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PEE DEE REGIONAL TRANSPORTATION AUTHORITY,S 24-HOUR RURAL COMMUTE SERVICE CASE STUDY

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PEE DEE REGIONAL TRANSPORTATION AUTHORITY'S 24-HOUR RURAL COMMUTE SERVICE Pee Dee Regional Transportation Authority (PDRTA) is the largest and oldest regional transportation authority in South Carolina, with a service area comprising ~ 1,000 square miles in approximately the top one-fourth of the state. Most of the service area is rural; Rock Hill, located in northern York County, is the largest city with 41,600 people. PDRTA maintains an office in Rock Hill and in five other counties, including its headquarters in Florence, a city of 29,800. The total population of its service area is 600,000, which it serves with ~ 88 vehicles, ranging in size from city buses and trolleys to lift-equipped, seven-passenger vans. For Fiscal Year 1997-9S, PDRTA has 181 employees, an operating budget of almost $5.7 million, and a capital budget of $4.4 million. PDRTA's initial funding was a Federal Highway Administration demonstration grant. The bus company used vans and drivers from the Council on Aging to provide door-to-door transportation for Medicaid patients and persons with developmental disabilities and to federally funded nutrition and job training programs. In 1974 the State General Assembly passed legislation to form regional transportation authorities, empowering them "to develop _ transportation plans, and to coordinate (their) planning and programs with those of anDronriate ~. .. . ~ . - . . . - - `,: ~ municipal, county, and State agencies and other pica suno~v~s~ons of the State." (! ~ Six counties bordering on the Great Pee Dee River in eastern South Carolina voted to form PDRTA in 1976, and three contiguous northern counties elected to join in 1996. The 23-member Board of Directors includes representatives of the cities and counties in PDRTA's service area and three appointees of the state legislative delegation. Highlights 'Round the clock welfare-to-work routes Partnership with Dept. of Social Services Economic benefits of $26.60 for every $1 invested Labor shortage attracts employer subsidies PDRTA continues to provide specialized transportation to persons with disabilities and for non-emergency medical appointments. It contracts with ~ ~ counties as their Medicaid transportation provider. In addition, it provides fixed-route bus systems in cities within its service area. It also has contracts for transportation to elementary and high schools, to technical and community colleges, mental health clinics, battered women's centers, and nursing homes. With the advent of welfare reform in South Carolina, PDRTA has begun 24- hour commute services linking residents in rural areas with job centers. MARION WORKS 24-HOUR COMMUTE SERVICE In 1995 the South Carolina legislature passed the Family Independence Act (FIA), the state's welfare reform program. FlA was implemented in October, 1995, three months before federally- mandated welfare reforms took effect. In conformance with the federal reforms, welfare recipients are required to participate in job training and employment and are subject to a five-year maximum for public assistance. State legislation indicated that if recipients are "unable to

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participate because child care and reasonable transportation were not provided when needed...,~ they would be excused for good cause in their failure to comply with the employment and training provisions. (2) To mitigate this problem for recipients, the state's Department of Social Services (DSS) has given transportation allotments to its county offices to carry out the FlA. Because there are a number of other reasons why a recipient may not be able to enter the job market besides lack of transportation, the Project Administrator in the Marion County DSS decided that, in order to meet her program goals, transportation could not be a barrier for recipients. She contacted PDRTA's Marion County of lice to set up an aggressive transportation component for the county's FlA program, entitled Marion WORKS. Marion County is a rural county extending 485 square brutes in eastern South Carolina with a population of 33,899. Its unemployment rate was 13.4~o in March, 1997, compared to the statewide unemployment rate of 5.3~o. (3) Marion, with 7,700 inhabitants, is the largest city in the county. Many of Marion County's DSS clients do not have driver's licenses or do not own vehicles. The cars of those who do own vehicles are suitable only for trips around town, not out of the area where the jobs are located. (4) PDRTA had been running some buses from Marion County to jobs on the Grand Strand at Myrtle Beach, located in Horry County about 40 miles away. PDRTA was serving Marion County residents who were already working year-round at restaurants and grocery stores on the Grand Strand. The Grand Strand is a 60-m~le stretch of beaches on the Atlantic Ocean. It contains 1,500 restaurants, 100 golf courses, 40 miniature golf courses, 12 shopping malls with hundreds of specialty shops, 55,000 accommodation rooms, 6,200 campsites, and multiple theaters and amusement parks. (5) With so many opportunities for entry level jobs, the labor market is extremely tight for employers. The DSS Project Administrator and the PDRTA Transportation Manager for Marion County formed a partnership to develop a program that would link those needing employment with the jobs in Myrtle Beach. For example, in May, 1997, DSS used some of its transportation allocation to charter a 41-passsenger PDRTA bus for a job fair at Myrtle Beach. The round-trip bus ride was free to FlA participants and $6 for others seeking employment. The all-day job fair picked up job-seekers at 9:30 a.m. at the DSS office and transported them to various employment sites throughout the day. Job-seekers filled out applications and were told the time the bus could drop them off each morning if they were hired. The bus then returned to the DSS at 5:30 p.m. The Job Jam 1997 schedule is shown as Exhibit A. To meet the goals of FlA, the Marion County DSS "has gone from welfare to workfare," according to the Project Administrator. She has mailed letters and hosted luncheons for prospective employers, telling them: 2

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EXHIBIT ~ G! (I) Hi r7~Z ~ ~ ~ ~ -1 ON THURSDAY, MAY1, 1997, \~ON COW - DEPTH OF SOCIAL SPRUCES, MOON 1 DILLON PEE DEE REGIONS TRANSPORTATION, ANI) lemon / DILLON MELON SECURITY CONCUSSION WILL SPONSOR JOB Jim 199~. A JOB JEAN! 1997 SCHEDULE IS ON HE REVERE OF Tow! 1~ PURPOSE OF JOB JAM 199 7 TO IS HELP UNEMPLOYED INDIVIDUALS FIND ENIPLOYNIENT ~ TO MYRTLE BEACH AREA. WE WILL MEET AT CON COUNTY DSS AT 9:15 A.M. ON THURSDAY, MAY 1, 1997, Am TRAVEL TO THE BEACH MA A PDRTA BUS. THIS BUS WILL AWE STOPS AT CERTAIN PLACES AND RIDERS WILL BE ABLE TO COi\IPLETE APPLICATIONS AT RESORTS IN THE VICINITY. ONLY INDIVIDUALS THAT ARE 18 YEARS OLD AND OLDER WHO ARE WILLING TO ACCEPT FULL-T~ EMPLOYMENT MAY PARTICIPATE! YOU MUST TAKE IWO FORMS OF I.D. Am ~ MONEY TO PURCHASE YOUR LUNCH WITH! YOU MUST PURCHASE $6.00 IN PDRTA TRANSPORTATION TOKENS TO RIDE THE BUS ON THIS DAY! TOKENS CAN BE BOUGHT AT THE SAY-WAY STORES IN MOON AND ALLIS! IF YOU ARE A FAMILY INDEPENDENCE PROGRAM PARTICIPANT, YOU MAY GET TOKENS AT NO COST - - JUST CALL YOUR CASEMANAGER! CALL PAULA RICHARDSON AT THE DSS OFFICE OF JOB DEVELOPMENT TO REGISTER NOW - - 423-4623! YOU MUST BE REGISTERED IN ADVANCE TO PARTICIPATE DUE TO TlIE LIMITED NUNIBER OF SEATS AVAILABLE! 3

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EXHIBIT A ~ Continuac) Sponsored by Marion~Counly Department of Social Services, Marion / Dillon Pee Dee Regional Transporlation, Marion / Dillon EmployrT ent Security Commission TO ~ ~1, ~1 3, ~ 557 SCOWS 9:30 A.M. DEPART FROM MARION COUNTY DSS OFFICE (BEESON BUSTLING) 11:00 A.M. ARRIVE AT WACCAMAW POTTERY (lt 30~ GET ~ Jon AT WAdCdA~AW POTTGRg Thy PASTA Rug ~U bROF \~ Ott GAd~ hORUl~G RETAKEN 8:45 AUb 5:oo.) LUNCH EAT AT A RESTAURANT AT WACCAMAW! 1:00 P.M. BUS WILL LEAVE WACCAMAW PO-l-l'~RY 1:15 P.M. ARRIVE AT SPRINGMAID BEACH RESORT (it 30~ BET ~ JOR AT 5~1~GhA1b REPORT THE PASTA O~5 BAA GOOF \~M OFt EACH hOR~l~ ARO~b g:30.) LEAVE SPR~GMAII) BEACH RESORT 2:00 P.M. 2:15 P.M. ARRIVE AT CORAL BEACH RESORT, SEA MIST RESORT, AM LAND RESORT (it \~ GET A J0R AT O~E Ot T~5G REPORTS THE ANITA RM5 CAL bROP hO~ Ott RETRACT g:15 A~b g:30 BALL hOR~l~.) 3:00 P.M. LEAVE CORAL BEACEI RESORT, SEA MIST RESORT, AND LANDMARK RESORT 3:15 P.M. ~ AT BOARDWALK MOTEL AM BREAKERS MOTEL (it \~ LET ~ JON AT 0~E OF THC59 hOTEL5 THE Pb?TA R~ ~ CAL bR0? 30~ 0tt 0CTWCC~ t:55 AMb q:35 CAdN ~ 1~-) 4:00 P.M. LEAVE BOARDWALK MOTEL AND BREAKERS MOTEL 4:15 P.M. ARRIVE AT OCEAN FOREST RESORT (It \~ ACT ~ JOP AT OdEA~ tORECT THE PASTA 0~; Cat 6~? 30~ Ott ^~6 f:20 EACH ~1~.) 4:45 PHI. LE. OMAN- FOREST RESORT 5:30 P.NI. .~T BACK AT ELTON COMAS' DSS 4

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"By utilizing this target population tax dollars will be saved in more ways than one- welfare roles will be reduced and you may be eligible for certain tax credits against your corporate income taxes! We are able to provide education and training that would enable Family Independence to qualify for your jobs! And, most important of all, we provide supportive services after these individuals are hired transportation, child care, personal support!"~6) DSS actively solicits employers to file job orders with them by fax, with the assurance that, in most instances, DSS will have an applicant for them to interview the next day. For its part, PDRTA developed a round-the-clock schedule that will accommodate the hours of the Myrtle Beach employers. When DSS staff gets notices of job openings, they can then assure both the employee and the employer that the transportation will be available. Exhibit B is the ~ 997 summer schedule to Myrtle Beach. Not all of the FIA applicants hired turn into good employees. Employers report a large number of "no-shows" for their entry-level jobs. To solve these problems, an employer may set up a company carpool, where supervisors drive to various stores with extra employees that have been hired to fill in for the no-shows. Whereas, in the past, employees who didn't show up for work would have been immediately fired, employers are willing to overlook some transgressions because they are so in need of workers. To instill confidence in the Marion WORKS program, the DSS Project Administrator encourages employers to fax a notification to the caseworker the same day that an employee does not show up for work. The caseworker can then counsel the employee on good work habits and stress the limited time the FlA participant can continue on public assistance. PDRTA has very few problems with FlA riders. However, DSS has told FlA riders that if they cause a disruption, and thus lose their transportation and their job, they will also be cut off from their welfare benefits. Employer Subsidies Three Myrtle Beach employers are willing to subsidize the PDRTA bus to insure that it will meet their schedules and not be canceled if ridership lags. Burger King, which has 10 stores on the Grand Strand, pays for three buses a day during the summer at $55 a round trip for a 41- passenger bus. Each store is a 24-hour operation, which is open to the public from 6 a.m. to 3 a.m. The Pavilion, an amusement park owned by Burroughs & Chapin Company, pays for one bus a day, which transports about 25% of the workforce. In the slower months, they use a 28- passenger bus at $37 a round trip instead of the 41-passenger bus used in June and July. Before contracting with PDRTA, Burroughs & Chapin hesitated to hire Marion County residents because of concern about workers' access to reliable transportation. Payments by these companies cease on October ~ when the tourist season is over, and PDRTA collapses its schedule to two buses a day. The third employer, Morrison Fresh Cooking, has elected to continue its contract for one bus through the winter. Although Burger King could use additional workers in the winter months, it cannot afford to subsidize the buses; the volume of business for the entire month of January, for example, totals the volume of only one week in the summer. s

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lo ~ - - ~ IIJ 3 ~ ~ a ~ ~ _ `0 ~ d ~0 ~ t_ _ . CAM - m ~ O X ~ ~ ~. hi: ~ a ha a Z ~ O U' 1 ~ _e , Hi. Hi, Hi. Hi, A, ~,0 ha. ~ OCR for page 151
Because labor is so much in demand, the companies consider the subsidy to PDRTA a good investment-amounting to ~ 6 cents an hour per employee. Lack of employees translates to business losses. For example, in August when students went back to school, Burger King had only 12 crew members instead of the 25 needed in five of its stores. The Director of Operations indicated he had to close the dine-in sections and leave only the drive-through windows open, losing $500-1000 per night per store. He indicated the market would support building two or three new stores, if the company could be assured that reliable help were available. Burroughs & Chapin's Human Resources Associate explained that some jobs go unfilled at the company's many retail ventures, which employ ~ 300 during the peak season. The unemployment rate is AL lows and the number of jobs is growing, she said, and owe could fill them all ourselves.7' Without the Marion County employees that PDRTA transports, a number of the attractions would have to be closed, she indicated. In the mid- ~ 980's Burger King leased two vans and ran them to its stores in one of the beach communities. Subsidizing the PDRTA route is far preferable, said the Director of Operations. "PDRTA takes the headaches off me," he said. "Insurance, liability of people hurt on the bus, maintenance, fuel I don't want to get into the bus business." Burger King employs about ~ 30 people bused in from Marion County by PDRTA in the summer. In the past, 90% of Burger King's summertime crew were school aged, but now 25~o of the crew are adults. In 1996, Burger King employed 28 FIA participants out of the 440 jobs filled by the Marion County DSS, the second highest rate for a single employer. (7) Neither Burger King nor the Pavilion can attract employees at the minimum wage of $5.15 an hour because of the tight labor market. Burger King's average wage is $5.40 an hour and the Pavilion's is around $6.00. Out of that wage, however, FIA participants must pay their daily $5.00 round-trip bus fare. The Marion County DSS will pay for transportation until participants earn their first paycheck. Afterwards, paying for transportation to work is considered part of the responsibility participants must learn to take when making the transition from public assistance. The DSS Project Administrator pointed out that the experience in other counties has strengthened her belief in Marion County's approach. One county gave participants free transportation for 30 days. However, when the assistance ended, the county had used up much of its state funding and the participants stopped showing up. In another county, DSS purchased five vans with their transportation assistance from the state and signed up FlA participants as volunteer drivers. After a few weeks on the job, drivers bought their own cars and, because their rent and utility bills were no longer covered by public assistance, they found themselves in debt. Two other counties are allowing lack of transportation as a cause to exempt HA participants from finding a job, postponing the day of reckoning for themselves in meeting the federal and state goals and for the FIA participants, who will one day bump up against the five-year cut-off for public assistance. With continued growth along the Grand Strand, PDRTA's Marion County Transportation Manager believes potential ridership on the routes has only begun to be tapped. The Grand ~ . ~ . - trand s gross retail sales curing the decade 1985-1995 increased over 130% and it has ~ I.3 Unemployment in Horry County is 5.4%, according to the Myrtle Beach Chamber of Commerce 1997 Relocation Guide. 7

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million visitors a year. (~) Current PDRTA ridership on the routes from Marion County and two neighboring counties to the Grand Strand is about 250 people. Even though International Paper is building 50,000 homes near Myrtle Beach, prices are out of the range of PDRTA's riders; therefore, the routes from Marion County will still be needed to bring employees into the area. Marion County DSS has had the second highest success rate in the state in decreasing its welfare roles, according to the Project Administrator. When the Marion WORKS program started in January, 1996, its caseload was 712; by April, 1997, it had decreased to 445. In that same period, the number of employed clients went from 25 to 623. (9) According to the Project Administrator, the state of South Carolina has saved $60 million since the Family Independence Act was implemented. PDRTA estimates that its participation during the summer of 1996 brought $891,000 in wages to Marion County, based on the 175 Family Independence Act workers it transported to the Grand Strand. The May through September income produced from these jobs equated to an economic impact of $2.3 million for the county, according to PDRTA. The transit agency estimated that the additional 55 Family Independence Act workers from other counties that were carried on the routes brought the total wages to more than $ ~ million and an economic impact of $3. ~ million to the Pee Dee Region. ~ 10) The Pee Dee Region was founded on tobacco farming, where people didn't need an education to have a job, the Project Administrator pointed out. When the Harvesters came in and began stripping the tobacco, the pickers were out of jobs. Now their children are learning how to operate computers and will be better equipped for today's job market. Therefore, the next generation won't be as dependent on public assistance, she forecast. PDRTA and Marion WORKS are helping them on that road to independence. MEASURING TEIE COSTS AND BENEFITS To further quantify the economic impact estimates reported above by PDRTA, the research team devised an on-board survey for all riders on the Marion County routes. Respondents included not only Family Independence Act recipients but also other residents who were riding the bus to jobs in Myrtle Beach. These results indicate that for every $! invested in the PDRTA beach routes, the economic benefit is $26.60. Technical Approach In September, 1997, PDRTA distributed an on-board survey designed for this research to passengers on the routes displayed in Exhibit B. Passengers were asked what days they rode the bus and how they would get to their Myrtle Beach job if there were no bus. They were also asked how many hours they worked, what their hourly wage was, and whether they had held a job or received public assistance in the six months before their current job, and, if so, how much they received. Ninety-four surveys were completed out of about 250 daily passengers, for a respectable response rate of almost 38%. The average age of respondents was 27 years. (See Appendix A for a copy of the survey.) 8

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Ridership fluctuates during the year, reaching a high of 250 a day during the summer tourist season and a low of about 60 during the winter months. In addition to the surveyed routes, another PDRTA operation out of Florence County also transports workers to jobs at Myrtle Beach, with a high of about 1 12 riders and a low of 25. According to PDRTA, the profile of riders on the Florence routes is similar to those riding the Marion County buses. Therefore, although the Florence County routes were not surveyed, the survey results from Marion County were expanded to apply to all riders from both PDRTA operations. PDRTA estimates the annual cost to operate both counties' beach routes is $540,000. Because of the seasonal ridership fluctuations, it was necessary to develop a weighted average for the estimated daily passengers. That number is 220 passengers per day on both counties' routes combined. However, workers are not necessarily fulI-time and do not ride the bus on all the seven days a week that it is operating. The survey revealed that an average of 57.9% of the total riders rode the bus each day during the "snapshot" week the survey was taken. By dividing the 220 passengers by 57.9~o, it was determined that 380 individuals rode the buses during the seven-day week of the survey. Using these numbers, a daily operating cost per one-way passenger trip was ca~cu~a~ea al ~. Since a one-way fare is $2.50, the farebox recoverer is an impressive 74%. (See Appendix B. Table A for further details about the calculations in this and the preceding paragraphs.) . ~, ~, ^^ ^~ In answer to the survey questions about their current and past wages and the public assistance received, passengers identified personal earnings and societal savings resulting from their employment at Myrtle Beach jobs. Their answers are summarized in Table ~ below: TABLE 1 SURVEY RESULTS OF PERSONAL EARNINGS AND SOCIETAL SAVINGS FROM MYRTLE BEACH JOBS Personal Earnings Daily earnings based on an average of $6.56/hour $ 33.36 Increase in daily earnings of 27% who formerly had a lower paying job $ 4.73 Societal Savings Monthly unemployment benefits previously received (1 I.8%) Monthly welfare benefits previously received (7.8%) Monthly food stamps previously received (21.6~o) 9 $154.50 $230.50 $279. 18

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has fostered an inclusiveness which has bolstered morale, according to the Executive Director. All these measures recognize the investments a business must make in its own employees before it can be a successful entrepreneur, he said. Some have criticized PDRTA as being too expensive or too aggressive, he admitted. But he believes it is bad business to attempt to provide service at less than its cost. Recognizing opportunities is not the same as being too aggressive, said the Executive Director: Recognizing opportunities means not being satisfied with the status quo; it means being entrepreneurial. Forming a Partnership Marion WORKS is an outstanding example of a partnership between two public agencies that heretofore operated independently. The strength of the partnership is exemplified by the fact that the Marion County DSS Director brings along the PDRTA Transportation Manager as part of his team whenever he addresses groups, such as the local Chamber of Commerce. The PDRTA/Marion WORKS partnership extends beyond the Grand Strand routes. For example, when PDRTA did not have the vehicles to meet the schedule for the job training program, DSS changed the times of the job training to insure that transportation was available. When job training participants were reluctant to walk very far from the housing projects to catch the bus, PDRTA designed a bus stop within each of the projects. One of the ingredients of the successful partnership, according to the Project Administrator, is being accommodating to each other's needs. DSS and PDRTA have accommodated each other on another of the DSS programs as well non- emergency Medicaid transportation. Many of the people served are elderly, poor, and uneducated. As a result, they have difficulty giving directions to their house to be picked up by the bus. Sometimes the difficulty is because the road has no name and address. It might be "the fourth dirt road behind the cotton field," explained the Transportation Manager. To facilitate communication, DSS physically placed the employee who takes the initial calls for service in PDRTA's office. She can then go directly to the dispatcher with directions, schedule the ride, and let the caller know exactly when to be ready for the bus. Callers reach the same person each time they call for service, increasing familiarity and alleviating confusion. According to PDRTA and DSS, the answer to difficult problems faced in a partnership is not "No," but "We're going to make it work." 12

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REFERENCES (1) Act 417 of the 1974 Acts of the General Assembly of the State of South Carolina, Section 58-25-10. (2) South Carolina Family Independence Act of 1995, Section 11 (B) (5). (3) "Marion County Unemployment Rates," maintained by Paula M. Richardson, Project Administrator, Office of Job Development, Marion County Department of Social Services. (4) Letter by Paula M. Richardson, Project Administrator, Office of Job Development, Marion County Department of Social Services, dated May 3, 1996. (5) Stay and Play: Myrtle Beach Area Vacation Guide, Myrtle Beach Area Chamber of Commerce (1997). (6) Letter by Paula M. Richardson, Project Administrator, Office of Job Development, Marion County Department of Social Services, dated May 3, 1996. (7) "Marion County WORKS honors employees," by Heather Ard, Marion Star & Muffin Enterprise. (a) Myrtle Beach Area Chamber of Commerce 1997 Relocation Guide, Platinum Publishing Company, Inc. (1996). (9) "Marion County Statistics," maintained by Paula M. Richardson, Project Administrator, Office of Job Development, Marion County Department of Social Services. (10) PDRTA Press Release dated October 14, 1996. The Executive Director said that the figures for the economic impact amounts are based on a multiplier factor of three identified in a study by Carter Gobel & Assoc. about 5-6 years ago. (11) "PDRTA wins state awards, "Morning News, Florence, North Carolina. (12) "Pee Dee Regional Transportation Authority Five Year Capitalization Project" (April 1997). (13) "Pee Dee Service Connects Amtrak to S.C. Cities," Passenger Transport, American Public Transit Association (December 8, 1997). 13

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Pee Dee Regional Transportation Authority HOW DOES THIS BUS PROGRAM HELP YOU? Please help us by answering a few questions about your bus ride to and from work. It you have already completed a surrey, please do not complete another one. Your individual responses v nil be kept strictly confidential. Please leave the completed survey in Me envelope near We exit of me bus. Thank you for your cooperation. 1. Circle al' the days you rode the bus last week: Monday Tuesday Wednesday Thursday 2. What time did you get on this bus? What time wit' you get off this bus? Friday Saturday Sunday A. M. or P.M. farce ones A.M. or P.M. parole one' 3. If there were no bus, what would you do? O ~ would drive my car. O ~ would get a ride from someone. O ~ could not keep this job because: O ~ have no car. O My car is unreliable. O ~ don't fee! safe driving because of the times ~ work. O ~ don't have anyone to give me a ride. O Other (explain below - please print) In the 6 months before ~ had this job: O ~ did not work. O ~ also received unemployment of $ a month. 3 ~ also received welfare funds of $- O ~ also received food stamps of $_ O ~ was in job training. During my training, ~ also received 3 ~ had another job. ~ made $ per hour. ~ usually worked Now ~ make $ per hour. Fill in the number of hours you worked each day last week: a month. a month. (a day / a week /a month) (circle one) hours a week. Mon. Tues. Wed. Thurs. Fri. Sat. Sun. found out about the bus from: O My social worker O The bus company (check as many as app/yJ O My employer O A flyer or ad O A friend O Other (explain below - please print) ,. Other comments about this bus program: (explain below- please print) I Your age: O Male U Female i| . . THANK YOU tor your help. Please leave the survey In the envelope near the exit of the bus. A-1

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4 APPENDIX B SURVEY RESULTS AND BENEFIT/COST CALCULATIONS Table A summarizes the key operating and ridership data for PDRTA's bus service to Myrtle Beach. The operating statistics and daily passengers in items 1, 2, 4, and 8 were provided by PDRTA for the current year, 1997, based on recent experience. The remaining items were calculated from those data. They show an efficient, relatively low-cost bus service, with daily operating costs per one-way passenger trip of $3.37 (item 7) compared with a one-way fare of $2.50 (item 8), for an estimated farebox recovery factor of 74% (item 91. The principal information used in subsequent benefit estimates will be item 3, individuals riding bus, item 4, annual bus operating costs, and item 9, fares as a fraction of operating cost per trip. TABLE A. RUNS, RIDERSHIP, AND COST OF MYRTLE BEACH BUS SERVICE FromFrom ItemMarion Co.Florence Co.Total 1. Daily bus runs a. January-March325 b. April & October-December437 c. May-September7613 d. Weighted average (~3 months x a + 4 months x b + 5 months x c]/12 months) 9 2. Estimated daily passengers a. January-March 60 25 85 b. April & October-December 100 43 143 c. May-September 250 112 362 d. Weighted average (~3 months x a + 4 months x b + 5 months x c]/12 months) 220 3. Individuals riding bus 380 (2~0.579, where 0.579 is the average fraction of individuals riding daily, from Table B. item 1.8) 4. Annualbus operating costs $540,000 5. Average daily passengers per 2-way bus run (2d/ld) 24.4 6. Daily operating cost per 2-way bus run (item 4/1 d/365 days/year) The numbers and letters in parentheses refer to other items from this stub column. B-1 $164.38

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7. Daily operating cost per one-way passenger trip (6/512 runs) 8. One-way fare $3.37 $2-50 9. Fare as a fraction of operating cost per trip (~/710.74 10. Total estimated farebox revenues (item 9 x item 4) 1 1. Estimated annual reimbursement to PDRTA from Myrtle Beach employers: a. Burger King (3 buses/day @ $55 x 150 days in 5 months) $24,750 b. Pavilion (! bus/day @ $55 x 150 days + $400,000 1 bus/day @ $37 x 210 days) 16,020 c. Morrison Fresh Cooking (1 bus/day @ $55 x 360 days) ,19.800 d. Total $60,570 Table B summarizes the results of the on-board passenger survey distributed by PDRTA to Myrtle Beach passengers from Marion County in September, 1997. Ninety-four survey forms were completed out of about 250 daily passengers on those routes, for a response rate of about 38%. TABLE B SURREY FUESmLTS 1. Percent riding bus daily I.1 Monday 59.6% 1.5 Friday 69.1 % .2 Tuesday 52. 1 To ~ .6 Saturday 60.6% I.3 Wednesday 56.4 1.7 Sunday 56.4~o 1.4 Thursday 5 1.1 1.S Average 57.9% 2. Time on and off bus: (invalid answers; question was not understood) 3. Mode choice without bus: 3.1 Drive own car 3.2 Ride with someone 3.3 Could not keep job Total 3.4 Reasons job would be lost: 3.4.1 No car 3.4.2 Unreliable car 3.4.3 Driving doesn't fee} safe 3.4.4 Can't get a ride 3.4.5 Other Total 9.6 19.3 71.1 100.0 65.1 12.7 7.9 30.2 9.5 125.4 B-2

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4. In 6 months before I had this job, I 4.1 Did not work and 4.1.1 also received unemployment, averaging $154.50/mo 4.1.2 also received welfare averaging $230.50/mo 4.1.3 also received food stamps of $279.18/mo 4.1.4 received nothing else Total 4.2 Was in job training, receiving an average of $3~our 4.3 Had another job, averaging $6.11 an hour for 32.S hours/week (total $200.41/wk or $28.63/day) Total 1.~% 7.S 21.6 28.7 69.9% 2.7% 27.4% 100.0% Now average $6.56~our for 35.6 hours last week (total $233.54/week, or $33.36/day) 6. Increment in average daily earnings for 27.4% of riders (item 4.3) who had another job = $33.36 - $28.63, or $4.73/day. 7. Learned about bus service from Friend 7.2 Social worker 7.3 Bus company 7.4 Flyer or ad 7.5 My employer 7.6 Other Total 8. Age data S.1 0 - 15 years 8.2 16 - 21 years 8.3 22 - 29 years S.4 30 - 39 years 8.5 40 - 49 years 8.6 50 - 59 years 8.7 Average age 9. Gender 9.1 Male 9.2 Female Total B-3 52.5 16.S 15.S 5.9 4.0 5.0 - 100.0 1.2 32.9 32.9 21.2 10.6 1.2 100.0 27 years 26% 74% 100.0

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An average daily ridership of 57.9% was recorded in the response to the first survey question, with little variance from this number in daily bus rider percentages. This is why the daily ridership, 220 persons (Table A, item 2d) was divided by .0579 to obtain 380 (Table A, item 3), the estimated number of individuals riding these bus routes on a weekly basis. Question 2 on the survey, the clock time the passenger boarded and left the bus, obtained invalid answers due evidently to some riders misinterpreting the question as referring to their hours of work. Item 3.3 in Table 3 shows that a high 71.1 To of riders believe they could not keep their jobs without the bus service, for the reasons given in item 3.4, mostly the lack of reliable access to a car. Item 4 documents the percentages of riders who did not work before their present job and how many received financial aid or food stamps. These data are heavily used in the benefit estimates that follow, together with the daily earnings data from items 5 and 6 in Table B. Item 7 shows how passengers learned about the Myrtle Beach bus service, and item 8 reveals the average age of riders as 27 years. Responses were highly clustered in the young adult ranges. Table C shows the benefit calculations for Myrtle Beach bus service, based on the previous two tables. To summarize the Table C calculations: Annual Benefits Earnings of passengers Employer benefits Less: bus rider fare payments Net benefits to passengers and employers Annual Costs Total bus operating costs Less: fare revenues Less: employer contributions Net cost to PDRTA Ratio of benefits to costs $2,516,000 60,570 400,000 $2,176,570 $540,000 -400,000 -60,570 $79,430 26.6 The resulting benefit/cost ratio is extremely high, partly because PDRTA has successfully minimized their out-of-pocket costs for the Myrtle Beach service through fares and employer contributions. B-4

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Please note that these extraordinary benefits would be offset, in a more comprehensive study, by any public costs that may have been associated with training the employees riding the buses to Myrtle Beach. This study addressed only the transportation costs, but still remains valid because it included consideration of how many bus passengers (71.1 Boy could not have held their jobs without the bus service. TABLE C. BENEFIT CALCULATIONS Included in Summarv of Annual Benefits Annual earnings of unemployed passengers: $33.36/day, from Table B item 5, x 365 days/year x 72.6% of riders who were unemployed (from 100% - item 4.3 in Table B) x 380 individuals, from Table A, item 3, x 71.1% who could not keep their job without the bus service, from Table B. item 3.3 = $2,388,000. 2. Added annual earnings of passengers who formerly had another job: $4.73/day, from Table B. item 6, x 365 days/year x 27.4% of passengers who formerly held another job (Table B. item 4.3) x 380 individuals x 71.1 % who could not keep their job without the bus service = $128,000. 3. Annual reimbursement from employers to PDRTA, from Table A, item 11, = $60,570. (This amount is deducted from PDRTA operating costs to help arrive at net operating costs. However, it is also added to project benefits, as the best available estimate of what the bus service is worth to employers, because it is doubtful that employers would keep up such payments unless they valued the service at least that much.) 4. Annual fare revenues, from Table A, item 10, = $400,000. (This amount is deducted from both benefits and costs, as it represents a transfer payment, an added cost to bus passengers and an offset to PDRTA operating costs to help arrive at net operating costs.) Not Included in Summary of Annual Benefits 5. Annual unemployment savings: $ 154.50/month, from Table B. item 4.1.1, x 12 months/year x 11.8% of riders who previously received unemployment payments, from Table B. item 4.1.1, x 380 individuals x 71.1% who could not keep their job without the bus service = $59,000. 6. Annual welfare savings: $230.50/month, from Table B. item 4.1.2, x 12 months/year x 7.8% of riders who previously received welfare payments, from Table B. item 4.1.2, x 380 individuals x 71.1 % who could not keep their job without the bus service = $58,000. Anniln1 form autumn Gavin ~s ~279 1 it/month from Table B. item 4.1.3. x 12 months/Year x 7 ~ rip =--~ ~ 7~ 21.6% who previously received food stamps, from Table B. item 4.1.3, x 380 individuals x 71.1 % who could not keep their job without the bus service = $ 196,000. B-S

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The savings in unemployment, welfare, and food stamp payments documented in items 5, 6, and 7 of Table C, totaling $3 ~ 3,000, were not used in the summary of annual benefits because they are offset by losses of those same funds to PDRTA riders, creating a "wash" in benefits. This treatment conforms to the common-sense perception of former welfare recipients, that they have to earn more than they "lost" in welfare payments to fee] that they are benefiting economically by the change. Nevertheless, these social welfare savings represent a significant public policy achievement, lessening the burden on taxpayers and improving the performance of the free enterprise system. B-6