Click for next page ( 176


The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement



Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 175
SEPTA HORSHA3![ BREEZE SERVICE CASE STUDY

OCR for page 175

OCR for page 175
SEPTA HORSHAM BREEZE SERVICE HIGHLIGHTS Horsham Breeze is a 11-mile loop shuttle route between the Willow Grove Park Mall, about 16 miles north of Philadelphia, Pennsylvania, and suburban employment centers in Horsham Township. The Mall area is served by two frequent, 21-hour per day, 7 day a week Southeastern Pennsylvania Transportation Authority (SEPTA) routes from Philadelphia. The Breeze allows employees in this job-rich area to transfer from these main line bus routes to access employment opportunities 6 days a week from 6:12 a.m. to ll:00 p.m. on a fleet of minibuses. Average daily ridership for a survey week in October 1997 was 826. SEPTA has developed an innovative financial and marketing partnership with Montgomery County, a local transportation management association (TMA), and major employers that has resulted in significant economic benefits: for every $1 invested in the Horsham Breeze service, there is a $7.30 return in direct economic benefits. BACKGROI~D Public transportation in the five-county SEPTA service area is typically characterized by a series of radial bus and rail routes in a '`hub and spoke" system. SEPTA operates 26 radial routes whose original function, developed between 1920 and 1960, was to provide service from suburban communities to downtown Philadelphia.i As with most U.S. metropolitan areas, the increasing suburbanization of new jobs drastically changed the traditional transit market. Between 1970 and 1990, Philadelphia County has experienced a 19 percent loss in population and a 16 percent loss in employment. The four suburban counties in SEPTA's service area collectively gained 13 percent in population, 22 percent in households and 36 percent in jobs. Between 1990 and 2010, the Delaware Valley Regional Planning Commission (DVRPC) projects a one percent gain in jobs in the central city while suburban jobs are expected to increase by 16 percent.2 For many City of Philadelphia residents working in the service industry, an increasing number of new jobs are located in the suburbs. Horsham Township in Montgomery County (located west of Willow Grove) is home to the Horsham and Pennsylvania Business Center, as well as other major employers in the periphery. It is a growing suburban center, with an estimated 8,000 employees working in over 90 businesses. Recent growth in employment has been phenomenal. Prudential had hired over i,200 people in 1996 and has hired an additional I,l 00 per year to date, predominantly for a new operations call center that has been consolidated in the Horsham Business Center location. UPS has 2,000 employees at its site in the area, and is constantly recruiting new applicants for this high turnover industry. 1

OCR for page 175
HISTORICAL DEVELOPMENT OF PUBLIC TRANSPORTATION IN THE HORSHAM AREA In 1986, SEPTA was contacted by developers in Montgomery County to provide public transportation access to a suburban business park because of the difficulty in filling entry level positions. After evaluating several alternatives, SEPTA launched the "200 Series" routes, a series of six bus feeder routes to and from regional rail stations near the suburban business parks. These "rubber-tired extensions of the regional rail system," were timed to meet the trains and wait for the train if delays occurred, thus providing a guaranteed ride feature. Individuals who use prepaid "Trail Passes" can transfer with no additional navment to the 200 . ,~ ,,' . ~ ~. ~. . ~. . series routes, whereas single ticket riders were required to pay an additional 50 cents on the bus portion of the trip. The routes needed to be self-supporting or the deficit was paid by employers or a chamber of commerce. The deficit was determined by subtracting a revenue credit, the average rail fare depending on the zone destination, from the total operating costs of the individual 200 series route. All routes utilized standard 40 foot coaches. Typical levels of service were varied between half-hourly and hourly headways, with 3-4 trips each in the mowing and three in the afternoon. The levels of the "200 series" service were constrained by employer affordability and the level of rail service to suburban stations. Significantly more demand for raid service is from the suburbs to downtown Philadelphia. Coupled with the fact that many suburban areas have a single track, the level of service to many suburban commuters was not adequate. At their peak in 1991, the six 200 Series routes had 802 average week passenger trips3. In 1992, with a weakening regional economy, one route was eliminated and overall ridership dropped to 505 daily passengers. The 210 bus was implemented in May 1990, with a funding commitment from the Willow Grove Chamber of Commerce. Ridership grew to 150 passengers per day but connections to bus services at the Willow Grove Park Mall were difficult, requiring a half-mile walk. The Chamber of Commerce withdrew financial support after one year, and service was gradually decreased to make the route self- sustaining. According to SEPTA, passenger revenues began to progressively erode due t0 4 A recession which lasted between.1992 and 1994. SEPTA's RailWorks project which severed the rail connection in North Philadelphia during the same period. More passengers continued to utilize connecting bus routes, versus the regional rail trains as a means to reach Route 210, primarily due to the levels of service described above. In 1995, hiring of entry level employees was 2

OCR for page 175
prevalent as ridership began to rebound. The Horsham Breeze eventually replaced the Route 210. Employers such as UPS hired private transportation services during the holiday season to fill some of the transportation gaps. However, such services were sporadic and did not satisfy the need for a coordinated approach to improving public transportation accessibility to new suburban jobs. HORSHAM BREEZE SERVICE DEVELOPMENT With many employers complaining that they could not recruit workers who did not own a car, developers in the business parks went to Montgomery County and asked for more frequent service for Route 210. Because of the growth in employment in the area, County sta~was planning to expand bus service in the ,, ~. ~ . . . _ area to --rust service-- status. Discussions among the County, developers, major employers, and SEPTA revealed a need to reconsider the overall service design to better meet existing and future demand. The County also decided to ask the Partnership TMA, which was providing service in another part of the County, to also provide services in the area. Several key issues were raised as a new service design strategy was discussed. The first was the affordability of running full-size buses to meet the local needs. Developers and several major employers advocated the use of smaller minibuses to keep with the character of the suburban location. Major employers liked the idea, which would enable the bus in some cases to drop passengers literally at the door instead of enduring long walks from the street. Two 16-seat minibuses were initially purchased by SEPTA with CMAQ funding. Expansion of service with minibuses was also attractive from a financial point of view. SEPTA's labor agreement allowed a substantially lower operator wage rate for additional service with small shuttle buses. A downtown shuttle circulator bus was already operating utilizing the lower rate. The use of lower wage rates enabled a significant expansion of service, initially from 18 trips per day, up from ~ per day with Route 210. The Horsham Breeze operates on a 10-mile loop route which services many of the businesses served by former Route 210, in addition to providing transit service directly to businesses previously not served. A map of the service route is displayed in Figure 1. Schedules were developed to coordinate with reverse-commute Router 22 and 55, which both have 15-20 minute headways offered from 6:30 a.m. to 7:30 p.m. and half hour service typically in the early morning and from 7:30-10 p.m., when 45 minute headways continue to 2:00 a.m. 3

OCR for page 175
F. figure ~_ Cows J . __ ; ma_ _ ~"a_ _ , -An---~- ~.~.w ~- ~. __. _- _ ~ _ _ bitt Ma HOflSHAJU BUSINESS _ ~ C~V7 - _ A i C~i - __ _ - - Breeze buses make the following major stops en a ~ ~ -mile loop through the business centers of Horsham: . PROD - mat _ fonts, Alec Group O - reffonsJ NORM POUND CORPORATE CNrER Willow Grove Park Mall Moreland & FiDwatedewn Rds. Prudential (Eastern Operations, Main Entrance) UPS Horsham Business Center Dresher & Gibraltar Reads Blair Mill & W4mer Roads Blair Mill & Welsh Roads ~ Penn Mutual Advanta GMAC Rock Plaza Advent. aM4c 4

OCR for page 175
Routes 22 and 55 are routed directly into a secondary entrance of the Willow Grove Park Mall and drop passengers offimmediately adjacent to the mall doors. Arrangements were made to have the Horsh~m Breeze shuttle meet the Route 22 and 55 buses right at the mall. This convenient and safe access to the Horsham Breeze was an important contributing factor to the successful development of the shuttle service. Horsham Breeze passengers can utilize their monthly or weekly pass as fare payment, meaning that the majority of passengers do not pay extra for the service. Field observations revealed the frequent use of the fare prepayment media, such as weekly and monthly transit passes I%. The County agreed to pay the deficit between the total cost of service during weekday core nours, between o:uu a.m. and ~ UU Am. The basic two-bus weekday ~ ~ , ~ ~ ~ ~ ~ ~ ~ - ~ ~ A ^t service ~n~t~a~y cost a total or ~ ~ ~ ~ ,~. Ever revenue credits are subtracted, the County is responsible for any remaining deficit. The Horsham Breeze receives a $~.34 revenue credit for each passenger, using the compelling argument that passengers would not be utilizing the mainline SEPTA service unless the final connection was available. The revenue credit is the same figure utilized for other Montgomery County subsidized suburban services. The revenue credit has been an important incentive for the County, major employers and the TMA to participate. Initial expectations by SEPTA staff were modest, with IS0 daily passengers expected during the first month of service, approximately the same amount that Route 210 provided, and with passenger levels growing to 300 daily passengers after the first year. SEPTA's marketing stab developed a creative marketing campaign and has received assistance from the TMA and employers as the new service was launched and received significant media attention. Initial passenger results exceeded all expectations. After three months, ridership exceeded 400 passengers per day. This initial success caught the attention of SEPTA, TMA, and major employers alike. UPS and Prudential approached SEPTA about expanding service to 11:00 p.m. initially, and then considered providing SaturdaY service. Both employers agreed to past for the , ~ v . ~ ~ ~ ~ ~ ~ ~ 1 1 1 ~ ~ 1 ~ 1 ~1 _ operating oetlclt, agam suntractmg one passenger revenue creates from one extra cost of the evening and Saturday service. The more passengers that utilized the service, the less the employers needed to pay. Passenger levels continued to climb to over 700 passengers per day at the time of the case study site visit in August 1997 and averaged 826 during a survey week in October 1997. SEPTA needed to make several adjustments in the first ~ months of service to keep up with the demand. Between November 1996 and July 1997, the number of scheduled trips more than doubled from 18 to 39. Depending on the time of day, service is operated every 10 to 30 minutes and the number of 5

OCR for page 175
vehicles has increased from 2 to 4 vehicles. Expanded service levels increased the total operating cost of the Horsham Breeze to $213,192. Efforts still remain to improve passenger convenience. . . . . . .. . .. A, . .. . The developers of the business parks have resisted the construction of bus shelters because it was felt they would detract from the campus-like setting of the development. During the peak morning periods the minivans are overcrowded. SEPTA has responded with additional shuttle runs, but capacity may be a continuing issue. PROFILE OF HORSHAM BREEZE USERS An on-board passenger survey was distributed to all Horsham Breeze passengers on all runs between 6:12 a.m. and 10:40 a.m. the morning of October 12 1997. The questionnaire was designed to provide a profile of Horsham Breeze passengers and to explore the economic costs and benefits for individual users. A complete summary of the survey results is included as Appendix A. Key findings are shown here. The Horsham Breeze user has an average commute of one hour and twenty- eight minutes in the morning. This is the total travel time from when the rider leaves home to when he or she arrives at work. A majority of Horsham Breeze users utilize two bus or rail lines from Philadelphia before boarding the Horsham Breeze shuttle. Another key factor in the long commute is that slightly over one- third of all Horsham Breeze users stop on the way to work, with 18.~% stopping at childcare services during their commute. Passengers who stop on the way to work for childcare or other errands have an average one-way commute of one hour and forty-five minutes. Horsham Breeze users rely on the service to get to work. The average rider works 38 hours per week and uses the Horsham Breeze five days a week. About 26% reported using Saturday service. About 56% of the ridership work at Prudential, but ~ other employers had ~ or more employees included in the sample. _ About 60% of the respondents were not employed in the Horsham area prior to the start of the Breeze service. Of these new employees, 73% had another job before starting their current job, 20.6% did not work, and another 6.5% were in training. The average annual income of these new employees is $20,750 per year, based on an average of $10.78 per hour, 38.5 average hours per week and 50 work weeks per year. 1, Almost two-thirds of the respondents felt that they could not keep their job if the Horsham Breeze were not available. The unavailability of a car was the main reason for the dependence on the Breeze. 6

OCR for page 175
Almost 82% of the Breeze riders utilize a pre-pa~d monthly or weekly transit pass as their method of fare payment. Since all riders transfer from a SEPTA bus, from the user perspective they are not paying any additional money for the Breeze service. Since the Horsham Breeze service started in November 1996, about 55% of the passengers reported shopping or buying food or drinks at the Willow Grove Park Mall. The average rider shops S.7 times a month and reports spending an average of $123 per month. ECONOMIC BENEFITS AND COSTS OF THE HORSHAM BREEZE SERVICE The survey designed by the research team and administered by SEPTA was utilized to calculate the economic benefits of the Horsham Breeze service. The details of the economic calculations are included in Appendix B. Six types of benefits were considered for inclusion in the analysis, but ultimately the four most direct benefits were included to keep the analysis conservative. The four types of benefits included were: I. The income gains of previously unemployed workers. The analysis is limited to those individuals who indicated that they could not keep their job if Horsham Breeze service was discontinued. The income gains of new Horsham emr,lovees who were nrevinusiv ~ ~ ~ ~ ~ . . . _ _ employed elsewhere. Based on the survey results, the average Horsharn Breeze user who was formerly employed prior to starting a job in the Horsham area (after the Breeze started) had a $4,950 annual gain in income. 3. The savings in parking demand, based on the premise that the Breeze has eliminated the need to bring a car for current Horsham users who formerly drove alone or carpooled before the Breeze began services. "New" employees to the Horsham area were assumed to create the some parking 4. demand as "old" employees. Travel cost savings for Horsham Breeze users who worked in the . . . .. . . ~ .. ~ norsnam area prior to the start of the Breeze and drove alone or carpooled before the start of the Breeze service. Two economic benefits were not included. The first is purchases by Horsham Breeze users shopping at the mall. These were viewed as transfer benefits, meaning that users probably would have bought food or purchased items elsewhere if the Breeze were not located at the Mall. 7

OCR for page 175
The other potential benefit that was not included was the value of travel time. Some users utilize their commute time productively, reading on the bus. Sufficient data was not collected in the survey to adequately identify the value of changes in travel time. Table ~ is a summary of the benefits and costs of the Horsham Breeze service. The benefit/cost ratio is 7.3 to I, meaning that for every dollar invested in the Breeze, $7.30 in economic benefits are returned. TABLE 1 ANNUAE INCOME BENEFITS Formerly Unemployed New to Horsham area, Net Increase in Income ANNUAE PARKING COST SAVINGS ANNUAE TRAVEL COST SAVINGS OF BREEZE USERS, Formerly Employed in Horsham Area TOTAL ANNUAE BENEPI! S HORSE BREEZE NUDE COSTS BENEFT/COST MOO KEY FACTORS FOR SUCCESS $ 884,106 622,004 23,364 38~887 $1,563,361 213,192 7 ,2O Five important factors were iclentified as critical to the success of the Horsham Breeze service: core transit service job opportunities partnerships financial equity service flexibility The Horsham Breeze is an extension of excellent core public transportation services from Philadelphia to a suburban shopping mall. Without the frequent 7-day week, 21-hour per day service levels of the 55 and 22 routes with direct convenient access adjacent to the mall doors, the Horsham Breeze service would not be possible. If service levels on these important routes were reduced, it would have a profound impact on the ability of businesses to attract 8

OCR for page 175
prospective employees to employment growth in the suburbs. The survey results clearly point out that many of the new employees do not have an automobile available to them and rely on public transportation to get to their new job. Without the foundation of excellent core public transportation services, circulator shuttles like the Horsham Breeze will not meet the needs of the business community and prospective employees. The significant growth in jobs in the Horsham area was certainly a catalyst for initiating the Horsham Breeze service, but it provided an opportunity to address existing needs as well. Difficulty in recruiting employees from Philadelphia was a . . ~. ~. - ~ ~AT ~ major driving force In getting the norsham breeze underway. The decision by Prudential to locate its telephone center in the Horsham area created an immediate need to recruit from the labor market in Philadelphia. Development of other business parks in the area created the same need for employers occupying the new development. However, UPS had a long standing need to recruit entry-level employees and had urged SEPTA and others to improve public transportation services to their site for years. The partnership that has flourished to develop and expand Horsham Breeze services is the result of realizing economies of scale that would not be possible with a single public or private entity working alone. The ability to address the convergence of employment needs provided a win-win opportunity for all parties involved. Prudential or UPS certainly could have provided a shuttle service from the Willow Grove Park Mall themselves, but neither could have afforded the service levels provided by cooperatively working with prospective partners. The Partnership TMA has played an important role in helping to advertise the beneficial aspects of the partnership. Financial commitment and determining equitable levels of support are nominally stumbling blocks in many multi-employer efforts to implement improved transportation services. Efforts by SEPTA and Montgomery County to plan an effective and affordable service are significant keys to the overall program success. The use of the lower wage rates for minibuses and the revenue credit for suburban services, coupled with strong ridership, have meant that the deficit has been lower than expected, resulting in lower out of pocket expenses on the part of Montgomery County and the employer financial sponsors. Success can definitely breed additional success. All Horsham Breeze partners have been able to respond to the initial program success by increasing the levels of service. The ability of SEPTA to incrementally add evening and weekend service and improve headways has been a key factor in maintaining momentum for the Breeze service. 9

OCR for page 175
BREEZE USER PROFILE: PRUDENTIAL EMPLOYEE, 5 DAYS A WEEKS, USES WEEKLY TRANSPASS The average person uses the Horsham Breeze 4.86 times a week. Almost 26. ~ % of respondents reported using Saturday service. As shown in figure below Wednesday is highest use day. Circle all the days you rode the Horsham Breeze bus in the last week: Day of week Pet of respondent rides Count Responses . Monday 265 18.0 . Tuesday 284 i9.3 Wednesday 292 19.9 . Thursday 276 18.8 . Friday ~274 18.7 . Saturday ~79 5.3 Total Responses 14691 100.0| 487.2 n=302 (Weighted) Pet of Cases 87.8 94.1 96.8 91.5 91.0 26.1 Days Respondents Used Bus Line 300 250 200 ~0 100 50 O Monday Tuesday 1 ~ ~ ~ ~ . 1 ~ ~ ~ ~ ~ Wednesday Thursday Friday Saturday The majority of Horsham Breeze survey respondents traveled to Prudential. Other work destinations with a weighted frequency of ~ or more are shown below. Where do you work in the Horsham area: ace of Work | Frequency | Valid Percent Prudential| 168| 55.9 UPS1 131 4.3 Advanta 8 2.7 GMAC 8 2.7 Kuliche and Soffa 8 2.7 Diversified Pharmeceutical ~+ 8 2.7 Quest 8 2.7 Horsham Business Center 8 2.7 Federal Express 8 2.6 Other 64 20.8 Total| 3021 100.0 n=302 (weighted[J A-2

OCR for page 175
Over two-thirds of Horsham Breeze passengers utilize a weekly Transpass as the means of fare payment. The average cash payment was $2.25. How did you pay your fare today, including all buses and trains you utilized this morning? Cash fare + token Cash fare + 10% transfer 9% / Monthly Transpass 14% Weekly Transpass 67% n=305 (Weighted) A-3

OCR for page 175
BREEZE USERS SHOP AT WILLOW GROVE PARK MALL Since using the Horsham Breeze service, 55. 1% of passengers reported shopping or buying food or drinks at the Willow Grove Park Mall. The average person shops 8.7 times a month and reports spending an average of $123 per month. Collectively, the 308 Horsham Breeze users surveyed spent a total of $13,915 at the Willow Grove Park Mall. Since you started using the Horsham Breeze, have you shopped or bought food or drinks at the Willow Grove Park Mall? Times Shopped at Mall in Past Month ~Amount of Purchases per Month Value ~ Frequency ~ Valid Percent ~ | Value | Frequency | p 1 - 564 54.2 $1 - 20 ~28 24.3 6 - 1031 25.8 $21 - 50 27 24.2 11 - 1510 8.2 $51 - 100 20 17.1 20 - 24 5.4 $101 - 200 18 15.7 25 - 292 1.4 $201 - 300 11 10.0 30 or more8 5.6 $301 or more 11 8.5 Total r 121 I 100.0 I ' otalr 115 | log O - 30 or 25 - 29 20- 24 11-15 / 6- 10 n=121 (Weighted) 1 - 5 A-4 $301 or $201 300 $101 200 more - $51 - 100 n=llS (Weighted) $1 - 20 $21 - 50

OCR for page 175
BREEZE USERS COULD NOT WEEP TEIEIR JOBS IF SHUTTLE SERVICE VVERE NOT AVAILABLE Almost two-thirds (64.4%) of Horsham Breeze respondents felt that they could not keep their job if the Horsham Breeze were not available. Another 30% would get a ride from someone else. Only 5.6% would drive their car. The unavailability of a car was the main reason respondents felt that they would not be able to keep their job as the table below indicates. I could not keep this job because: Percent of Reason Count Responses No car 149 47.9 No one to give me a ride 79 25.3 Take 55 and walk 35 11.3 Car unreliable 10 3.1 Cannot drive _ 5 1.5 Don't feel safe driving 3 1.0 Other 30 9.8 Total Responses 311 99.9 132.0 . Percent of . Cases 63.3 . 33.3 15.0 4.1 2.0 1.4 12.9 n=236 (Weighted) FORMERLY EMPLOYED ELSEWHERE, BETTER JOB IN HORSHAM AREA 60% of the Horsham Breeze users were not employed in the Horsham area prior to the start of the Breeze service. Of these new employees, 73% had another job before starting their current job, and 20.6% did not work. Another 6.5% were in training. The average annual income of these new employees is $20,500 per year. Of the 40% of Horsham Breeze users who were employed in the Horsham area, before the Horsham Breeze 37.~% utilized the 55 bus, another 28.5% used the 210 bus, 20.3% carpooled and 14.5% drove alone. A-5

OCR for page 175
1 ~ SEPIA would like to know how the Horsham Breeze bus service is being used Please help us in planning better SEPTA services by completing the questionnaire and returning it to the driver as you leave or return it on your return trip TODAY: 1. Circle all the days you rode the Horsham Breeze bus in the last week: Monday Tuesday Wednesday Thursday Fnday Saturday 2. For the trip you are making now, what time did you leave from home? : a.m. or : p.m. 3. If you stopped on the way to work to conduct an errand, please check all that apply: O Child care O Coffee/food O Other errand: 4. What buses or trains did you utilize before you boarded the Horsham Breeze (check all that apply)? O 22 0 55 0 Broad Street Line O Other bus lines, please provide number (s) O Other rail lines: (please list): 5. What time does the Horsham Breeze bus you are on depart from the Willow Grove Park Mall today? : a.m. or : p.m. 6 What time will you arrive at work? : a.m.or : p.m. 7. During an average week, how many total hours do you work? Hours 8. How did you pay your fare today, including all buses and trains you utilized this morning? 3 Monthly Trans Pass 3 Weekly TransPass O Cash fare, including transferts)= $ 3 Token and cash fare, including transfers = $ 9. Since you started using the Horsham Breeze, have you shopped or bought food or drinks at the Willow Grove Park Mall? 3 Yes 3 No If Yes how many times have you shopped or bought food/drink in the past month? Please estimate the amount purchased at the Mall in past month: $ A-6 Over

OCR for page 175
3. Where do you work in the Horsham Area? J Prudential ~ UPS _1 Penn Mutual ~ Advanta ~ Other employer (please pent) : l. If there were no Horsham Breeze service, what would you do? would drive my car. would get a ride from someone. O ~ could not keep this job because: 3 ~ have no car. 3 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. 3 Other (explain below - please print) J GMAC 2. Were you working in the Horsham Area prior to the start of Horsham Breeze in Nov. 1996? O Yes '1 3 No '~ 13. If you responded YES: How did you get to your place of employment before the Breeze started: O Drove Alone. O CarpoolIDropped Off: How many people in the car? 3 210 bus 0 55 bus: 3 Prudential O Other 55 bus O Taxi: How much was the fare? $ O Other 14. lt is approximately miles from my home to work. 13. If you responded NO: Before you started your current job, O ~ did not work. O ~ was in job training. O During my training, ~ also received $ (per day/week Imonth) (arcle oneJ 0 ~ had another job. made $ per hour. ~ usually worked hours a week. 14. Now ~ make $ _ per hour. Thank you for your cooperation in completing this survey. Answers to ail questions are confidential. A-7

OCR for page 175

OCR for page 175
APPENDIX B DOCUMENTATION OF HORSH\M BREEZE BENEFIT/COST CALCULATIONS Determining the Number of Individual Horsham Breeze Users In order to estimate the economic benefits, we need to first determine the estimated number of individual users of the Horsham Breeze service. Appendix A indicates that ~ 92 respondents returned survey instruments out of 308 passengers surveyed. Because we only surveyed on one day for only part of the day, the survey results reflect a sample of the total number of users of the service. Since there was an average daily ridership of 862 passengers during the October 21 survey week, we have estimated the total number of users by: Reducing the average number of average daily passengers by 5% to account for multiple trips during the day, for example to the Mall and back for lunch; Dividing the resulting 820 daily trip by two, since almost all Horsham Breeze users utilize the service to and from work; Dividing the resulting 410 daily users by .923, the average fraction of weekday trips the Horsham Breeze users utilize the service on an average weekday (Appendix A, average percent of cases for each weekday developed from question ~ of survey). The result of 444 users is an estimated number of actual users or individuals who utilized the Horsham Breeze service during the survey week. Key Data Items For the Benefit Calculations Table B-! is a summary of key data items that have been utilized in the benefit calculations. They are pulled, for the most, from the survey of passengers. They are summarized and fully defined in the table so that the reader can easily reference the calculations made below. Calculation of Benefits The increased income benefits of previously unemployed Horsham Breeze users: $10.78 per hour X 38.5 average hours per week X 50 weeks per year X 21421 users X 14.9% unemployed X 64.4% who could not keep job if no Breeze = $~84,106. The gain in income from Horsham Breeze users who started work after the Breeze started, but were employed elsewhere: $4,950 annual income difference X 60.2% who did not work in Horsham area X 73% who had another job elsewhere X 444 users, 64.4 % who could not keep job if no Breeze = $622,004. The parking demand savings benefits: parking demand is based on daily demand of users, not total weekly users. 862 X .95 / 2= 409 estimated daily actual users X 17.6% drive alone plus 409 X 19.4% carpool /4.8 average vehicle occupancy = 88.5 daily autos X $264 average annual surface parking lot cost = $23,264. B-!

OCR for page 175
TABLE B-1 SUMMARY OF KEY DATA ITEMS FOR BENEFIT CALCULATIONS USERS,~Estimated number of total weekly users) 862 Daily users of Horsham Breeze during survey week of October 20 308 Individuals surveyed on morning of October 20th 5/O Estimated number of multiple daily users 92% On a weekday, probability that Breeze user works Estimated weekly users (daily ridership, discounted for multiple 444 users, divided by 2, divided by weekday probability) INCOME BENEFITS PARKING BENEFITS $ 10.78 Average current hourly rate of Horsham users,q14 38.5 Average weekly hours worked by Horsham users, q7 50 Average work weeks in a year Percent of respondent who could not keep job if Horsham Breeze not 64.4% available, q11 14.9% Pecent who did not work prior due to using Breeze (46/308) Annual income difference of prior Horsham workers (q14-q13c, $ 4,950 annualized for q12,no) Percent of Horsham Breeze users who did not work in Horsham area 60.2% prior to Breeze,q12 Average annual cost of surface parking lot space Source: KPMG, $264 Commuter Choice Initative, June 1996, p.36) For those who worked in Horsham prior to Breeze 17.6% Drove alone 19.4% Carpool/Drop off 4.80 Average carpool occupants 58.4% Bus 2.80% Taxi TRAVEL COST BENEFITS 19.33 Average miles travelled, daily one way $ 0.31 Cost of auto travel per mile, IRS Allowance $ 71.80 Average monthly transit fare B-2

OCR for page 175
The estimated travel cost benefits of Breeze users formerly employed in the Horsham area: 444 actual users X .398 did not work Horsham area = 177 users X .58.4% former bus riders =103 users X 17.6 drive alone= 18.1 users X 19.33 average one-way turtles X 2 for round- trip X 31 cents per mile X 250 weekdays per year minus 18.1 users X $7 ~ .80 average monthly fare X 12 months = $38, 635. For carpools, 103 X .194 carpool = 20 users X 19.33 average one- way miles X 2 for round-trip X (3 lcent per mile/ 4.8 average vehicle occupancy) X 250 weekdays per year minus 20 users X $71.80 average monthly fare X 12 months = minus $4,748. Net travel costs benefits for former drive alone and carpoo] travel modes = $33,887. Benefit/Cost Calculation The benefit/cost ratio is calculated by taking the total annual benefits of $ 1,563,361 and dividing by the total annual Horsham Breeze costs of $213,192. The result is a benefit/cost ratio of 7.33. Benefits and costs are summarized in Table B-2. TABLE B-2 ANNUAL INCOME BENEFITS Formerly Unemployed New to Horsham area, Net Increase in Income ANNUAL PARKING COST SAVINGS ANNUAL TRAVEL COST SAVINGS OF BREEZE USERS, Formerly Employed in Horsham Area TOTAL ANNUAL BENEFITS HORSHAM BREEZE ANNUAL COSTS BENEFIT/COST RATIO B-3 $ 884,106 622,004 23,364 33 887 $1,563,361 213,192 7.33

OCR for page 175