national significance
103
REGULATORY REQUIREMENTS (CONT’D)
Charter Regulations (49 CFR Part 604) (cont’d) - Must identify willing and able private charter operations and publish annual notice (cont’d) - If exists, charter is prohibited unless
exception applies (cont’d) - Social service agency transporting disabled individuals, federally funded, consistent
with program purpose - Agreement with willing and able private operator - Undue hardship
104
REGULATORY REQUIREMENTS (CONT’D)
General Public Service Guidelines - Open to public - Controlled by transit - Multiple stops - Advertised - Part of network - Part of plan - Stops on route area reasonable generators - Charges fare (comparable to similar service)
105
REGULATORY REQUIREMENTS (CONT’D)
General Public Service Guidelines (cont’d) - In service hours - No drinking - Designed to benefit public at large
- Drivers have to let general public on board - Contributions to system - In service area
106
107
♦ Service Planning Determines the Operations, Maintenance,
Administrative, and Capital Requirements of the Public
Transportation System Based on Adopted Goals and Objectives
108
Service Planning
♦ Service Modes
109
TRADITIONAL FIXED ROUTE, FIXED SCHEDULE
Corridor linehaul Radial, grid, hub Express, limited stop Fixed route local Local, limited stops Fixed route commuter Crosstowns Connectors/Feeders Fixed route, reverse commute Fixed guideway service
- Heavy rail - Light rail - Commuter rail
110
NON-TRADITIONAL SERVICE TYPES
Transit centers (multi-modal) Hubs Seamless regional mobility Brokerage Mobility managers Shuttles
111
NON-TRADITIONAL SERVICE TYPES (CONT’D)
Neighborhood circulators Subscription bus Vanpools/Ridesharing Service routes Special niche services Revenue commuter
112
TRANSIT CENTER/TIMED TRANSFER
Connecting multiple suburban transit centers Centers located at key activity centers and park
and ride lots Connects circulators with linehaul services Transfers are timed to reduce wait times –
timing is critical as headways increase Transfer location amenities and security Drivers communicate to facilitate transfers
113
EXPRESS ROUTES
Long-distance commuter trips Limited stops High travel speeds – arterial or highway Comfort and reliability Stress-free commute Special equipment Primary central business district bound/major suburban
employment centers Served by feeders and/or park and ride lots Heavily traveled corridors – limited stops Guaranteed ride home and safety nets Best if bus receives priority treatment Peak and limited mid-day trips
114
EXPRESS ROUTE – KEY FACTORS
Real employer support - Direct subsidy - Employee-subsidized passes - Guaranteed ride home - Flex-time
Participatory planning and local support Congestion and parking fees that penalize automobiles High-density destinations Good residential marketshed Bus priority treatments Supportive regional planning Transit dependent populations Special equipment
115
LIMITED STOP ROUTES
Heavily traveled corridors Supplement locals Skip stops, closed door Requires residential density, multiple activity
centers, concentrated stop locations Used to upgrade existing services
116
CIRCULATORS
Local travel – internal trip-making Connect to bus services
117
FIXED ROUTE CIRCULATOR
Neighborhood employment site, shopping center penetration
Local trip-making Secondary roadways Internal community – general circulation and/or
special purpose Short, non-linear Connect multiple origins and destinations
118
FIXED ROUTE CIRCULATOR (CONT’D)
Potential to reduce congestion in high-density areas
Target markets – shoppers, elderly Smaller vehicles Complement linehaul services – feeder Use in low density, difficult terrain, limiting
roadway design
119
CIRCULATOR – KEY FACTORS
Population and population density Transit dependent population Mixed use setting or special conditions Appropriate headway and travel times Low operating cost – low productivity Attractive pricing Coordinated intermodal connections
120
SHUTTLE SERVICE
Tailored, high-quality connecting services between activity centers
Niche markets – specific trip purposes - Station to employment center - Residence to linehaul service - Midday employment/shopping shuttles - Special event shuttles
Short, direct, quick (outside walking distance) Public-private partnership opportunities
121
SHUTTLE SERVICE (CONT’D)
Careful planning – avoid charter Open to public Multiple stops Advertised Stops on route are reasonable generators Charge fares Drivers have to let others board Contributors paid to support service, not
specific route
122
SHUTTLE SERVICE (CONT’D)
Incorporate into plan Incorporate as part of network
123
SHUTTLE – KEY FACTORS
Market profile Service parameters Income and density Congestion and parking
124
SUBSCRIPTION
Service to a closed group of riders Associated with sponsor Fixed price regardless of ridership Service tailored to subscriber needs Guaranteed seats Assurance of success
125
SUBSCRIPTION – KEY FACTORS
Define demand with common origin/destinations and travel times
Comfort and convenience Guaranteed ride home Interest and sponsorship Low operating cost
126
VANPOOL/RIDERSHARING
Commuters Riders share cost/drivers ride free Similar origins/destinations and travel times Guaranteed ride home
127
DEMAND RESPONSE/ PARATRANSIT
Advanced reservations demand response Realtime advanced response Route deviation Point deviation Shared ride taxi Exclusive use taxi User-side subsidy Limousine service
128
DEMAND RESPONSE/ PARATRANSIT (CONT’D)
Zones Transfers Subscription Social service agency coordination Volunteers Guaranteed ride home Brokerage Flex routes
129
ROUTE DEVIATION
Designated route and schedule with defined stops and time points
Buses deviate off route to pick up riders in designated areas then return to route
Point deviation returns to point of departure Schedule must account for time to deviate –
deviations need to be monitored and accounted for
Door-to-door service Small vehicles Suitable when time sensitivity is low Limited capacity
130
ROUTE DEVIATION ATTRIBUTES
Door-to-door convenience Maintains fixed schedule framework Attracts choice rider Serves individuals with special needs – reduces
demand on specialized services Increase area coverage Increase utilization of small fleets
131
ROUTE DEVIATION – KEY FACTORS
Moderate population density Continuous roadway Transit dependent profile (i.e., elderly) Mixed-use settings Connectivity balanced by reasonableness Low operating cost Coordinated intermodal connectivity Local support and public participation Marketing
132
FLEX ROUTES – FIXED SCHEDULE
Stretches scarce resources Specific corridors on scheduled days or times of
day Identify corridor of travel Used to group longer-distance trips Serves specific generators Group trips/less per-trip cost Door-to-door or curb-to-curb Allows pre-planning, but not required
133
REAL-TIME ADVANCED RESERVATION
Similar to taxi Group trips Appropriate for small, well-defined service area Increases ridership No advanced planning Door-to-door or curb-to-curb Requires more complicated dispatch techniques Area limited (no more than 4 square miles)
134
ADVANCE RESERVATION DEMAND RESPONSE SERVICE
Advanced reservations (1- 48 hours) Door-to-door within designated service area Standing orders accepted Suitable for low to moderate densities Provides greater area coverage Small vehicle
135
ZONAL DEMAND RESPONSE
Service area divided into zones Vehicles assigned/restricted to zones Transfers at zone boundary
136
DEMAND RESPONSE – KEY FACTORS
Appropriate setting Focused, well-defined service area Limited trips – concentrating in zones Internal opportunities Transit dependent population Applicability of new technologies for realtime
scheduling Reasonable operating cost Modest expectations for mobility and cost-
effectiveness
137
FAMILY OF SERVICES
138
SERVICE PLANNING
Service availability (amount, days, hours, geographic distribution)
organizational/institutional context Service pricing Labor requirements Rolling stock Other capital
139
SERVICE AVAILABILITY
Geographic coverage Span of service Frequency of service Days and hours of service Response time Seat availability On-time performance
140
ORGANIZATIONAL/INSTITUTIONAL CONTEXT
Local government Non-profit Human service agency Private for-profit
141
SERVICE PRICING
Ridership levels Fare equity Ability to pay Cost of service
142
LABOR REQUIREMENTS
Operation Administration Maintenance Contract Services
143
ROLLING STOCK
Vehicles Radios Fareboxes Lifts Other Special Equipment
144
OTHER CAPITAL REQUIREMENTS
Garages Offices Shelters Benches and stop signs
145
ITERATIVE REVIEWS
Iterative Planning Process
146
THE ITERATIVE PLANNING PROCESS
•Strategic Plan•Goals & Objectives
•Service Plan•Policies & Standards
EstimateRevenues
EstimateCosts
AreRevenues> Costs?
Prepare Budgetand
Operations Plan
No
Yes
147
148
HOW CAN WE USE COST ALLOCATION MODELS?
Cost Evaluation and Billing (How Much Does It Cost to Operate an Existing Service?)
Cost Estimation and Budgeting (How Much Will It Cost to Change Service?)
149
FIXED AND VARIABLE COST
♦ Fixed Costs Do Not Vary with the Amount of Service Provided (e.g., Administrative Salaries)
♦ Variable Costs Change Relative to the Amount of Service Provided (e.g., Drivers’ Wages)
Fixed
Variable
Total
Output (Hours/Miles)
Co
st
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KEY ASSUMPTIONS: FULLY-ALLOCATED COSTING
Total System Cost is Allocated to Services Based on Amount of Service Provided (e.g., Service A Operates 1,000 Service Hours)
System Average Unit Costs are Used to Estimate Service-level Cost (e.g., System Average Unit Cost = $30/Service Hour Service A Cost = 1,000 * $30 = $30,000)
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WHY CAN’T WE USE A SIMPLE MODEL?
♦ Sample System Statistics♦ Total Operating Cost $612,827♦ Total Hours 28,811♦ Total Miles 473,512♦ Average Unit Cost/Hour $21.27♦ Average Unit Cost/Mile $1.29
♦ Speed♦ Service Hours Miles (MPH)♦ A 3,000 27,000 9♦ B 3,000 48,000 16
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COST OF SERVICES USING AN HOUR-BASED MODEL
♦ Cost = Hours * 21.27/Hour
♦ Cost of Service A = 3,000 * $21.27♦ = $63,810♦ Cost of Service B = 3,000 * $21.27♦ = $63,810
♦ Does This Make Sense?
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COST OF SERVICES USING A MILE-BASED MODEL
♦ Cost = Miles * $1.29/Mile♦ Cost of Service A = 27,000 * $1.29♦ = $34,830♦ Cost of Service B = 48,000 * $1.29♦ = $61,920
♦ Does This Make Sense?
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BASIC STEPS FOR DEVELOPING FULLY ALLOCATED COST MODEL
Assemble Data
Assign Expense Line Items
Calculate Unit Costs
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STEP 1: ASSEMBLE DATA
Compile Expense Data (Costs) Compile Service Data (Hours, Miles)
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STEP 2: ASSIGN EXPENSE LINE ITEMS
All Costs Are Assumed to be Either Variable or Fixed
Expense Line Items Are Assigned to Variable (Hours or Miles) or Fixed Categories
Knowledge is Required of How/Why Expense Items Vary
Some DOT Cost Allocation Spreadsheets Use This Approach
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ALLOCATION TIPS
Be Logical in Your Reasoning for Assignment
Make Decisions That Are Defensible BE CONSISTENT
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EXAMPLE OF EXPENSE ASSIGNMENT
Expense Class Vehicle Hours Vehicle Miles Fixed Costs Labor Vehicle Operations $241,237 $28,047 Vehicle Maintenance $31,344 General Administration $67,986 Fringe Benefits Vehicle Operations $35,800 $4,661 Vehicle Maintenance $6,080 General Administration $11,867 Services Contract Maintenance $46,847 Professional Technical $2,115 Materials And Supplies Vehicle Operations $45,002 Vehicle Maintenance $14,761 General Administration $9,825 Utilities $3,336 Casualty And Liability Costs Premiums: Vehicle PD $10,044 Premiums: Public Liability $34,734 Taxes Vehicle Operations $175 Miscellaneous Expenses $921 Leases and Rentals $18,045 Totals $277,037 $188,812 $146,978
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STEP 3: CALCULATE AVERAGE UNIT COST
Determine Each Variable’s Value (e.g., Number of Hours)
Divide the Cost by the Value to Obtain Average Unit Cost
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EXAMPLE OF UNIT COST ALLOCATION
♦ Total Total♦Basic of Expenses Operating Unit♦Assignment Assigned Statistics Cost
♦Hours $277,037 28,811 $9.62/Hour♦Miles +$188,812 473,512 $0.40/Mile♦Subtotal (H+M) $465,849♦Fixed Cost $146,978 $465,849 32%
♦Annual Cost = 1.32 * [($9.62 * Hours) + ($0.40 * Miles)]
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EXAMPLE OF APPLYING COST MODEL
♦ Speed♦ ServiceHours Miles (MPH)
♦ A 3,000 27,000 9
♦ B 3,000 48,000 16
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EXAMPLE OF APPLYING COST MODEL CONT’D
♦ Annual Cost = 1.32 * [($9.62 * Hours) + ($0.40 * Miles)]
♦ Cost Service A = 1.32 * [($9.62 * 3,000) + ($0.40 * 27,000)]
♦ = 1.32 * ($28,860 + $10,800)♦ = $52,351
♦ Cost Service B = 1.32 * [($9.62 * 3,000) + ($0.40 * 48,000)]
♦ = 1.32 * ($28,860 + $19,200)♦ = $63,439
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COMPARISON OF COSTING APPROACHES
♦ Costing Approach Service A Service B♦ One Variable: Hours $68,810 $63,810♦ One Variable: Miles $34,830 $61,920♦ Two Variables/
Overhead $52,351 $63,439
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EXAMPLE OF FULLY ALLOCATED COSTING
♦ Problem: We want to know the operating cost of Service A that we provide under contract to a social service agency. What should we charge the social service agency for Service A if we are using a contract rate based on miles ($/mile)?
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EXAMPLE OF FULLY ALLOCATED COSTING (CONT’D)
Solution:1. Collect Annual Operating Data for Service A
Hours = 7,543 Miles = 80,042 2. Develop Full Cost Allocation Model
Cost = 1.32 * [($9.62 * Hours) + ($0.40 * Miles)]
3. Determine the Annual Cost of Service AUnit Operating TotalCost Statistics Cost
Hours $9.62 7,543 $72,564Miles $0.40 80,042 32,017Overhead 32% $104,581 33,466TOTAL $138,047
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EXAMPLE OF FULLY ALLOCATED COSTING (CONT’D)
4. Convert Annual Cost to a Mileage Rate
Mileage Rate = Operating Cost/Annual Miles
= $138,047/ 80,042 Miles
= $1.73/Mile
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SPECIAL SERVICE NEEDS
Some services require special treatment (i.e., added costs to the agency) such as: - More operator assistance - More detailed reporting
These situations require special analysis. However: - Added operator costs can be covered by hours - Special vehicles may require different mile costs - More detailed reporting may add a new overhead
factor.
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INCREMENTAL COSTING
Principal Use is to Estimate the Costs of Service Changes
Costs of Service Changes are Estimated by Omitting the Fixed Cost Factor From the Cost Allocation Equation
Example:
Total Cost = 1.32 * [($9.62 * Hours) + ($0.40 * Miles)]
Cost Change = ($9.62 * Hours) + ($0.40 * Miles)
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EXAMPLE OF INCREMENTAL COSTING AND FORECASTING A SMALL-SCALE SERVICE
CHANGE♦ Problem: The transit system wishes to institute
a new service between a small townand the county government center.
1) What will be the added operating cost to operate this new service?
2) What should be charged for this service?
♦ Solution:
1. Estimate Annual Operating Data for the New Service.
Hours = 1,530 Miles = 38,250
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EXAMPLE OF INCREMENTAL COSTING AND FORECASTING A SMALL-SCALE SERVICE
CHANGE (CONT’D)2. Develop Incremental Cost Allocation Model
Cost Change = ($9.62 * Hours) + ($0.40 * Miles)
3. Estimate the Annual Incremental Cost of the New Service
Unit Operating TotalCost Statistics Cost
Hours $9.62 1,530 $14,719Miles $0.40 38,250$15,300TOTAL $30,019
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EXAMPLE OF INCREMENTAL COSTING AND FORECASTING A SMALL-SCALE SERVICE
CHANGE (CONT’D)
4. Revise (Recalibrate) Fixed Cost Factor in Cost Allocation ModelSubtotal (H+M) $465,849 Existing servicesNew (H+M) $30,019 New ServiceRevised Sub (H+M) $495,868
Fixed Costs $146,978 No ChangeFixed Cost % 30% $146,868/$495,868
New Annual Cost = 1.30 * [($9.62 * Hours) + ($0.40 * Miles)]
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EXAMPLE OF INCREMENTAL COSTING AND FORCASTING A SMALL-
SCALE SERVICE CHANGE(CONT’D)
5. Determine the Fully Allocated Cost of New Service
Unit Operating TotalCost Statistics Cost
Hours $9.62 1,530 $14,719Miles $0.40 38,250 15,300Overhead 30% $30,019 9,005TOTAL $39,024
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