Maintaining Transit Effectiveness Under Major Financial Constraints (2014)

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31 CHAPTER THREE SURVEY RESULTS FROM TRANSIT AGENCIES ENGAGED IN PROMOTING TRANSIT EFFECTIVENESS SURVEY METHODOLOGY The purpose of any TCRP synthesis is to summarize the current state of the practice in the transit industry, usually through a survey of public transit agencies that provides information and a snapshot in time of agencies’ experi- ence. The survey developed and approved for this synthesis included a considerable number of open-ended questions, making the survey a bit more challenging to analyze than one that includes mostly multiple-choice questions. Using contact information from the APTA electronic directory, the principal investigator sent an initial e-mail to the directors of 205 transit agencies throughout the United States with a copy of the project scope attached. Positive responses were received from 40 of 46 transit agency directors (87%) throughout the country, indicating their willingness to participate in the survey. The web-based version of the survey was beta-tested by four transit agencies that made very useful comments that were incorporated into the fi nal survey. A total of 40 agencies ultimately completed the survey, representing an 87% response rate. The sizes of the par- ticipating agencies are listed Figure 19 and presented geo- graphically in Figure 20 and Appendix B. The responding agencies represent a mix of small (less than 100 buses), medium (100–500 buses and train cars), and large (more than 500 buses and train cars) transit systems. These 40 transit system participants represent 17 different states from coast to coast and the District of Columbia. FIGURE 19 Size of responding transit agencies by numbers of vehicles. FIGURE 20 Geographical location of survey respondents. Small Transit System Respondents 1. Arlington Transit (ART)—Arlington County, Virginia 2. Capitol Area Transportation Authority (CATA)— Lansing, Michigan 3. Centre Area Transportation Authority (CATA)— State College, Pennsylvania 4. Everett Transit—Everett, Washington 5. Fort Wayne Public Transit (Citilink)—Fort Wayne, Indiana 6. Galveston Island Transit—Galveston, Texas 7. Go West Transit—Western Illinois University/Quad Cities, Moline, Illinois 8. Northern Arizona Intergovernmental Public Trans- portation Authority—Flagstaff, Arizona 9. Salem-Keizer Transit (Cherriots)—Salem, Oregon 10. Stark Area Regional Transit Authority (STARK)— Canton, Ohio

32 2. Greater Cleveland Regional Transit Authority (GCRTA)—Cleveland, Ohio 3. King County Metro Transit—Seattle, Washington 4. New York City Transit (NYCT)—New York, New York 5. Pace—Arlington Heights, Illinois 6. Santa Clara Valley Transportation Authority (SCVTA)—San Jose, California 7. The Bus—City and County of Honolulu, Hawaii 8. TriMet—Portland, Oregon 9. Utah Transit Authority (UTA)—Salt Lake City, Utah 10. Washington Metropolitan Area Transit Authority (WMATA)—Washington, DC Representatives of the Chicago Regional Transportation Authority provided the responses for both the Chicago Tran- sit Authority and Pace. TRANSIT AGENCIES’ WORKING DEFINITIONS OF TRANSIT EFFECTIVENESS AND FINANCIAL SUSTAINABILITY Question 6 of the survey asked the following: “In keeping with the title of this TCRP project, how do you defi ne ‘tran- sit effectiveness?’” Many responses primarily emphasized cost-effectiveness. While no one defi nition was offered by the responding agencies, themes associated with effi ciency, productivity, social awareness, quality, customer sensitivity, and contributing to community goals were frequently men- tioned. Samples of the responses are shown below, and more defi nitions offered by respondents (not including the agen- cies included as case studies) are provided in Appendix C. • Accomplishing stated goals such as provision of mobil- ity, providing an alternative to the car, and congestion reduction. (The Bus) • Providing cost-effi cient, safe, on-time, reliable, and clean transportation. (NYCT) • Providing transit services in the most cost-effective way to the most people possible within the funding pro- vided by our local community and the state. (Capitol Area Transportation Authority) • An integrated, multimodal transit system that provides effi cient, cost-effective, and innovative service to the customer. (Valley Metro) • Transit effectiveness is defi ned as balancing the diverse mobility needs of the community we serve with the available resources that fund our family of services. 11. Star Metro—Tallahassee, Florida 12. UMASS—Amherst, Massachusetts 13. Yuma County Intergovernmental Public Transporta- tion Authority—Yuma, Arizona Medium Transit System Respondents 1. Akron Metro—Akron, Ohio 2. Capital District Transit Authority (CDTA)—Albany, New York 3. Central Florida Regional Transportation Authority (LYNX)—Orlando, Florida 4. Community Transit—Snohomish County, Washington 5. Foothill Transit—West Covina, California 6. Hillsborough Area Regional Transit Authority (HART)—Tampa, Florida 7. Long Beach Transit (LBT)—Long Beach, California 8. Nashville Metropolitan Transit Authority—Nash- ville, Tennessee 9. North County Transit District (NCTD)—Oceanside, California 10. Omnitrans—San Bernardino, California 11. Palm Tran—West Palm Beach, Florida 12. Pinellas Suncoast Transit Authority (PSTA)—St. Petersburg, Florida 13. Regional Transit System (RTS)—Gainesville, Florida 14. San Joaquin Regional Transit District (SJRTD)— Stockton, California 15. SamTrans—San Carlos, California 16. Toledo Area Regional Transit Authority (TARTA)— Toledo, Ohio 17. Valley Metro—Phoenix, Arizona Large Transit System Respondents 1. Chicago Transit Authority (CTA)—Chicago, Illinois

33 While maximizing ridership and revenue are part of transit effectiveness, sensitivities to local community needs, and regulatory compliance (ex: Title VI) must be a part of any defi nition. (Samtrans) • Transit effectiveness is transporting as many people as possible to as many destinations as feasible in the most cost-effective way. (Star Metro) • It is the policy of the authority to have an effi cient tran- sit system that is responsive to market needs, seeks the highest and best use of funds, obtains maximum ben- efi t for each dollar spent, increases transit usage per capita, and enhances Santa Clara Valley’s environment and quality of life. (SCVTA) Question 6b asked if the respondent’s defi nition of “transit effectiveness” was part of the goal structure driving its organi- zation. A clear majority of 80% indicated that it was (Figure 21). FIGURE 21 Percentage of responding transit agencies that include measures of transit effectiveness in their organizational goals (Source: Survey responses). Question 7 asked for the respondent’s defi nition of fi nan- cial sustainability and what tools were needed to achieve it. Again, there was no common defi nition, but many respon- dents indicated the need for long-term and reliable dedicated revenue streams, conservative and competent fi nancial plan- ning, community support, and adequate reserves. Two of the most comprehensive defi nitions are provided here; the remainder of the defi nitions offered by respondents are pro- vided in Appendix D. TriMet provided the following defi nition to describe a fi nancially sustainable transit agency: Financially sustainable transit systems have a fi nancial forecast that is continually updated. In addition, fi nancially sustainable systems have the following practices: 1. Without exception, one-time-only revenues are used to support one-time-only expenditures. Continuing revenues are used to support continuing expenditures or one-time expenditures 2. Continuing revenues and expenditures are in balance throughout the forecast. Revenue and expenditure assumptions are realistic. 3. Unrestricted ending fund balances meet board goals throughout the forecast. 4. Capital assets are in a state of good repair. 5. Actuarial assumptions for pension funding are realis- tic, with 100% of pensions funded each year. 6. The agency is able to afford the current medical ben- efi t premiums for retired employees. 7. Senior lien debt service is less than 7.5% of continu- ing revenues throughout the forecast. 8. Able to control costs and fund the existing transit system on balance over all business cycles with the current revenue base, including maintaining schedule reliability and relieving peak crowding. WMATA provided the following defi nition of a fi nan- cially sustainable transit agency: All transit systems in the U.S. require substantial public funding support for both ongoing operations and capital investment, and this is unlikely to change in the near future. Yet at all levels of government—federal, state, and local—transit systems must compete for limited funds with many other necessary public services, including public safety, education, and health care. Thus, for a transit system to be fi nancially sustainable, it must consistently demonstrate to riders, voters, and elected offi cials that it is using the public’s funds effi ciently and delivering highly valued services. The actions required to achieve this might include: • Holding down cost growth by rigorously monitoring both key cost drivers at the margin (such as overtime or parts and materials) as well as structural trends in wage rates, health care costs, pensions, and other employee-related costs. • Prioritizing capital investments and rehabilitating or replacing assets on schedule to ensure reliability, safety, and reduction of downstream operating costs. • Modifying services regularly as travel and development patterns change, in order to respond to rider needs and avoid either overcrowding or underutilization of expensive assets. • Increasing fares on a regular (rather than irregular) basis in a manner that balances rider income growth, prices for competing modes, and the need to maintain farebox recovery in order to mitigate subsidy growth. Further, a transit agency needs a broad array of tools in order to undertake these actions, including: 1. Frequent passenger surveys and other feedback mechanisms (e.g., active involvement on social media). 2. Up-to-date economic and demographic datasets. 3. Real-time reporting on ridership and system utilization by route, time period, etc. 4. Real-time reporting on key cost drivers.

34 5. Explicit methodology for prioritizing capital investments. 6. Regular correspondence and interaction with funding partners at all levels to ensure that a strong “return on investment” message is transmitted. PROCESSES FOR RECEIVING PUBLIC INPUT Question 8 asked, “Have you put any program in place to receive structured input from your ridership and/or your community to advise them of the fi scal stress and to ask them what their preferences would be if you had to reduce service (e.g., increase the fare rather than cut service, reduce frequency versus reduce span of service, etc.) or as you are planning new service?” Sixty-eight percent of respondents answered that they had done so. Virtually all respondents noted the public hearing process used to share information and collect comments and suggestions, and many noted the modifi cations they made to proposed service changes as a result. Only six respondents directly addressed whether their passengers would prefer raising fares to cutting service. All six said their passengers clearly preferred raising fares. Community Transit and King County Metro Transit both implemented particularly interesting public input processes that are described in the case examples later in the synthesis. The following responses represent those that went beyond the traditional public hearing process: • SamTrans is now working on a comprehensive opera- tions analysis called SamTrans Service Plan (SSP) with a goal of increasing ridership by 5% with the same ser- vice level. Recommended service changes were devel- oped and presented to the public through a series of events in the fall of 2012. More than 1,200 comments were received from nine community meetings, 16 city council meetings, three tabling events, multiple Bus Operator outreach communications, and online sur- vey, and written and phone comments. A new recom- mended service change has been developed based on the input; it will be presented at four public meetings in March and a formal public hearing in April, with tentative adoption in May. (San Mateo County Transit) • In FY 2009, we undertook a budget-balancing action after the failure of a ballot measure. We eliminated Saturday service, by board decision, because the ser- vice-level reductions to balance the budget were dras- tic. In prior years there were service cuts through route elimination and frequency reduction. I did get approval from the board to delay the weekday reductions in order to receive community input. We held a series of open houses to gather information from the community. We then used that information to entirely redesign our weekday service. We then went back out to the com- munity to receive comment on our plan, built on their original input. We made some minor changes to routing based on feedback. As a result we focused our service on the 3 C’s concept (corridors, circulators, and centers). We are not able to fully implement the 3 C’s concept, so we focused on providing the best corridor service we could. We are now building the transit centers that will eventually allow us to provide circulator service (we are providing some circulator service but not at the levels called for in the plan). The idea is that if we can provide high-quality corridor service, people will support our commitment and when the timing is right they will sup- port a ballot measure to bring back weekend service and circulator service. (Salem Kaiser Transit) • Last year, our FY 2013 proposed budget contemplated fare adjustments and certain bus service changes. To get input from customers and other stakeholders, we conducted town hall meetings and public hearings, invited feedback through cyber cafes, and engaged riders online and in person (mailback surveys). We also developed a video tool to describe what was pro- posed. Over the years, and last year was no exception, our customers preferred increased fares over service cuts. But they would prefer that the local jurisdictions that support Metro pay a higher share of the operat- ing support required. (Washington Metropolitan Area Transportation Authority) • In response to precipitous declines in FY 2009 sales tax revenues and alarming defi cit projections subse- quent to adoption of the FY 2010 and FY 2011 bien- nial budget, the Valley Transit Authority (VTA) Board of Directors appointed an Ad Hoc Financial Recovery Committee in December 2009. The committee con- sisted of three board members and was supported by a stakeholder group with representatives from busi- ness, labor, VTA advisory committees, and other com- munities of interest. The committee’s directive was to review VTA’s fi nancial structure and to develop recommendations for the board that addressed VTA’s long-term structural defi cit beyond FY 2011 to ensure the continued sustainability of transit services in Santa Clara County. The committee held biweekly meetings beginning in January 2010 and spent considerable time reviewing VTA’s fi nancial structure and economic projections. After careful consideration and analysis, at its Sep- tember 1, 2010, meeting, the committee unanimously approved “Guidance on Operating Expenditure Pri- orities, Key Financial Principles, and Defi cit Reduc- tion Targets,” containing fi nancial priorities, principles, and debt reduction targets to guide VTA in becoming a more fi nancially stable and sustainable organization. The defi cit reduction targets were identifi ed in the areas of internal effi ciencies, employee expenses, service delivery and new revenue. The stakeholders expressed their unanimous agreement with the document based on amendments recommended by committee members and stakeholders. The committee’s recommendation was

35 presented to the board of directors at a Special Meeting on October 22, 2010, and approved unanimously by the board on December 9, 2010. The Expenditure Prioritization and Key Financial Principles were used to develop the FY 2012 and FY 2013 operating budget and will be followed again in preparation of the recommended FY 2014 and FY 2015 operating budget. Implementation of these principles and priorities has led to a reduction of reliance on eli- gible capital funding for operating-related purposes, improved collaboration toward negotiating sustain- able bargaining unit agreements, and service plans designed to improve transit sustainability. (Santa Clara Valley Transit Authority) Reorganization of Transit Agencies Question 9a asked, “Have you modifi ed how your agency is organized as one means of reducing costs and possibly improving effi ciency?” Sixty-three percent indicated that they had done so. Many respondents indicated that they had experienced substantial reductions in administrative personnel in order to save as much service as possible, causing numerous shifts in responsibility among remain- ing staff. There also appeared to be a growing recognition of the need to emphasize community relations more than in the past. One agency completely modifi ed its organi- zation by contracting out all operations and maintenance functions previously performed by public agency employ- ees. Question 9c asked, “If you answered yes to question 9a, were there any lessons learned that could be shared, and has there been evidence of staff burnout?” Samples of responses to both questions (when provided by respondent) are provided here. • NYCT reduced administrative positions by 15% by eliminating positions in all departments. As a result some functions were eliminated and others were con- solidated. In addition, NYCT transferred 188 positions to the new Business Service Center (BSC) developed by MTA, our parent agency. The BSC is designed to centralize specifi c functions such as payroll and dis- bursements. Any effi ciency reductions resulting from the BSC were taken at the MTA level. If staff reduc- tions are not based on seniority, there needs to be a clear method to determine which staff members will be retained based on performance and productivity. Ideally there should be substantial ongoing perfor- mance reviews for all administrative and professional staff to facilitate an objective response. (New York City Transit) • Overall staff positions were eliminated and responsi- bilities broadened. We closed one of our bus district facilities and redistributed the 200 buses (and direct operating staff) that were based there to other operat- ing districts. The immediate result was a $3 million reduction in overhead. There was no staff burnout. Our advice? Just do it. (Greater Cleveland RTA) • Bus and dial-a-ride operations and Light Rail opera- tions have recently been brought under one agency. They were formally two different agencies with two CEOs, and parallel staff structures. Plans are under way to unify fi xed-route operations with Mesa and Tempe effective July 2013. (Valley Metro) • CTA underwent considerable management overhaul in 2011 and 2012, eliminating 200 positions, includ- ing a number of positions at the senior staff level: vice presidents, general managers, and directors. The leaner management structure averages 21 frontline staffers for every manager. The results are saving approximately $22 million annually, with changes to sick and vacation leave policy estimated to save an additional $15 million over the next 6 years. (Chicago Transit Authority) • Completed an extensive restructuring in 2010, eliminat- ing about 100 nonservice positions. Staff has been more stressed since the reductions. (Utah Transit Authority) • We completed a 100% review of our organizational structure. We eliminated two divisions by combining responsibilities. We also added a small community relations division to focus on public outreach, mar- keting, communications, and customer service. Our community told us they don’t know much about us and how we benefi t the community. We have committed to improving that effort in order for the community to understand our community role. Part of that is designed to help us in a future ballot measure. There has been a bit of burnout as people are doing more. What we have really noticed is that quality is being impacted. People are doing a good job but we are so busy moving from activity to activity that we are just getting by and not spending a lot of time trying to look ahead. (Salem Kaiser Transit) • In 2011, there was a reduction in force and the num- ber of departments reporting directly to the CEO was reduced to four. In 2012, the Administration Division was eliminated and the departments were distributed to the other chiefs, which then reduced the number of departmental direct reports to three. Also a classifi ca- tion and compensation study was completed in 2012. Consolidation of duties has led to increased workload on staff and subsequently high turnover. (Hillsborough Area Regional Transit Authority) • There has not been any large-scale reorganization but there has been modest outsourcing (some IT functions and cash counting), while most departments have seen a reduction in staff. There has not been evidence of staff burnout. Outsourcing as a way of reducing costs comes with reduced quality of service and has continued ques- tions about the effectiveness of the change. (Omnitrans) • Fewer people (10% reduction in employees). A more focused effort on fi nancing and aligning what we spend to what we earn. Our transit development plan

36 has guided service planning efforts to produce a much leaner service delivery system that is now operating with more effectiveness. There is a limit to how much smarter and harder you can work. (Capitol District Transit Authority) • We reduced the number of safety and security staff by eliminating two part-time positions. The structure and invoicing methodology have been changed from a cost per hour to a cost per mile basis to encourage contrac- tor compliance with published schedules. Customer Service and Operations have been realigned under the same director to encourage synergies and effi ciency. As long as you tell staff there may be cuts prior to the actual cut along with an explanation why the cuts are necessary, then the overall experience will not be that bad. Staff was anticipating the reduction so when it occurred it was not a surprise. (Foothill Transit) • If we can’t afford it, we don’t do it. We focus on the core of why we are in business . . . to provide public transit services that enhance and improve the quality of life for the residents in our community. We had to give man- agers “permission” to do less. Our standards are still high, but there were nice but nonessential programs that had to be cut back or put on hold. Some managers saw these nonessential projects or programs as essen- tial, so they had a diffi cult time letting go. Staff burnout occurred as a result of the 2009 American Recovery and Reinvestment Act projects. Suddenly, we had $16 mil- lion to spend as soon as possible and that was on top of an already heavy workload. (Long Beach Transit) • We have seen a little staff tension, but we have tried to help by communicating with employees (particularly managers) frequently, asking for employee input and participation in decision making related to reallocat- ing resources, and increased internal staff develop- ment. We also insist that everybody help share in the additional load. Employees who are not pulling their weight are identifi ed, coached, and ultimately released if they cannot or will not improve their performance. We believe allowing poor performers to remain on staff could discourage the employees who have been willing to meet the challenges of doing more with less. (San Joaquin RTD) • We have cut overhead positions and increased respon- sibility at Director and Executive Director level posi- tions. The same or more work is spread over fewer positions. Sometimes this is good and leads to better cooperation, sometimes it takes longer for work to get done, sometimes work doesn’t get done, and sometimes there is burnout when people are given more responsi- bility with the same resources. (TriMet) • We are engaged in an ongoing effort to control staffi ng levels and fi lling only critical positions. Approximately 60 positions or 9% of SamTrans’s 724 authorized positions are vacant, and 13 of the positions are not being budgeted. The executive leadership was restructured, with two chief offi cer positions elimi- nated with their areas of responsibility allocated to existing management. The Public Affairs Department was formed into its own division, with an executive offi cer position. There is an annual wage and benefi t savings of approximately $2.4 million from the 13 authorized positions not being budgeted. Staff burn- out is a concern. To avoid real problems from it, there are regular all-hands staff meetings to keep employ- ees up to date on the situation and informed of efforts to resolve the fi scal crisis. The openness and honesty of management have led to trust by the employees. Individual offi cers also check with their staff regu- larly for “how is everybody doing,” and employees are fully supported when they request time off for vacations and personal needs. The Public Affairs Division is relatively new, but already there has been increased communication to the public and to elected city offi cials in the county. Elected offi cials are now better understanding the services SamTrans provides to the community and that transportation is essential to sustaining other county services. And now elected offi cials are considering distributing part of a new temporary sales tax to help fund critical transpor- tation services provided by SamTrans. (San Mateo County Transit District) Question 10 asked respondents how they felt their agen- cies were performing given the changes they had been through. They were given seven choices, without benefi t of defi nitions for the choices. Exactly half stated that they were doing more with the same or fewer resources. Only 7% indicated that they were doing less with less. The results are shown in Figure 22. FIGURE 22 How responding transit agencies feel they are doing with their current level of fi nancial resources comparing fi scal year 2012 to fi scal year 2008 (Source: Survey responses). MAINTAINING TRANSIT EFFECTIVENESS THROUGH MORE DATA-DRIVEN MANAGEMENT Question 11 asked, “Have you implemented any new form of managing through the use of better data (e.g., the TransitStat program in Cleveland, Six Sigma process in Miami, ISO 14001 certifi cation in Salt Lake City)?” Forty-three percent of respon-

37 dents answered affi rmatively, identifying an array of tools that help them manage better by using data more effectively. • New York City Transit has started to track vehicle loca- tion to provide customer service and service management using Automatic Train Supervision, Communication- Based Train Control, and Bus Time data. • Invented TransitStat, trained many staff in the Six Sigma Process, and are now embarking on the Partnership for Excellence and moving toward the Baldrige Award. (Greater Cleveland RTA) • The Chicago Regional Transportation Authority, with cooperation from each of its service boards, imple- mented a performance measurement program in 2008 and is in the process of developing performance tar- gets. The RTA uses National Transit Database (NTD) data to develop a performance measurement “report card,” which covers various service measures over a 5-year time period. Performance measures are reported for each mode and service board, as well as in an aggregated regional perspective. Additionally, per- formance is reported in relation to comparable peers, again on regional and subregional (modal) basis, each year. The RTA also initiated a Capital Asset Condition Assessment of the regional transportation system’s assets in 2009 based on a sampling of all its physical assets. Annual updates of the assessment report are conducted to provide a review of the current physi- cal condition of system assets and a 10-year projec- tion of capital reinvestment needs. The asset condition report has been instrumental in drawing attention to the underinvestment in the capital infrastructure of the region. It has focused capital program development on improving the state of good repair of the system. • CTA completed a contract in 2012 with a third party vendor that will utilize barcoding technology to man- age its supply chain process, providing access to national networks of parts and material distributors in a just-in-time procurement system. Tighter control in inventory has allowed CTA to project a slower rate of growth in material expenses for 2014 and 2015. (Chicago Transit Authority) • In addition to ISO 9001 and ISO 14001, we implemented lean management principles and tools that have improved effi ciency and reliability. (Utah Transit Authority) • We have implemented a Microsoft Structured Query Language (SQL) data warehouse for consolidating orga- nizational data and a Microsoft SharePoint front end for management report distribution. (Salem Kaiser Transit) • We collect huge amounts of data through our CAD- AVL system, which we use to monitor our key perfor- mance indicators and to process ridership information. These include automated passenger counters (APCs) and validation of the APC data using videos. We have more than 50% of our bus fl eet and 40% of our light rail fl eet collecting huge amounts of ridership data. We use Trapeze Gateway, a tool to validate and pro- cess ridership; Trapeze Viewpoint to analyze ridership data; and SAP, an enterprise resource planning (ERP) system for preventive maintenance and monitoring of employee absenteeism. We monitor various key perfor- mance indicators, such as on-time performance, miles between mechanical failures, absenteeism, service reliability, etc., and they are reported quarterly to the board (Transit Operations Performance Report). We have monthly monitoring and internal reporting of all operating statistics and an Annual Transit Service Plan that focuses on improvements to service, and we regu- larly conduct “on board” surveys. (Santa Clara Valley Transportation Authority) • In 2003, the MTA completed an extensive strate- gic planning process that focuses on results for our customers. This process is called Results Matter. Staff members from all levels of our organization were involved in the initial planning process, which included an assessment of emerging issues and trends that would be affecting our organization and custom- ers for many years. This process allowed us to set goals that had to be achieved to get ahead of the issues and trends. Through this process, we developed an orga- nizational mission statement and organization goals. Then we took the process one step further and studied each and every function of the organization. All func- tions were grouped by common purpose into about 20 programs. We developed performance measures for each of the programs that defi ned success for the program. Program goals were incorporated into each employee’s annual performance appraisal, and they received evaluation scores and pay increases based on their success in meeting the goals of the Results Matter plan. Our organizational chart was also modi- fi ed to ensure that employees had the proper reporting structure to help them achieve the results of their pro- grams. The Results Matter process has been very suc- cessful for us. We obtain valuable information needed to make good business decisions; our employees now understand how their individual work contributes to the organizational goals; and we are able to use the information to make a business case for resources. In a 5-year period, we were able to meet or exceed many of the goals we had set for the Results Matter plan. We share our result measures with the metro government, and we have seen substantial increases in the level of fi nancial support they provide to us since imple- mentation of the Results Matter process. The Results Matter plan is a living document and is regularly revised as we reach goals or if we want to change the focus of parts of the organization. (Nashville MTA) • We have created management information reports along the lines of TransitStat in order to track performance in our Operations and Maintenance Departments. Our operations reports focus on tracking the riders per rev-

38 enue hour on routes in order to identify areas of under- utilization for use in our service planning process. Our maintenance reports focus on tracking maintenance costs on a subfl eet level in order to identify trends in fl eet expenses. This was particularly benefi cial when decid- ing which buses to replace when new vehicles became available. (Centre Area Transportation Authority) Two transit systems (San Joaquin RTD and SamTrans) provided more detailed responses to question 11. San Joaquin RTD • TransTrack provides a business intelligence solution that transforms volumes of data into meaningful information for our managers and executive leadership to use in developing immediate actions, strategies, and plans to ensure optimal operations and performance. The result is a more effi cient, reliable, and streamlined system for capturing data and analyzing our Key Performance Indicators (KPIs). • American Bus Benchmarking Group participation (ABBG). Expected results from our ongoing ABBG participation include – Savings on resources by learning where and how to be more productive – Savings on resources by taking into account other members’ experiences (no need to reinvent the wheel) – Improved allocation and prioritization of resources by understanding where most improvements can be achieved – Savings on resources on research/consultants – Availability of an expert network with quick information exchange – Better informed and more creative staff. • Environmental and Sustainability Management System (ESMS). Participation in a federally funded ESMS training program through Virginia Tech provided valuable lessons and examples in environmental issues as well as overall business management. Expected results for our ongoing ESMS participation include – Cost savings – ISO 14001 certifi cation – Document and data control for consistent, reliable, accessible, and more easily understood information. (San Joaquin RTD) SamTrans SamTrans recently implemented a new farebox recovery system and a predictive bus arrival/departure system shortly before that. The system is being used to better monitor on-time performance (OTP), and schedules are being adjusted accordingly. The data are also being used along with surveys to help identify trip patterns. SamTrans has seen a ridership decline since implementing the new farebox system. However, the farebox revenue is relatively fl at, indicating better collection of the proper revenue and more accurate information as to the number of trips. Eventually, manual OTP sampling data collection will be eliminated, which will reduce labor costs. Use of the new systems and data is resulting in improved service and increasing ridership, while helping to reduce labor costs. Also, for the last few years, SamTrans has been using a 360-leadership model that is based on data (research). This instrument (the eXpansive Leadership Model— XLM) has been validated in the transit industry. 1. The CEO or a member of the executive team discusses a possible candidate (leader), who might benefi t from 360 feedback, with an outside leadership consultant. 2. If both agree, the leader is invited to complete the assessment online (http://xlmassessment.com/). 3. The leader reviews his/her confi dential, 25-page report with the leadership consultant. 4. They create a leadership development plan that leverages the leader’s strengths and helps manage weaknesses. 5. Depending on the situation, the leader than implements the plan with the help of a few others (peers, boss, our leadership consultant). SamTrans has had outstanding results, especially when 360 feedback is combined with results-oriented coaching. Leaders grow their emotional intelligence and improve teamwork, strategic thinking, and several other critical leadership competencies. SamTrans developed an internal Supervisor Academy that takes line employees into fi rst-time supervisor positions and a Leadership Academy for existing management team members to prepare them for career advancement. (Samtrans) USE OF INCENTIVES TO ENCOURAGE TRANSIT EFFECTIVENESS Question 12 asked, “Did you put into place any incentives for your managers and employees to help fi nd ways to raise rev- enues or reduce expenses without harming the best interests of your passengers?” Only 14 (35%) of responding agencies indicated that they had used some form of incentives since FY 2008. Most did not provide precise cause-and-effect information, but the most telling responses are shown here. • Our TEAM program rewards employees for achieving established goals in areas such as safety, attendance, customer satisfaction, on-time performance, ridership, revenue, and attendance. Incentives are mostly nonfi - nancial and provide an ability to grow professionally and become better managers. Results were outstand- ing. (Greater Cleveland RTA) • Pace implemented departmental goals to increase rid- ership and reduce costs. Managers are evaluated on performance to goals. Compensation can be affected through performance evaluation process. Generally positive results—increased ridership and favorable-to- budget expense performance. (Pace) • We created a Leadership Action Program (LAP) that combines leadership training and training on how to analytically design programs to achieve cost savings. LAP is a 6-month training program that provides train- ing on leadership skills necessary to advance within

39 the organization, while also asking participants to develop cost-saving techniques. We have had six LAP classes, with 8–10 graduates per class. Each graduate is required to develop a program to reduce costs or gener- ate additional revenue of $6,000. Many real programs have come from the course, such as a weekend consoli- dation of our two dispatch centers, which saved more than $50,000 per year. (Omnitrans) • The incentives used were found in the employee planning documents. Employee planning documents are used to rate an employee’s annual performance and determine annual salary increase levels. Performance-based pay raises were calculated by the comparison of our goals and the actual improvements. We have consistently raised rev- enues by creating new revenue sources, improving cur- rent revenue sources, and partnering with private-sector companies. Our expenses were reduced or increases were deferred through labor negotiations that provided for no wage increases for 2 years, improved absence policies, and a wellness program that is showing initial signs of lowering health care expenses. (Nashville MTA) • We adopted a quarterly performance incentive program tied to safety, attendance, and customer service. Our cost per hour dropped from $89.43 to $85.44 between FY 2008 and FY 2012. Employee satisfaction has remained fl at. (Northern Arizona Intergovernmental Public Transportation Authority) • Pay incentives are given out if the agency successfully hits seven of nine key performance indicators, which include operating within budget. Results have been good. Employees know they play a part in how the agency operates. (Foothill Transit) • We use a performance-based incentive program with 35% linked to agency goals and 65% linked to job-spe- cifi c goals. Among the agency goals, NCTD aimed to increase ridership by 5%, increase nongrant revenues by 5%, and hold cost per revenue mile to the previ- ous year level. Ridership increased by 5.5%, nongrant revenues increased by 15.1%, but cost per revenue mile increased from $10.14 to $10.80, primarily as a result of a management decision to incur one-time costs (pro- fessional services) that should benefi t NCTD effi ciency in the long term. (North County Transit District) • The main incentive for employees is keeping as many jobs as possible while providing the highest level of ser- vice to our passengers. We also formed a cost contain- ment committee composed of employees from different departments to encourage employee engagement and participation in identifying ways to reduce costs in the organization. We maintained as many jobs as possible while providing the highest level of service within our fi nancial means (balanced budget). (San Joaquin RTD) Question 12d asked, “What other actions have been taken to improve your fi scal status through collaboration with your work- force (e.g., gain sharing)?” Five agencies provided a response: • More cross-training, drilled down for more in-the-fi eld operator input, and recognition programs. (UMASS) • Our labor contracts provide for wage increases, if any, that are tied to revenues. (Greater Cleveland RTA) • Lean management including key performance indi- cators for each team, timely performance feedback, and mechanisms to gather and implement employer improvement ideas. (Utah Transit Authority) • HART established an employee wellness committee composed of representatives from both bargaining and nonbargaining staff. The purpose is to corrobora- tively develop and implement programs and activities targeted at producing a healthier employee workforce, thereby reducing health care costs. (Hillsborough Area Regional Transit Authority) • We modifi ed the way planned and unplanned time off is covered. This involved agreement with the union and customization of the work assignment technology. (Capitol Area Transportation Authority) REDUCING EXPENSES THROUGH COLLECTIVE BARGAINING AND CONTRACTING Question 13 asked, “What labor contract provisions have you addressed to maintain effectiveness?” Figure 23 shows the responses to multiple choices that were presented in the survey. Respondents were asked to specify the work rule modifi cations they had negotiated; they provided the following answers: • Work assignment rules (Capitol Area Transportation Authority) • Establishing shift differential pay instead of overtime. Shift differential is a small increment per hour added to runs that fi nish between 8 p.m. and 2 a.m., giving the union an increase in the shift differential from $0.08 to $0.16 in return for CTA making a commitment to control the number of employees who are required to work longer than 13 hours. (Chicago Transit Authority) • Working suspensions and mandatory overtime assign- ments. (Hillsborough Area Regional Transit Authority) • Work schedules (four 10-hour days, three 12-hour days) allow direct reports for construction project work. (WMATA) • A change in the labor agreement allowing all new employees to remain on the extra board during their 90-day probation period has reduced daily overtime expenses. In addition, new operators are becoming familiar with the entire system, making for much more well-rounded and informed operators. (Nashville MTA) • Overtime after 40 hours per week rather than after 8 hours per day. No holiday pay for represented employ- ees when we do not provide service. No benefi ts for full-time employees who do not complete 80% of their scheduled work per year. These changes were the result of an arbitration decision. (San Joaquin RTD)

40 FIGURE 23 Percentage of respondents that modifi ed labor agreements by type of modifi cation (Source: Survey responses). Under the “other” category, respondents provided the fol- lowing information: • Pension programs were modifi ed. (Long Beach Transit) • Establishing the relationship between wage increases, if any, and revenues. (Greater Cleveland RTA) • Adopted a new wage range for noncommercial driv- er’s license operators. (Stark Area Regional Transit Authority) • We are not unionized. The city of Tallahassee did forgo the cost-of-living adjustment during FY 2010, imple- mented furlough days in FY 2009, and added a parking fee for city employees. (Star Metro) • Furloughs. Wage freeze. Wage increase deferral. Employee pension contribution. Defi ned contribu- tion retiree medical program option for new employ- ees. Increased employee contributions to pension. Established a second tier benefi t contribution for new employees. Established a voluntary defi ned contri- bution retiree medical program for new employees: Employees hired (or re-hired) on or after January 1, 2012, may elect to voluntarily enroll in a defi ned con- tribution retiree medical program in lieu of the defi ned benefi t retiree program. These employees shall receive a defi ned contribution in the amount of $400 per month toward the cost of medical expenses in retirement. The employer contributions shall vest over time, with 100% after 10 years of employment. (Santa Clara Valley Transportation Authority) • Contracted out operations of all transit services. (North County Transit District) Question 13b asked, “If you modifi ed any of your labor contract provisions, what provisions were changed and how much was saved with the changes?” Respondents provided the following answers: • Pension plan provisions were changed to provide for employee contributions to meet actuarial requirements of the plan. Health care plan provisions were changed to provide for greater cost sharing with employees. (Long Beach Transit) • Wage increases tied to revenues (and ability to pay), and increased health care co-pays and deductibles, with credits for nonsmokers and annual physicals. (Greater Cleveland RTA) • Changes to work assignments saved $1 million in the fi rst year. (Capitol Area Transportation Authority) • CTA work rule modifi cations included establishing shift differential pay instead of overtime. Providing greater fl exibility in scheduled starting times for employees. Paid holidays recognizing birthdays and hiring anniversaries were replaced by one personal day and more liberal use of vacation time. Allowing differ- ent trade unions to work together on projects, without regard to union jurisdiction. Vacation day allowances and pay for separation were capped at 25 days (sepa- ration pay for vacation days was previously capped at 88). As part of a comprehensive labor agreement, CTA was able to reduce its operating expenses by $6 million from the previous year but was also able to “bend the cost curve” to slow the growth of its unionized labor costs, which would have been more than $60 million higher than the previous year if the contract had main- tained the status quo. (Chicago Transit Authority) • $300,000 saved by ending 8-hour guarantee. (Stark Area Regional Transit Authority) • We were successful in negotiating a new contract that for the fi rst time had a period of no wage increases and reduced annual increases compared with the 30-year historical trend. While it didn’t save money, it slowed the trend of historical increases. (Salem Kaiser Transit) • Health care contributions—$750,000 per year. Impasse articles are health care, wages, and extra board. (Hillsborough Area Regional Transit Authority) • Savings related to furloughs, wage freezes, and wage deferrals for FY 2010 and FY 2011 were estimated at $27.6 million. (Santa Clara Valley Transportation Authority) • Omnitrans has had a salary freeze in place for 4 years. The union representing mechanics and clerical staff agreed to a furlough program that lasted approximately 1 year. The reduction was 1 work day per month. • Initial estimates show a savings of the equivalent of eight FTEs as a result of the no-fault absence policy. Our fi rst quarter reports for the health plan after completing the wellness plan show a 10% decrease in health care expenses. We also expect to realize less sick time, resulting in a decrease in our overtime expenses. (Nashville MTA) • A new class of operators, special service operator (SSO), was established to adjust the wage scale to a more affordable level. SSOs still receive the same med- ical benefi ts but are not required to possess a commer- cial driver’s license. It is not known how much savings were achieved, although the top SSO operator hourly wage equals 56% of the top regular operator hourly wage. (Akron Metro) • In our last collective bargaining, we limited wage increases to 2%. The previous collective bargaining agreement included annual increases of 4.9%, so a 2.9% savings ($0.58/hour) could be imputed. Health

41 insurance was changed to a deductible program, with a savings equivalent to at least $0.40/hour. (Centre Area Transportation Authority) • We closed our defi ned benefi t pension plan to all new employees and replaced it with a defi ned contribution plan. (Lynx) • In our last labor contract, favorable work rule and con- tract language changes included reduction in straight run requirements by time of day and of percentage of work; change in how overtime is earned; creation of four 10-hour days as an option for runs; increased use of part-time operators; more aggressive attendance policy. (Toledo Area Regional Transit Authority) • Wage modifi cations—no savings. We have tried to minimize wage escalation. Increased contribution by employees to health benefi ts—$15.3 million in savings for FY 2010–FY 2012. Work rule modifi cations: alter- nate work schedule (AWS) and direct reports result in increased productivity owing to less setup and take- down time with AWS and less paid travel time with direct reporting to the worksite. (Washington Area Metropolitan Transit Authority) • Amalgamated Transit Union (ATU) Operator and Maintenance Employee Contract—2-year wage freeze, linked third-year wage increase to fare and sales tax revenue increases. Savings of $1 million in FY 2012, $975,000 in FY 2013. All four bargaining units (ATU and Teamsters) increased from zero contribution to 10% medical premium contribution by end of col- lective bargaining agreement (CBA) term. Increased employee contribution to pension from zero to 5% by the end of CBA term, negotiated a second tier (lesser benefi t) retirement formula for new hires: $930,000 savings in FY 2012, $2.2 million savings in FY 2013, includes administrative employee savings. Froze ten- ure step progressions in contract. Increased use of part- time employees from near zero to 17%. (SamTrans) Question 14a asked, “Have you seriously considered, or actually implemented, any outsourcing of any functions?” and provided multiple-choice responses as noted in Figure 24. Under the “Other” category, respondents provided the following information: • Paratransit • Inventory management of paratransit/nonrevenue vehicles • Security, logistics • Legal, engineering, printing • Family Medical Leave Act administration • Helpdesk, paratransit operations, engineering design and construction support, rail line segment work— major contracts, escalator replacement • IT, cash counting • Law enforcement • Transit advertising. FIGURE 24 Percentage of responding transit agencies that have outsourced functions by type of function (Source: Survey responses). Question 14b went on to ask, “What have been the results of each of your outsourcing efforts?” The responses are pro- vided here: • Paratransit operations have been outsourced, which provides a signifi cant cost savings over doing the oper- ations in-house. (Palm Tran) • Outsourcing a greater percentage of paratransit services and inventory saved us money and enhanced our ability to serve more customers. (Greater Cleveland RTA) • Valley Metro has always contracted vehicle operations and vehicle maintenance for fi xed-route bus service. Rail operations are contracted, but rail vehicle main- tenance was recently brought in-house. (Valley Metro) • CTA outsources security services through the Chicago Police Department (CPD). As part of its 2012 budget, CTA invested $10 million to hire 50 full-time police offi cers to patrol the rail and bus system across the city. CPD security services, plus the addition of 1,800 cam- eras at rail stations, resulted in more than 900 arrests since June 2011. In addition, CTA outsources parts supply for vehicle maintenance. CTA entered into a contract with Genuine Parts Company d/b/a NAPA in November 2012 for up to $70 million per year for parts with a disadvantaged business enterprise (DBE) goal of 18% the fi rst year and up to 26% by the fi fth year. CTA’s standard DBE goal is 12%. The benefi t of this agreement is that it will allow CTA to get out of the vendor-owned inventory business. CTA will only have to manage one contract instead of the 1,200 it currently manages and will move to a paperless, just-in-time sup- ply management system. (Chicago Transit Authority) • Signifi cant savings were achieved by outsourcing rail vehicle cleaning, shop janitorial services, and uphol- stering. (Utah Transit Authority) • We have used contractors for a number of building maintenance tasks or problems we don’t have the equipment to fi x. Some of our marketing is contracted out if we don’t have the expertise to complete it. (Stark Area Regional Transit Authority) • Increased effi ciency in health care administra- tion and reduction of costs; decline in unplanned/ unscheduled leave because of FMLA occurrences.

42 Better ability to staff. (Hillsborough Area Regional Transit Authority) • Limited savings and a reduction in the quality of ser- vice in each area that was outsourced (IT and cash counting). (Omnitrans) • Landscaping at all properties is outsourced. We have improved the general appearance of our properties and now have experts performing the landscaping work, resulting in improved grounds maintenance. (Nashville MTA) • People don’t even know we contract out. We contracted out from the beginning. Once we saw the cost differ- ential (before inception) we decided this was the most cost-effi cient way to go. We have saved a ton of money. We are able to control costs, maintain control, and still employ many, many people. (Go West Transit) • Outsourcing operations or maintenance is done to con- tain labor expense associated with our workforce. The result is less expense for the same services. (Capitol District Transit Authority) • Lower operating costs. Less risk to YCIPTA for opera- tions and maintenance. (Yuma County Intergovernmental Public Transportation Authority) • We have a private-sector contractor who provides transit management, operations and maintenance under county oversight. Within the county, several positions—includ- ing the transit technology manager, bus stop manager, and transit marketing specialist—are outsourced (not to the same contractor). (Arlington Transit) • Commuter and light rail services have been contracted out since inception. Fixed-route service was recently contracted out to include vehicle operations, vehicle maintenance, and facility maintenance. Financially this decision reset the baseline, which reduced expenses by approximately 25%. However, this contract transi- tioned NCTD from compliance oversight of internal programs to a contracts management compliance over- sight agency. As a result, several functions/costs were merely changed rather than eliminated. (North County Transit District) TRANSIT EFFECTIVENESS GAINS THROUGH BETTER MANAGEMENT OF HEALTH CARE COSTS AND WORKERS’ COMPENSATION EXPENSES As noted in the literature search chapter, health care costs are among the top fi ve concerns of virtually every employer, and most transit agencies have struggled to provide health care for their employees and stay within their budgets. Con- sequently, virtually all responses to Questions 15a and 15b are provided here. Question 15a asked, “Have you found ways to decrease or better control the cost of insurance (health, liability, workers comp, etc.) at your agency?” The vast majority (78%) indicated that they had. Question 15b asked respondents to provide details on what was done and, when available, what the estimated savings have been. Their answers are provided here: • Transit competitively bid its major medical benefi ts contracts in 2010 for the fi rst time in decades, with the new contracts taking effect January 1, 2011. This action produced savings of approximately $30 million annually. (New York City Transit) • We negotiated with health insurance companies and asked employees to contribute more to their health care plans. (Long Beach Transit) • 1. Better control of workers’ compensation costs. 2. Better training and technology to reduce accidents and claims. 3. Higher co-pays and premiums for health insurance. 4. Regarding absenteeism, a stronger focus on getting them back, more supervisory accountability, and providing more alternative work duties appear to be having a positive impact. (Greater Cleveland RTA) • We are self-insured and, by changing our third party administrator to one with a more competitive network, we saved $700,000 in the fi rst year. (Capitol Area Transportation Authority) • Valley Metro passed more costs of health insurance on to the employee with higher co-pays. Also, we have decreased benefi ts on health insurance to control the costs. Although health insurance costs increase each year, these steps meant a lower percentage increase than what it would have been if we had not made the necessary changes to the health care plan. • Pace has achieved signifi cant savings in health care costs through the following: – Higher employee deductibles and co-pays – Incentives to not participate in plan if other cover- age is available – PPO and prescription network discounts – Wellness program. • In 2012, the Chicago Transit Authority created a task force dedicated to scrutinizing workers’ compensa- tion claims. As a result, the monthly average of claims was reduced from 108 in 2011 to 91 in 2012. As fur- ther evidence of the success of this program, CTA’s FY 2013 budget allowed for the one-time release of $12 million from its injury and damages reserve fund. Additionally, CTA’s health care program has renewed its focus on preventive care and establishing economies of scale through partnerships with other organizations. Financial impacts remain to be seen. • A premium differential is offered based on participa- tion in the wellness program. All smoking in facilities and vehicles was prohibited effective May 2013. (Utah Transit Authority) • We moved our health care from a fully insured program to a partially self-insured program. We saved about $500,000 the fi rst year. We have been a member of the Ohio Transit Risk Pool for a number of years for liability insurance. Through the pool, we are looking at includ-

43 ing health care as well as liability. For workers’ comp, we used a transitional work program to get people back to work quickly. (Stark Area Regional Transit Authority) • Moved from fully insured health care to self-insured health plan and saved approximately $1.3 million. (Hillsborough Area Regional Transit Authority) • Because we contract all service we have no visible insur- ance costs. We write into our contract that all accidents and all liability are the responsibility of the contractor. The amount built in to cover that is unquantifi able. We pay no claims, and even build in that the contractor must cover any damage to our vehicles. (Go West Transit) • We negotiated an unbundled workers’ compensa- tion program and contracted directly with a vendor for workers’ compensation medical bill review ser- vices. Before this change we were spending nearly $1,000,000 per year on medical bill review and man- aged care services. As a result of this change we now spend less than $250,000 for those same services. We have further controlled and reduced workers’ compen- sation expenses through aggressive loss-control tech- niques, which include an early return to work program; engaging supervisors, managers, and superintendents in the claims review process; and aggressive oversight and management of our third party administrator. (Santa Clara Valley Transportation Authority) • To reduce workers’ compensation costs, we have used preassessment physical exams before hiring for positions to ensure that new hires can perform the physical require- ments of the job. Savings have been estimated at about $161,000, the number of workers’ comp claims has gone down, and the cost per claim has gone down. Also, cam- eras on the buses have reduced the number of assaults on buses, reducing claims and liability. (Omnitrans) • Whenever we emphasize our job awareness safety pro- gram, there appears to be a correlation to fairly sig- nifi cant reductions in workers’ compensation claims, usually around $200,000 to $400,000. (Nashville MTA) • For workers’ compensation, we changed our plan design and essentially became partially self-insured for a sav- ings of approximately $90,000. Also, all health and ancillary insurance products were placed to bid, and a wellness program was created for all employees. The combined savings from these actions is approximately $50,000. (Toledo Area Regional Transit Authority) • 1. Established a Wellness Program to promote healthy lifestyle among employees, thus reducing medical insurance cost (still in its infancy; no measurable results yet). 2. Awarded a contract for general liability claims program third party administrator services to a new provider specializing in transit agency self-insured claims programs to increase effi ciency and reduce cost (52% cost savings compared with previous provider). 3. Established a quarterly review of workers’ compen- sation claims. 4. Established a safety committee that meets every month to discuss safety issues and identify ways of promoting safety in the organization. 5. Made available a fl exible spending plan (with higher co-pay) to reduce costs. 6. Currently looking into outsourcing the administration of the Family Medical Leave Act program. (San Joaquin RTD) • WMATA has adopted several loss-control measures and training programs that have successfully reduced the annual number of workers’ compensation claims over the last few years: an 8% reduction in the num- ber of claims in FY 2012 compared with FY 2011. But overall costs have increased as a result of increases in medical expenses and wages. WMATA has also adopted several loss-control measures and training programs that have reduced the annual number of third party liability claims: a 15% reduction in the number of claims in FY 2012 compared with FY 2011. A comprehensive approach to reducing insurance costs, specifi cally workers’ compensation and general liability, came from Pinellas Suncoast Transit Authority (PSTA) in St. Petersburg, Florida. PSTA’s workers’ compensation (WC) program is admin- istered through the Risk Management Division with the external assistance of a third party administrator (TPA), Johns Eastern Company, Inc. 1. The risk management team has a risk specialist/ claims adjuster who manages all injured nonlitigated employee claims on an individual basis, as well as the Modifi ed Duty/Turn to Work Program. 2. The risk team also has a risk supervisor/claims adjuster, certifi ed in workers’ compensation litiga- tion, who manages all litigated employee claims. 3. The risk team has an external registered nurse, cer- tifi ed rehabilitation registered nurse, qualifi ed reha- bilitation professional, nurse case manager, and rehabilitation specialist who assist one-on-one with all complicated employee injury cases. 4. Active case management updates are provided using a team approach: (external) workers’ compensation legal counsel, third party administrator adjuster, and RN case manager; and (internal) the risk manage- ment team and human resources (as required) on a monthly/bimonthly conference call. 5. PSTA’s top priorities for risk management are timely treatment, quality of care, and communication. 6. During the past 8 years PSTA has seen the number of employees, transit mileage, employee paid hours, and vehicles increase by a third. Reportable work- ers’ compensation claims have fl uctuated between

44 5% and 10%. The total cost of WC claims has been reduced by 43%. During 2007–08, PSTA’s property, general liability, and vehicle programs, and new expanded property facilities were transferred to the new in-house risk management claims adjuster position. This program also included the implemen- tation of CS STARS RIMS to manage all past and future risk management claims. 1. This program has been divided between our senior adjuster’s management of nonlitigated and litigated claims management. 2. Another critical factor is the successful, intense man- agement of our digital video security systems, in place on buses since 2002. This helps our adjusters and legal counsel decide whether to settle or not. 3. The State of Florida Statute under Title XLV Chapter 768.28 has assisted with our agency’s sovereign immu- nity protection in tort action. Since October 2011, any claim/judgment was limited to $200,000/$300,000. (Before October 2011, any claim/judgment was lim- ited to $100,000/$200,000.) 4. During the past 8 years our operations have expanded with regard to the total number of employees, tran- sit mileage, employee paid hours, and vehicles. The number of claims has fl uctuated from 5% to13%. The total cost of our in-house claims management pro- gram increased only 14% from 2003 to 2004. 5. PSTA’s adjusters were able to reduce the total num- ber of claims managed by 35% between 2003–04 and 2011–12. Legal has successfully litigated all PSTA’s claims exposures. IMPROVING TRANSIT EFFECTIVENESS THROUGH BETTER ATTENDANCE CONTROLS Question 20 asked, “Have you had success in implementing new ways of managing absenteeism due to sick leave, workers’ compensation, and Family Medical Leave?” Public transpor- tation is extremely labor intensive and must provide service in accordance with schedules the public can rely on. Hence, employees must be available to provide every hour of sched- uled service. High rates of absenteeism require a large extra board or the use of overtime in operations and maintenance. This issue remains challenging, but 43% of the respondents indicated that they are developing ways to reduce absenteeism. • We partnered with the private sector to provide a light-duty return-to-work pilot program for employ- ees on workers’ compensation. Lost time dropped an average of 27% during the testing periods. (Long Beach Transit) • The more effort we put into managing these costs, the better we do. Absenteeism has dropped from 7% to 5%. (Greater Cleveland RTA) • Outsourcing family medical leave administration to a third party has resulted in a reduction in noncom- pliance and risk savings in FMLA-related overtime. (Hillsborough Area Regional Transit Authority) • CTA fi red approximately 62 bus and rail operators in 2012 for being tardy or absent, a dramatic increase over the nine fi red in 2011 for the same causes. Female employees at CTA now receive 6 weeks of fully paid leave after the birth of a child, and fathers or domestic/civil union part- ners receive 2 weeks. Changes to the review procedures for workers’ compensation claims allowed for the one- time release of $12 million from CTA’s injury and dam- ages reserve fund in 2013. (Chicago Transit Authority) • In the area of workers’ compensation, we sped up the process for injury forms to get to the claims section to a median of 2 days. We have a large number of alterna- tive work assignments (light duty) for employees while they are off on job injury. We notify employees when their family medical leave and other protected leave will run out so they know when they will be subject to medical termination. We do not grant extended and unlimited leaves. We don’t let employees pick work shifts or routes if they don’t have a full medical release for the time of the service change. Chiefs contact employees weekly to check on progress and remind them of work. (King County Metro) • WMATA has taken many steps to improve employee availability. The At Risk Program identifi es a category of employees who have two or more injuries within a 24-month period. These employees have a one-on-one discussion with management on the root causes of the injuries. An action plan is developed by the employees and their managers. This is a joint commitment. The process allows employees to become stakeholders in making their workplace safer and helps reduce the risk of future injuries to themselves or others. When the program started in October 2009, a total of 266 employ- ees were deemed at risk agencywide; as of February 4, 2013, there were 175. (Washington Metropolitan Area Transportation Authority) • WMATA’s Transitional Duty Program establishes alternative or modifi ed work that employees can per- form in their home divisions within the physical restric- tions imposed by their doctors for a limited time. This enables employees to return to work as soon as the next business day and prevents lost time or unnecessary time away from work. The program keeps employees connected to WMATA during their recovery. Since implementation in July 2009, the average number of days an employee in the program is out of work has decreased from 91 to 47.

45 • WMATA’s excessive absenteeism policy outlines for employees what is considered excessive use of sick leave. The policy is administered through the chain of com- mand. The absenteeism manager conducts one-on-one meetings with employees regarding their absence and the absenteeism policy. Employees are sent to WMATA’s medical offi ce for an evaluation to ensure that they are physically fi t to do their job. The Return to Work (RTW) group monitors employees for a minimum of 90 days and implements additional actions if warranted. The program also keeps a line of sight on employees who are out on long-term leave status ensuring that there is frequent communication between employees and managers. • The workers’ compensation unit of the Risk Management Department of VTA administers the workers’ compensation claim functions and ensures that work-related injuries are reported in a timely man- ner and that injured employees are given prompt, appro- priate, and necessary medical and indemnity benefi ts in relation to their industrial injuries. VTA has also implemented the Transitional Work Program (TWP), which provides modifi ed duties for injured employ- ees to allow them to return to productive work during their recovery and pending their return to full duty, to the benefi t of both the employees and VTA. TWP is designed for all Amalgamated Transit Union (ATU) employees who sustain an industrial or nonindustrial injury or illness. The employee must have a medical condition that temporarily limits their ability to work in their usual and customary job. Medical eligibility for the program is determined by the treating physician. (Santa Clara Valley Transportation Authority) • ART’s employee injury rate is very low as a result of con- stant and consistent communication throughout the work- force to encourage workplace awareness. For employees who wish to take an extended leave of absence or choose to go on family medical leave owing to family emergencies, we offer modifi ed work schedules. Modifi ed schedules enable these employees to continue to receive a paycheck, to minimize the fi nancial impact on the employee and the employer. (Arlington Transit) • NCTD revised the compensated absences policy by consolidating vacation and sick time into one paid time off (PTO) allocation. The PTO allocation offers fewer total days off than the previous model and has resulted in moderate savings to the agency. (North County Transit District) • Our “no fault” absence policy has reduced the number of full-time equivalents (FTEs) needed to cover daily absences by eight FTEs. (Nashville MTA) TRANSIT EFFICIENCY GAINS FROM OPERATIONS Question 16a asked, “In terms of bus/train operational productivity, have you taken any of the following steps to improve service effi ciency?” As with health care, this func- tion has been a major source of cost reduction/control and increased cost-effectiveness for transit agencies of all sizes, with virtually every agency reporting signifi cant activity. The responses received are shown in Figure 25. Under the “Other” category, the following activities were reported: • Implementation of select bus service/bus rapid transit • Eliminated the Ride-Free area • Utilization of GIS data; use of on-board survey data • Introduction of bus/train tracker • Long-range planning/land use study. FIGURE 25 Percentage of responding transit agencies that have taken actions to improve operations service effi ciency by type of action (Source: Survey responses). Question 16b asked, “What was the effect of each of the techniques that you implemented in question 16a in terms of savings or improved ridership?” Relatively few respondents emphasized overall cost savings from these operations and planning activities, partially resulting from reinvestment of resources from low-performing routes to high-performing routes, where increased demand was straining the capacity of the service vehicles. However, those system changes would not have been possible without the opportunities they found to save resources from underperforming routes. Most agen- cies stressed the various techniques’ importance to improved quality of service in terms of schedule adherence, reliability, and other factors critical to the passenger experience. Question 24a requested the following complementary information: “Please provide the most signifi cant steps and actions that your Operations and Safety departments have taken to become more effi cient, generate revenues, or reduce costs.” Some of the responses to Questions 16b and 24a are shown here. For additional responses to Question 24a, see Appendix E. • Bus rapid transit (BRT) implementation—off-board fare collection; traffi c signal priority; bus lanes; branded buses; elimination of timepoints; elimination of multiple branches. Introduction of low-fl oor, three- door buses has resulted in time savings of approxi- mately 20%, depending on route direction and time of day. These savings were invested directly into more

46 frequent service. Ridership has increased by at least 10% on all four BRT corridors. (New York City Transit) • Given a 125% increase in ridership over the last 5 years, increasing ridership was not the most critical factor to address. The need is to improve on-time per- formance and running times, and to fi nd more cost- effective ways of dealing with the dramatic increase in ridership. (Palm Tran) • Traffi c signal priority is still under development, so its impact is not yet known. The introduction of bus and train tracker applications gives customers real- time information on when the next vehicle will arrive, reducing passenger anxiety and potentially increasing ridership. (Chicago Transit Authority) • Improved run-cutting software and emphasis on effi - ciency has enabled SamTrans to reduce budgeted over- time for bus operators from 23% of regular hours to 15.5%. (Samtrans) • New hires and less absenteeism has decreased over- time by $200,000, while new security cameras have reduced claims by an estimated $100,000. (Gainesville Regional Transit System) • We used these data along with customer input to rede- sign our entire service in FY 2009 instead of just cutting existing frequency or routes. (Salem Kaiser Transit) • After comprehensive operations analysis, Metro Red Line running time and service plan has been adjusted since FY 2011 to improve service reliability. (Washington Metropolitan Area Transportation Authority) • Reducing the number of bus stops has improved opera- tional speeds. (Star Metro) • After implementation of the comprehensive opera- tions analysis in early FY 2008, we saw increases in ridership in FY 2009 despite the economic recession that occurred. Bus ridership increased 4.2% and light rail ridership increased 2.9%. (Santa Clara Valley Transportation Authority) • We have successfully used automated passenger counter (APC) data, run-cutting software, and ser- vice standards. PSTA’s new real-time automatic vehicle location (AVL) system allows passengers at every bus stop throughout the system to know exactly when the bus will arrive/depart. (Pinellas Suncoast Transit Authority) • Our passengers crave the information that AVL pro- vides, and that has exploded. We have an intense amount of data, and that has helped us fend off anti-mass-transit interests many times. They are overwhelmed by what we can prove to them. (Go West Transit) • Service design changes have led to the decision to implement express routes in high-density corridors. APC and AVL data have led to decisions to remove stops from routes and fi ne tune running times. Transit signal prioritization has been utilized to reduce the need for expansion of running times but has not proved effective in reducing running time. (Centre ATA) • The AVL system is used by our service monitors so they do not have to go out to the fi eld. (Foothill Transit) • We changed the practice whereby all express buses needed to return to remote garages; under the new sys- tem, buses are parked downtown at a new transit cen- ter, resulting in a reduction in deadhead time. Savings estimated at approximately $175,000 per year. (The Bus) • We instituted station staffi ng reductions and saved $55.6 million. (NYCT) • We became more effi cient by moving from paper to paperless processes, establishing electronic connec- tions to the Department of Motor Vehicles for transmis- sion of DMV reports, electronic fi ling, and retrieval. Electronic notepads and the Vigil system standardized the testing process and training notifi cations to com- mercial driver’s license (CDL) holders and eliminated paperwork processing. (Long Beach Transit) • We have made training processes more effi cient through the use of more computer-based learning tools. (UMASS) • Through more data-based management analysis, the agency reduced operator overtime by 30% or $150,000 annually, reduced towing costs by 60%, reduced non- revenue fl eet inventory costs by $200,000 per year, and consolidated facilities to save more than $3 mil- lion annually in overhead. An analysis and emphasis on increased safety practices resulted in reduced liabil- ity and a decrease of $2 million in claims paid in 2012 compared with 2010. (Greater Cleveland RTA) • As of July 1, 2013, the fi xed-route operations between Mesa and Tempe were unifi ed. Prior to this date fi xed- route operations were two separate contracts. By uni- fying the fi xed-route operations, the agency will save approximately $3.6 million annually. (Valley Transit) • Our agency practiced enhanced fare enforcement by bus operators, eliminated reverse fare collection from a free-fare zone, and eliminated poor performing ser- vice. (Utah Transit Authority) • We use bus simulators to help train our operators. This saves fuel and time on the road. (Star Metro) • We provide safety and security services, such as threat and vulnerability assessments, safety reviews, and training through in-house resources to save on con- sultant/contractor fees. (Hillsborough Area Regional Transit Authority) • We increased fare inspection by reallocating time of road and rail supervisors to also inspect fares. (TriMet) • The Centre Area Transportation Authority in State College, Pennsylvania has moved to a method of elimi- nating low ridership trips to provide meal breaks on several routes. This has saved approximately four driver pay hours per weekday, or roughly $20,000 annually. • Renegotiated the operating contract with First Transit, assumed a lot of the operating expenses, and re- procured items as a government agency, thus lower- ing costs and avoiding overhead associated with the

47 expense. (Yuma County Intergovernmental Public Transportation Authority) • Operations has implemented a mobility plan to increase the effi ciency of the fi xed-route system as it interacts with two train systems. This increased bus ridership over 5 months by 155,631 (4.8%) and increased bus fare revenue over 5 months by $176,965 (5.3%). (North County Transit District) • Omnitrans instituted a number of changes resulting in reduced costs, including these: (1) An automated operator check-in eliminated the manual card reader process and saved $75,000 in manpower and adminis- trative costs. (2) Decentralized dispatching from two locations were combined into one location on weekends to save $100,000 per year. (3) The implementation of Transit Master allowed for the elimination of passenger counters and outsourcing of data analysis, resulting in a savings of $100,000 per year. (4) Contracting out two weekend routes that were operating below the approved passengers per vehicle service hour saved $35,000 per year. (5) An injury/illness prevention program was established for bus operators covering subjects such as back-safe stretching techniques, managing emotions, and safer motions/body mechanics. It helped produce savings of $124,344 in the fi rst 6 months as the agency experienced 22 fewer injuries compared to the same time the previous year. • We monitor accidents and look at trends. From that we target training. We don’t use a time clock. The system is set up to pay operators unless they call off. Payroll by exception has eliminated a lot of daily work. (Stark Area Regional Transit Authority) • Recently reinstated the use of part-time bus operators, which will provide more fl exibility and help to control costs, including overtime hours. (Samtrans) • Contracted with a private security company to provide consistent, constant presence at transit centers and reduced the contract for local police services to save $70,000 per year. (Salem Kaiser Transit) • To control overtime we engage in earlier planning for events and a detailed review of overtime hours. A detailed review of propulsion usage resulted in $15 million in savings. (WMATA) • Monthly safety meetings are planned around the schedules of the operators so that 100% attendance is achieved. Road supervisors stationed in the yard remind operators of safety during pull-out and when returning to base. Hourly safety messages are announced over the radio by dispatch. We learned from Houston Metro to have people with disabilities participate in driver training. (Arlington Transit) • We implemented more neighborhood shuttles using smaller body-on-chassis vehicles, which has enabled us to reduce operating costs by eliminating fi xed-route service and replacing it with on-demand small bus routes. (Lynx) TRANSIT EFFECTIVENESS THROUGH SERVICE PLANNING AND SCHEDULING The most signifi cant expense any transit agency has is the cost associated with operating hours of service, and any meaning- ful reductions in an agency’s budget would almost always include a reduction of actual hours of service to the public. Developing service reduction proposals starts with analysis from the service planning section of a transit agency. Ques- tion 5 of the survey asked agencies if they decreased service and, if so, in what fashion? Figure 26 indicates the steps tran- sit agencies reported taking to reduce their expenses by reduc- ing services between FY 2008 and FY 2012. FIGURE 26 Percentage of responding transit agencies that reduced service by type of reduction between 2008 and 2012 (Source: Survey responses). The most common action taken by transit agencies was to reduce service on low-demand routes; eliminating routes and reducing frequency of service was close behind. Among those who reported taking other actions than those shown in Fig- ure 21, one agency reported that it combined routes, another reduced night service, and a third eliminated Sunday service. Question 24c asked, “Please provide the most signifi - cant steps and actions that your planning and scheduling department has taken to become more effi cient, generate new revenues, and/or reduce costs.” It is evident that new technologies such as automatic passenger counters have allowed transit planners to know precisely the level of rider- ship by route, by segment of route, by day, and by time of day. With this information, service planners have been able to recommend reducing service on certain routes, service that is usually reinvested in productive routes that require more resources and capacity. The result is a spike in produc- tivity and effi ciency for the transit agency, with additional improvements in schedule adherence and reliability. There are also examples of transit services being redesigned from radial to grid systems and areas of low demand being served through more economical methods. Additional techniques are described in Appendix E. • We restructured our four circulator routes (Passport service) to reduce service cost by $17,000 per week

48 (which was later reinvested to alleviate overcrowd- ing on other routes). The Passport service reduction was accomplished through route revisions and also by using larger buses so that frequency could be slightly reduced. (Long Beach Transit) • Software has helped us tweak schedules. We continu- ally look at all services and receive input from drivers and supervisors to make service improvements. Our scheduling department looks at all routes every year to reduce layover time, deadhead, and route duplication, which saved $20,000 this year. (UMASS) • APCs provide more accurate understanding of the cus- tomer boarding and disembarking activities. AVL pro- vides a record of actual on-time performance, which is used to better allocate running times to improve on- time performance. Service standards allow us to focus our attention on routes that are in need of more capac- ity and those that need refi nement to improve produc- tivity. (Capitol Area Transportation Authority) • We used service standards and APC data to elimi- nate lowest performing service. Trapeze Blockbuster software has saved signifi cant operating (labor) costs. (Utah Transit Authority) • Our run-cutting process for the fi xed-route division is continuously improving and we have realized decreased percentages of deadhead times as a result of this process. Most of the improvements were realized by using the functions in our Trapeze scheduling software to better schedule our daily work. (Nashville MTA) • TriMet has been able to improve on-time performance without adding costs by using data to improve scheduling accuracy and by re-allocating ineffi cient service to service that needs hours added to improve on-time performance. • We have completed some minor changes to service design, primarily a signifi cant reduction in a general public dial-a-ride system in the fringe areas of our ser- vice area. This was replaced with a series of commu- nity circulators that were designed off of the dial-a-ride trip patterns. The result allowed for both additional funding through competitive grants and an increase in ridership, while signifi cantly decreasing the cost per trip in the areas served. The new program helped bring down program-specifi c cost per passenger from $22 per passenger to $12 per passenger. (Omnitrans) • Our restructured routes to better service California State University at Long Beach resulted in a very successful UPASS program, which the university funds with an escalating amount that is now $525,000 annually in new revenue for that service. (Long Beach Transit) • Run-cutting software has resulted in the use of more split runs and four 10-hour shifts, which has reduced operating costs. (Lynx) • We increased fares for on-board purchases (off-board fares were kept the same), and eliminated free transfers with single-ride tickets (passengers are now required to purchase at least an all-day pass to transfer). • In 2010, CTA implemented service cuts for both rail and bus. Vehicle revenue hours for rail decreased by 5.1% while bus hours decreased by almost 15%. The service reductions were implemented on low-demand routes and/or times of day, resulting in a 2010 rider- ship decrease of less than 1%. These cuts resulted in a $23 million decrease in 2010 operating expenses. In December 2012 CTA implemented a plan that reduced 12 duplicative or low-ridership routes in exchange for increasing service on 48 of the city’s most overcrowded bus routes and rail lines. The operating expense impact is anticipated to be minimal but with the potential of increased ridership. (Chicago Transit Authority) • Trapeze Blockbuster tool saved our agency approxi- mately $400,000 yearly. (Utah Transit Authority) • We reduced frequency in low productivity areas and eliminated or merged low-density routes. These actions saved approximately $4 million annually. (Hillsborough Area Regional Transit Authority) • In the past 2 years staff has become more aggressive in reviewing the numerous criteria available to iden- tify service that is not meeting standards and areas that need service adjustments. With this information we make recommendations to the jurisdictions and our board of directors to eliminate and increase services with the intent of being cost neutral. This allows for more effi cient service, reduces overcrowding, increases on-time performance, and increases ridership and rev- enues. Additionally, the annual budget process allows for the submittal of initiatives to increase service lev- els that require additional funding. However, the ser- vices recommended are based on criteria review, input from customers, study efforts, and concurrence from jurisdictions willing to subsidize service expansion. These efforts also increase ridership/revenue, on-time performance, and customer satisfaction. (Washington Metropolitan Area Transportation Authority) • The biggest change we made was adopting the COA (comprehensive operations analysis) in 2008, which changed our focus from geographic coverage to serv- ing higher-demand areas. It was a cost-neutral project, but the result was increased productivity. Each year we scrutinize the service we provide and reallocate resources as needed. We reduce service where it’s not being used as well and add it where more service is needed. This keeps the system as productive as pos- sible. We also have an Annual Transit Service Plan that comprehensively reviews the system. In addition, we have added new express vehicles with Wi-Fi, high-back seats, and overhead luggage racks; these vehicles have improved the ridership on the express system signifi - cantly. (Santa Clara Valley Transportation Authority) • Using AVL data, Planning has gone trip-by-trip to develop time-sensitive runtimes. This has allowed for the reduction in some midday and weekend vehicle deployments. Additionally, using this information, a few

49 routes have been interlined where none had been regu- larly interlined before. This allowed for a one vehicle savings. These combined efforts enabled to redeploy resources to meet rising demand elsewhere. (Omnitrans) • Since the fuel crisis in 2000, we have primarily been in a position of maintaining and expanding routes, which has increased ridership. As part of our normal service review process, scheduling has adjusted trip times, deleted later evening or midday trips that had the low- est ridership, and added buses where standing loads were occurring. (Nashville MTA) • We are moving from a time transfer/pulse system to a modifi ed grid system with decentralized transfer points. This will save about 5 minutes per trip of recov- ery time. (Northern Arizona Intergovernmental Public Transportation Authority) • The Planning Department has begun to incorporate modeling techniques into the design and implementa- tion of new transit routes as well as the review of the current system. These modeling techniques will be assimilated into other aspects of planning, including scheduling. The Planning Department has integrated several software packages (Geographic Information Systems, Farebox, and Fleetnet software) that track and analyze various sources of transit data. The new infor- mation gives METRO a better handle on how resources are being spent and allocated. (Akron Metro RTA) • We have eliminated low-productivity trips on various routes throughout our system. We have cut midday trips on our commuter routes and eliminated selected evening and Saturday trips. More important, we have converted regular trips on our busiest student hous- ing routes to express trips, which are highly effi cient. Estimated savings are $100,000+ annually. (Centre Area Transit Authority) • Through our participation in groups such as profes- sional transportation associations and the American Bus Benchmarking Group, we learned about and ultimately implemented deviated fi xed-route services to offset paratransit costs while increasing ridership (ridership up nearly 90%, with costs down more than 60%); bus rapid transit (providing many more passen- ger trips with reduced service hours); and our no-pay for holidays program. (San Joaquin RTD) • We operate different service levels on different days of the week. For example, on Thanksgiving, Christmas, and New Year’s Day, we operate a special schedule that is approximately 25% fewer service hours than on a normal Sunday. We have received no complaints about this reduced schedule. In addition, on one route we operate a different level of service on Fridays than we do Monday through Thursday because demand is signifi cantly lower. (Long Beach Transit) Question 16c asked, “Have you been able to demonstrate any of the following effi ciencies?” while providing multi- ple-choice answers. Figure 27 presents the summarized responses. In the “Other” category, respondents noted effi - ciencies in the form of on-time performance and decreased costs per passenger. FIGURE 27 Percentage of transit agencies reporting achieved service effi ciencies by category (Source: Survey responses). TRANSIT EFFECTIVENESS THROUGH MAINTENANCE EFFICIENCIES Question 24b asked, “Please provide the most signifi cant steps and actions that your Maintenance Department has taken to become more effi cient, generate new revenues, and/ or reduce costs.” The responses include new maintenance performance software, less expensive alternative fuels, elec- trifi cation of engine systems, warranty recovery, the con- solidation of facilities, more effi cient lighting and utilities, establishing a just-in-time inventory system, contracting out some repairs while bringing others in-house, modifying work shift hours, and changing work rules. Descriptions of actions taken at responding agencies are provided here: • We introduced a new program to improve miles per gallon on buses. Actions included the following: (1) Infl ated tires with nitrogen instead of air. (2) Made improvements to wheel alignment program, including performing wheel alignment to front and rear wheels. (3) Began campaign to reduce parasitic load on engines by electrifi cation of air conditioning and engine cool- ing fan system. (The Bus) • We closed the Amsterdam depot to save $5.6 million and reduced operating hours at the Meredith depot to save $2.0 million. We reduced terminal car cleaning to save $14.8 million and extended rail car subway maintenance system cycles from 6 to 6.5 years to save $137.2 million. (New York City Transit) • In FY 2013, Maintenance has taken on the task of expanding our asset management plan to incorpo- rate all assets and is currently completing a facility maintenance plan. This includes doing an inventory and assessment of all assets, reviewing planned main- tenance, and developing a long-term capital rehab/ replacement program. This will be folded into our fl eet maintenance plan utilizing our business application

50 software, which is currently undergoing an upgrade. With the software upgrade, we are also incorporating missing Publicly Acceptable Specifi cation (PAS) 55 elements for a comprehensive asset management plan. With the implementation of the asset plan and software upgrade, we will be able to use benchmarks to monitor, measure, and control our costs. (Long Beach Transit) • Fuel savings from the implementation of 64 com- pressed natural gas (CNG) coaches at our satellite facilities (even considering electricity for compression and maintenance and depreciation of station) is pro- jected to be more than $500,000 a year, with 29% of the miles being converted to CNG. Within the project we were also able to implement an upgrade of the shop lighting by replacing ineffi cient halogen lights with T8s, providing $38,000 annual savings in reduced elec- tricity and a return on investment of 11 months when we include the rebates we received from our electricity company. Another project with major savings is work- ing with a vendor to rebuild our hybrid drive motors and generators versus buying new. Our staff was able to determine that internal gears were failing and could be replaced at a cost savings of $6,000 each, totaling an average savings of $120,000 a year. The ongoing effort of our quality assurance staff, looking at parts and rebuilds (in-house and externally), continues to result in cost savings. Our electronic rebuild shop, the main source for our internal rebuilds, continues to build parts valued at an average of more than $35,000 a month using only one FTE and nominal parts for repairs. (Long Beach Transit) • For FY 2014 we received funding for a project to pro- vide more timely information to our technicians and supervisors with the Phase I implementation of Smart Maintenance. This program starts by creating a smart document for our technicians for planned maintenance and inventory assessments. It provides instructions as well as quality control checks and advice to techni- cians as they are performing their job. It will provide real-time updates in our work order system, allowing supervisors to see the progress of all work assigned. We anticipate that the use of this technology will help us become more effi cient and defi nitely reduce costs in the future. (Long Beach Transit) • Added a second shift mechanic to reduce on-call costs to save $20,000 per year. (UMASS) • Changes in shift times based on analysis of road calls and workloads increased effi ciency and reduced mechanical problems. We are testing propane-powered paratransit vehicles, which should reduce operating expenses while providing a cleaner environment. (GCRTA) • Changed from contracted light rail vehicle (LRV) maintenance to in-house LRV maintenance, saving $1.6 million in the fi rst year. (Valley Metro) • The Chicago Transit Authority completed a contract in 2012 with a third party vendor that will utilize bar- coding technology to manage its supply chain process, providing access to national networks of parts and material distributors in a just-in-time procurement system. Tighter control in inventory has allowed CTA to project a slower rate of growth in material expenses for 2014 and 2015. • We reduced parts utilization through establishment of daily targets and reduced road calls by staging mechan- ics at bus hubs to perform light repairs. Additionally, we improved fuel economy with engine/transmission reprogramming. (Utah Transit Authority) • Using recapped tires reduced the number of tires that needed to be disposed of and saved roughly $15,000 during a 5-year contract (as opposed to purchasing one-time-use tires). (Salem Kaiser Transit) • All lighting in the shop has been changed from high- pressure sodium to T5. This reduced our utility bill by approximately $375 a month. When fueling CNG buses it was found that if we lower the fi ll pressure to 3600 psi and use only two compressors as opposed to three it saves approximately $1,000 per month in compressor electricity, In 2011 an aged automatic bus wash was replaced with an effi cient new model that uses fewer chemicals for water treatment ($3,000 annually) and also uses less water ($1,800 annually). By separating out used metal, we receive about $400 annually for the nonferrous metal. (Salem Kaiser Transit) • Purchased 19 cost-effi cient paratransit minivans (instead of cutaways), resulting in a one-time capital savings of $950,000 and an annual savings of $52,478 as a result of better fuel mileage. (Hillsborough Area Regional Transit) • The Santa Clara Valley Transportation Authority uses SAP Enterprise Asset Management software to effi - ciently monitor preventive maintenance through main- tenance cycle plans. Due to effective monitoring of labor hours and material costs through SAP, we have been able to minimize costs. We also rebuild major compo- nents in-house, thus bringing down material costs. • Omnitrans reported numerous cost-saving techniques, including these: (1) Brought maintenance on leased relief cars in-house instead of paying a vendor for this service, saving $6,500 per year. (2) Clean-up time for mechanics was reduced from two 10-minute allotments to two 5-minute allotments, returning $108,000 dollars or “wrench time” without increasing employee count. (3) Bus washes were reduced from every other day to every third day to save $11,800 in electricity and water/ sewer charges. (4) Bus detailing was reduced from four times per year to three times per year to save $30,000. (5) The agency purchased equipment necessary to ser- vice John Deere injectors. The equipment cost $5,800, but the agency saved $12,000 in the fi rst year alone. • We purchased a waste oil heater to reduce the cost of providing hot water for the bus wash. Developmentally disabled workers were used for offi ce and bus cleaning.

51 Buses that were retired were kept and used for spare parts. (Toledo Area Regional Transit Authority) • The bus maintenance department has recently been con- tracted out, which has reduced operating costs associ- ated with carrying excess inventory by approximately $250,000 annually. (North County Transit District) • Maintenance has been focused on improving the information gathering and dissemination of mainte- nance issues in order to improve the overall effi ciency of the department. Actions supporting this include the elimination of a cleaner position in order to free up budget for an analyst, an overhaul of the preven- tive maintenance program to be more vehicle specifi c, and a redesign of the daily report operators fi le on the condition of the vehicles they drive. By collecting and reporting better information, the quality of repairs has improved, which makes the overall vehicle reli- ability improve as well. This past year saw the need to expand our service rapidly—too quickly to obtain the necessary vehicles by the start of the new service. Maintenance was able to absorb a 10 extra bus require- ment for the 3 months necessary to obtain the needed vehicles, while still maintaining the vehicles’ condi- tion. The MTA had investigated renting vehicles; it would have cost approximately $500,000 to do so. (Nashville MTA) • Implemented electric fan drive: result was 7% better mpg. (The Bus) • We started a fuel-hedging program in July 2009 that saved the agency approximately $125,000 in FY 2009, $1,028,000 in FY 2010, and $1,955,000 in FY 2011. (Nashville MTA) MAINTAINING TRANSIT EFFECTIVENESS THROUGH USE OF TECHNOLOGY Question 19 asked, “How has new technology in any area of your agency helped to reduce your costs and/or improve your effi ciency?” Agencies were asked to provide specif- ics in terms of what was done and the fi nancial impact on their budget and service quality. As with many other topics covered in this synthesis, respondents had many signifi cant examples to share, many of which are provided here. A num- ber of agencies that reported multiple applications of new technology are listed in Appendix F, including King County Metro, Long Beach Transit, Washington Metropolitan Area Transportation Authority, Santa Clara Valley Transportation Authority, and Community Transit. Other agencies’ experi- ences with new technology are provided here: • AVL/GPS has improved on-time performance. Signal priority and off-board fare collection have increased speed of travel. Our audible pedestrian warning system has all but eliminated pedestrian accidents. (Greater Cleveland RTA) • In-house data reporting, payroll reporting, and operations systems have helped streamline processes. There have been no direct savings, but we have realized operations effi ciencies (HASTUS and driver feedback has helped), and we can spend more time on other projects. (UMASS) • In the area of paratransit, we are now scheduling elec- tronically; using interactive voice response to call customers with ride time changes; and electronically col- lecting mileage, performance, and ridership data, which were previously manually entered. In maintenance, we are now entering work orders and time on each task electronically by task, and mechanics note what they did on buses in the computer. This was previously done by hand. (Capitol Area Transportation Authority) • Implementation of new fi nancial software allowed for improved reporting, actual to budget comparisons, and effi ciencies in payroll and accounting. (Valley Metro) • Security has also been bolstered by the installation of approximately 1,800 high-resolution security cameras at CTA’s rail stations, leading to 184 arrests. • Pace has employed scheduling software to reduce operating costs for both fi xed-route and ADA para- transit service. • Development of stop-specifi c real-time transit arrival tools has resulted in 2 million rider inquiries a month by phone and text messaging. This has allowed the agency to reduce on-street signage costs while improv- ing the customer experience. Direct annual savings are estimated at roughly $200,000, in the form of staff reduction and material cost reduction. (TriMet) • Development of an online, open source, multimodal trip planner that serves riders at the rate of roughly 500,000 trips planned each month. This technology has allowed the agency to reduce customer service staff, along with reductions in schedule-related collateral material. Annual savings are estimated to be at least $300,000. (TriMet) • AVL has improved schedule adherence and customer awareness, which has led to a reduction in customer calls and complaints. APCs have improved service design by helping identify less productive services or areas. APCs have also helped RTS consolidate bus stops and improve schedule adherence. (Gainesville RTS) • Trapeze run-cutting software has helped reduce the deadhead times in our operations department. (Nashville MTA) • There is no question that our AVL infrastructure has changed us. We know how our shuttles are spaced in real time. We know if a vehicle is speeding. We know if a particular driver is laggard (or speedy). However, I can’t say that new technology has had a measurable impact on budget. (Go West Transit) • Use of the AVL system has allowed us to operate with less on-street supervision than was previously required. (Centre Area Transportation Authority) • A new farebox system ensures collection of full fare by counting coins and indicating if full fare was paid.

52 Previously, bus operators could not count coins in the box as this would have added to dwell time. The new farebox system also allows for magnetic cards. An ACS system with GPS provides accurate on-time performance data, which is necessary for scheduling. The ACS/GPS also provides boarding information, which is critical as SamTrans is currently working on a comprehensive operations analysis. New technology is also used extensively in bus maintenance and opera- tions. Consequently, SamTrans is operating more than 26,000 miles between road calls. (Samtrans) • The most signifi cant change was the installation of new scheduling software for both fi xed-route and paratransit. For paratransit, passengers per hour increased approxi- mately 25%, allowing the service to grow by a similar percentage without an increase in budget. Additionally, automatic call-back software was installed to alert paratransit passengers when the bus was in the vicinity so they could be ready when it arrived. This program has reduced no-shows and dwell time for the service. (Toledo Area Regional Transit Authority) • TextBus service features a text message/SMS-based information system that provides upcoming bus arrival information on demand for every RTD bus stop. After fi nding purchased solutions too expensive, RTD devel- oped TextBus internally between its Marketing and Information Technology Departments for just $60 start-up costs to purchase the local telephone number and 1 cent per message ongoing costs. There are more than 3,000 unique users per month, and nearly 15,000 completed requests per month. San Joaquin RTD also uses this service to quickly communicate service interruptions to its customers. In addition, RTD uses Facebook, YouTube, and Twitter to quickly send infor- mation and to interact with customers at no cost. • Technology is used in every department at Capitol District Transit Authority. In the back offi ce, enterprise resource planning systems support human resources and fi nance functions; work and inventory manage- ment support the maintenance and procurement func- tions; scheduling applications support transportation and planning functions; and custom-built web appli- cations support the safety and training functions. Intelligent transportation systems enable dispatchers to stay connected to resources on the street (CAD/ AVL), while customer benefi ts include real-time pas- senger information signs and mobile applications, stop announcements, and fare collection systems. MAINTAINING TRANSIT EFFECTIVENESS THROUGH STRATEGIC USE OF CAPITAL FUNDS Question 21 asked, “Have you been able to reduce your operating costs through strategic use of your capital fund- ing?” The vast majority of respondents (77%) reported that they have used capital funding sources to help reduce cur- rent operating expenses and avoid future expenses, which enables them to provide a safe, attractive service to the pub- lic. Capital funds have been utilized to build new Leader- ship in Environmental and Energy Design (LEED) certifi ed buildings with lower utility costs, purchase alternative-fuel buses that reduce fuel costs, upgrade computer software for administrative effi ciency, build dedicated lanes for tran- sit to improve operating speeds, and pay for maintenance expenses, which helps reduce the operating budget. A list of unduplicated techniques is provided here. • New York City Transit will be building a short (half- mile) exclusive busway under an elevated subway right-of-way. This will allow buses entering and leav- ing a major transit center and a major bus depot to travel directly to their streets of operation without hav- ing to operate in a slow, circuitous manner through a highly congested neighborhood. The annual operating cost savings for the Ridgewood Busway is estimated to be approximately $1 million. • In the information service area, by leveraging new technologies acquired using capital funding, Long Beach Transit is able to improve its operational effi - ciency and reduce the need for additional personnel to perform the same tasks, thus reducing the operating costs. For example, an interactive voice response (IVR) system is used to disseminate departure and arrival information to customers automatically on the phone, thus allowing customer service personnel to focus on resolving customer issues with the same level of staff. Over the past 12 years, our capital plan has helped us keep the costs of materials and labor stable. • New vehicles and facility investments have undoubt- edly decreased the growth rate in operating costs. The purchase of new rail cars and new buses decreases the maintenance hours needed to maintain older vehicles and reduces in-service failures. The new rail car’s parts have a 2-year warranty, reducing material costs. The Chicago Regional Transportation Authority is cur- rently in the process of evaluating the operating cost impact of capital expenditures and hopes to have a more thorough understanding of this area in the near future. (Chicago Transit Authority) • Replacement vehicles have replaced most ineffi cient buses. Technology upgrades in vehicle maintenance systems have improved effi ciency. An electronic fare collection system has facilitated increased fare rev- enue. (Utah Transit Authority) • In 2011 an aged automatic bus wash was replaced with an effi cient new model that uses fewer chemicals for water treatment (saving $3,000 annually) and less water (saving $1,800 annually). (Salem Kaiser Transit) • Our new building will save 750 hours a year in idling alone, because the buses are parked inside and won’t have to be aired up daily. (Go West Transit)

53 • HART’s capital program includes revitalization and build-out of many outdated facilities. (1) The 21st Avenue Operations Building will be LEED-certifi ed. Coupled with consolidation of staff into the new building from separate temporary facilities, this will produce projected operations and utilities cost sav- ings up to 25%. (2) Build-out of the Ybor Streetcar Facility (which houses HART’s administrative staff) will include replacing ineffi cient HVAC systems and insulation, and upgrading access control systems and lighting, for a projected 10% savings in energy costs. (3) The impending construction of a CNG fueling sta- tion will allow HART to replace its diesel vehicle fl eet with more effi cient and cost-effective CNG-powered vehicles. CNG is approximately $1.50–$2.00 less per gallon equivalency than diesel fuel, which is projected to save a minimum of $16,000 per day in fuel costs alone when the full fl eet is converted. CNG also burns cleaner and will lower maintenance costs on engine repairs. (4) Upgrades to the heavy maintenance/pre- ventive maintenance facility’s heating, ventilation, and lighting systems save energy costs, and the increased lighting and installation of radiant heating systems in these buildings have had a major impact on working conditions for the maintenance staff servicing and maintaining buses, vans, and other vehicles in these structures. The increased quality of work and reduc- tions in employee health issues will mean cost savings in productivity and less lost time and ineffi ciency. (D. DeMartino, General Manager/CEO, San Joaquin RTD, personal communication, Feb. 22, 2010) • The Yukon transfer center renovations demolished and replaced an existing driver break room, which includes a new public restroom facility with low- fl ow toilet fi xtures, LED lighting and high-effi ciency split-system air conditioning, and four additional bus bays. The bus canopy system was reroofed and all canopy lighting was replaced with energy-effi cient LEDs. Operating costs are estimated to be reduced by 10% to15%. Also, larger demand-response vans are being replaced with minivans that have 50% better fuel economy. (Hillsborough Area Regional Transit Authority) • Bus stop and pedestrian improvements in strategic locations have increased fi xed-route use and reduced ADA paratransit use. Transit-preferential treatments have saved travel time. More fuel-effi cient vehicles have improved fuel effi ciency and low-fl oor buses have diverted demand from ADA paratransit. (TriMet) • VTA purchased seventy 40-ft low-fl oor hybrid diesel- electric buses. These buses get 5.55 mpg of diesel fuel compared with 4.10 with a standard 40-ft diesel-pow- ered bus. (Santa Clara Valley Transportation Authority) • We built a $4.5 million building and stopped paying $120,000 per year in rent. We also invested in a fl eet of hybrid electric buses, which reduced our fuel costs by 25%. (Northern Arizona Intergovernmental Public Transportation Authority). • Approximately $600,000 of our maintenance bud- get is capitalized by using our FTA 5307 allocation. (Star Metro) • Most signifi cantly, we have been able to acquire Congestion Mitigation Air Quality (CMAQ) funding and use this for the purchase of biofuels. In calendar year 2012, approximately 500,000 gallons of biofuel were purchased and paid for with 80% federal dollars. (Toledo Area Regional Transit Authority) • CMAQ grants helped fund the replacement of older diesel buses with hybrid-electric buses. These buses will require less maintenance and fuel, reducing their lifecycle costs. RTD uses Prop 1B state bonds to upgrade IT, maintenance, and facilities infrastruc- ture, which reduces the maintenance costs as well as costs related to failures in these areas. Furthermore, these upgrades have allowed RTD to operate more effi ciently. RTD was also successful in obtaining FTA state of good repair grants to build a consolidated oper- ations and maintenance facility that will signifi cantly reduce operational costs by consolidating multiple out- dated facilities. (San Joaquin RTD) • WMATA has installed automated credit card read- ers at parking facilities, reducing staff and operating costs; invested in energy-effi cient parking lot light- ing; installed composite third rail; purchased new rail cars that will reduce operating and maintenance costs; constructed rail and bus facilities to LEED standards; made HVAC system improvements throughout the system; and reduced the amount of hard-copy records through the introduction of an electronic records man- agement system. (Washington Metropolitan Area Transportation Authority) • The primary goal of King County Metro’s capital program is the preservation of our infrastructure. However, examples of savings/effi ciencies from capi- tal investments include purchasing upgraded schedul- ing software, which has saved $12 million so far and continues to support more effi cient scheduling. Also, energy-saving components of capital projects have provided a reduction in utility costs of about $200,000 annually, while other projects are still in progress. MAINTAINING TRANSIT EFFECTIVENESS THROUGH THE CREATIVE USE OF ASSETS Question 23 asked, “What new ways have you discovered to take advantage of your equipment, facilities, or employees to earn new revenue?” The majority of respondents provided examples of selling space on vehicles, facilities, websites, fare cards, and digital signs, as well as through audio announcements. Some have been able to sell naming rights to transit stations or routes. Other agencies reported making

54 additional revenue through their parking facilities, by leas- ing empty space, by selling gas to the public from facilities built to fuel their own vehicles, or by earning revenues from high-occupancy toll lanes. The details of such arrangements are provided here. The examples found through the literature search are not included in what is reported here. • Recently, we have been approached on a few occasions to provide shuttle service for special events that are going on in the city, when the facility does not have adequate parking to accommodate the attendance. We have been able to provide this service with the man- power allotted for that day(s). This has allowed us to generate additional income. (Long Beach Transit) • CDL training for other nonagency departments gener- ates $5,000 per year. (UMASS) • Metro recently entered an agreement with the Public Stadium Authority to allow parking at an employee- only lot for sporting events, which resulted in approxi- mately $11 million. Metro also sells advertising space in the Downtown Seattle Transit Tunnel stations, resulting in average annual revenue of $519,506 from 2009 through 2012. (King County Metro) • In 2009, CTA entered into an agreement with Apple Inc. for the refurbishment of the North Clybourn Red Line Station and landscaping at the nearby bus turn- around, while Apple built a new retail store on prop- erty adjacent to the station. Per the agreement, CTA completed the refurbishment of the interior of the station while Apple’s private contractor completed exterior work. Apple paid all costs of the exterior, inte- rior, and platform refurbishment and CTA’s costs for design and construction management for all portions of the station refurbishment project up to $3.9 mil- lion. In return, CTA granted Apple naming rights at the station. Work was completed in late 2010. (Chicago Transit Authority) • CTA has also established a corporate partnership pro- gram to promote corporate investment in its transit system. Benefi ts to the corporate partner include being promoted in CTA press releases, having the right to advertise on the CTA system, and having its name or logo incorporated into a CTA station name and sig- nage. In 2012, CTA launched an offi cial program to sell the business naming and sponsorship rights to 11 of its stations. Contract agreements are still pending for station naming rights. Current corporate partners include the Chicago Sun-Times and Miller Coors, which sponsor penny rides on the fi rst day of school for Chicago Public School children and on New Year’s Eve for all riders on CTA, respectively. CTA’s agree- ment with Sun-Times Media Productions, LLC is for 3 years plus a 3-year option, totaling $900,000 for the fi rst 3-year agreement and an additional $900,000 if an additional 3-year agreement is entered. The agree- ment would cover out-of-pocket costs incurred by CTA as a result of providing free rides to students. CTA’s 3-year (plus 3-year option) sponsorship agreement with Miller Coors to provide free rides on New Year’s Eve allows the company to advertise in stations and on fare cards sold in predetermined stations. The total contract value, including option years, is $1.4 million. CTA estimates a total of $154,000 in lost revenues on New Year’s Eve every year. This sponsorship agree- ment will result in an estimated $1.1 million in rev- enue for CTA over 6 years. In addition, CTA expects to bring in more than $1 million a year in non-farebox revenue from the display of alcohol ads on trains and in stations. (Chicago Transit Authority) • We allow public use of our CNG station. We earn approximately $1,000 per month. We have so much good public relations. I am being quoted in media in other states. (Stark Area Regional Transit Authority) • We have leased unused space at maintenance facilities. (Utah Transit Authority) • SamTrans issued a contract for a company to provide new bus shelters that will have advertising in them. The company pays for shelter manufacturing and installation, as well as the maintenance of the shelters. This allows SamTrans to save capital expense (shel- ter) and operating expense (maintenance). Each shel- ter costs about $10,000. Ninety-fi ve shelters have been installed. The ads also generate revenue of approxi- mately $250,000. SamTrans rebid its contract for exte- rior advertising on vehicles and negotiated with the successful proposer to pay our annual fee in advance instead of monthly. The annual revenue generated is $655,000 (and increases each year). • At the present time, WMATA is exploring new medi- ums: wallscapes on facilities, wrapped parking struc- tures, branded Smart Trip cards, and enhanced shelter advertising. We continually strive to reduce the burden on fares and subsidies by increasing our nonpassenger revenues. Aside from the traditional transit advertis- ing, we employed tunnel advertising for approximately 4 years, generating between $30,000 and $75,000 per year; however, the logistics of installing tunnel adver- tising, the diffi culty in auditing “views,” and the pro- duction costs made this medium less than attractive to both advertisers and the authority. (Washington Metropolitan Area Transportation Authority) • We have added an advertising component to our tradi- tional transit advertising mix in the form of opt-in ads as part of our real-time arrival text messaging service. The revenue from this avenue is minimal at this point. We are currently considering adding advertising to our website with an expectation that this could generate as much as $300,000 in additional ad revenue for the agency annually. (TriMet) • VTA expanded options for advertising on VTA prop- erty, including ads placed on the “splash page” that customers see when they log on to the VTA Wi-Fi on

55 our trains and express buses. This revenue has gen- erated $16,500 a year and helped to underwrite the cost of providing the Wi-Fi service on our vehicles. Advertising space is now sold on the VTA website and in VTA’s monthly customer newsletter Take One. We have entered into permit agreements with vendors, such as a provider of gourmet food trucks, at our park and ride lots to encourage use of transit to access fun family activities. Changes in our ser- vice, particularly changes that have reduced travel time—such as the introduction of new express bus routes with an upgraded vehicle (reclining seats, Wi-Fi, luggage racks, etc.)—have generated addi- tional ridership and revenue. (Santa Clara Valley Transportation Authority) • VTA is working with partners on transit-oriented joint development projects based on an established joint development policy. The objective is to create long-term revenue for VTA at a rate of return that is competitive in the market. It also emphasizes planning for the highest and most effi cient land uses at transit stations and along rail corridors, and increased rider- ship. We also partnered with the state DOT to convert carpool lanes to express lanes. Tolls from solo drivers are collected and revenues from these tolls are used for operation, maintenance, enforcement costs, and tran- sit improvements within the corridors. (Santa Clara Valley Transportation Authority) • Republic Parking operates and maintains all park- ing structures and areas that we open, and we receive a percentage of the revenues from these facilities. (Nashville MTA) • There are plans to allow other agencies to use a test lane that we will open. That might produce some rev- enue. The Illinois Department of Transportation makes us test every vehicle twice a year. This includes the cost of the test, 70 miles on each vehicle to get to the test, and the cost of labor. We will get a test lane in our new facility that will save these costs, and we may open this to other agencies that might want to save those same costs. (Go West Transit) • We sell Greyhound tickets to generate a com- mission for local match revenues. (Yuma County Intergovernmental Public Transportation Authority) • We have increased advertising to allow audio ads on board the vehicles through our stop announcement sys- tem for a revenue increase of approximately $100,000. Additional revenue ideas under way include mainte- nance and fueling of local nonprofi t vehicles, vehicle storage, and driver training for nonprofi t agencies. (Toledo Area Regional Transit Authority) • We revised our advertising policy, brought our adver- tising program in-house, and increased advertising on our buses. Our revenues increased from $25,000 to $50,000. (Northern Arizona Intergovernmental Public Transportation Authority) • The placement of advertising on farebox passes gener- ated a savings of $25,000. Media trade with the Palm Beach Post for bus advertising (exterior and interior) generates a yearly savings of $70,000 for ad place- ments. (Palm Tran) • We advertise on our own fl eet, paying for production costs only. A bus wrap costs only $4,500 to produce but nets $10,000 in value in the fi rst month of display. Our contactor works with us to leave ads up as long as possible, extending the value. The contract also pro- vides $25,000 per year in digital billboard space at no cost. (Salem Kaiser Transit) • In 2012, both THS, Inc. and HART amended their advertising policies to include alcohol and cigar adver- tising only on the streetcar. As a result, more than $96,000 in new advertising revenue will be achieved on an annual basis. (Hillsborough Area Regional Transit Authority) • NYCT has 103 digital two-sided screens that display advertising and agency messaging. A banner on the bottom of stairwell screens displays the current ser- vice status, while a certain percentage of screens are reserved for transit messaging. These digital screens generated $9.5 million in new ad revenue in 2012. NYCT also has 10 digital billboards that are antici- pated to generate approximately $7 million in new ad revenue for 2013. Ad sales on MetroCards were taken over in-house in the fourth quarter of 2012. While an outside contractor generated $700,000 in new revenue for 2012, the agency anticipates generating approxi- mately $7 million in new ad revenue for 2013. (New York City Transit) MAINTAINING TRANSIT EFFECTIVENESS THROUGH MORE EFFICIENT MARKETING Question 24d asked, “Please provide the most signifi cant steps and actions that your Marketing department has taken to become more effi cient, generate new revenues, and/or reduce costs.” While marketing departments engage in many activities, most are taking advantage of new social media and other communications technologies to reach the public more quickly and less expensively, and to receive feedback from customers. Capital grants have allowed the purchase of printing equipment that improves the capability of transit agencies to produce printed materials in-house less expen- sively than by contracting for such services. The responses here demonstrate the actions transit agency marketing pro- grams are taking to help build and retain ridership and earn new revenues. • The marketing department, which also includes cus- tomer service, has become more effi cient by training the telephone information clerks to perform other tasks to minimize downtime, such as to process customer

56 comments. The IVR system has allowed our telephone information clerks to spend more quality time on the phone with new users of the system, which creates a better impression and long-term ridership growth. A rider rewards program was implemented to offer dis- counts at local businesses to create additional value to a bus pass and to increase pass purchases and persuade current riders to ride more often. (Long Beach Transit) • The specifi cations for the Rider’s Guide were changed by using a different paper stock and using clear design and typesetting techniques, leading to an annual sav- ings of $20,000. An additional $40,000 annual savings were generated by designing, typesetting, and provid- ing 75% of materials in-house, including all collater- als, campaigns, route maps, and outreach materials and notices. (Palm Tran) • Improved operation of our telephone information sys- tem based on TransitStat performance analysis. We are now taking 20% more calls with the same staff. (Greater Cleveland RTA) • We combined contracts for advertising and distribution services, saving tens of thousands of dollars annually. We now produce half as many Transit Books as in previous years, relying more on our online tools. We now use in- house graphic design services versus contracted service, saving the agency $300,000 annually. (Valley Transit) • SamTrans has saved money by moving some of its passes from paper fl ash passes to the regional fare card, Clipper, in addition to introducing some magnetic stripe tickets to use in its new fareboxes. The budget for fare media has decreased by $42,000 over the past few years. • 1. We contract out for graphic design services, elimi- nating the need for a full-time graphic designer. In 2011–12, we spent $19,000 in contracted services, compared with the average cost of hiring a full-time employee at $107,000. 2. To reduce printing costs, we use the state purchasing agreement with Offi ce Max for printing services. Costs savings are estimated to be as much as 50% on some products. 3. In 2011–12 we used capital funds to purchase a plotter so that large- format printing can be done in-house. Printing just one trade show display in-house saves $550. Staff has been able to improve effi ciency and avoid several thousand dollars in printing expense. 4. When we redesigned our website, we used Drupal for content management. This open source Short Message Service saves hours of staff time in maintaining the website. 5. The district’s marketing strategy depends heavily on high-value, inexpensive media such as Facebook, Twitter, and sub- scriber e-mail. (Salem Kaiser Transit) • There have been staffi ng reductions in outreach, on- street customer information, and customer service by way of consolidating functions and embracing new technology. In the last several years, this has easily resulted in $500,000 in annual savings. There have also been material reductions in on-street customer information, such as schedules and signage, by taking advantage of technology opportunities. This repre- sents savings of roughly $100,000 per year. Program revenue gains of an average of $1 million per year for the last 10 years have been attained by way of an effi - cient approach to marketing packaged fare programs to employers and colleges. The agency has also benefi t- ted from a transit advertising contract that features a guarantee that has allowed us to realize transit ad rev- enue of more than $5 million per year during economic times that generate signifi cantly less actual advertising revenue. (TriMet) • The Marketing Department was able to offset the annual printing of our system map by selling an ad on the back. We also partnered with the Department of Health and featured a list of produce stands on the face of the map, with related icons at their specifi c locations, in return for dollars for printing. (Pinellas Suncoast Transit Authority) • Omnitrans brought the bus stop amenities maintenance program in-house and hired three full-time employees, leased trucks, and purchased the necessary equipment for less than bids to have work done by a contractor, saving $100,000 a year. The agency also brought its website administration in-house by having its informa- tion technology and marketing staffs maintain website content and functionality, saving $20,000 per year. • Nashville MTA has taken a number of steps to make our marketing department more effi cient. (1) We pro- duce smaller print jobs in-house. We have the capa- bility through our color printers to produce smaller high-quality print jobs (customer fl yers) for public dis- semination internally. Professional printing costs may range from $0.25 to $0.50 per color copy. In-house expenditures are signifi cantly less with the appropriate printers/copiers. The cost of the paper is less than $10 a ream for 500 sheets. What would cost $25 or more for outside production for “quick print” is signifi cantly reduced by printing in-house, resulting in a savings of 90%. (2) We use digital media more frequently. Our increased usage of e-News blasts, social media, and the website also reduces printing costs and provides another resource to get information out quickly to cus- tomers. News releases, customer notices, and news- letters are predominantly distributed through e-mail, social media, and/or our websites. This is not only cost-effective, in that paper copies are reduced, but the cost of postage to mail the newsletters is signifi cantly reduced, as well as the need for more paper through production and mailing. It also allows more informa- tion to be available and accessible to the public at large. (3) Cross-training of communications employees—all employees in marketing and communications have specifi c job duties and responsibilities; however, each one has a working knowledge of the other’s jobs so they

57 can cover for one another if necessary. As an example, all the employees have a working knowledge of our graphic design program. This allows for any graphic design alterations to projects to be done in-house with no delay in the project. This saves time, and not using an outside contractor saves money. (4) More partner- ships with businesses or agencies for cross-promotions provide opportunities for exposure at low cost. For example, McDonald’s Smooth Fusion Tour generated publicity for both McDonalds and Nashville MTA; Metro Nashville Arts Commission–28th/31s Avenue Connector project resulted in six unique transit shelters for our system and publicity for Nashville MTA; Metro Nashville Arts Commission Poetry in Motion project generated positive publicity for Nashville MTA; the Miller Coors Halloween sponsorship generated addi- tional revenue and promoted our services and brand name. By agreeing to partner with Miller Coors for a fourth consecutive year on this promotion and extend the bus schedules on 20 MTA bus, we generated nearly $18,000. • METRO’s marketing efforts rely heavily on trades, our strong partnerships, and the fl exibility to be available at a moment’s notice to members of our community. We attend any community show where we are allowed to set up for free or at a minimal cost. We also trade out space at shows and trade advertising and maximize social media presence whenever possible. We regis- tered our speaker’s bureau at all our local libraries and speak regularly to local organizations, nonprofi ts, and schools. All of our staff are encouraged to represent us in their volunteer efforts and to be on community boards, committees, and the like, increasing our reach to riders and nonriders. We do all the creative work in- house, from writing jingles and ad copy to producing the radio spots, designing the print ads, and writing, directing, and producing videos. Because we do all the creative in-house, trade advertising, and look for effec- tive media buys, we have saved upwards of $200,000 over the past 5 years. (Akron Metro) • New York City Transit (NYCT) has made great strides in communicating more effectively with its passengers and the public at large to provide information on a real- time basis to keep passengers informed of the status of service. The agency developed a Global Messaging System whereby with one entry (such as an unplanned service change) the system automatically updates other communications systems, such as the web, urban pan- els, on-the-go kiosks, service status signs, and Twitter. – NYCT’s expanded use of e-mail/texts provides alerts on planned and unplanned service changes, with such messages posted by agency staff on a 24/7 basis. The website has been improved for greater utility, providing easier navigation information and the real-time service status of each bus route and subway line. The website also provides details on upcoming planned service changes as well as eleva- tor and escalator outages. – The agency’s TripPlanner+ has been repositioned on the MTA.info home page for better visibility. ADA-accessible trip information is also available as well as three alternative itineraries for any trip, with information provided. The TripPlanner+ automati- cally reroutes around planned services changes. A Weekender Website is also provided for subway diversions from 3 p.m. Friday to 5 a.m. Monday, with an interactive diagrammatic map using blink- ing station dots to indicate where work is taking place by line, station, or borough, with the opportu- nity to click to a neighborhood map for orientation. – NYCT has partnered with Google AdSense, which sells ad space on the agency’s website at no cost to NYCT. This has generated more than $663,000 to date, with the anticipation of $1 million in total earnings by the end of 2013. – Real-time bus arrival information is available through desktop, mobile phones, or text messaging. Information is provided by intersection, bus route, and bus stop code. – Next train arrival signs are present at 153 stations and provide next train arrival information in fare- control areas, at transfer points, and on platforms. These signs also transmit live and prerecorded audio and visual messages to stations from the Rail Control Center. – Interactive information kiosks are self-service devices with access to various travel and informa- tion applications. Revenue will be generated through digital media. In addition, a pilot Help Point project is being tested that provides direct communica- tion between the customer and a customer service agent. These are positioned with a highly visible blue beacon and have two button functions (one information/one emergency). Nineteen devices are now installed along subway platforms, fare-control areas, and mezzanines. To make it easier for passen- gers to reach NYCT information, all MTA informa- tion is available by dialing 511. MAINTAINING TRANSIT EFFECTIVENESS THROUGH PARTNERSHIPS Question 17 asked, “Have you entered into any partnerships with any of the following organizations that have helped share the cost of providing new or existing service?” The question offered multiple choice answers. Figure 28 summarizes the responses to those choices. In the “Other” category, respon- dents named additional partners with whom they have worked: • Local businesses • Apartment housing developers/owners

58 • Management companies for offi ce complexes • Transportation management associations and com- muter assistance programs • Greyhound Lines • Local disability groups for paratransit services, includ- ing veterans services • Other social service agencies. FIGURE 28 Percentage of transit agencies that have entered partnerships by type of partnership (Source: Survey responses). Question 17b asked respondents to provide specifi c exam- ples of the partnerships they engage in and to explain the benefi ts to the community and the bottom line to the transit agency in terms of revenue and/or ridership. The concept of transit agencies partnering with other public and private entities has exploded in the past 15 years. A summary of reported partnership activities is provided here. Additional examples of partnerships with King County Metro, Nash- ville MTA, Community Transit, and the Washington Met- ropolitan Area Transportation Authority are provided in Appendix G. • California State University at Long Beach pays Long Beach Transit per boarding for student, faculty, and staff. The parking commission in a popular shopping district pays for employees to ride with funds from the city. A rider rewards program communicates benefi ts to customers (such as vendor discounts) in exchange for the business promoting public transit. (Long Beach Transit) • The major impact of our partnerships has been on increased ridership. Naming rights agreements with businesses have resulted in increased revenues. Agreements with several colleges, the largest being Cleveland State University and Case Western, pay RTA a fee per enrolled student for unlimited access to our services. There are resale agreements with many local school districts to use or to resell our passes to students who may not qualify for subsidized or free transportation services. Fourteen different entities have partnered with RTA to invest in an expanded downtown trolley (rubber tired) service to the tune of $3.6 million over 3 years. The Rib Cookoff has part- nered with RTA for enhanced rail service to its 4-day (Labor Day weekend) event; RTA is paid a piece of the gate (50 cents per ticket sold) with a minimum paid to RTA for 20,000 attendees ($10,000). The Cleveland Film Festival is paying RTA to operate additional rail service after normal service ends to benefi t festival attendees. The last regularly scheduled trains leave Tower City at 1:00 a.m. The fi lm festival is funding four additional trains to leave Tower City at 1:35 a.m. (Greater Cleveland RTA) • The agreement between Capital Area Transportation Authority and Michigan State University increased ridership by 3 million on campus but also increased ridership systemwide by 3 million. • A fi nancial working group has been initiated to better coordinate funding issues between local governments and the transit agency. Integration of transit service with the city of Tempe and Valley Metro is under way. Development of regional paratransit operations and coordination of a regional fare structure for demand- response services are other forms of partnerships. (Valley Metro) • Pace has partnered with local schools, universities, hospitals, and especially with local governments, which contribute signifi cantly to fund Pace’s many dial-a-ride paratransit operations. • CTA has entered into multiple intergovernmental agree- ments with cities in which it operates (for example, Chicago, Evanston, Oak Park) for the provision of addi- tional security services as well as groundskeeping ser- vices on its properties. In addition, CTA is committed to providing quality service to and from places of employ- ment and recreation. It has partnered with the University of Chicago, Soldier Field, UPS, the Wrigley Company, and other attractions, hospitals, and downtown business interests to provide subsidized service. CTA has begun renegotiating these contracts to decrease and/or elimi- nate the operating and overhead costs it incurs for such service. (Chicago Transit Authority) • Two cities contributed operating costs for a new street- car. One city and county contributed operating costs for new express bus service. One city and county con- tributed operating costs for new bus service. Salt Lake City, the Chamber of Commerce, and a university are preparing to contribute operating costs for increased light rail service. (Utah Transit Authority) • The county agreed to fund a route that transports veter- ans to the Cleveland Veterans Administration Hospital. (Stark Area Regional Transit Authority) • SamTrans has a Shuttles Program that provides the “last mile” to link rail stations with business parks, hospitals, schools, and other major employers. This program was started in the 1990s. Typically, employ- ers pay 50% of the costs, various government grants pay 25%, and SamTrans pays 25%. Anyone is allowed to ride the buses for free. • State and local governments have provided most of the local match for TriMet’s light rail system capital con- struction. Businesses have taxed themselves through a

59 local improvement district for light rail system ameni- ties. Businesses and local governments have donated land for light rail project construction. • San Jose State University (SJSU) is contributing $50,000 in FY 2013, or approximately 4%, of SCVTA’s DASH shuttle operating cost. Approximately two- thirds of the DASH ridership is attributed to SJSU riders. Lockheed Martin is contributing $53,634 in 2013, or approximately 25% of the Red ACE shuttle’s operating cost. Approximately 25% of the Red ACE shuttle ridership is attributed to Lockheed Martin rid- ers. (Santa Clara Valley Transportation Authority) • RTS has an agreement with the University of Florida and Santa Fe Community College for unlimited pre- paid access to students, faculty, and staff. There is also an employee pass program that provides discounted prepaid annual passes for the area’s largest employers; it has more than 30,000 participants. (Gainesville RTS) • We developed a U-Pass partnership with four local col- leges and universities. During the fi rst year, this part- nership generated $750,000 in revenue and added 1.4 million trips. Following the successful launch, a local trade school and a charter high school have joined the U-Pass program. (Omnitrans) • Flagstaff Medical Center and Coconino County have purchased an Eco-Pass (Deep Discount Program) for all employees. Northern Arizona University pays half the costs of a high-frequency bus rapid bus transit (BRT) system connecting downtown Flagstaff to the heart of the campus. (Northern Arizona Intergovernmental Public Transportation Authority) • Unable to initiate a universal pass program at Penn State, CATA developed a similar program through off-campus student housing complexes. We currently contract with 15 apartment complexes, each of which includes prepaid transit passes as one of the amenities they offer their ten- ants. (Centre Area Transportation Authority) • Go West Transit saved $1.25 million over 5 years by making its operating contract contingent on the school districts. Go West represents the University of Western Illinois, and the system wouldn’t even exist without a full partnership between the city and the university. The city could never afford to provide the local share, and the university could not sustain the capital infra- structure. The two entities share the university’s facil- ity and contingent contracts with the school district. Go West does not provide any school service. A sav- ings of $1.2 million dollars can be quantifi ed from that contract and an additional $150,000 a year is saved in shared services. • Universities and hospitals have helped underwrite routes for Ft. Wayne Public Transit. The Downtown Improvement District has co-marketed the transit agency’s services. The city provided match for an FTA livability grant for sidewalk/ADA improvements. (Ft. Wayne Pubic Transit) • Virginia Hospital Center pays a subsidy in exchange for employees riding free on two routes. In effect, this subsidy is supporting late night service that other- wise wouldn’t be warranted. An offi ce complex pays a subsidy in exchange for free rides to and from two Metrorail stations. An apartment complex pays a sub- sidy in exchange for free rides to a Metrorail station. These last two arrangements have resulted in substan- tial ridership. (Arlington Transit) • The North County Transit District has partnered with a local hospital to increase frequency on Route 353 to serve as a shuttle between two hospital facilities. The hospital pays NCTD approximately $90,000 per year for increased service on the route. In addition, the Reservation Transportation Authority pays NCTD approximately $385,000 per year for increased service on two rural routes primarily serving several reserva- tion casinos. • We have one local university that pays the fully allo- cated cost for a route to its campus; this generates approximately 90,000 passengers per year. We have also started several contracts through our paratransit service to provide rides to area agencies. The largest contract is with the Department of Developmental Disabilities for approximately $2 million per year. (Toledo Area Regional Transit Authority)