SERVICE PLANNING AND DESIGN – BUDGET CUT PREPARATION

1. 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?

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. Service Provided = Cost Efficiency Cost of Service COST EFFICIENCY • The Amount of Service Provided for the Amount of Money Spent

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 Consumed Service Effectiveness = Service Provided SERVICE EFFECTIVENESS • The Consumption of Service in Relation to the Amount of Service Available

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. Service Consumed = Resources Expended COST EFFECTIVENESS • Consumption of Service in Relation to Resources Expended Cost Effectiveness

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 Service Outputs Transit System Public Consumptions Inputs Cost Efficiency Service Effectiveness Cost Effectiveness

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

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