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HomeMy WebLinkAbout10-258AUGUST 10, 2010 10 -258 RESOLUTION (CARRIED 0 -6 LOST LAID OVER WITHDRAWN ) PURPOSE: AUTHORIZE THE OSHKOSH TRANSIT SYSTEM TO INCREASE THE HOURS OF SERVICE FOR FIXED ROUTES INITIATED BY: TRANSPORTATION DEPARTMENT WHEREAS, the City of Oshkosh has owned and operated the Oshkosh Transit System since 1978 to provide mobility and accessibility options for Oshkosh residents and visitors, and WHEREAS, expanding service into the evenings is the most common request for improving the system, and WHEREAS, the ability to efficiently extend service into the evenings requires modifications to the City's Working Conditions Agreement with AFSCME Local 796, and this agreement is being considered for ratification by the Common Council, and WHEREAS, the impact of a limited extension of service in 2010 is not expected to increase the Transit Budget for the 2010 budget year; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the increase to the Oshkosh Transit System's hours of service in accordance with the attached memorandum is authorized effective August 30, 2010. This resolution is contingent upon Common Council approval of the 2010 -11 Working Conditions Agreement with AFSCME Local 796. ( 0 QJHKOf H City of Oshkosh - Transportation Department ON THE WATER 926 Dempsey Trail, Oshkosh, WI 54902 (920) 232 -5342 (920)232 -5343 fax MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Christopher Strong, P.E., Director of Transportation DATE: August 2, 2010 RE: CHANGE IN OSHKOSH TRANSIT SYSTEM'S HOURS OF SERVICE As the City Manager indicated in his July 23, 2010 newsletter, the Transportation Department has been working on a proposal to change the hours of service for the transit system. His newsletter included a copy of a June 14, 2010 memorandum which outlined some of the characteristics of this proposal. The purpose of this memo is to provide background information for the associated resolution the Common Council will be considering. How the Resolution Affects Hours of Service The resolution authorizes the Oshkosh Transit System to change the hours of its fixed route bus system, effective Monday, August 30, 2010. The following summarizes the key changes to the system: • Weekday service would be extended one hour later on all routes. Currently, our weekday service starts at 6:15 AM and ends at 6:10 PM. Under this proposal, weekday service would end at 7:10 PM. Saturday service would start two hours later in the morning. Currently, our Saturday service starts at 6:15 AM and ends at 6:10 PM. Under this proposal, Saturday service would start at 8:15 AM but would still end at 6:10 PM. All service, except for the Route 10 intercity service to Neenah, would maintain its current half -hour service frequency. This change in service would increase our weekly hours of service by 4.2 percent, from 648 hours per week to 675 hours per week. By changing the bus system's hours of service, the resolution will also have impacts on a couple of our other transportation programs: • Paratransit services for the elderly and persons with disabilities provided by the Cabulance and ADA Dial -a -Ride programs will continue to be available 24 hours a day, 7 days per week. Users currently pay a premium fare for trips made outside of our bus system's service hours. With the proposed change, paratransit users would be able to pay a lower fare for weekday trips made from 6:15 to 7:10 PM. Department of Transportation Page 1 Change in Oshkosh Transit System's Hours of Service / August 2, 2010 Our Access to Jobs program provides subsidized taxi transportation between work and home for applicants meeting certain income and employment requirements. One qualification of the program is that the rides are only available when they cannot be served by our bus system. This change will allow some of these trips to be accommodated on the bus system, which will save money for passengers and for the transit system. Motivations for the Proposal The proposal to change the bus system's hours of service has been developed in response to input from a variety of sources. In general, when asked what to improve about the transit system, the most frequent citizen comment is that the bus system should run later into the evening. This would allow the following types of trips to occur, which are currently not supported by our bus system: • Work shifts which end at 6 PM • For employees whose shifts end at 5 PM, after -work trips such as grocery shopping, child care, or going to medical appointments • Students involved in certain after - school activities These types of trips are critical for those who, by choice or necessity, depend on the bus system to meet their transportation needs. The proposal may also open up the bus system to new riders who are not able to use the system based on its current hours of service. In summary, this proposal will expand mobility options for our residents and visitors. The idea of extending the hours of the bus system has some popular support, as expressed through several venues. • The Poverty Plunge event, convened in May by the Oshkosh Area Communtiy Foundation, assembled many community leaders on how to help lower- income residents attain self - sufficiency. One theme that was mentioned repeatedly is that the public transportation system is critical for people to access jobs and services to help them attain greater self - sufficiency. • We have used a web -based survey to solicit input for the development of our Transit Development Plan. In response to an open -ended question on how best to improve the system, 52 respondents indicated that the best way to improve the system was to extend service hours later into the evening. This was three times more responses than any other item. • Interviews with a small, randomly selected sample of citizens for the City Manager's State of the City Address found a couple of citizens who cited the lack of evening bus service as a problem needing to be addressed. In addition to these service benefits, the proposal as structured will accomplish the following. • The proposal allows some of our transit operators to have a 5 -day work week. The standard work week for our drivers has been 6 days since the City purchased the transit system in 1978. Changing the drivers' work schedules has been a departmental objective that was listed in the City's budget documents over the last couple of years. • The proposal supports changes in the bargaining agreement language which makes transit employees' compensation rules more similar to other employees within the Union. By removing some dated contract language, this proposal makes it easier to restructure the Department of Transportation Page 2 Change in Oshkosh Transit System's Hours of Service / August 2, 2010 transit routes to better serve the community. The proposal also makes it easier for employees to transfer into and out of the Transit Division, providing a larger range of employment opportunities for City employees and potentially reducing the cost of external recruitment. By adding part-time drivers, the proposal gives us the staffing capacity to ensure that no driver is behind the wheel for more than 12 consecutive hours. This increases safety for our drivers, passengers and the traveling public and puts us ahead of the curve with respect to future Federal Transit Administration initiatives that may relate to these types of requirements. Potential Ridership Impact It is difficult to precisely estimate the ridership impact of this proposal. The proposal would add two "runs" to each of our routes each weeknight, and subtract four runs from each route's Saturday morning service. Based on a sampling of ridership data, the last trip of the day for our weekday service averages approximately 8.1 riders per route per day. In comparison, the highest volume of the four Saturday morning runs which would be eliminated is 6.2 riders per route. It is uncertain to what extent the volume of trips at other times of day will be changed due to the change in hours of service. However, I believe that the later service has good potential to add more riders to the system than will be lost through the reduced Saturday service. Our analysis assumes that there will be a 1.5 percent increase in ridership, which seems reasonable compared to a 4 percent increase in the number of service hours. Fiscal Impact This proposal is projected to have no fiscal impact on the Transit Utility for the 2010 budget year. This is because actual cost savings in 2010 so far exceed the anticipated additional costs associated with the service change. As noted in the June 14, 2010 memo, the cost impact of this proposal over a 12 -month period is estimated to be $34,100. This estimate was calculated by estimating potential cost impacts, factoring in anticipated Federal /State grant funding, and considering potential revenue impacts. Table 1 lists the individual cost impacts of the proposal. Table 1: Net Cost Impacts of Transit Proposal, 12 -Month Period Total compensation for additional work performed by full -time operators $51,200 Total compensation for additional work performed by art-time operators $18,000 Pro -rated increase in other costs (fuel, insurance, spare parts, tires, oil) $26,300 Net cost increase $95,500 Our 2010 budget assumed 57.3 percent of our deficit would be recovered through Federal and State grants. Applying the same percentage to this cost impact, and factoring in potential new revenue, yields the following net cost to the City: Department of Transportation Page 3 in Oshkosh Transit System's Hours of Service / August 2, 2010 Table 2: Net Cost to City of Transit Proposal, 12 -Month Period Net cost increase $95,500 Cost recovery through Federal and State aid (57.3 percent) $54,700 Net cost increase (after cost recover $40,800 Additional farebox revenue $6,700 Net additional cost (to City) $34,100 Since the resolution would implement expanded service effective August 30, 2010, the impacts in 2010 would be different than this total. We will not be able to recover these additional Federal and State costs during 2010, since our aid application was submitted and processed several months ago. However, the additional cost is for only four months of additional service, not twelve months. Table 3 presents an estimate of cost impacts for enacting this change for the balance of 2010. Table 3: Net Cost to City of Transit Proposal (August 30, 2010 to End of Year) Net cost increase 8/30/2010 through 12/31/2010 $31,900 Additional farebox revenue $2,300 Net additional cost (to City) $29,600 Fortunately, the Transit Utility is operating in a favorable financial position in 2010, primarily because fuel prices have stayed below our budgetary estimates. Through June 30, 2010, we had spent approximately $70,000 less on fuel than anticipated, and our best estimates do not show fuel prices reaching budgeted levels for the remainder of the year. There do not appear to be other cost categories where we are over budget. Therefore, there appears to be sufficient funding in the already approved 2010 budget to accommodate this service improvement, without increasing the 2010 general fund levy. Conclusion My department is committed to ensuring that our transit system effectively meets the needs of our residents and visitors to our City. The public input I have received indicates that extending the service later in the evening may be the single most significant improvement we can make in enhancing our system. Considering this proposal concurrently with the collective bargaining agreement provides a strategic window of opportunity for pursuing this proposal. With all this in mind, I believe that this proposal provides an excellent value in increasing service at a relatively small additional cost and recommend its approval for the current and future benefit of Oshkosh residents and visitors. Thank you for your consideration. Department of Transportation Page 4