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Lessons learned in transit efficiencies, revenue generation and cost reduction

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Title:
Lessons learned in transit efficiencies, revenue generation and cost reduction
Physical Description:
iv, 118 p. : ; 28 cm.
Language:
English
Creator:
Volinski, Joel
United States -- Dept. of Transportation. -- University Research Program
University of South Florida -- Center for Urban Transportation Research
Technology Sharing Program (U.S.)
Publisher:
University Research Institutes Program, U.S. Dept. of Transportation :
Distributed through U.S. Dept. of Transportation, Technology Sharing Program
Place of Publication:
Washington D.C
Publication Date:

Subjects

Subjects / Keywords:
Local transit -- Finance -- United States   ( lcsh )
Local transit -- Costs -- United States   ( lcsh )
Local transit -- Management -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available online.
Statement of Responsibility:
prepared by Joel Volinski
General Note:
Prepared by University of South Florida, Center for Urban Transportation Research.
General Note:
"August 1995."
General Note:
"June 1997"--Cover.
General Note:
"DOT-T-97-23."
General Note:
Final report.

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Source Institution:
University of South Florida Library
Holding Location:
University of South Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 029923949
oclc - 37856523
usfldc doi - C01-00049
usfldc handle - c1.49
System ID:
SFS0032172:00001


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LeSSons .. . . . Learned in Transit Efficiencies, Revenue Generation, . and cost Reduction

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TECHNlCAL REPOttT DOCUMENT A noN PAGE. 1 Ropon No. 2 l;o>'e. UMTRIS/FTA Section A Tillt end Sublitlo $ Report Oero Lessons Learned in Transit Effici encies Reve nue Generation, and Cost June 1997 Reduc tion 6. '"-'Otmhg 0rp-f% tliotl Cod6 7 Aulhot(l Joel Vo l i nski, Deputy Directo r & P..-fon1'1if'4 RtP(Itl No. 9 f>ta:mlng tWne erod Ai:thtl Center fo r Urban T r ans p ortation Research 10. W::anl Ul"it No. {TRAI S ) U n iversity of South F lor i da 11 COM-Kt 01' Granl No. 4202 E Fowler Avenue TAmnA 1 2. N*M tndA6ihss 1 3 U .S. Department of Transporta t ion Federal Transit Administration (FTA) 400 7th Street, S .W Washington DC 20590 15. Supplomert.y Noc.s 1 8. A.bn'.a This report documents how transit agencies are generating new revenue or reduci n g costs without harming the best Int erests o f their passengers Inform a tio n was obtained through a survey responded to by 75 transit agenci es f rom throughout the United States. Respondents provided brief descriptions of the five most effective methods used to generate new revenues or reduce costs without l osi n g passengers. The var i ous methods have been categorized i nt o six different Themes (Positive Opportunism. Partnerships, Cooperation, Service Planning/Marketing/Delivery Maximizi ng Capital Budgets, and I mproved Management of Resources). Each idea is explained in enough detail t o give the reader the basic i nform ation needed to understand the i dea The trans it agency that submitted eac h ide a is also i dentified and can be contacted for more detail. Transit agencies could expec t to save (o r generate new revenues of) 5 to 10% of the i r operating budgets by impl ementi n g the techniques i de ntified in t h i s report. 17, Key\\tlrl1t 1e Trans it Effic i encie s cost savings, Report availab l e to the public thr oug h the revenue generation creative National T echnlcallnformation Serv i ce (NTIS) management 5285 Port Royal Road Springfield, Virginia 22161 (703) 487-4650 s.a..nty Clhllt. (ol'thlttllpCitl) 20. 21. 22.unclassified u nclass ified (NTIS) fo"" DOT F J70G.7 (B-72) Rtpe'Oduc:don o t completed pqe au.tboriud

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Lessons Learned in Transit Efficiencies, Revenue Generation, and cost Reductions Author! Jo e l Volinski Project Staff: Julee Green, Joel Rey, Pany Turner, Laura Lochance L Center for Urban Transponation Research College of Engineering, University of South Florida 4 202 E Fowler Avenue, C\JT 100 Tampa, Florida 33620 5375 (813) 9743120, F ax (813) 974 Web: Gry L. Brosch, Dinmor o 1997 Center for Urban Transporution Resear<:h June 1997

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contents Executive Summary . . .. . .. . . . . .. .. .. . .. . .. .. .. ... .. .. ... .. .. .. .. .. . . . .. .. .. . . . . .. ... . . . . .. . . .. 1 Acknowledgments . . .. .. . . .. .. .. ... .. .. ... .. . . . .. . .. . ... . . . .. . . ... . .. . . . . .. . . . .. ... .. . ... . . . . . ... 13 Introduction ..... ................................. ... .................... .... . ..... . ................ .............. . ... .. ... 15 Theme l-Positive Opportunism .. .. .. .. .. .. .. .. .. .. ...... .... .. .. .. .. .. .... .. .. .. .... .. .. .. .. .. .. .... .. .. .. .. .. .. .. 19 Sale of Advenising Rights ...... ...................... .......... .... .. . .... .. .. . .. .. .. .... .............. ..... ...... . .. ........ 1 9 Key Lessons Learned in Sale of Advert i sing Rights ................................................................... 24 Utilizing T =sit Facilities ro Generate New Revenues ............ ................ .......................... ...... 25 Utilizing Transit Equipment ro Gener:ne New Revenues .... ........................................ .... ........ 29 Key Lessons Learned in Facilities and Equipment That Help Genernte New Revenues ........... 33 Taking Advantage of Transit's Employees as Unique Assets ..................................................... 34 Toking Advantage of Transit's Passengers as U nique Assets ......................................... ............ 36 Key Lessons Learned i n Taking Advantage of Transit Employees and Passengers as Assets ...... 38 Theme IT-Partnerships ................ . .. ............. .... ...... ............ .. .................... ......... ............. 39 Private Secror Panners Supportive of New Transit Serv i ce....................................................... 39 Pub lic Sector Fanners Supponive of New Transit Service........................ .. .............. .. .............. 4! Public or Private Entities Assisting with New Transit Facilities or Equipment ....................... 43 Publ ic or Private Entities That Suppon Existing Transit Service.............................................. 47 Key Lessons Learned in Theme D Pannerships ............................... ....... ................................ 50 Theme ill-Cooperation ...... ......................... ..... ....... ........ .. .............. .. . ............. .. . ....... ... 53 Joint Pwt:hasing ...... . . .. ........ ....... ......... ............ ..... .... .... ..... . ... .. .. . ......... ...... ... ............ .... . .. .. .. . 53 Sharing/Trading of Services, Facilities, or Funds...................................................................... 54 Providing Experience, Employment, or Service Opportunities for Other Agencies ................. 56 Coordination of Transi t and Paratransit Services .................................. ..... ............ ..... .............. 58 Cooperative Agreements with Transit Labor Union................................................................. 59 Key Lessons Learned in Theme Ill-Cooperation..................................................................... 63

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Theme IV -Service P l anning, Mar k eting, o r Delivery M e thods ........ .............. . .............. . 65 M ore Carefu l and Prudent Resource Allocatio n Decis i ons . . . . ..... ... . . .......... .... . ..... ..... ....... 65 Modifyi ng t h e Basic Methods of Service . . ............................................ .......... ..... ....... .... ...... 67 Contracting for Services T hrough Competitive Bid... ......... ... .... ....... ... ....... .... ...... ......... . ...... 71 Mainstrearn.ing Paratransit Users to Fixed-Route S e rvice.... . . ... .... ..... . . .... . . . ..... . . . .... . .... . 72 Marketing and Fares....... ................. .... ............... ............ . ..... . . .... ..... ................. . ...... ...... 73 Key Lessons Learned in Theme IV-Service Planning Marketing, or Del i very Methods........ 76 Theme V -Maximizing Capital Budgets.. ....... .... .. ....... .... ..... . .. ... ... .. ....... . ... ................... 79 Use of New rechnology ........ ...... . ............. ...................... .............. . ................ . ....... ....... ... ... ... 79 Relatively lowtech Solutions That Sove Lobor and/ or Pons Costs................ ....................... . . .... &3 Acquiring Vehicles That Reduce the Cost of Operations and Maintenance .. ......... . .. ....... ........ ..... 84 Facility Investment to Reduce Opernting Costs .. ... . . .. ... ...... .. . . ........ .. .. ....... . . .. .... .. . ...... .. .... 85 Cap i talization of Operating Expenses .. .......... .. ... .... .... .. .. ........ .. .. .. . ......... . .. .... .. . ...... .. .. .. .. .. .... 86 Vehicle Maintenance Techniques Tha t Extend the L ife of Vehicle SyStems and Pans ..... ..... ... 87 Key Lessons Learned in Theme V Maximizing Capital Budgets .......................................... ... 88 Theme VI-Improved Managemen t of Internal Resources . .. . ... . .. . .. .. . . ....... ... . ... .. . .. .... 89 Reorganization/Reduction in Force . . . .... . . .... . . . . . . . . . .. ...... . . . . ..... . . . .... . . . .... . . .. . .... 89 Contraa/Outsourceor Retain Functions ............ .. . . . .. .. . . . . . . . . . .... . . . .... .. .. . .. .. .. .. .... .. .. . 92 Improve d Methods of Procurement .... ... ........ . .................. ..... ......................... ... . .......... ...... .... 93 Managing Major Expenses ................. .... ............................. ........ .... ......... ........... .......... .......... .... % Reengineering Internal Processes. ... ... ................ ..... . . . .... ... ....... .......... . . ............. .... . ....... ...... 100 Key Lessons Learned in Theme VI-Improved Management o flntemal Resources. . . ............. . ... 103 Conclusions . ... . . .. . .. . . .. .. ... .. .. .. .... .. . ... . .. .. ...... ... .. ... .. .. .. ... . .. . . . . . ... . . . . ... . ... . .. 1C6 Appendix A . . .... .. ... .. ... . ... . ... .. . ... .. . ... .. . .. . . .. . .. . ... . . . . .. .. ... . ... .. ....... ... . . ... . . 107 AppendixB ........................ ... ....... .. ... .. ..... . .. ... .. ................... ...... ........... .... ......... .......... 111

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Lmons Ltdr ntd in Trd11$1t E fficiencies, Rt vtnut C t ntration. cost Rtduct ion Executive summary Background 'T'nmsitage n c ies are no different than v irtually all other public agencies, private companies, or h ouseholds in a t least one fundamen tal respect: all of them need mon ey t o function. S ecuring sufficien t funds 10 operate has b een perhaps the biggest challenge facing transit systems in the past few years. Declining f ederal transit o p erating assistance, cost l y legislative mandares (e. g., Ameri cans with Disabili ties A ct and dru g testing req uire m ents), and resistance t o increasing taxes have made balancing budgetS that much more difficult. According 10 a survey conducted by the Ameri can Public Transport a tion Associatio n, 56 percent of all transi t systems h a d raised their base fares an average of 26 p ercent in FY 1995 and/ or 1996, while 48 p ercent of all sysreros cut an average of 1 2 percent of their vehicle miles of fixed-route service during thatsrune time periodIt is true tha t public transi t agencies face a m ulti tud e o f difficulties in sustaining service as t heir external environment s change and create new pressures. However, it. is i nheren dy incons istent for a service industry that emphasizes "Custom e r Service" 10 reduce service and raise fares as p rim ary options when dealing with tight budgets. Making the passenger (or customer) bear the brun t o f tight budgets by paying more and/or getting less is not being c ustomer friendl y and usually re sults in l ower rid ership and r e v e n ue. Better o p tions are to increase productivity and/ or reduce costs to c on tinue to remain attractive to customers who have choices While public transit agencies serve customers that many regard as "captive, in truth, e v eryo n e has options on how, or how often, they travel. Purpose of Project The purpose of t his res earch project was 10 g a ther and redi st ribute in f orma t i o n o n h ow transit agencies are g e nerat in g new revenues or reducing costS withou t harming t he best interests of t heir passengers. This project was based on the idea that transit agencies have a great deal10 l earn from each other in the areas of raisin g new revenues or reducing costs. A very simp l e survey was "Advt!YSity is the fimpath to truth. -Lord Byron

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Lessons in Transit Efficiencies. we Generation, and Cost Re.duction developed and sent to more than 400 transit agencies in the United States, asking them to provide a brief descrip tion of the five most effective met hods used by their respec tiv e agency tha t have generated new reve nues and/ or saved m oney. Responses were received from 75 transit agencies Many of the techniques were simi lar among agencies (e.g., adve rtising on buses or bus s helters). However, even in t hose areas of similarity there were dis ti nctions thor should be of interest tO transit systems that might wish to adjust their methods of doing similar activities. summary of Findings There were over 180 unduplicated methods of saving money or gene rating revenuessub mined by the 75 tran sit systems responding to the survey. AU of these techniques are include d in the full report. However, it is important to understand that there are six common themes among these many different techniques. By understanding these basic themes, trans i t leaders can more effectively encourage their managers to recognize similar opportunities in their own systems. The commo n themes among successful techniques are described and summarized below: Theme 1. Positive opportunism This theme is meant to describe those actions by transit agencies tha t take advantage (without harming anyone else) of thei r unique assets. Many people have a perception of transit agencies as black holes of unending expenses. However, tran s it agencies have many assets that are of value to others and can become profit centers. One of transit's d efinin g characteristics is thot it provides transportation linkages for people and communities. Positive opportunism encourages transit manag ers to envision new linkages with other public or private entities that can gene rate revenue as weU as additional support for transit. Subcategories within this theme are: Sale of Advertising Rights Transit agencies sell space for advertising on buses, benches, shelters, rail cars, vans, automated guideway cars, schedules, transfers, passes, ti cket books, property, etc One transit system enjoys such a fme image t hat it makes royalties from the sale ofT-sh i rts and mugs with its logo on them. Within this subcategory, there are different ways of adminisrering an advertising program. For instance, some agencies have doub led or tripled revenues by bringing the transi t advertis ing function in-house versus conuacting this respo nsibility to national brokers. Adverti>1ng in-house has also created stronge r linkages t o local businesses that advertise on th e system w ho then have another re-ason to support the transi.t service in the community. The transit s-ystem may collect

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Lessons Learned fn Transit Etffdendes, Revenwe Generation. and cost Reduction substantial dollm for these advertising opportuni ties, or trade the value of the opportunity for other goods or services that help them more effectively market their system. The LYNX system in central Florida has taken the "painted bus" concept to new heights through exercising artistic control while demanding, and getting, advertising on buses that actually adds to the attractiveness ofthe fleet. Fadlltfes that Help Generate New Revenues Examples include perfortning vehicle maintenance '" 'Ork (for profit) for other agencies out of transit's facilities, charging for parking under guideways, leasing rights-of-way along rail cor ridors to telecommunicat i ons companies, renting excess building space (taking advantage of agency downsizing), selling surplus property, entering leveraged leases for guideways and maintenance facilities, charging for bid books for construction projects, and selling waste oil. Equipment that Helps Generate New Revenues Examples include entering leveraged leases for buses and rail cars, washing other public and private vehicles with agency bus wash equipment, charging for printing for other agencies with printing equipment purchased with capital grants, providing charter service where per missible with unique transit vehicles, and gaining designation as an authorized warranty cen ter allowing the agency to be paid by the vehicle manufacturer for perfortning repairs. Taking Advantage of Transit's Employees as unique Assets A common phrase heard is that the most i mportant asset of an agency is its "human capital. In transit's case, employees are the source of ideas to reduce costs through employee sugges tion programs, and they arc indispensable participants in "gainsharing" programs that have saved at least one agency millions of dollars. I n addition, transit employees are a unique asset that can generate new revenues through the sale of the expertise they have gained in matter$ such as hazardous materials training Commerc ial Drivers License testing, simulator training, or rail operations planning for international co n sulting purposes. Taking Advantage ofTransit's Passengers as unique Assets Aocess to transit's eustomers is valuable to entities other than the transit system. Telephone compa nies will pay for the rights to place telephones at strategic locations in a transit system, while also offering additional tranSit information services to the passenger at no extra coo. One transit agency

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Lt.SSOIIS LtOrlltd In Transit fflcltnclts Rewnut Gtntrdtlon. and Cost Rtdllt"t l on charges compan ies for the righ t to distri b ute discount coupons to passengers who buy monthly passes. joint promot ions with private com panies at transit centers, or on board transit vehicles, increases ridership and revenue. School Boards in some districtS will pay the t1'31lSit system for each stUdent carried as they pursue every method to increase the educational attainment of their young aw.eruy. Theme 11. Partnerships Transit agencies h a v e long operated in the spirit of partnership with federal and state governments for transit operating and capiw assistance. What has changed is the need to expand the list of partners Transit agencies do not have the financial resources to independently accomplish all they would like to do in their communities, nor can they rely as heavily on a federal government that is hoping to r educe i t s massive deficit Hence, t ransit systems are looking to leverage their limited te$Ources by forging new partnerships t hat bring non-tradi tional sources of support. These part nersb ips allow tranSit agencies to provide serv ices or facilities where i t would no t otherwise be feasible. Subcategories within this theme include: Private sector Partners supportive of New Transit Service Examples includ e agreements with malls, business parks, major emp l o y ers associations of businesses, or hospitals for new services paid partially or fully by the private entities. The majority of these partnerships are initiated by the private secror partners. Public sector Partners supportive of New Transit service Examples include agreements with military bases, universities, public schools, t ransportatio n man agement associations, downtown development authorities, convention centers, or cities for ne w or extended service paid for partially or fully by the other public agencies. These agreements also provide opportunities for transit agencies to restructure existing near b y services to be more p ro ductive. Public or Private Entities Assisting with New Transit Facilities or Equipment Examples include agreements with cities or private developers to pay for portions or the entirety, of new transit facilities; agreements with air pollution control districts or u t ility companies to pay for all or substantial portions of the cost of new transit maintenance facilities o r equipment ranging from b i k e racks to alternative fuel buses; agreements with redevelopment agencies to provide

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Lessons Le-ornt4 in TronJit Revenue centrotion. ond Cost Reduction physical improvements or complimentarY services in or ne:1r trm
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Lessol'ls Learned in Transit Efficiencies, Revenue Gene ration, and Cost RtductJon Providing fxperiencefServicefEmployment Opportunities for other Agencies A number of transit systems are realizing genuine benefits from utilizing summer )'0\lth employees, college interns, and volunteers who provide valuable services ranging from data entry, graffiti removal, resean:h, schedule distribution, etc., at very low coSt. Similarly, some transit syStems are benefirting from low coSt labor provided through sheriff's work incan:cration programs or other community service programs for s mtion cleaning and landscaping services. coordinlltion of services Serving as a coordinator for para transit services has allowed some systems to realize savings. They are in a better position to mainStream paratrans it passengers to Jess expensive fiXed-route options, coordinate various paratransit providers to encourage multi-loading, and reduce the capital expense by maximizing the use of paratransit vehicles through coordinated use of vehicles among agencies. cooperative Agreements with Transit Labor A number of transit syStems have successfully negotiated with their bargaining units to reduce coStS through the following techniques : greater use of part-time operators for general use, week end runs, trippers, vacations, lunch reliefs, etc.; extended wage progression schedules; two-tiered wages for new hires or small vehicle operators; one.time cash bonuses versus base wageincreases; changing to managed health care versus select health care; early retirements coupled with pension modificati ons ; changing separate sick and annual leave to consolidated paid t i me off; and salary freezes and cooperative measures to find savings. Theme IV. service Planning, Marketing, or Delivery Methods Not surprisingly, the higheSt cOSt element of any transit syStem is the actual operation of service. The methods transi t agencies have used to provide service have not changed dramatically in the paSt fifty years. However, the areas t hey serve have changed significantly, and sources of funding seem harder to secure. Transit syStems must become more disciplined or creative in the traditional methods of providing service, and/ or ftnd new and more cost effective ways to serve the new urban form. This theme shows how transit syStems are responding to the need to improve the productivity of their service, within the following subcategories:

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Ltssons Learned i n n-anslt fflciencles. Revenue Generation. ana cost Reduction More careful and Prudent Resource Allocation Decisions Examples include consolidating or interlining routes; m.inimizing service on days of lower dem and such as Martin Luther KmgDay and the day after Thanksgiving; thoroughly scrutinizing and reduc ing deadhead mileage and overtime; using a productivity frequeocy index to make service etts w ith the le= possible im pa ct o n rid e rship ; allowing bus o pe rators to construct their ow n runs within recogni?.ed parameters; and reducing t he size of trains or buses to be.tter reflect demand. Modifying the Method of Service Man y transi t systems are making fundame ntal changes to the way they provide service that re sp o nds to the changing ur ban form and/or the desires o f t he i r customers. Some of the new methods that have worked for transit agencies include changing radial s erv i ce to more g rid like service; modifying fixed-route service to point deviation (either entirel y o r during off -peak); pro v iding demand-responsive service in low density areas or in off-peak times; and replacing express service with vanpools or megavans. Point deviation has been helpful n o t only in attracting addi tional passengers due to its convenience, but also by allowing a gencies t o reduce t he amount of separate paratransit services required. contracting for services lltrough competitive Bids Some transit agencie s contract al l their bus or rail service every few years at substantial savings. Others contract out only a port ion o f their service, bu t still realize the benefits of partial competi tion through subsequendy more effective negotiations with their own bargaining Wlits. Mainstreaming Paratransit users to Fixed-Route service Many transit syStems have pe rsuaded state Medie3id programs to purchase bus passes rat her than paratransit services for their' clientS, resulting in win-win-win resultS. Two sysrems report savings as a r esult of modifying multiple subscription paratransitroutes to new, more cost..,ffec. tiv e "com munity routes." Marketing and Fares The attractiveness of transit service can be enhanced through the fare structure. Passes of vari ous dumtions (one day, weekend, four-day visitor, weekly, sununer, etc.) have proven to be extremel y

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Ussons li!a'"td In Tr"nsit Effkiencies, Rtvtnut Ctnuatlon, and Cost Reduction popular. Family fares (kids ri de free) and "friends ride free programs, as well as d ee p discount fares for frequent passengers, have increased ridership and revenue for many tro.nsit syStems. Theme V. Maximizing capital Budgets Although federal operating assistance has been cut, capital dollars have generall y been available and are more politically palatable to those who question the level of support transit should receive. Strategic use of capital funds can reduce operating costS while increasing productivity, and some times results in profits. This theme shows how transit systems are utilizing capital dollars as invest ments that allow them to maintain or improve service levels The methods being used fall into the following categories: Use of New Technology Transit has been generally slow to experiment and implement new technology. Howev e r, many transit systems credited new technologies for generating cost savings. Among the successfulappli cations have been automated passenger counters, automated scheduling for fixed-route and paratransit applications, signal pre-emption systems, desktop publishing, automatic vehicle location systems, video surveillance in money rooms2r1d on board buses, aUtomated ticket vending, transfer dispensing machines, and automated customer information service for fixed-route and paratransit. Relatively Low-Tech solutions that save Labor andfor Parts costs Not all operating cost reductions require high technology Transit agencies reported savings due to investments such as new brake lathes, a deep water well for bus wash machines, metal bus benches in p lace of wood, portab le shelter cle2r1ing equipment seats that reduce workers compensation claims, an automated lubricating device for bus maintenance, high p latforms at commute r rail stations to eliminate the need for wheelchair lifts, and using waste oil for heating facilities. Acquiring vehicles that Reduce the cost of operations and Maintenance More transit agencies appear to be abandoning the practice of standardizing their fleets. A number of systems are purchasing smaller vehicles that are more fuel efficient and more consistent with the level of demand. Others are purchasing larger vehicles to increase capacity without the need for additional vehicles or operators. A growing number of agencies report that alternative fuel buses reduce operating costs over the life of the vehicle.

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Lessons LeQrned In TrC:HUit Efficiencies. ltevenut Gtntratlon. and CO.St lttdllctlOn Facility Investments to Reduce operating costs Sometimes costs can be reduce d by consolidating facilities such as administration off ices or rail maintenance facilities Other times i t pays to build additi onal bus operations facilities to reduce deadhead mileage expense. \l(lhile the costs and benefits must be reviewed very carefully on a caseby-case basis, capital grants provide the opportunity for such major i nvestments, when they make sense. Ctlpitalimtion of Operating Expenses Federal capital grant do llars can be used to pay for the capital costs associated with contracted fixed-route and paratransit service. They can also be used to pay for coSts such as leasing administrative and operating space and purchasing associated capitol and maintenance equipment, provid ingsubstanti.J relief to the agency's operating budget. Tolls generated by local expresswoy authori ties can be used as soft match for federal capital grants thereby saving local tr:utsit >}'Stems the normal cost of matching such grants. Vehicle Maintenance Techniques that Extend the Ufe of Vehicle systems ana Parts A number of maintenance practices were cited for their cost saving qualities, including recycling cleanable and reusable filters, using synthetic oil to reduce labor cost associated with oil changes, and performing frequent oil analysis and opacity testing. Transmission brak e retarders were credi ted with at least doubling the life of brakes, and alumin um wheels were also credited with increas ing brake life, eliminating heat-related tire damage, and increasing fuel efficiency. Theme VI. Improved Management of Resources This theme focuses on the activities transit agencies are taking to save money through better management of their organization, resources, expenses, and processes These ;ctivities reflect transit's willingness and need to question the status quo. This theme concentrates on internal marters versus extern a! partnerships or cooperative ventures. The methods being used faU into the following subcategories: Reorganization/Reduction in Force A number of systems have reduced the size of their administrative staffs and agency budgets by reorganizing the agency upon retirements or through attrition. Attrition is sometimes encouraged by

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Lessons Learned I n Ttdnslt Efflck'ncJt.s, Revenue Ct.nuouon, and cost Rtdwctfon d epartur e incentive (early retirement) plan s t hat i ncur up-front costs, but long-term saving s as lower cost professionals are hired Other agencies do not h av e the l uxu ry o f w aiting for retire me nts an d have to make tougher choices based on needs versus resources. Private consultants are sometimes used to help identify surplus positions. Position eliminations often involve combining work previously dispersed among several positions. Organizations tend to become flatter, requiring training for thos e w h o are left to deal with more functions and decisions. contractfoutsource or Retain Functions Elements o ftransit management such as planning, scheduling, building maintenance, inventory, or m oney counting are e ith er "fanned out" or retained, depending on whic h option is more cost effective. Smaller systemS might o u tsource vir,tually every function and focus on managing con tracts containing incentives and penalties. Improved Methods of Procurement The p urchase of major items such as insurance can be aided by combinations of low bid and negotiation procedures with multiple brokers, o r by using an insurance broker to analyu benefits and negot iate rates with various proposers Leasing can be more effective than purchasing when p rocuring facilities, but purchasing tires versus leasing them allows the transit agency to resell the tire carcasses at a price higher than their 10 percent capital match spent on the tire when it was new. F u e l hedg i ng has allowed many agencies to benefi t from stabilized fuel costS. Bulk purchase o f certain items can reduce the uni t cost by as much as IS perce nt. Managing Major EXpenses Certain expenses that are common among mOSt transit agencies and represent substantial porti ons of their operating budgets have b een effectively reduced t hrough foc.used efforts. Examples in elude energy costs t hat hav e been reduced through investing in expertise to better understand the rate structure of powe r companies and to improve t h e management o f t h ei r electrical power demand; lia b ility expenses t hat have been reduced through self insurance programs that cost less than premiums when combined with an emphasis on safety, training, accident investigation, and challenging claims; reduced workers' compensation claims as a result of having carriers perform claims management functions and establishing Hght duty or temporary modified assignment programs for those receiving w or kers> compensation benefits; reductions in sick lea ve as a result of spot auditing of sick p ay requests and stationing doctors and nurses a t transit facilities to perform

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Lessons Learned In rransit EffldencJts. Revenue and cost Rt'duction physicals; perfurming baseline marketing studies to gain a better understanding of who uses transit to help determine the most cost-effective way to spend advertising dollars ; ut ilizing commercial paper l ines of credit to access funds at a low interest rate to maintain access to low-cost funds to keep projectS moving; and managing pensi on policies carefully to reduce necessary contributions. Reengineering Internal Processes Although details were som etimes sketchy, transit agencies reponed that they were re-thinking processes such as track installation, train motor rebuilds, contract reviews, distribut ion of passes"' vendors, and petty cash procuremen t to determine how t h ey could be accomplished less expen sively. One system noted that it now confers with other tranSit agencies instead of consultants for advice. Anoth e r agency has established a utility bus operator" position that can perform multiple wks besides operating a bus. Bus maintenance intervals have been eXtended SO percent, thereby decreasing maintenance expenses \\ith no increase in setvice failures. Finally, t he pre.issuance of commonly used materials prior to the midnight shift allowsthe closing of storerooms duri n g that shift, with attendant reduction of staff requirements during the shift. condusions T ransit agencies clearly have many experiences to share t hat can hel p the industry reduce costs or generare new revenues without resorting <0 raising fares or cutt ing service. The techniques discov ered t hrough this survey are not a panacea for the financial pressures moSt t ransit sysrems are experiencing. The bottom line resultS are typically new revenue or sovings of between Sand 10 percent of an operating budget (though it could be significandy more). However, the implementa tion of these techniques also improves the image of the transit systems within their own communi ties. For instance one general manager of a northeastern U.S. transit property had tO institute service cutS, but he also presided over a number of new revenue generating techniques. He n oted t hat, "We had to make a number of difficult choices, but the gener.ll response from the media and business community was It s about time you stopped begging and started managing.'" In short, the process of a more business-like approach, leveraging limited resources through partnerships and cooperative arrangements with public and private agencies, encouraging entrepreneurial thinking, and finding new ""ys tO serve the public will ultimately improve a transit agency's standing in the comm u n i ty as well as its bottom l ine. In some inStanC
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Lmons Learned In Transit Efficiencies, Revenue Generation, and Cost Reduction In his book entitled 7he Seven. Habits of Highly E/fective P"'f'le, aut h or Steven Covey writes about the need for each individual to evolve from being a dependent person to an independen t and interde pendent person to achieve full effectiveness. This advice applies to transit agencies as well. They mw;tminimize their reliance on federal operating assistance, and increase their capabilities of generating necessary revenues. Clearly, there is a movement in the country for less government and greater self-reliance. This is perhaps best illustrated by the broad suppon for welfare reform. Just as individuals will need to improve their skills, so are trans i t age-ncies being asked to be more creative and self-reliant. This report hopes to contribute toward the accomplishment of that goal.

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t.tssons In Transit Eftkle.ncks, Rtvtnwt Gtneratfon, cmd cost Redwctfon Acknowledgments The Center for Urban Transportation Research {CUTR) would like to acknowledge the assistance of many peop le who helped in various ways to enhance the quali ty of this report. The drafts of the survey instrument were tested and completed by Celia Kupersmith, General Manager of Citifare and the Regional Transportation Commission (Reno, Nevada), Gregg Cook, General Man ager of the Ann Arbor Transportation Authority, Jay Goodwill, Direetor of Sarasota County Area Transit, and Ron Nawrocki, DireCtor of Budget and Management Analysis for MARTA. CUTR thanks Tony Kouneski and Dennis Kouba of APTA for their help in increasing there sponse to the survey by advising the transit commwlity about the survey and project in an article in the Jun e 10, 1996issueofPassengerTransport In addition, the following transit profession.J.s reviewed the draft of the report and offered con structive comments for improving the fmal report: Sheila Barbarini Transit Planning Manager Regional Public Transportation Authority (Phoenix) Susan Hafner General Manager Riverside Transit Agency Carla L. Lakatos Director Marketing/Planning Miami Valley Regional Transit Authority

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Lessons Learned fn Transit Efflclendes, Revenue Generation. and Cost Reduction Neal Manske Interim Public Transit Director Public T l".11lSp<>rtation Department (Phoenix) Perry Maull Director Regional Transit System (Gainesville, FL) John Neff DirecrorofPolicy Analysis Af'TA Richard Schreiner Director of Service Development Housatonic Area Regional Transit District JoAnn Woodhall Tl".11lSp<>rtation Planner K.itchener Transit (Ontario, Canada) CUTR is gJ"ateful to e:very transit system that responded to the survey. The name of each person who responded to the survey is provided in Appenclix B of this report. Withouttheir willingn ess to share their success stOries, this report would not be possible. Any references to specific products in this report s hould not be reg a r d ed as an endorsement of those products by CUTR. T ran.sit agencies t hat have reported posi tive experiences with those products s ho uld b e contacted for further infonnation.

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Lesson s Learned in Transit Effi
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"Ptopksddum imprmeuhenrhey haveooother rncde buuhem $elves to ropy after . 0/iwr G
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Lmons Learned in Transit EftJdenck$, Revenwt CtntrGtion, and cost R eduction on generating revenues or saving money could come from any of the operating divisions within a transit agency. Since no one person i n the agency had all the information readily available, the survey became that much more difficult to complete. The final survey instrument was modified based on feedb ack from the test survey to make it less bulky and intimidating (see Appendix A). Every agency was promised a copy of the final report i f they answered the survey and t h e cover letter noted that an award would be given to the agency that demonstrated the most outstanding e xamples of creative and effective techniques In addition, while ea ch agency was asked to respond in writing if they could, they were also advised to respond by phone or email if it was more convenient to do so. Three agencies did respond via e-mail. N o agen cy initiated a p hone response. Thirty-five transi t agencies responded to the final survey by regular mail. Twenty other agencies "'recal l ed and asked if they would please re>-p
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1t.ssons Ltamtd i n Transit Efflcltndts. Revtnut cmtratlon, ana cost RtdwctJon Cooperation This theme includes additional examples of t ransit systems working with public or private entit.ies to improve what they are already doing in a manner that saves money > gains friends> and improves the agency's image. Service Planning, Marketing, or Deii<>ery Methods Tr.msitS}"U'ms are becoming more discipli.ned and efficient in the traditional methods of providing service, or are finding completely new and more cost -effective ways to serve the traveling public. Maximizing Capit41 Budgets Strategic use of capital funds can reduce operating COstS while increas ing productivity and improving service levels without increasing operating budgets. of.&sourm Tr.msit agencies are reducing their costs by questioning the starus quo through modifying the management of their organization, resources, expenses, a.nd processes. Each idea submitted by every agency is explained in enough detail to give the reader at least the basic information needed to understand the concept The transit agency that submitted the idea is also identified. If the reader wa.nts more information, they are encouraged to call that agency. Appendix B provides the name, agency, address, a.nd phone n umber of the person who submitted the information from each agency. The Center for Urba.n Transportation Research (CUTR) prides itself in per!>rming research tha t is relevant and useful. We are certain every transit agency will find at l e ast one new idea (and probably many more) that will help them generate new revtnue or reduce cOsts. CUTR would also like to see this sharing of information among transit agencies continue. While conferences and journals are very helpful, the Internet provides even more opportunities for universal and immediate sharing of informa t ion. This report will be accessible via CUTR's web page a t http:/ I WIVUI.Ct
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ttssons Learned In Transit ftidtneie:s. Revtnut Gtnerotion. Clnd Cost Jteduction THEME I Positive Opportunism P'"f'1ransit systems are sometimes regarded by pessimistS as black holes of unending expenses. 1 Until recently, t here has been li ttle recognition that transit systems= also have multiple "profit centers" that are capable of generating revenues beyond those collected through the farebox. Transit emp l oye"' might not view the i r ow n assets as being panicular ly unique since they are commo n to most transit agencies. They also will not recognize the opportunities to take advantage of their assets if they don t look outside thci r own borders of responsibiliry. Various
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Ltssons Ltarntd In l"ransJt tfJ(ifndts Revenue Ceneratlon, and Cost Reduction The transit system can realize =h revenue, or be compensated in trade (e.g., getting free adver ti$ing on radio stations that a r e advertising on the bus ) The "trn de" items can also provi de prizes t hat can b e given away as part o f marketing campaigns, or to use as prizes for bus or rail roadeos. The advertising space on the bus provides no end of generating o pportunities for good will with community agencies who might be allowed to adverti$e on the bus or train at no cost on a space available basis (when aU space is not sold out). Described below are examples of tran s it systems who reported gaining rev e nues or ocher benefits from selling advertising rights. 1. Springs Transit modified its onbus advertising co n tracts to allow for "vinyl wrap" buses, resu l ting in a four-fo l d increase in advertising revenues. The agency also changed its bus bench contract and the ciry ordinances t o aU ow for bus shelter advertising that will generate $100,000 per year for 150 shelters. (Col orado Springs, Col orado) 2 The Sheboygan Trans it Commi$sion expanded the sale of advertising on their buses from rear frame only to side (S600 per bus per month) and rear ($750 per bus per month) frames Some of the space was sold to rndio stations who paid partiatly in cash and partially in t rade, allo .. ing for promotion of the transit service on those radio stations. The trade was recog nized by its value and checks were exch anged. By allowing t ransit to expense t his trade, i t increased state subsidy by 42 cents on the doUar since i t was a recognized transit expense (Sheboygan, Wi$consin) 3. The Central Ohio Transit Authority brought the on-bus advertising function in-house and increased revenues from $300,000 per year to $1,000,000 per year, for an increase of $700,000 or 1.5 percent ofthe annual operating budgetAll sales are handl ed by a single staff market ing professional who is paid partiatly by salary and partially by commission T h e emphasis i s o n selling ad space to loc al companies, which no t only generateS more money but results in COT A establishing closer relationships with local businesses who now have another reason to support transit in the community. (Columbus, Ohio) 4. At PENTRAN advertising reven u e on buses and vans is the agency's greatest revenue generato r, having produced enough income to provide the local match forthc Cap i tal Im provement Program since 1991. The program is administered in-house and offers three approaches for advenisers. They can either pay for individual racks on buses at rates that encourage mu l ti mont h purchases, onhey can participate in the Adopt-A -Van or Adopt-A Bus p r ogram. The .. adoption" programs provide advertisers with exclusive access to the vehicles' interiors and exteriors There is a one-time preparation charg e of $750 for painting the bus a base co l or prior to the application of graphics and rewrning the bus to PENTRAN

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t.tHOitS LeDrned In TranJ:It fftidmdes, Revenue Gener4tiOtt, ond cost Reduction colors at the end of the contract. The advertising charge lor a one year contract is $800 per mont h and $750 a month for a two-y= contract. T he respective charges for t he Adopt A Van program are $300, S300, andS250. (Hampton, Virginia) S. The Golden Gate Bridge, Highway, and T ransporottion District anriciparescollocting SSOO,OOO per year forexttrior on-bus side advenisldvenising shelters and benches. Clarita, California)

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LftSOn.J Leotl'tltd In Trc:mslt ftldmcles. Revenue Ge".neratlon. and con Reductton 9. In King County, the normal sale of space on the outside and inside of buses genemes approxi.maooly $2.3 million annually. The "commercial painted bus program" has generated an additional $268,000 since 1994. Lmitingthe nwnber of painted buses to ten pe r year, they eharge $3,000 per month for a 40-foot bus and $4,000 a month for a 60 foot bus under contracts that typically last one year. The advertiser pays all costS of production, applying the design, and restoring the coaeh to its original colors. Payment is in a combination of cash and trade (media ads or gift certificates from restaurants which are then used as incentives to encourage pass sales or HOV use). Metro also receives a "posting credit" which is used to co v er the contractor's eost of posting non-coromereial, exterior or interior signs including bus fare information, safety and conduct messages, and special transit promo tion messages. Normally the contractor would eharge between $1 wd SIS for the labor involved with placing transit promotion placards and signs. However, in this case the con tracto r absorbs this expense within the per.ctor at no cost tO MARTA. The contractor rents advertising space on these shelters, and is responsible for repairs, tigbting, and trash removal. MARTA nets approximately $150,000

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In Transit Etficitndts, Rtvt.rutt Gentrotlon, ond Cost Re4uctfon annually, with an additional $150,000 paid by the contractOr to local gove rnments MARTA avoids the expense of construaing each s h elter ($8,000 per shelter) and its maintenance and repair (approximately $2, 000per year}. (Atlanta, Georgia} 14. MART A frequently trades advertising space and promotions on th e system with local newspapers and radio and television stations for space and airtime to ad v ertise MART A. Only excess, unsold space is offered for barter, so no potential revenue is lost. In some years MAKrA has saved over SSOO,OOO in advertising expenses. (Atlanta Georgia} 15. The Eastern Contra Costa Transit Authority has a contraa with an advertising shelter agency to install, maintain, and replace bus Stop shelters. This contrac t has decreased the time needed to research, buy, and maintain bus stop shelters; the time to apply for permits; and the $3, 000 a year per shelter the agency was spending for maintenance and insurance. Part of the cost tO the agency v.as the time spent developing the cont ract and negotiating with the members of the.Joint Powers Authority to approve the style o f shelters. The advertising shelter agency pays a percentag e of their advertising revenues to each city within the joint Powers Authority as well as ECCTA. (Antioch, California} 16. The Regional Transportation Commission in Reno hired an additional staff member to func tion solely as an in-house transi t advertising sales professional (working for straight salary}. Posters are placed on RTC buses by the agency's maintenance employees. Revenues in creased from $70, 000 per year in 1994 to $125,000 in 1995 and are projected to b e $200,000 for FY 1996. Sales promotional efforts have been targeted at key local business sectors, and the salesperson has created long-term relationships with local businesses rather than one time customers. (Reno, Nevada} 17. In addition to advertising on the sides and rear of t h e bus, Santa Monica Municipal Bus Lines traded out the front advertising space to a local radio statio n for advertising on the air A review revealed that the Bus Lines could make more money sel ling the space at a flat rate to the concessionaire. T he Bus Lines is now guaranteed $90,000 annually f or the fro n t space, plus $15,000 support for irs Bus Roadeo and $3,000 for other prizes and contestS. This new income is far in excess of the value of the trade out. (Santa Monica, California) 18. A new five-year, on-bus advertising contract which included whole-bus advertising became effective at the Washington Metropolitan Area Transit Authority (WMATA) on january 1, 1995, and provided for minimum guaranteed revenue of $1.88 million over the term of the contract The maximum pot e ntial r evenue from whole-bus advertising over the five-year

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19. 20. '"l' ttssons ttarne.d In Eff'Jdendts, Revenue Ctneratfon. ana cost Rtdwctlon term could be as much as $1.2 million per year (above and beyond the $1.88 million guarantee). However the whole-bus advertising program was discontin ued because of aesthetic con cerns \'Oiced by citizens. (Washington, D.C.) Revenue from advertising on buses has increased by 22 percent in a year for the Regional Transportation District to a total of S2.2 million. Full wrap (painted} buses have gained in popularity (generating $340,000 in 1995). RTD has stream lined its procedures allowing Denver Transit Advertising to concentrate on soles, and RTD no longer advertises its own services on the buses during the busy :>dvertising season of June through September. (Denver, Colorado) The Regional Transportation Commission conducted a baseline transit :>dvertis ing sales effectiveness study to measure the effectiveness of external advertis ing on transit vehicles. Using a set of Citifare buses and benches, t he study provided valuable information on the effect of the quan t ity of displays, place ment on the bw, response over time, size of display, and what types of persons respond to different displays. This has convinced local and regional advertisers of the effectiveness o f transit advertising and revenues by $50,000 rulllually. (Reno, Nevada) : ',. : key;U!Ssons tear.ned iri sale of,AdvertisingRighfi;, .... .,. ... : .. ,-'. ( . IJeVtlcplcadTtlai'ionJbips-Consi.cJirretaining(ve=s6utsourcing)respOnsibililj.foidvertising'<>nvehiclefunctio!).:Systems repoitihat revenuci Juve increased SllbsiaJ>: tiallyasa result; but just as impprtant; more :>d'f"rtisini;is paidior by local . 1'hisresu!IS relatioiiihipsheirig fprmed \vith local whotheit 'ha\-e more reaso>;is to support .I ness ofadvertising on and prope!D'. . .i. ' r' I' ("' Art'
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l6SOn.s learned In Tran.sft ftfidencifs, Rtvenue Generation, and Cost Reduction 3. Make tl:temfeelspedalWhole bus advertising adds anew dimension to advertisers since it conveys a sense of ownership of the bus. It personalizes and .Customizes the ve hicle, causillg an even stronger sense of closenesS between the advertising business and the tranSit system. This can result in the advertising bus taking additional supP9n:ive actions, such as adopting (maintaining) stops, offering CliScOui.iE(I passes to employees, supporting local transit roadeos, = 4. 'bYrleasc of approximately 2.7 acres of surplus property, all of which was acquired with local funds, next to its Santa Rosa Bus Terminal. An "I don't Jmqw anything about luck. l'venever bankdonit, andl'mafraid of people who do. Luck to I'M is something else: hard work-and realizing what is qpportunicyand what isWJt -Lucille Ball

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Lessom: Learned ln Tronslt Eftldendts, Revenue Generotion, cmd cost Reduction unofficial estimate of the fair market value of the surplus property is $550,000. GGT has a saying that d1ey have never lost money on the purchase of land, a nd is not hesitant to purchase enough land for possible expansion. The original purchase price of the land in the 1970s was S20,000. (San Rafael, California) 2. LYNX has an agreement with a full service waste management company tha t pays 10 cents for every gallon of waste oil generated by LYNX (approximately 2,500 gallons per month), while charging S25 per barrel to collect and dispose of crushed oil filters. The revenue received for the waste oil and the expenses associated with the crushed oil filters cancel e ach other out. However, the agreement has saved LYNX $4,500 per year from previous coSts associated with disposing of such items. All waste oil products collected are carefully .nunifested and only sold to oompanies that agree not to suboontract any part of the disposal process. In addition, the waste oil ta ken from LYNX is tested by the waste management company with a portable tester to provide further evidence that the oil from the transi t agency is not contaminated. (Orlando, Florida) 3. In Puerto Rico, a private company provides service on one bus route that. has been con tracted and uses 33 percent of a tercninal owne d by the Metropolitan Bus Authority. This company shares the expense of paying for maintenance at the terminal. In addition, parking spaces that became available due to downsizing of the administrative Staff were rented to another governmental agency located neMby. Forthese two items the agency is receiving S236,357 annually, representing0.7 percent of the operating budget. (Sanjuan, Puerto Rico) 4. The Regional Transportation District leases the air rights O\'er a portion of the Civic Center bus transfer facility which is locate d underground at one end of the 16th Street Mall in downtown Dcn,. er. The air rights are used for a multi-StOry offi ce building that generates rental payments to the District currently established at $216,901 for !997 and scheduled to increase by one percent per year through tbe year 2074. As collate.ral for the lease, the District mUSt maintain an account balance with a minimum market value of S1,500,000 in an escrow account, the intereSt on which accrues to the DiStrict until the lease expires. This amount in escrow is in a part of the District's reStricted assets. (Denver, Colorado) 5. T he Eastern Contra CoSta Transit Authority (Tri-Dclta Transit) leses a portion of their operating/ administrati on facility to Laidlaw Transit, Inc., who currently provides services to the agency under contract. Laidlaw works from the same facility to provide services for another entity under a different contract. Tri-Delta Transit tends to get "free" hours of maintenance service from Laidlaw since their mechanics might not be needed full time for

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Lessons Ltarnea In Transit Efficltncles, Revenue ceneratton. ana Cost Reduction work on the other contract. This arrangement allows T ri-Delta T r.>n.sit 10 enjoy an economy of scrue, as Laidlaw provides eXtra mechanics, SUpervisOr>, and drivelli at no additional COst to ECCTA Laidlaw does this because the y a savings by operating out of the facility, and want 10 remain as good tenantS. In addition to a monthly lease charge, Laidlaw is also charged a portion of the facility operating overhead (electri city, landscaping, repairs). This has resulted in a t::OSt savings: of appro x imately 3 5 percent of the total operating budget and a higher level of service and employees. (Antioch, California) 6. Escambia County Area Transitcontraasw ith County departmentS and non-profit agencies to maintain the vehicles of these depanrnentS and agencies from irs tr.msit facilities. Accounting must be kept separate as no f ederal funds are eligible to be used to perform non-transit related activities. The primary concern is space and time Implementation is somewhat diffi. cult and much though t needs to be given. However, "profitS" made from this activity (approximately S 160,000 per year) are used to offset the cost of mass trlllSit. (Pensacola, Florida ) 7. Recent budgetary cutbacks resu lted in The Central New York Regional Transporta tion Authority (Centro) having spare space in irs facilities. All vacant space in irs administrative offices, as well as bus maintenance bays and Storage areas (In one case by a private charter firm), have been leased, producing annual revenue of $40,000. (Syracuse, New York) 8. WMATA anticipates receiving a minimum of S23 million in operating revenue over the next 10 years through leases to private businesses and agencies of its fiber optics network along WMA TA rights-of-way. This program will yield approximately $2 million dollars a year for \'V'MATA while allowing telecommunications providers to give improved serv ice to their eustomer.;. (\Vashington, D.c.) 9. MARTA leases available space along the rail lin e to the telecommunication industry. This includes lea.sing available sysrem duct to telecommunication affiliates for fiber optic cable, leasing real estate for telecommunication towers, and leasing areas in stations and runnels for cellular phone equipment Unsolicited proposals were received from the telecommunica tions industry.lmpleme.ntation cOStS <>ere less than $250,000, resulting in retums of $500,000 annually. (Adanta, Georgia} 10. An RFP was issued inviting tbe private sector 10 address BAKI''s needs for telecommunica tions improvements and to propose a revenue-generating use of BART's rightS-of -way. As a result, an agreement was reached with MFS Network Technologies (MFSN1) to develop a "Co nduit System" within BART's r-o-w. MFSNT will then generate revenue by marke ting

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Lessons Leamed 11'1 Transit Effidendts, Revttt"e GeMrc:rtfort, and cost lt.td"ctfon and operating the Conduit System for use b y private te lecommunications companies for a fee. The revenue generated will be split by BART and MFSNT w i th 91 p e rcent of gross revenue to BART and 9 percent to MFSNT. Annual payments to BART should reach $1.0 million. Additional agreements are being negotiated. The intent is to generate at least suffi. cient annual revenue from third party use ofBAIIT's r-o-w to cover BART's annual obliga cion of $5.5 million to pay off its own telecommunication improvements which will be designed, constrUCted, and integrated by MFSNT. Financing in the amount of approximately $44,600,000 will be provided by Pitney Bowes Credit Corporation,;. a Lease-Purchase Agreement. (Oakland, Califomia) 11. Dallas Area Rapid Transit is pursuing changes to State legislation that will make feasible the use of U.S.bosed leasing techniques to generate as much as $5 million in up-front cash from their administration and light rail facilities. (Dallas, Texas) 12 York County Transportation Authority (Community T mnsit) has agreements to perform main tenance on city vehicles from its tranSit maintenance facilities. This provides some additional revenue and builds stronger relationships with other public bodies. (York, Pennsylvania) 13. New York City T ransit charged $75 for copies of books used to bid construction proj ects, which did not cover the cost of producing th e book. By raising the fee to $125, the agency will earn over $200,000additional revenue per year. (New York, New York) 14. The Metro-Dade Transit Agency (MDT A) plruls to enter leveraged lease-back agreements to generate up-front revenue from its transit maintenance facilities, parking garages, and the Metro rail andMetromover guideways. (Miami, Florida) 15. MDT A leased an area under its Metro mil guideway to a developer who is building a super market on the adjacent property. The leased an.>a will be used for parking, generating an annual ren t of$27,000. This conceptisattractingmany other owners of property adjacent to the Metrorail guideway. This no t only generates revenue for MOTA, but also places t b e burden of maintenance on the adjacent property owner. (Miami, Florida) 16. The Capital Area Transit Authority is considering accepting outside work generated by re quests from municipalities and local school districts for maintenance of their fleets at the transit maintenance facilities. Th''Y curren d y maintain rubber -wheel trolley vehicles owned by the state of Michigan. {l..ansing, Michigan) 17. Through a Livable Communities Initiative grant, Corpus Christi Regional Transportation Au t hority bought an old bank building and designed a tranSfer facility around it. The authority

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Lessons in Etficltnci es, Revenue Generation, Clnd Cost Reduction rents space to private businesses including a barber shop and florist. The investment in the transfer center .!so helped spur other development in the immediate area. (Corpus Christi, Texas) utilizing nansit Equipment TO Genemte New Revenues Similar to its facilities, transit agencies control equipment that is somewhat unique w ithin a commu nity and can provide more opportunities to generate revenues. Sometimes the revenues are consid erable (e.g., leveraged leases for buses and rail cars}. Other times the revenue generated might be relatively small, but they provide the transit agency with another chance to gain friends, support, and a positive image in the community. Examples of these opportunities are provided below. 1. P.Jm Tran more than doubled its bus service in 1996. In anticipation of the need for new maps, schedules, and other printed materials, it purchased a $250,000 printing press with 80 percentfederal funding. The press has the capacity to produce all of P.Jm Tran's printed material at h.Jfthecost of private printers. P.Jm Tran has agreed with Palm Beach County to allow county personnel to run the press, and the excess capacity of the press is used to sell services to other county departments. It is estimated t h at the $50,000 local share of the cost of the equipment will save S1,000,000 over the expected ten-year life of the press. (Palm Beach County, Florida) 2 Ben Franklin Transit has 100 Fordvanpool vansand30paratransitvehicles thatareonFord chassis. With thi s fleet and their facility and tools, the transit agency applied for and gained designation as a Ford Authorized Warranty Center Ben Franklin Transitnowpcr{onns all the Wllml!lty work required on their fleet and are paid by Ford at a negotiated hourly rate ($34.80) that is higher than the agency's labor costs. Ford also pays Ben Franklin Transit 20 percent above each part's cost as administrative fees. Furthermore, Ford provides training to the agency's mechanics for free. There is little controVersy since BFT only does warr.mty work on its own vehicles, and the margin for profit for warranty work for private dealers is minim.!. Ford dealers were unable t o qui ckly tum around warranty work prior to BFT's designation as a warranty center Consequendy, they are also enjoying the advantage of less down time for their fleet. Ford is now inte rested in using BFT as a test center for new vehicles, and would provide the agency with free test vehicles and pay for necessary repairs at the rateS noted above. (Richland, Washington) 3. Six sale/leaseback transactions have generated $18 million for The Metropolitan Transit Development Board in San Diego since 1981. Al l of the light rail vehicles and 97 new

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Lts.sons I" Transit Eftldtndts, Rtvtnw t GtntrQtlon, and Cost Rtdwctfon compressed natural gas (CNG) buses have been "sold" fortox purposes involving different panies in Japan, Germany, and the United States. interpretation ofleaseback laws is suggest ing that facilities (such as maintenance buildings) might be eligible, as well as the re-leasing of alreody !..sed vehicles. (San Diego, California) 4. The Socramento Regional Transit District entered a cross-border lease with Deutsche Bank AG for 10 light rail vehicles. This agreement, though carry i ng some risks, provides SRTD with $500,000 as a transaction fee, representing approximately 3 percent of the appraised value of the 10 light rail vehicles. {Sacramento, California) 5. Since July 1990, New Jersey Transit has entered into a number of agreements to sell and lease back various properties owned by the corporation to either a foreign or domestic entity seeking favorable tax treatment, resulting in an up-fro n t benefit paid to NJ Transit. Since 1990, the agency has received a total financial benefit of approximately $3. 5 million from various leases on rail cars locomotives, and buses This revenue has .I lowed the agency to avoid fare i ncreases and reduce reliance on federal and state s ubsidies. (Newark, New Jersey) 6. A cross-border lease agree ment with DB EJ<1>ort-Leasing GmbH for !!light rail vehicles allowed the Regional T ransponation District to sell and lease back the vehicles for a period of 18 years, providing net additional proceeds of $600,000 to RTD.ln addition, RTD entertd into three, seven-year cross-border leasing agreements and other related agreements with JL Massive, JL Eiben, and JL Persephone Lease Companies, LTD., for a total of 85 buses. The additional revenue generated by these transactions were approximately $600,000. (Denver, Colorado) 7. New Jersey Transit invested $480,000 for 13 simulators designed by in-house staH and built by outside contractors. The simulators e nable instructors to train more drivers in less time than with traditional methods. Use of the simulators is expected to result in annu.I savings of approximatdy $100,000 by cutting training costS, reducing accidents, and lowering insurance premiums. (Newark, New Jersey) 8. One hundred busesv.'erf acquired by the Port Authority of Allegheny County (PA1), using cross-border financing techniques with the assistance of legal, financial advisory, and financial arranger service$ paid from the proceeds of the transa ction Net revenue produced was approximately $500,000, effectively reducing the cost per bus by SS,OOO per unit. (PittSburgh, Pennsylvania)

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Lessons l.t'arnta ln rransll: Etflclendes, Rev en we
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Lessons Ltarrttd In TransJr Effldtttclts. Rtvtn.ut and cost ltedllctlon 14. DAR T w ill utilize cross-border leasing tech niques for a major bus purchas e and f or their light rail and commuter rail vehicles to generate almost $20millio n tha t DART will receive in up-front cash. {Dallas, Texas} 15. Metro Link Commuter R:Ul utiliu d a United StateS Leveraged Lease for all 98 of its cars and engines, receiving $21 million in up-fron t cash which has b een reserved for capital maintenance purposes. (l:os Angeles, California} 16. Metro Dade Transit will lease its Metro rail car.; to a lessor that can claim tax benefits as a result of it.< investment in the transaction, followed by a leveraged leaseback of those assets to MDTA. Tills is expected to generate $6 million in proceeds. (Miami, Florida} 17. A t Capital Area Transponation Authority, the bus wash machines are used to dean not only their own buses, but other mutticipal fleet vehicles and private Recreational Vehicles, which are very popular in Mic higan. In addition, CATA serves as a subcontractOr tO a local bus rebuilder whereby CATA performs brake repairs for the rebuilder due tO the av:Ulability of their brake lathe. CATA usually works on two sets of brakes per week for S150and has generated approximately $6,000 per year. This allows the bus rebuilder ro avoid the c ost of a new brake lathe ($45,000} which is only needed occasionally. The job i s not labor intensive, and requires no additional mechanics to be hired at CATA. (Lansing, Michigan} 18. Dutham Area Transit Authority has identified cleaning and washing vehicles from other City Depanments and private organizations such as Duke University and Southern Coaeh as an oppnnuttity for new revenues. They are also exploring opponuttities 10 maintain hea vy duty diesel vehicles for selected markets. (Durham Nonh Carolina)

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Lessons LeGrned In TronsJt Effii-A transit agency's property may be valuable or its air rights O.l,"'tht access it might provide others such.as telecommunications corDPanies for towers, or telephones at transitfaCilities. Other businesses that pas ; utiliu.frequencly"can also !Ocate at ti-ansit facilities, generating and providinr;convenienceforthe :.f: ' : 4. run 6our,.,..nce):-.Transit agencies can purchase rolliogsrock and facilitits, thett simultan""usly sell these to an investor who in tum leases them back to the transit syStem. The taX ben efits and depreciation value are shared with the transit oper.nor through .J"educed lease cosrs,. providiog the transit agency with a con siderable up-front cash p;aymen t. 5. "Jechnici4n, heal thystif-:"pecial relationships can be developed with vehicle .:.W,ufac turersto a transit agencyto .become certified as an authorized wammty center, .resultini in payments made ro t!ie agency for warranty repain performed on their own . or other vehiCles. 6. . Isn't that '1Jtcial?-5pecialized, expensive capital equipment such as printi ng presses, 'brake. lathes, bus wash niocrunes, simulotors, over-th&roadcooches, and rubhei-wheeled trolleys can be used to perform work for other agencies o r cli ents While the transit agency mUSt be sensitive to possible protests from private companies, it can actually enhance its image as a c o mmunity asset if the equipment improves the efficiency of local businesses.

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ttuons teamed fn Transit Effldencin, Revmwe Gtnuatkm, and Co5t Reduction Taking Advantage of'Tl'ansit's Employees as unique Assets Labor may well be the single largest expense of most transit agencies, but transit's employees can also make significant contributions towards generating revenues or reducing costs. As one transit consultant good-naturedly noted, for every pair of hands you hire, you get a brain thrown in for free. They co ntri bute cost-saving ideas through employee suggestion programs, offer special ex pertise ro other public and private agencies, and are indispensable participants in "gainsharing" programs. More detailed explanations of techniques in this subcategory are provided below. I. As noted in the previous "Equipment" subcategory, New Jersey Transit purchased 13 simu larors to train their own operarors more effectively, and has cut costs of training and liability by $100,000.ln addition, the agency has received state certification for providing bus driver training to other agencies and is anticipating S 100,000 in annual revenues associated with NJ Transit trainers providing this service. (Newark, New Jersey) 2. Durham Area Transit Authority will take advontage of their unique personnel expertise by providing hazardous materials training for private or public organizations, training and certi fying other bus operators within DATA territory, and conducting security checks for other bus operations in North Carolina. (Durham, North Carolina) 3. To promote a more entrepreneurial environment, Centro requires that all staff members are responsible for all elements of their sections' budgets. Each one is encouraged to establish profit centers" and to be as aggressive as possible in fmding opportunities to generate new revenues. They are required to all their processes and relationships. Their adver tising contract was renegotiated tO open up more inventOry for sale, and they are managin& garage and surface lots much more aggressively tO maintain market competitiventsS. (Syrncuse, New York) 4. In 1992, the govenunent of Arge ntina decided to privatiu their national commuter railroad system. Private businesses were invited tO bid on seven different commuter rail and subway lines located in the capital of Argentina. One of the requirements for the contract with the Argentine government was that they have a contract for technical assistance with an existing rail operator. BART was selected tO provide that technical expertise over a tenyear period The annual element of the contract consists of two components BART receives an annual fee of $50,000 automa tically. An additional $50,000 is paid to BART as a non-refundable deposit for any requests for technical assistance received during the year. Work requests beyond the $50,000 deposit are biUed and received before the work begins. Subject areas

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LfSSom Learned '" Tran.sft Eftide.ndes, Reve"ue Gentt'atfo", and Cost Rt4uctfon BART staff have provided technic:U assistance on include Management and Organizational Structure Organizational Issues, Fare Collection, Budgeting, Physical Review of Locomo tives, Shop Maintenance, Maintenance Shop Work Flow, Locomotive Reliability, and a Mod em Commuter Rail Study. Total billings on this project have been $1,600,000. BART stili contributing to this contract have included staff from Rolling Stock, Transponation, Engi neering, Budget, and Joint Developm ent. After fully recovering all com and overhead expenses, the Argentina project has contributed $400,000after three yem. (Oakland, Califor nia) 5. Similar ly, BART was selected by Parsons Brinckerhoff to provide opentional tr.lining to the transit operator of t he new commuter railroad in Cairo, Egypt. BART developed trai ning materials, student texts, and instrucrors guides for all six of the classes for Instructors, Train Drivers, Station Masters, Station AttendantS, Local Switch Board, and Central personneL BART staff have provided the training and gone to France to study the central equipment at the factory and at railroads in France where it is being utilized. This one yeM contract has util.iud personnel from Transponation and Rolling Stock. The contract is expected to extend a pproximately one more year. Total billings to date have been $1 million After fully recover ing all costs and overhead expenses, the Cairo project has contributed $250,000 to BART. (Oakland, California) 6. Metro Axe:>. Transit has instituted a bonus pl:10 for all employees that provides cash paymentS if the agency achieves cenai n thresholds, including coming i n under budget, decreased absenteeism, safety, and reduced accidentS. Eighty-five percent of all employees qualified for the SSSO bonus. An exremalauditor confirmed the agency finished the year $600,000 under budget. (Omaha, Nebraska) 7. The Metropolitan Transit Authority in Houston established a successful gainsharing program for salaried personnel to focus their attention on controV reduction of operating costs An outside consultant was hired for $100,000 to ensure an objective review. The CO>'t target was defined as tbe total operating expenses excluding contingency Any savings below the cost targe t were to be shared by METRO and the employees equally, assuming the ridership threshold of the previous year's ridership was achieved. If the current year ridership was equal to or less than the ridership of the prior year, the salaried employees would earn 40 percent of the ir share of savings. If the current year ridership was equal to or greater than the previous year's ridership, t he salaried employees would earn between 40 percent and 100 percent of their share, apportioned in relationship achieved between threshold and target

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Lessons Learned in Transit EtfJdencffs, Geltffatlon, and cost RedwctJon ridership. The program resulted in $5 million in savings, with S 1 million paid out to salaried employees fora net savings to the Authority of approximately $4 million (or 1.7 percent of the annual operating budget). "Only" $1 million was paid to salaried employees because the ridership threshold was not met. (Houston Texas) Taking Advantage of Transit's Passengers as unique Assets Access to transit's customers is valuable to entities other than t ransit agencies. They represent a market for other goods or services that can be effectively reached given their use of transit vehicles or facilities. Oearly, some of the advertising noted in subcategory A is an example of that, as well as the routine placement of concession machines at. terminals. However. there are other instances where both public and private entities are willing to pay for access to trans it' s passengers, as noted below: L At Golden Gate Transit, "Merry Ferry" special promotions for two weeks before Christmas include free fashion shows, wine tasting, music, and visits from S3nta, all provided by restau rants and retailers to promote themselves to a captive ferry audience This adds value to utilizing t ransit, and helps build ridership and revenue. Ridership increased 202 percent compared with the same runs during the rest of the winte r on weekends and 121 pctttnt on weekdays. (San Rafael, California) 2 "Lunch for the Office Bunch" on the GGT Sausalito ferry encourages lunch getaways during the summer with a variety of liv e entertainment. "Jazz on the Ferry" on summer Fridays also attracts additional riders who see a good time and extra value in these trips. (San Rafael, California) 3. Centro has recently developed monthly passes and 10.pack tokens as fare media. All passen gers who purchase these fare media also receive a coupon booklet that provides them with discounts at local retail stores (e.g. Dunkin Donuts). The coupons are produced by the companies participating in the coupon program after Centro gives the companies specifica tions. Hov.ever, Centro is also charging each participating vendor $500 per month for the rights to have access to their passengers through this program. Centro suggests picking the first few participating companies judiciously and possibly offer them a deal that benefits the companiesos well. (Syracuse, New York). 4. Cen tro negotiated a deal with AT&T for the installation of telephones in bus shelterS. Centro receives S 100 per month per phone, plus a percentage of revenue. In addition, the phones are programmed to allow callers to dial "BUS" for a free connection to Centro's customer

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Lessons Le.orned In Transit Efficiencies, Revenue GeMtation, ond Cost Reduction service i nformat ion center. Phones are programmed to shut off afttr midnight as a way of cooperating with local police <'>ho are concerned that such facilities are used to consummate illegal activities. (Syrocuse, New Y ork) 5. Schools in northern Kentucky experience attendance problems, and attribute some of the problems to transportation. The school board agreed to pay for all students carried by the Transit Authority of Northern Kentucky. TANK now gives more emphasis to attract student passengers, keeps electronic tallies of their boardings, and invoices the school districts for all students they carty. (Fort Wright, Kentucky) 6. In WMATPte additional revenue and services for its patrons. Fiv e proposals were received and evaluated. Amtel Communica tions,lnc., was selected by BART. The new pay phone contract was fora minimum annual guarantee of $1.0 million, or 40 percent of gross income, whichever was greater. (Oakl and California)

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L 2 3. 4. 5. Lessons b1 Transit Efflclendes. Revtnue Generation. and Cost Reduction Key Lessons Learned in Taking Advantage of Transit Employees and Passengers as Assets MMketyour foJJproductline-Transit employees gain special expenisein areas such as .,.fety mining, HAZMAT handl i ng, and securit y that can be sold to othet agencies with trnnSport:n.ion functions. EffortS can even be international in soope. 7binkwin-win-Collectively, transitemployeescanhelpachieveagencygoalswhile saving money if there are clear performance goals and reasonable incentives tied to those goals. This i s good for the individual employee, the organization, and group morale. Add value-Joint promotions provide wonderful opportunities to "treat" your cus tomers and give them extra value for their choice of transit. This increases rider ship and revenue and builds customer lo}"'ity. No cme gets to see the Wizani-Discount co upons issued to regular passengers are excellent value-adders by themselves, but transit agencies can also charge companies for the right to give those coupons to customers. This principle applies to telephones at transit facilities, concessions, or other services. They not only provide revenue for the transit age. n cy, but a convenience for the passenger as well, and add "presence" and security to the facility It's the passenger, stupid-When locating any services or conveniences (such as tele phones), think like a passenger and place the services where they are most likely ro be used most frequently

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Lessons Learned fn Transit Efficiencies. Revenue Generation. and Co-st Reductfon THEME II Partnerships Transit agencies have often referred to the feder.U and state governments as their partners in various t ransit projects. The feder.U government remains an a ctive partner in helping to fund capital projectS, but it i s steadily reducing its contributions for operating assistance. Some state governmen ts have helped pick up the feder.U operating slack, but there are few examples of states that have made up the difference entirely. There i s a need for t ransit agencies to expand their list of parutersto include major employers, wllversities, municipalities, downtown development ties, public school districts, and various other entities. Transit systems can leverage their limited resources by forging new partnerships that can bring nontraditional sources of suppo rt. These new partnerships all ow transit agencies to provide services or facilities where they would not otherwise be feasible. These relationships are typically initiated by the other partners, which should e ncourage transit agencies ro more assertively pursue and offer such opportunities Trnnsit and transportation are all about linkages, allowing people to travel for many different lif e functions. Given the critical need for mobility in American society, it shouldn't be surprising that t here are other entities that also regard the mobility provided by transit as critical to their own success. Examples of how transi t agencies have gained new partners is provided in grearer detail below Private sector Partners supportive of New ll'l:lnslt service Transit agencies have found new partners among private bus inesses and majo r employers who regard transit as important to their own self interests, and are willing to pay fully or partially for new service that would oth erwise not be possible to provide. I. Springs Trnnsit implemented a new three-year route (that might be made permanent) be tween a hospital and a remote parking lot The hospital is undergoing major renovation and Fantasiesa?emore thansubmtutesfor they ttrr! also dress A/Jaasperformad in theucrldbegin in the imagina-tion. # -&rt!=a Harri.az

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is using the land fonhe previous employee parking as the base for a new building. Displaced employee parking was moved to the site about a mile away. Springs Transit provides open door transit service, but the hospit:U pays 100 percent of the fully-allocated costs to ope rare the route (Colorado Springs, Colorado) 2 Milwaukee County Transit implemented the Employer Trip Reduction Response (ETRR) Program in 1995. This program allows the system to respond to employer requests for new and additional transit services in areas located more than one-half mile from the nearest transit service. This program helps reduce air pollution and improves access to jobs for unemployed Milwaukee residents. One of the requirements of the ETRR Program is that benefining employers participate in funding the local cost ofthe services. Other funding has come from the Congestion Mitigation &Air Quality (CMAQ) Program, state, and fares. No Milwaukee County Transit funds are used to support these services. N many as 12 employ ers have contributed a total of over $90,000 per year towards the cost of t hese services. (Milwaukee, Wisconsin) 3. In the Orlando area, the Seminole Towne Center (the newest mall in the region) approached the City of Sanford abou t serving the site with transit. The developer contributes S10,000to LYNX toward the cost of the service, and the City of Sanford matehes that contribution. (Orlando, Florida) 4. LYNX operates under an agreement with the International Drive Master Transit and Improvement District for IS-minute frequency service from 6:00a.m. to 1:30 a.m., serving the corridor that su p ports W:Ut Disney World, Sea World, Univers:U Studios, Disney/MGM Studios, Epcot Center, 23,800 hotel rooms and the convention center. LYNX receives $1,623,000 per year (all fully.ruiocated costs for the service minus fares collected) from the District. A separate operating division was created within LYNX to ensure operators receive special training for events in the district, fare instruments, customer service, information dissemination, etc. The division has its own dedicated fleet of vehicl es. LYNX gets this opportunity over t h e private sector in large part because of its outstanding and colorful image. (Orlando, Florida) 5. The Indianapolis Public Transportation Corporation was approached by 20 employers who pooled their resources and paid 70 percent of the expense of providing late evening and weekend bus services due to an employee shortage problem caused by the lack of transpor tation for such workers (e.g., fast food restaurants, movies, hotels, etc.). Out of pocket expenses for surveys cOst $5,000. Where possible, service on the street was reprogrammed

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Lessons teamed In Trarult Etfidtncks, Rtvtnue Gtnt.ratlon, lllld Cost Rtd.llction to reduce the cost of meeting t he employers' needs. The program is called Metro Works, ond has increased ridership in the late evenings. (Indianapolis, Indiana) 6. Escambia County Area Transit entered into an agreement with two malls to underwrite the cost oftransporution from the Pensacola Naval Air Station t o the malls during the weekend and on nights when norm
  • "tructure and improve its service in the area at no additional CO>t. The S 140,000 received from the hospital covered all expenses related to service improvements and provided 8,000 new passengers per m onth. T he hospital has
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    Ltssons Ltdrned in rronSft Revenw e Gener ation. and cost Redwctton Due t o low ridership, it was canceled in February 1997, but served as an example of th e services that can be provided througb public partnership (Redmond, Washington) 3. LYNX receives funding from a number of public partners to provide new services in its region. The University of Centro! Florida voluntarily contributes S50,000 (througb student fees) for fixed routes and circulators th3t serve the un iversity The City of Orlando pays LYNX $52,560 annually for shuttle services provided from Downtown to the Centrop lex. The Orange County Convention Center also pays LYNX $25,850 annually for shuttleser. vices from the parking area to the door. The Dow n town Devel opment Board sponsors ($513,000 annually) theFreebie, a downtown circulator with 5 minute headways from 6:20 a.m. to 7 : 00p .m. (Orlando, Florida) 4 Centro contr.acts wi t h two universities to provide service in a nwtner that generates new revenues and riders. In one contract, they receive fJ.Xed revenue per vehicle hour that more than covers their costS, allowing them to provide fare-free service for everyone on exclusive campus routcS.!Jl another contract, Centro provides service that goes througb areas of the city as well as the campus, and receives revenue from the university based on estimated hoardings, while opernting open-door service throughout. (Syracuse, New York) 5. Capital District Transit Authority signed agreements with two universities ro provide most of their transportation services. All additional costs were covered through the agreements which provide $200,000 in new .-nues. The revenues are secured througb the charging of student fees by the universities, which allow students to ride for free. While the agreements are gene...Uy revenue neutr:U for CDTA, the opportunity to provide service to the universi ties allowed them to modify nearby routes tO improve the overall quality of service in the area, and should ultimately result in increased ridership and revenue. (Albany, New York) 6. The Metropolitan Transit Development Boatd was able to gamer 54 percent of the region's federal CMAQ funding for transit A major part of the CMAQ is dedicated for construc tion of furore Ligbt Rail Transit (LKf) extensions. Ho .. oever CMAQ has also been approved and used for operation of new bus and LRT services, which is allowed for up to three years of the new service. {San Diego, California) 7. All municipalities tha t have Madison Metro bus service contribute the net local share, in eluding capital, of operating the applicable service. In addition, the Madison Metro School District pays for the rou tes that are added during the schoo l year to accommodate the students, and the University of Wisconsin pays for the special campus routes. These contri

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    butionstotal $I .4 million annually. In addition, Dane County pun:hoses gxoup access service from Madison Metro, providing the agency with $118,000 in revenue annuolly. (Madison, Wisconsin) 8. Broword County Transit hos reached agreements with seven different cities in the County that reduce costs by 9 0 percent while quadrupling r idership in areas of relatively low demand. BCT acquires small, accessible minibuses with its federal and state grants and leases those vehicles to the participating cities for one dollar a year per vehicle. In addition, BCT provides each city with $18,000 per year, per vehicle to help pay lor openting costs. However, e ach city is responsible for operating and maintaining the vehicles with their own staff. BCT provides free tr.tining and technical assistance in scheduling, placing bus stops and developing printed material, if requested. The service provided is far more flexible than that provided by BCT, and has much more local energy to help it succeed. These agreements have reduced BCT's costs of providing service from $180,000 per year to S 18,000 per year per vehicle, and ridership has typically tripled or quadrupled due to the greater marketing effort made a t the city level. This service also helps reduce BCT's cost of providing para transit service, since the minibuses are accessible and able to provide route deviation service. (Pompano Beach, Florida) 9. TheSacnmento Regional Tnnsporta tion Commission participated in a fund swap negoti ated by the Sacramento Area Council of Governments. The Sacramento Regional District (SRTD) provided $39.3 million in wtusablc state capital funds to the Metropolitan Trans portation Commission, who in rum gave SKID S12.7 million in hi&hway funds. SRTD gave these highway funds to the city of Folsum for a new bridge.ln tum, Folsum will pay SRTD $40.4 million ov er 12 years to pay for the operation of an extension of the li&ht rail system. (Sacramento, California) Public or Private Entities ASSisting with New Tmnslt Fadlities or Equipment New partners such as cities, .Ur quality boards, or private businesses shown theirwillingness 10 partner witb transit agencies to pay for all or substantial p ortions of the cosrs of new transit facilities or equipment ranging from alternative fueled buses to major transfer Stations. L At Napa Valley Tra nsit all buses are equipped with signal pre-empt ion that is triggered automatically when buses are more than five minutes late. The Opticom signal works off of a global positioning system (GPS) which also does real time vehicle tra cking. Napa Valley Transit was chose n by the 3M Company as a demonstration site forthe development of this

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    LestOJ'If uarntd In rransft fflcJende.s, Rtvtnue Gtnt.r otlon. and Cost Rtduc&:lon integrated system. Consequently, the transit agency paid $ 130,000 for onl y the signal pre emptio n upgrade ponion of the system. (Napa, California) 2 Since 1991, the Sacramento Regional Transit District has benefitted from the lntennodal Surface TransponationEfficiency Aa. (ISTEA} llCJability by receiving $18.8 million in CMAQ and $4. 6 million in Surfa c e Transponation Program (STP) funds for multiple projects in eluding new alterna tive fueling facilities, bicycle locker>, 20 CNG buses, ADA improve ments, light rail line extensio ns, doub l e tracking, and environmental remediation (Sacra mento, C:ilifomia) Pien:e Transit encouraged pannering on capital projects with other jurisdictions using state dollars to leverage federal dollars resulting in new capital revenue The agency then allocated the saved local revenue dollars to service improvements. (Tacoma, Washington) 4 Metra has pannered with priva t e businesses to make existing parking available to Metra commuters on a shared basis. Businesses and organizations size their pocking facilities to meet their own peak parking demand period. \Vhen this time period is different than when rail commuters require parking, an opponunity to jointly use the facility is possible. This scenario increases parking capacity available to commuters and at the same time prov ides revenue in the form of parking fees to the lot owner This program has led to making 2,527 more parking spaces available, which would have cOst Metrn over $10 millio n ($4,000 per space). (Chicago, Dlinois) 5. A pannership venture between MART A, the State of Georgia, and Atlanta Gas Lght Com pany (AGLC) has substantially reduced the cost to MARTA to. implement and operate a new CNG fleet of 118 buses. AGLC provided $3 million for construction of a CNG fueling facili ty and $2.9 million toward the expense of the buses (covering the difference between the cost of diesel buses and CNG buses). It also agreed to provide heavy mainte nance for the fueling facility for 20 years and guaranteed a set price for fuel for five years. The State of Georgia also provided $5. 8 million for the procurement of the buses, and the U.S. Depanment of Energy provided $500,000 as well. (Atlanta, Georgia) 6. Cent.ro partnered with NiagraMohawk Utilities for the installation of a CNG fueling facil ity. State and federal grants paid for 90 percent of the fueling facility, with Niagara Mohawk paying the 10 percent local share of $350,000. In addition, the utility company paid the local share difference between the cost of 20 conventional diesel fuel buses and a similar number of CNG buses ($500,000}.1n exchange, Centro will purchase fuel from Niagara Mohawk. (Syracuse, New York)

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    l.t$Sons Learned In Transft EfflcJendes, Revenue Generation, and cost Reduction 7. The City of S<:henoctady agreed to serve as a supplementaty sponsor along with the Capital District Transit Authority f or a new downtown hoarding center, providing $50,000 of the $225,000 local match. (Schenectady, New York) 8. WMATA bas entered into an agreement with a private developer (RF&P), whereby the developer will design and bui ld a new Metrorai l station as part of a new 342-acre develop ment (Potomac Yard Project). T his 16,000,000-square foot, mixed-use development was approved by the City of Alexandria on the condition RF&P builds and designs the Metro rail station at no capital oost to WMATA whatsoever. The oost to design and build the station is anticipated to exceed $25 million. The developer is responsible for all cOsts associated with the project which will be deeded over to WMA T A, which will operate and maintain the station. It is anticipated that the new station and development will generate suffic ient riders (estimated at 14,600 per day) to more than offset the cost of operation. (fhis is no different than having a small development pay for and install a bus stop at a subdivision). The project will provide for a bus loading/unloading facility as well as a kissand-ride facility. (Washington,D.C) 9. The Metropolitan Transit Developmen t Board is partnering with the local redevelopment agency to use some transit capital funding, along with local capital improvement and rede velopment monies, to complete a ten-block street improvement project. Included will be a rehabilitation and improvement of two tight rail transit stations, along with a major c orridor change to create supportive transit uses in and around the corridor. The MTDB has also partnered with cities to use a combination of federal and local funds to build sidewalks that in clude improved bus stops designed to be consistent with ADA requirementS. (San Diego, C-difomia) 10. Large and small examples of joint development in San Diego all result in increasing tl'lll1sit ridership which increases revenue (m addit ion to whatever lease revenues might be made). Examples range from a LRT station where a child care facility was developed along with residential uses on the site to stations where multi-story office uses are part of the station. (San Diego. California) IL In San Diego, the local match for new CNG bu.
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    l.estons learned in Transit Efficiencies. Revtnwe Generation. and Cost Rtdwctlon was required to purchase 100 monthly bus passes each month for five years, and provided $85,000 for a park-and-ride facility in the general ,.jcinity In addition, the mall would need to make available 600 parking spaces for park and -ride purposes for major community events such as the annual balloon fiesta. (Albuquerque, New Mexico) 0. Community Transit has received funds from the State Environmental Protection Agency (EPA) to pay for the difference of the cost of diesel and CNG buses (saving $180,000) and for the majority of the cost of the fueling Station (savingS 160,000). Thatfacility is also used to serve other agencies, and the agency will charge an adminiStrative fee at a few cents per gallo n of fuel. (York, Pennsylvania) 14. Two major joint developments have occurred at two Metrorail stations in Miami, with a third major development nearing reality at a Metromover Station. The joint development at the Dadeland South Metrorail Station includes two class A office buildings totaling over 410,000square feet, with 40,000square feet of retail and a 305 room luxury Marriott hotel, and is expected to generate over $900,000 annually in lease payments to MDTA. The joint development at the Dadeland North station includes 320,000 square feet of multi -story retail space, and anticipates the conStruction of a hOtel and office building. Depending on the completion of the phases, the estimated annual rent at buildout will range fro m $400,000 tO $1,468,000. MOTA is currently entertaining two proposals f or joint development at one of i ts downtown Miami Metromover stations. The proposals are for mixed use residential, retail, entertainmen t, and hotel development that is expected to generate rent from between $150,000 to $350,000 per year. All of these developments generate additional ridership that also generates additional operating revenue for MDTA. For inStance, the additional ridership expected to be generated by the Dadeland North project is 200,000 passengers per year. (Miami, Florida) 15. Metro-Dade Transi t reached an agreement with Mount Sinai Hospito! to build a joint -use multi-modal transit facility on the hospital grounds. The facility will house a tranSit tenninal, a joint-use parking garage, and a rehabilitation center for the hospital The tranSit elements of this project will b e financed through a grant from theFT A ($3 million). The hospital dona tion of the land serves as the local match for the project, saVing $300,000 in local match dollan. (Miami, Florida) 16. Another example of MDTKs partnei>hips is with the Omni Mall, which paid for the design and conStruction of an aerial skybridge connecting the Omni Metromo ver station to the Omni Mall. The Mall also pays 23 percent (around of the maintenance and security expenses for the Omni Metromover Station. (Miami, Florida)

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    Lessons Learned In Transit Effkiendes. Revenue Gtnerauon, and cost Rtductlon 17. AU ofthe buseu< Napa Valley Transit have bike racks made possible by gran ts ob ta ined from the local Air Quality Management District The District also paid for the installation of b ike Iocken in twclve locations throughou t the county. (Napa, C..,Jifornia) Public or Private Entities That support Existing Tn:lnsit service Both public and private entities can take a variety of actions th>t help promote the uti l ization of existing translt service These actions can make transit a more attractive alternative resulting in increased ridership and revenue, and sometimes reducing a transit agenc.y's costs. 1. Milwaukee County Transi t developed pmners!lips with the University of Wisconsin-Mil waukee and Marquette University whereby the universities pay $29 per student per semester to MCTS and all students who wish tO use servic e ride free. The progrnm is called UP ASS. The revenue impact is minim..,J, though receiving the revenue up-front from the universities is helpful, and use of the system by more stu d ents is expected to generate additional regular fare trips In essence, MCTS found a way to increase ridership ease p2rk.ingand congestion in and around the universities, increase mobility for students, and develop stronger commu nity relations without additional public funding. (Milwaukee, Wisconsin) 2. Santa Clarita Transit panners with 16loeal businesses to displaytransitsysrem timetables and setl monthly passes. Instead of receiving commissions, the businesses benefit from incre>sed traffic. The businesses also gain greater visibility by being a pass sales outlet since their names are included in any printed m>terial produced by the system advising people wh ere they can buy passes. {Santa Clarita, California) 3. A ri dership partnership between the Pore Authority of Allegh e n y County {PAl) and the University o f Pittsburgh began as a pilot projectduringFY 1996. PAT created a special fare zone, the U-Zone, in which the Univers ity of Pinsburgh faculty, staff, and stude nts co u ld ride for free by showing their university !.D There was no significant operational impact, as existing busservice was revised and only staff time was in v olved. PAT received $4,000 per week from the University initially. The rates hove been renegotiated in a four-year agreement that calls forthe University to pay PAT on a per rider basis, with graduated payments each year. PAT now rw:ives $33,000 per month mdexpects to double this revenue (]IICr the next four years. The project has generated 1.2 million rides on an annual basis. (Pinsburgh Pennsylvania) 4. The Livermore/ Amador Valley Transit Authority has m agreement with the Hac i enda Busi ness Park whereby employees of the business park are issued flash passes tha t allow them to

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    Lessons Learned In Trc:uuft Effldendts, Revtnwe Gertffatl
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    Lessons L earrttd In Transit tfricJencks. Rtvenue Gffttratfon, and Cost Reduction during th e first year, t hen requires Microsoft to fully subsidize these costs on a phased basis over a four-year period (Seattle, WashingtOn ) 9. Cen t ro has promoted the concept that companies that pay for employees' parking should also b e willing to buy monthly passes for employees who use bus service. Twenty-eight employers are now subsidizing pass purchases fortheir employees. (Syracuse, New York) 10. Napa Valley routinely involves th e private sector in sponsorship of events. Some examples are Eanh Day promotions (local recycling center), special service for t h e Fair (service cl ubs sponsor free trips), Youth Pass (local business pays printing cost in exchange for adv ertis ing), Rideshare Week (giveaways for raffles), bus christening parry (all of the food, flowers, table decorations, and entertainment for the e\'ent is donated), and the annual Tour brochure where advertising on the brochure pays for the printing costs. (Napa, California) 11. Regional Transi t Service entered into a partnership with Rite Aid, a drug;wre chain, tO market the agency's tickets and passes. RTS had been lo sing sales outlets, due ro bank mergers and lack of interest. The agreement with Rite Aid cOSts the agency nothing. Rite Aid has sold nearly S2 million in tickets and passes for RTS over a three-year period(Rochester, New York)

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    Lessons uarrred In Transit Effldertcles, R t v tnwe and cost Rtductlo" Key Lessons Learned in Theme II Partnerships t. Seek And ye shall find-Entities such as hospitals, malls, universities, employers, tourist attr.>etions, etc., have typically initiated partnerships with tr.msit agencies. Transit agencies might wcll create consider.ably more partnerships that can result i n new and more effectivelystruetured service. Hence, trnnsitsystems should promote their interest in partnering and Stay in touch with the needs of the broader oomrmmity. 2 You'repartofthefamiJynuw-Partnerships help expand a transit agency's itnage from being jUSt a transportation option to that of an integral community asset. Good transit service can enhance an area's tourist economy, provide critical aocess to jobs to assist in welfare reform, help employers gain wider aocess to an area's work force, help shopping centers succeed, contribute to pedestrian friendly environments, provide savings to users who can then afford better housing, get StUdents to school, decrease the need for parking, help achieve clean air goals, etc. Tr:msitis all about linkages, not jUSt for getting people from point A to point B, but linking public transit with community goals. Those linkages should be positively exploited. 3. Leverage the limited fondsThe non-trnlitionalsources of financial support from other public and private entities might not only pay for new service, but allow the transit agency to reStruCtUre existing service to help gain additional riders and revenue If local share for capital projects can be obtained from other public or private partners, the transit agency can use their own limited resources for other capital or operating needs. 4. Feed the energyThe more local a service is, t he more attention the sponsoring agency is likely 10 give it. There is s im ply more energy per unit of service helping the service 10 succeed. Local sponsors are subject to more scrutiny, and they are on the hook for their own investment. Hence, it is often wise to decen tralize and customize transitserviocs with the help of local sponsors. 5. Stay dose to)<>urfiiends-Transit agencies are very likely 10 benefi t from funding agencieswithcomplimentarycommunityimprovementgoals,suchasf>JrQuality

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    Ussons Ltarned E n Transit Effidtncits. Rtvenwe Generation. and cost Reduction DistrictS, state EPAs, Downtown Devel opment Authorities, Councils of Governments, and MPOs. Trnnsit agencies need to attend those meetings and know what their interests are, then make every effort to l et them kno w trans it is a willing partner in improving the quality of life in their area. 6. Don't be a bureaw:rtttic dragH joint development at transit centers is an objective, the transit agency should b e colorful in its marketing for partners. Don't advertise for developers in typical government language that emphasizes process ond con straints. Talk about exciting opportUnities, be extremely responsive to expressions of interest, and be flexible in negotiations. 7. Theymz/ly, .,.,jJy like me-NOt everyone regards transit as jUSt an expensive public service that too few people use. Some employers see offering transit benefits as a competitive advantage to securing the best employees. Universities want tO minimize costs associated with parking facilities and give students inexpensive mobil ity options. Some businesses v."elcome the foot tr.df:ic generated by transit passen gers coming to their sterc to purchase transit passes. Different media want to share transit information with the listening, reading, or viewing public to make their shows or papers more appealing to the broadest audience possible. Medicaid agencies want the least expensive transportation options for their clients. Some malls want commuters to use their facilities as park-and-ride lots to encourage shopping at their stores. These types of relationships can save transit agencies money while also increasing ridership and revenue.

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    Lessort.s In TranSit Effldmc.les. Rtvtnwe Gnd Co.st R t duction

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    ussons Lt>4rned in Tronslt tfidmcles. Rtvenue GeMratlon. ond cost Reduction THEME Ill cooperation This them e includes additional examples of transit systems working with o th er public or private entities, or their own workforce. It differs f rom the Partnership theme in the sense that the transit sysrem is alre>dy e ngagint in t h e activity in question. N o entirely new servi ce or facility i s being created. However, by cooperating with other agencies, or g r oups, transit systems can either reduce their costS or gain g r eater b enefits, while once again enhancing their image md increasing thei r chances for support from the external en v ironment. Examp les of cooperation are explained in grearer detail below. joint PurchCISing Transit agencies""' procuring goods or services t hrough pre-established stare contracts, formin g consoxtiwns omong multiple tencies to purchase irems of common inrerest, piggy-backing on other contracts, and participating in regional effortS to maximize marketing budgets. t. Ben Franklin Transi t uses state co n tracts tO obtain vehicles, ot h er e quipment and office supplies. This saves up tO $7,000on a 15-passengervanpool van, and $2,000 tO $3,000 on a 7 passeng er vehicle. This process s aves time as well as money since the full bid process is not necessary. BFT also gets reductions o f 25-40 percent off wholesale an d 50-60 percent off retail for batteries, el ectrical equipment such as lights, tires, ribbons for computers, etc by purchasing through state contracts. (Richland, Washington) 2 The Miami Valley Regional Transit Authority led efforu to organize a Selflnsurance Pool f or mid-sized mdsmaller transit authorities in Ohio (Ohio Transit Insurance Pool formed December 31. 1994 ). This e ffort was prompted by the inability to obtain reasonably priced transit liability cov e rage. The Autho rity worked with legal counsel and the director of a municipal pool with 14 city members the pool This has saved $1CO,COOannually "W1Jrn,....,rannct inw1l, uemayat lmstimprove. -0Jarles Caleb awn

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    Ltuons lt4mtd fn Tronsit Efrldenries, Revenwe Generation. ond Cost Reduction while providing much broader coverage. RTA's previous transit liability coverage was $10 million in excess of a $2 million deductible. The current coverage is $10 million in excess of a $250,000 pool deductible and in excess of $1,000 individual property deductible. In the last ten years, the Authority has had two claims exceed $1 million in settlement, butlessthan the previous $2 million self retention. (Dayton, Ohio) .3. The Regional Transit Commission utilizes another local entity (Washoo County) to jointly purchase fuel. Taking advantage of the county's bid sheets provides an estimated annual savings of $10,000. (Reno, Nevada) 4. Chula Vista provides service in the greater San Diego area w>der the umbrella of the Metro politan Transit Development Board. \Vhile. Chula Vista (and a number of other local provid ers) is responsible for route scheduling and operations, infonnation for all transit services in the metropolitan area is provided regionally. This allows each operating agency to focus on operations and spreads the cost of marketing ove rthe e ntire region, aU owing certain items (such as transfers, schedules, etc.) to be purchased at a reduced bulk price. (Chula Vista, California) 5. The Transit Authority of Northern Kentucky worked with the Southwest Ohio Regional Transit Authority (Cincinnati) to purchase fuel and fareboxes. This increase i n purchasing power decreased their to tal capital costs by $4,000 and operating cost by $46,000. {Fort Wright, Kentucky) 6. In the procurement ofparatransi tvehicles,Swiline Transit "piggy backed" on a larger agency's bid packages with minimal cost to Sunline and a savings of $5,000 per purc hase (Thousand Palms, California) 7. Twentytwo public agencies in the state of Pennsylvania formed a Drug and Alcohol Testing Consortium to allow a joint purchase of teSting services. While out-of p ocket cosrs are slightly less per test, the most significant benefit is that all administration of testing procedures is handled by the vendor. The consortium keeps all records on safetysensitive em ployees, works with the Medical Review Officer (MRO), makes the random selection, com pletes reportsro the FTA, ete. (York Counry Transportation Authoriry, Pennsylvania) sharing{rrading of Services, Facilities, or Funds Transit systems are finding ways to minimize expenses by sharing facilities, trading items of value, and utilizing other public agencies' expertise at virtually no cost. They are also sharing expenses of

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    LtSsons Learned In Transtt EfflcJencWs, Revenue Generation, and cost Reduction commo n service, and in some cases finding ways 10 fund their operating expenses by trading capital dollars for dollars. L T ri-Delta Transit and Central Contra Costa Transit Authority split the total cosc of operating a fixed-route service from one service area to the other. CCCTA provides the bus and half the operating cosc and Tri-Delta provides the other half of the operating com for the service. This allows both agencies to split the cosc of service, while helping their cUSIOmers and demonstrating the spirit of coordination that taxpayers expect. (Antioch, California) 2. Being a part of county government, SCAT takes advantage of numerous administrative support services at minimal cost to the transit program, such as Personn el, Payroll, Risk Management, Accounting. Self-Insurance, etc. (Sarasota, Florida) 3. The Regional Transportation Commission utilizes Washoe County's Treasurer's Office to invest RTC funds. This saves the agency $50,000 annually, and provides opportunities f or higher earnings rates since funds are part of a larg e r investment pool. (Reno, Nevada) 4. Fairfield/Suisun Transit has developed partnenhips with l parties whereby they purchase service from others or others purchase service from them, allowing costS to stay the same over time For example, a neighboring city was operating a single fixed route service. Fairfield/Suisun assumed management of the single route through an agree ment with the neighboring city thereby adding more service hours witho u t additional costS. (Fairiie!d, California) s. MTDB exchanged federal capital funds to another operator in California for nexible" mon ies. The downside of this transaction is that MTDB received only 80 cents on their dollar in the swap of capital money for money but it did provide them with sufficient operating funds to maintain service in spite of a tight operating budget situation (San D iego, California) 6. Volusia County Transi t (VOTRAN) implemented new service in an a""' of the County (Deland/Deltona) th at had n o operations facility, rnsulting in 284 deadhead miles per day (at a cost of S 14,000 per month). VOTRAN reached an agreement with the Volusia County School Board to allow VOTRAN to utilize a new Deltona facility to house, fuel, and clean their tr.lllSit buses. The daily deadhead miles were reduced to 120, resulting in a savings of $8,100permonth,or $97,200 per year. No rentis paid by VOTRAN, though they reali:rethey are guests and make improvements to the facility where they can. There was a consensus between the County Commission and the School Board that tbc public wanted to see differ-

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    Lessons Learned fn Transit Effldendts. Revenue Genet'atlon, and cost ent public agencies share resources for the common good. Thi s in tum has resulted in a better relationship between VOTRAN ond the School Board, manifested by route adjust ments to pick up srudents in areas where there is no school bus service and greater coordina tion in emergency evacuation service planning. (Daytona Beach, Florida) 7. VOTR.AN terminated a contract with a private marketing consultant linn in favor of working with the Vol usia County Public In formation Office at a savings of $12,000 annually. That office does not charge VOTRAN for the marketing services i t provides, and i t can be included in ads that are produced for other County departments such as the Beach Depart ment, the Ocean Center, and the Airpon. This arrangement has elevated VOTRAN's status to be considered as one of the primary public services that contribute to econontic development and tourism in the County. (Daytona Beach, Florida) 8. MUNI arranged for refresher customer service training for its Telephone Information Personnel by an outside eustomer relations professional known for his expertise and attention to detail. It was arranged by the trading of bus ad space to publicize Ca!Train in exchange for the special training services that Cal train had under contraCt. (Sao Francisco, California) Providing EXperience, Employment, or service Opportunities for other Agencies Volunteerism and apprenticeships are not entirely dead. A number of transit systemS are realizing genuine benefits from utilizing summer youth employees, college interns, and volunteers who provide valuable services ranging from data en tty, graffiti removal, research, schedule distribution etc., at very low cost. Sintilarly, other transit agencies are benefitting from low cost labor provided through sheriffs' w ork incarceration programs or other community service programs. 1. Na pa Valley Transit has a travel training/or i e n tation program staffed by ten train ed user '-olunreen; who wor k one on one with new riders. The "Transit Ambassadon;" also assist by st affing booths at events, doing graffiti abatement at the downtown terntinal, and helping out in the office by stuffingmailen, daily data entry, etc. This program was originally devel oped using a $25,000 grant, and is now self-supporting from money raised through a "Catch the Bus" game the agency has atfairs and events. (Napa, California) 2. High school students do real work (graffiti removal, backlogged data entry, other limited term projects) for Milwaukee County Transit through a Summer Youth Employment Pro gram. This allows MCTto get needed work done without hiring additional regular employ-

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    ussoru uarMd In Transit Revtnwe: Gtntration a.nd cost Rtdwctlon ees or paying excessive overtime. The cost of the program is S63,000, but the value of the work is $161,000, resulting in annual savings of $98,000. The program focuses on ntinorities and other disadvantaged youths, providing them with real work experience. MCf also assiStS the students with resume preparation, interviewing, and other j ob search techniques. The program has the full cooperation and panic i pation of the transit union. (Milwaukee, Wiscon sin) J. PENTRAN panicipotes in several internship programs in conjunaion with the Depanment of Social S ervices, local colleges, technical trnining schools, and high school job traini ng programs. Through these programs, interns are able to gain valuable work experience while providing much n eeded clerical support at no cost tO PENTRAN. In addition, several internships have resulted in permanent employment which curbs recruitment costs. (Hampton, Virginia) 4. The Sheriff's Work Program uses incarcerated individuals and the Sacramento Vocational Services Program uses developmentally-disabled individuals to provide the Sacramento Regional Transit District with station cleaning and right-ofway landscape maintenance services. In lieu of retaining staff or hiring contractOrs, the District save.< $180,000 per year. (Sacramento, California) 5. Suntran utilius interns from the U ni versity of New Mexico who are paid partially by the university and panially by Suntran. The interns have helped in many areas, including deliver ing schedule books, producing arrwork and writing brochures for the marketing office, and providing some planning assistance. Engineering srudents have helped research route devia tion possibilities for future serv ice. (Albuquerque, New Mexico) 6. Sunline Transit uses a disabled intern to staff the paratransit reservation desk, which co sts the agency nothing and results in savings of close to $18,000 per year. (Thousand Palms, c.lifomia) 7. The MetrO Dade Transit Agency has an agreement with Goodwill Industries for obtaining interior cleaning services for all their buses. The Goodwill participants are hurnn servic e recipients who are working on transitioning into work. They work in supervised teams of six, e nsuring that MDTA' s bus interiors are thoroughly cleaned once every eight days. 'While these participants earn wages, there are no benefits paid, resulting in coStS that are 40 percentlow er than MDT A personnel. (Miami, Florida) Iii

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    La$0ns Learned In Transit Efflclendes. Revenue Generation. and Cost Reduction coordination of Transit and Paratmnsit services Serving as a coordinator for paratransit services has allowed some systems to realize savings. They are in a better position to mainstream para transit passengers to less expensive options coordinate various paratransit providelll to encourage multiloading, and reduoe capital expenses by maximizing the use of paratransit vehicles through coordinated use of vehicles among a gencies. 1-Centro now serves as the broker for all trips provided through Medicaid funding (th e re is S300 million spent annuall y on Medicaid transportation in the state of New York). Calls for such service in the Syracuse area now come tO Centro as broker, and they direct all the trips they can tO the bus service (rather than paratrans it). In addition, a group called Peace Incor porated now works at the Centro facilities as a separate workforce but sideby-side with Centro workelll. The drivers of Peace Incorporated work under subcontract to Centro at a lower price than Centro employees. In addition, many trips in the future will be the respon sibility of liMOs, who Centro is working with now to get into a position to receive a fee for all trips that will be funded through the HMOs. (Syracuse, New York) 2 MediCal provides health services to Medicaid recipients in California. MediCal pays F airfield/ Suisun Transit to make sure their pati e nts are at appointments on time. Fairfield/Suisun has incorporated this new ridership into their paratransit service, increasing the passenger load to 3-2 per hour. All trips are recorded and MediCal is billed a fee for e"ch trip provided There are no additional costs. (Fairfield, California) 3As the Consolidated T ransportat.ion Service Agency, Sunline coordinates all transportatio n services provided by social service agenc ies in the area. They utilize vehicles owned by pri vate non-profit agencies when those agencies don't need the equipment for their own programs. This bas resulted in a capital savings of $220,000 over the past five years. Sunline also "sells" maintenance service to non-profit agencies to generate up to $7,500 annually, h elping to offset the cost of one of the mechanics. They also re n t unused space to commu nity agencies producing revenue of $10,000 per year. (Thousand Palms, California) 4. Pierce Transit identified a group of people who qualified for paratransit under a state pro gram but were being transported through its own program. Through coordination with the state broker those passengers were transferred to the state service provider, saving $376,000. (Tacoma, Washington} 5-T h e Metropolitan Bus Authority invoices other agencies for para transit services MBA pro vides in areas providing ftxedrou t e service since all agencies receiving federal f=ds for

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    wssons Learntd in Tronslt f.f(ldencles. Rtvenwt Ctnercu;o". and cost Redwctiort transporution must have complementary paratr.l!lSitservice. They receive $511,267 annually, or 1.5 percent of tbciroperating budset from this source. (SanJuan, Puerto Rico) cooperative Agreements with tmnsit I.Qbor unions Cooperation is just as important within transit agency as it is with the external environmen t AlmoSt 70 percent of the coSt of operating most trans i t systems is ottribuuble to labo r the vasc majority oi which is for employees in collective b;ugainins unitS. A number of transit symm have successfully negotiated with their bargaining unitS to reduce costs throu!;h greater use of pan timers, extended wage progressions, two-tiered wages (particularly for smaller vehicle operators), on <>-time bonuses versus base wage increases, changing ro managed health care, and early retirements. 1 Wichita Falls Transit has formed pool of part time drivers to fiU in when needed (vaca-tions, charters, sickness, etc.). They are part-time in the fuUest sense, receiving no benefits. This reduces overtime, benefi ts, and operatlllg cOStS, and gives the agency a chan! to evalu ate a person before he or she is selected for lull-time employment. (Wichita Falls, Tcxos) 2. The Centnl Ohio Transit Authority now offers aU employees a managed health care program. In the post, all employees could go to any doctor at any health care facility and be insured. Under the managed health care program, rates that participating doetors and other medical providers can charge will be negotiated by the managed health care provider. The cost savings of Sl.S million dollars per year is approximately 3 percent of COT A'$ annual operating budget. This new health care program was successfully negotiated with the com plete cooperation and suppon of the le<:al union. (Columbus, Ohio) 3. San Diego Transit negotiated a five-year agreement with the local Amalgamated Transit Urtio n (ATU) that provides one-time net bonuses annuaUy instead of increases ro the base wages. New hire progression has been extended"' 8.5 years tD reach the top wage rate, Starting at 50 percent of the rop rate and going up 2.77 perea harrier job to rio than juslchoow sides It must bring -jesse ]aclwn

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    us.sons Ltarrted In Transit Etffdtncks, Rtvenwt Ctnft'Atfon, and Cost Reduction 4. The Miami Valley Regiorul Transit Authority negotiated a twO-tiered wage system for opera tors. This was prompted by ADA requirements and the labor agreement limiting subcontract ing to $500,000. Assisted by a labor consultant to develop a system similar tO a Ci n cinnati Metro con tract, this arrangement resulted in a wage rate of $8.10 per hour instead of S 16.20. This achieved an annual cost savings of $500,000, had ADA expansion been funded at big bus operator rates. This helped reduce the costs of growing ADA service, permitting the RTA tO maintain more fixed-route service. (DaytOn, Ohio) 5. The Miami Volley RTA negotiated the institution of part-time operatOrs with thei r union. This was prompted by a need to reduce costs for new contracts with schools for a.m. and p.m. trippers. They now have over 40 pan-time employees working 30 hours per week, saving approximately $500,000 or more annually in avoided costs (if fuU-time operators had been used). The service has brought in new revenue and ridership for the transit system. {Dayton, Ohio) 6. Pierce Transit reached an agreement with its collective bargaining unit which provided a changeover from a select heolth care plan to a managed heolth care plan. Employees opting for the existing select health care plan will now pay the premium difference out of pocket. This action will save Pierce Transit in excess of $200,000 per year. (Tacoma, Washington) 7. Pierce Transi t also negotiated a second tier wage for entry level operators (ab out 16 percent of the workforce) in exchange for providing a contracted service directly The economic benefit was substantial enough tO allow an expansion of service which generated an increase in ridership. This has saved the agency S280,000 annually. (Tacoma, WashingtOn) 8. In negotiating wage increases for both represented and non-represented employees, Pierce Transit approved a cash lump sum payment in lieu of a salary s c hedule percentage increase. This resulted in a savings of $300,000 per year. (Tacoma, WashingtOn) 9. A l abor-management task force was created in 1993 in Indianapolis to address doub l e digit increases in the price of group insurance. Since Metro employees pay a share of insurance premiums, there was incentive for the union and management to fmd ways to reduce insur ance costs. The ftrst year of the collaboration saw a reduction of 12 percent ($250,000) in premiums paid by employees and Metro, and increases hve boon limited tO less than the rate of inflation since. (Indianopolis, Indi=) 10. SCAT uses part-time bus operators (14 out of 61 total) for lunch reliefs, morning show-ups, fill-ins for vacation, etc. (Sarasota, Florida)

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    Ltssons Lt41rntd In Transit Rtvenue Citnerat!OI1, and Cost Reduction IL The Capital District Tr.msit A u thority reached an agreement with its bargaining unit to estab lish a weekend pan-time wor kf orce. This gave full-time operators guarnnteed wee kends off, and saved the agency 5600,000 per year. (Albany New York) 12 Negotiations betWeen TANK and their bargaining uni. tchangcd formerly restrictive language to p ermi t t h e usc of managed health care, saving between $150,000 and $200,000 per year. (Fort Wright, Kentuperative relationships between management and labor low e rs labor legal costs and resul ts in an efficien t workforce. (Th ousand Palms, California) 14. At DART a five-year progressio n for bus operators' wages was negotiate d (versus the previous three-year progression), resulting in annual savings o f$ 1.5 million. (Dallas, Texas) IS. DART modified its management of Paid Ti me Off (PTO). Employees used to be eligible forasmuch as 26 vacatio n days and 12 sick days a year, with emp loyees having the right to carry o ver and "bank" all their hours (making them eligible for huge pay-offs at retirement). PTO will now consist of vacation and sick leave l umped together New employees will start at 17 tot al PTO days for the first five years, i n creasing by three days for every five years, capping at 29 PTO days. DART will buy out oil accrued vacatio n at the end of the year. These steps are estimated to save more than St 1 million over tO years. (Dallas, T exas) 16. The Kansas Ciry Area Transit Authority (KCATA) negotiated a separate wage rate for op erators of small buses that represents 60to 70 percent of the rate paid to regular fixed-route operators Smaller vehicles (25 seatS or less) were placed into service on 10 routes {out of KCATA's to tal of 38) that serve Jov; density suburban markets where ridership was light. KCATA saves appro ximately $17,500 per year, per bus fora total savings of $350,000 in 1996. This new rate will also allow KCATA to expand service and hire 50 additional opera tors. {KarlSas City, Missoun) 17. The recent negotiation o f the labor agreement WMATA and Lxal689 o f the A TU provides for improved employee compensation and pension benefits while returning to WMATA a better than net-zero cost contract by the utiliza tion of more part -time operators, a five-year new hire pay rate progression, a cost saving new health care delivery system, aod cost-saving modifications in the management of the pensio n plan to include an early retire-

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    L.fssons Leo:rl'ltd '"Transit EftlcltncJes, Revenue Ctneratlon, and cost Rtductlon ment buyout of expensive senior employees. The labo r comrct term from May 1 1995 to Apri l30, 1998 gives WMATA $14.7 million dollars in savings as follows: New Hire Poy Rote Progression Changes in Pension Management Managed Health Care Plan Improvements in Productivity Work Rules Total Savings: Wage/Longevity Rate Increase/ Pension Benefit Improvements Net Savings: $2.5millionsaved $41.7millionsaved S14.4 million saved $8.6 million saved S81.9 million ($67.2 million in total costs) S14.7million (Washington,D.C) 18. Lon g Beach Transit negotiated an agreement calling for an 8.5-yearwage progression, starting at 50 percent of the top wage with an increaseo percent a year. This results ina savings of $70,000 per employee over eight years, which makes LBT competitive with private providers. There is only an 8 percent increase in bborcosts over the four-year labor agreement. (Long Beach, California) 19. Metro-Dade Transit and the Transit Workers Union agre< to the creation of a newPoratransit "B" Division with new operator personnel starting salaries set 37 percent below current MDT A operators. The ageney shifted previously contracted faxed-route service to the new ParatranSit Division with service to be provided using smaller vehicles. (Miami, Florida) 20. METRO decided to introduce minibuses into its fleet to lower unit operation and mainte nance costs, increase service frequency, and promote a more "user friendly" vehicle in loeal neighborhoods. I t was hoped that minibuses would allow a service to get started and grow itself into larger buses, without consuming a disproponionate amount of scarce resources while the service was maturing. METRO initially bid the service expecting that a private contractor could operate it at a lower cost than METRO. However, METRO's union asked to bid on the service and ultimately "won the contract" with a lower cost than the private contractors. The lower cost was achieved via a lower starting rate for minibus operators, a lower and s lower progression in pa y and fewer fringe benefits. The use o f minibuses has b een highly successful in terms of all three of its ini tial purposes. Overtime, t he pay rates, and fringes have been increased for minibus operators (primarily to reduce turnover), but they are still approximately 50 percent of full-size bus operators' costs. This program has saved approximately $6 million per year, or 3 percent ofthe annual operating budget. The savings have allowed METRO to add more services within the same budget. (Houston)

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    Lessons Learned In Transit Ef1JcJencits, Rtvenwe Generation. and Cost Rtdwction Key Lessons Learned in Theme 111 cooperation L United we stantt--lt stands to reason that many t ransi t agencies share the SWle challenges and concerns. There are many opportunities for transit agencies to work together for more competitive rates for items such as insurance, fuet and drug testing services. Clear ly, there is strength in numbers, and purchasing power is increased when multiple agencies join together when making major or frequent purchases. 2 Don'trr:invenr the wheel-Transit systems can minimize administrative costs and avoid duplication by reaching agreements with other public entities to perform funetions such as investment of funds. Transit systems can :Uso save time and money by taking advantage of existing state contracts for goods and services, or by piggy backing on recently awarded contraCtS for major capi tal irems. 3. Share and share alikeThere might be opportunities to share facilities with other public agencies (such as School Board bus facilities) that not only save transit agencies money in terms of rent and deadhead mileage, but also enhance the image of both agencies in the eyes of the public who want to see cooperation among public services. Transit agencies m i ght be able to share the exp e nses of service that operates in more than one area. Transit systems can also swap funds within states, and take advant age of special expertise that sister agencies might have. 4. Shop for ba>gainsThere are numerous opportunities to find low cost OS$istancc provided through volunteers, stude nts, community service workers, and transi tional workers These arrangements save the transi t agency money, and are benefi cial to the workers and the community. 5 The times they are a changing-Most politics are local and labor negotiations will differ from o n e l ocality to the next accordingly. However, extremely tight budgets can certainly help transit agencies bargain more effectively. Many transit systemS have succeeded in gaining conce s sions (wage freezes, cash bonuses, extended wage ranges, part-timers, two-tiered wage structures, managed health care, etc.) and n'age increases to most unions.

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    Lessons Leamtd In Tran.sftffJdencits, Rtvenwe Gentratfon. cost Rtdwctlon 6. O>mmon ground-Cban&e is often feared and resisted by labor unions. However, some of the changes in the nature of areos a ower densities, grtater sprawl) can result in service modifications with mutual benefits for labor and manage ment. New methods of providing more flexible transit service with sm:iller ve hicles provide opponunities for competitive bidding, including bids from labor unions. Agreements can be reached for lower wage scales for operatOrs of sm:iller vehicles. This reduces service costs and expands the number of bargaining unit jobs. Another example of shared interests is grtateranention to employees' safery and welfare. This can result in h e althier employees and reduced expenses associ ated with absenteeism.

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    Lessons Le(lrned in Transit Efflciendes, Rev en we Gener(ltion, ana cost Redwcdon THEME IV Service Planning, Marketing, or Delivery Methods Not surpris i ngly, the highest cost element of any transit system is the :actual operatlo n of service. The methods transit ogencies have used to provide service have not changed dra matically in the past 50 years. However, the areas they serve have changed significantly, becoming more dispersed and harder to serve efficiently. Sources of funding also seem harder to secure. Transit systelll$ mUSt become more di.
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    THEME IV Set-vice Planning, Nlarl=nt farebox rerum "''ith a 50-cent base fare coofirrns. The agency uses a three phase public input process, holding general public meetings, followed by more detailed meetings with business and community groups to help them tailor service to the needs of t he public. (Santa Monica, California)

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    Lessons Ltarntd fn rransJt Eftlclencits. Revenue cr.ntrdtion. ond cost Reduction 8. The Maryland Transit Authority provides bus service from four bus divisions. To reduc e costs while retaining service levels, scheduling of service from the various divisions has been reviewed tO reduce deadhead mileage. Such reductions have been accomplished by shifting selected services between divisions. This ongoing process is expected to result in onnual cast savings in excess of $500,000 when fully implemented. (Baltimore, Maryland) 9. New York City Transit reduces train lengths in offpeak hours, thereby requiring less staff. Train cutting improves personal security and reduces car mileage, saving power '3.Jld car maintenance costs for an annual savings of S405,000. (New York, New York) 10. METRO conducted a major examination of all of its bus routes, schedules, and bus oper ating facility assignments with the view to reduce deadhead miles. This included such things as alterin g the bus operating facility assignment of buses to produce a s hort e r distance and! or faster speed between the facility and the place where the bu.< went into revenue service, changing the route thatthe bus took between thefacility and the place where it went into service to take advantage of new streets or road work reducing recovery time, and reduc ing loyover time where excessive. Schedules were changed as a result of this review. This substantially improved the efficiency of the schedules and thereby reduced deadhead miles/ hours This effort saved approximately $1.8 million in 1995, or 0.9 percent of the annual operating budget. The entire savings were reinvested in new services. (Houston, Texas) 11. The Orange CoWlty Transporta t ion Authority utilized a consultant (IBI Group) to review system performance to attract more riders, improve efficiency and effectiveness, and to provide more bus options for discretionary users without a cost increase. After receiving extensive publ ic input, the consensus was to eliminate unproductive routes, provide mo re small buses circulating in neighborhoods (eight new community routes), provide faster and more direct service on major arterials, and restructure transit services to provide three tiered family of services. They determined they could not be everything to everybody. The result has been a 10 to 15 percent increase in ridersh ip and a 5 percent reduction in net operating costs, amounting to a SS million an n u al savings for OCTA. (Orange County, California) Modifying the BaSic Method of service While some systems are simp l y making more business-like decisions within traditional methods of service, other agencies are making fundamental changes to the ways t hey provide service due to changing urban form and travel behavior. Some of the methods that are working well are chang THEME IV service Planning Marketing, OY Delivery Methocls "Avoiding danger is no
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    THEME IV service Planning, or Delivery Methods Ltssons Ltorned In Transit Revenwe Certtrotlon, and cost Reductfon ing radial service to grid service, mo difying fiXedroute service to point deviation (either all day or durin& peak only}, providing demand-responsive service in lower density areas, and replacing express service with vmpools. Point deviation has the added benefit of reducingparatransit expenses. 1. Tile Kosciusko Area Bus Service cnanged its eigllt -vehicle system from fixed-route to point deviotion in A ugust 1995 and realized success beyond their most optimistic hopes. Ridership increased by 41 percent whil e total vehicle miles decreased by 24 percent Fare reoovery per passenger increased by 1 2 percent, partially due to increased ridership and partially due ro a deep discount fare structure instituted along w ith the service structure. KABS was able to expaod both its operational hours and its service area due to these chan&es KABS n o long er runs buses when they were not being used, and can match buses with actual passen&er needs. All buses are !ift-
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    Lessons Learned In TraMtt Etfldencks, Revenue Cieneratfon, and Cost Reductfon 5. The Fon Worth TrnnsitAuthority (The T) has purchased vans and small buses to operate on a flexible, demandresponsive basis in low density suburban neighborhoods. Passengers can arrnnge trips by eithercallingdispstch, boarding the bus .Jong its fixed route, or telephoning the operator who is equipped with a cellular phone to arrange for transponarion Purchase price of the vehicles rnnged from S2l,OCO for a 15passengervan to S60,000 forasm.Jl bus. The cost of advertising the service was less than $10,000. Service has been experimental on throe routes and will be expanded in the future. The operational impact is that the "The T" is now utilizing a greater number of small vehicle operatOrs with an approximate I percent reduction in overall costs. (Fort Worth, Texas) 6. "The T" has replaced some low productivity express buses with v.mpools. The van pools are provided from a park-andride location to major industrial p lan ts just as the buses were previously provided. The fore for the vanpool is subsidized down tO the monthly bus fare ($40.00). The average cost for an express bus ride was $9.00 pertrip The van substitution ride costs less than $1.25 per trip. (Fort Worth, Texas} 7. The largest single saver of money at Sunline Transit was the realigning of bus routes to modified pulse system. This .Uowed the agency to provide almost identical service, yet dramatic.Uy reduces the hours and miles, with one trunk line and a series of feeder routeS. (Thousand Palms, California) 8. KCATA has established a new service c.Ued Met.rof!ex, utilizing 12passenger vehicles to serve areas of relatively low transi t demand. These vehicles provide fixedroute service during peak hours and route deviation services during offpeak hours. They operate at a rate of 55 percent less than the rate of large bus operation expenses. {Kansas City, 9. In 1995, Suntran revised their entire route system to a more gridlike service. While retaining the same nwnber of service hours and miles, rid ership increased 4 percent, while forebox revenue increased 7.3 percent. (Albuquerque, New Mexico) 10. In more rutol areas, Commuttity Transit bas replaced traditional fJXedroute service with point deviation service, referred to as "checkpoint" service, using smaller vehicles. The operators are paid the same wage but there are still savings of $15,000 per year, per route, and the productivity over the previous paratransit service has tripled. (York, Pennsylvania) 11. In 1996, Connecticut Transit conducted tbe most extensive market research in its history, yielding significant information that will form the basis for new and improved services. For example, all bus routes cu rrendy converge in downtown Hartford and New Haven Their THEME IV service Planning, Marl
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    THEME IV Service Planning. Marl
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    Ltuons Lurntd In Tro.nslt Effkitncles. Gtnnotlon. and cost Rtductfon contracting for services Through competitive Bid One tranSit agency director in th e wcstem United States noted that the policy b eard there believes that government exists tO provide public service.s, not a job for life. Some trJJtsit a gencies seek competi tive bids for all of thei r service every few years, while others con tra ct out only a portion of their service, but still benefit from more effective negotiations with their bargaining units as a result. t. Chula Vista has contracted out both transit o perations and maintenance flUlctions for many years In order to increase competitio n and lower cos ts, the agency now purchases and retains ownersh i p of all buses. Contracts are re-bid every five years. Gen erally, t he contractOr changes each biddin g cycle (since their costs go up and new bidders can come in with l ower prices). Transit services cost only $2.55 per mile Services are currently provided by San Diego Transit, which was able to win t h e bid based on the establishment of a bus operator classificatio n called Community-Based Drivers who drive 35foot buses at a signi ficantly lower wage. (Chula Visu. Califorrua) 2 The Capital District Transit Authority contracts out service in suburban areas to companies t hat provide se rvi ce with smaller buses, at a savings of S8 per h ou r, or $3.5,000 per year. (Albany, New York) 3. Metn:>Link contncts with Amtrak tO operate commuter rail service t hat utilizes rwo man crews with a single conductOr and an engineer Twenry-five p ercent of all tickets are checked, and fare evasion has been derermined tO be less than I percent. The contract is p e rfor m anc e-..nd incentive-based, and bas been peer reviewed and found to be as efficient as it can be. (Los Angdes, Califomia) 4. T he Ciry of Indianapolis div erte d 2.5 percent of Metro's funding to itself. The ciry used t h at money to bid cut routes financed by those funds and operated by Metro. The process forced Metro's labor unio n and m anagemen t to work together to create an e conomical l y competitiv e co ntractual arrangement, allowing Metro t o save 200 jobs and the taxpayers 1.5 percent of operatio n s expenses, represen ting approxi m ately S 1.5 million dollars per year (Indianapolis, Indiana) 5 Napa Valley Transit contracts out all of it s services (including janito rial services), with the age n cy having only two permanent staff members. ATC/Vancom pro vides all day-to-day management drivers, clispateh, maintenance, training, information operators buswash c !SI fuclcrs, and rood supervision The City owns all e quipment and facilities, with the exception THEME IV Setvice Planning, Marketing, or Delivery Methods

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    THfMf IV Service Planning, Morl"tems have developed methods of attracting people to regular transit service who might otherwise use the far more expensive paratransit services. Such methods result in winning solutions for the tranSit agency, which reduces expenses and increases ridership, and for the passengers, who increase their mobility options through access to regular t ransit service. I. The Citrus Connection offers "Red Carpet" service on Saturdays. Fixed-route buses deviate up t o two blocks to pick up or drop off passengers who have special needs The primary benefn i s that it reduces the demand for para transit service on Saturdays. (Lakeland, Florida) 2. The combining of three paratransitsubscrip t ion routes into one community route resulted in savings of $40,000 per year at Sunline Transit The use of taxis for off-peak times for ADA service resulted in savings of up to $10,000 a year. (Thousand Palms, California)

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    Lessoru Learned In Transit EfficJendes. Revenue Gtnerotlon. and co s t Reduction 3. A
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    THEME IV Service Plannit1g. Marl
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    Le.ssoras In Traraslt Rtvtnut Ge.ratratlon, ana cost Rtduct!on 7. Fairfield/Suisun Transit structured a strategic fare policy that rewards frequent users The base cash fare was in creased, but tickets can be pu rchased in bulk at a discount. Revenue has increased, and ridership has increased between 10 and 21 percent each o f the last e i ght years. The use of tick ets ha.< decreased boarding time f or passengers, allowing the ogency to avoid increasing head ways or a dding buses to maintain schedul e (Fairfield, California) 8. Livermore/ Amador Valley Transit implemented a deep discount "Fare buster" program. The ogency raised thei r basic cash fare to $1.00, but offered a ten-ride ticket pockage for only S6.00, and a 40-ride punch pass for only $24 .00. Although it cost $2S,OOO to market the new fare media, the agency realized an $80,000 increse in the sale of posses in a year. An nual riders hip increased IS percent while far ebo x revenue increased 1 6 percen t, with only a very minor increase in service. (Livermore. California) 9. Contrary t o examples pro v ided above, the "T he T" eliminated any discounts fortokens "hic h are pur chased in lots of ten The y are n ow offe r ed s i mply as a conven i ence for passengers at the full adult fare. There have been no detrimen tal opera ti onal impacts, and revenue bas increased modestly, by approximately $8,000 per year {Fort Worth, Texas) 10. From Memorial Day to La bor Day a "friends ride f ree program is offered on all Sundays by the Metropolitan Transit System to boost system use o n the weakest day of riding. T his program is based upon a successful promotion over Thanksgiving and Christmas when it was found tha t ridersh i p was up an aggregate 14 percen t and fare revenue was up IS percent for those periods over the year ear lier. {San D iego, Cali fornia ) 11. Deep discount fares have increased revenue modely while help ing tO stabiliu ridership at Madison Metro. The number of remote sales outlets was increased from 75 to 125. {Madison, Wisconsin) 12. The Pinellas Suncoast Transit Authority abolished transfers and institurtd an pass. The base fare is $1.00 and the daily pass can be purchased on any bus for $2.50. Fareboxes can issue the passes which are then entered intO t he fare bo x every time the passenger boards. The f arebox return has increased from 16 to 24 percent and ridership has increased by approxi mately 6 pe r cent in the first six months of this fare method. Additional be nefits of t he aU day pass is that it eliminates tranSfer abuse and transfer theft, reduces disputes between bus operators and passeng ers, and speeds boarding. {St. Petersburg. Florida) U. COTA restructured fares i n M ay !996tO generate addition al revenue. The 13 percent in c rease in fares i s expected t o generate close to a million dollars over a one-year period The THEME IV Service r1cmni11g, MaYketing, or Delivery Methods

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    THfMf IV Service Planning, Marlceting, ov Del ivery Methods LlUons Lt.GrMd In tran$Jt Rtvtnwe Gmfratfon, ana Cost Reduction fare structure has been accepted by the publi c with very little negative publicity or com ment. The public recognizes the loss of federal oper.uing funds, as well as the loss of a levy effort on the ballot in 1995. (Columbus, Ohio) 14. Long Beach Transit increased its fares from $.75 to $ .90w ith no loss of ridership (neighbor ing Los Angeles MT A base fares are $1.35, enabling LBT to raise fares while still being reasonable in the eyes of passengers). The agency also tightened the enforcement of student fare collection by requiring students to show current IDs. Finally, the agency adopted a policy of achieving a 33 percent fare box return, requiring more discipline in its resource allocation process. (Long Beach, California) Key Lessons Learned in Theme IVservice Planning, Marketing, or Delivery Methods L 74keac/cserlcokwithin-Manyagencieshaverealizedsignificantsavingsby reducing service without losing ridership or revenue This has been acrornplished through close scrutiny of route performance, deadhead mileage, overtime expenses, and holi day ridership, and making adjustments accordingly. Adopting service guidelines have introduced more objective discipline into resource allocation decisions. The identifi cation and elimination of inefficient service can result in savings or provide the resources needed for new service. Transit agencies might wish to consider using consultants who can provide special expertise and perhaps a more objective analysis of existing services. 2 One size dcem't fit all-The day of the srandardized bus fleet is rapidly fading. Express buses might be replaced by van pools. Forty-foot buses might need to be replaced by larger articulated vehicles. Paratran.sit vans might be replaced by community route minibuses (which can also reduce paratran.sit expenses). Taxis might be the most appropriate way to serve areas of relatively low demand during the evening. In short, transit must try to meet different levels of demand with the appropriate level of supply. 3. FindyournichoYou can't be everythingtoe\oeryone. In most urban areas, transit has lost market share, even if ridership might be increasing slightly. A clear majority of

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    u.s.son $ uarneod In TrGn$it Etficltncits. Rtvtnut GtntrGtion. and Co-st Reduction peop l e prefer other modes of travel. Tr.msit mustfocus on who it serves best and design its services and marketing plans accordingly. True m arke ting starts by know ing what the realistic market for your service is. 4 Comperiticn is goodC learly, there are limitations to competitive contracting in many areas due to labo r proteCtion agreements However, an increasing nwnber of agen cies report positive experiences as a result of competive contracting Some agencies bid out their entire service on a regular basis, while others bid out only a portion Even bidding out only a portion of the service help s introduce some market rati(} nale in negotiating labor contracts with existing unions Service contracts t hat are perfonnance and incentive-based have produced good results. Savings of 20 to 50 percent are gener.illy reported. 5 Be boU-Consider a makeover. Some transit agencies have comp letely changed their method of providing service, either for all areas and all hours, or only for certain areas or off peak hours These methods not only reduce costs, but often resul t in more passengers and revenue Methods sueh as route deviation or point deviation can be more attracti v e than traditional fixed-route services and can help minimize paratransit services. Private employers are more likely to contribute to the cost of more flexible, eustomizedservice 6. Fares matter A passenger's method of payment can have significant impacts o n rider ship and re'>enue. Deep discounts for frequent users (balanced by higher base fares), employer subsidized travel and in t roductory offers sueh as "friends ride free dur ing slack periods have resulted in increased ridership and farebox revenue This demonstrates that there are many markets among transit users, and more flexible fare strategies can produce good results. 7. People like pa=--Many agencies offer passes that attract people durin g times of light ridership (such as w e ekends), or are desi gned around the unique nature of their customer base (e.g., four-day passes for tourists). The all-day pass bas proven to be highly successful not only in terms of ridership and revenue, but in terms of driver passenger relations, improved running time, and reduced transfer abuse. Some farebo xes have the capability of issuing such passes. If n ot, outlets for purchasing sueh passes should be maximized thro u ghout the service area. THEME IV Service Pla11ning, Marketing, 0)' Delivery Methods

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    THEME IV service Planning, MaYI
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    ltarntcf '" Ttansit ftficltncies,Rtvtnwt Generation, artd Cost Rtcfwetion THEME V Maximizing capital Budgets A !though federal operating assismnce Ius been cut, capiw dollars have generally been available liand are more politically palatable to those who question the level of support tran sit should receive. Strategic use of capitol funds can reduce operating costs while increasing productivity and sometimes resultS in profits. This theme shows how transit systems are utilizing capitol dollars as invtstments that allow them to maintain or improve seJVice levels. Vinually every tl".ltlsit agency takes advantage of utilizing the flexibility offered by the l'
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    THEME V Maximizing Capital suagets "/fweareto perceive ali theimplicahom ofthenily, ambir;
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    Lessons Learned In TrG:nfit Etfidenciel. Rtven"f' Ge"erotion, and Cost Reduction 10. Desk Top Publishing is used extensively at Sunline Transit for producing forms, ride guides, maps, passenger alerts, PowerPoint productions, etc. They rarely contract out any printed products since they con produce professional, full..:olor products with Desk Top. This has resulted in over S30,000 in annual savings. Sunline Transit estimates that it would cost twice what they pay their in house graphics professional to get all it ems prin ted t hrough outside vendors. (Thousand Palms, California) 11. KCATA installed signpost AVL technology in the 1980sthat provided schedule adherence information. Analysis of that information .Uowed KCATA to take 4 buses out of service whil e still m:Wnaining published beadways, producing an ann.W savings of approximately $350,000. (Kansas City, Missoun) 12. Long Beach Transit saves approximately $50,000 per yeu by using transfe r machines in sWled in their buses inStead of printed transfers manually distributed by bus operators The majority of the savings comes from reduced printing coStS. However, it also makes transfers muc h more secure The tr.msfer machines serve as revenue protection and cont.rol items as well. LBT recovered their coStS for the machines within 3 years and have used them for 12 years. (Long Beach, CA) 13. Metro Link Commuter Rail utilizes automated ticket vending machines at all of its stations. Operating and maintenance costs are less than 1 0 percent of fares collected, and they have been determined tO be very effective. Credit cards may be used, and ov e r 70 percent of all passengers purchase monthly posses. Daca from o:he ticket machines are analy
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    THEME V Maxitnizing capital Budgets usson.s Le.arltfd In rronsJt Effldtf'lcles, Revenue GeneratJon, and cost Redurtfon plann ing, dispatch, route and trip scheduling, and payroll, as well as Internet access for certai n employees and E mail for the majority of employees. The net operating savings is $402,000, or 2 perce nt of the operating budget. (Madison, Wisconsin) 16. Madison Metro Trail$ it installed a dosed-drcuit TV in the mon e y room, and one will be purchased for the service lane ro reduce losses due ro theft and ro promote safety of the employees. In addition, Silent Witness (a camera system) was installed on certain buses to help reduce problems tb.1t arise on buses. It could aid in lawsuits and the recovery of vandal ism costs, providing potential for large savings. (Madison, Wisconsin) 17. Community Transit utilizes an automatic lubricating device pl=d within each bus that hits all lube points on a bus on a continuous time d basis while it is in service. This device, and an extension of prev e ntive maintenance intervals from 3,000 to 6,000 miles, saves $2,500 per year per bus. {York, Pennsylvania) 18. The Jacksonville T rar1$pOrtation Authority utiliw automared passenger counters to provide more detailed analysis of boardings and deboardings which has allowed the agency to reduce service by approximately 5 percent while losing virtually no ridership. Qacksonville, Florida) 19. DART installed a G/Sched Optimizer in 1996 to set the exact number of runs per type they needed ro maintain their work rules. They were able ro realize about a 2 percent savings com pared with previous runs. They are able ro create approximately twenty run cuts in a day with excellent pay-to-platform ratios. (Dallas, Texas) 20. During the spring of 1995, CTA utilized Telecutter from IRD Tele ride ro cut all of its bus schedules. To det ermine the effectiveness of Telecutter, nine weekday routes were recut using Telecutter. There were no changes made to those routes, allowing a dean before and after comparison of pay hours saved. This program provided a savings of 47 .6 hours per day, or 1.67 percen t when compared to previous pay hours. (Chicago, Dlinois) 21. CCffA implemented a T ransit Operating System written in COBOL on a VAX/VMS based system. It is installed in two garages, and tracks around 400 bus operators. By having instant access to timekeeping reports, management was able to make adjustments in time to even the workload and reduce payroll by $4,000 every two weeks for an annual savings of $100,000peryear by reducing guarantee payments. (Columbus, Ohio)

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    22. Palm Tron installed the Tel eride Customer Information System in 1996. Within weeks of implementation, the system was operating well enough to allow Palm Tran to eliminate six temporary customer service operator positions Palm Tran belic'Ves the cost of acquiring the system will be returned within the first year of operation. (West Palm Beach, F lorida) Relatively Low-Tech solutions That save Labor andfor Parts Costs Advanced electronics are not the only te<:hnical solutions for reducing costS. Investments in brake lathes, metal benches, portable shelter cleaning equipment, and using waste oil for heating facilities are among the many examples of low tech solutions that are saving transit agencies money: 1. Sheboygan Transit acquired a Star brake lathe which turns the brake drums and the brake shoes as a matched pair. This operation allows for more even wear and longer brake life. The tru ck type brake lathe that was replaced would leave high spotS on the brake shoes which would lead to poor break-in wear, glazing, and shorter brake life By increasing the mean time berween brake jobs the number of brake jobs for the life cycle of the vehicle is reduced. This reduces labor associated with the brake overhaul process. The initial acquisi tion cost of the brake lathe was $45,000. With the agency paying only 10 percent of the capital cost, the brake lat h e has more than paid for iuelf in the savings noted above (Sheboygan, Wisconsin) 2. Tbe Metropolitan Bus Au t hority drilled a deep water well and installed a water pump at a cost of $15,780, primarily to provide water needed for bus washin g. Savings over prior costS of water service provided by the local utility is approximately $48,000 per year, or0.14 percent of the annual operating budg e t (Sanjuan, Puerto Rico) 3. R TC will replace existing concrete! wood bus stop benches with low maintenance metal grate benches in Reno. This will reduce the considerable amount of time and materials the agency incurs repainting benches marred with graffiti from youth gang activity at frequently targeted bus stops. (Reno Nevada) 4. Shelter window washing is a time consuming activity atR TC (up to three times weekly). Bus shelter windows are now cleaned with a portable power washing urtit, using recycled Water, with glazing spot-cleaned between power washing The power washing reduces the time necessary to keep the shelters clean, and t he recycled water ntinimizes glazing streaking (Reno, Nevada) THEME V Maximizing capital Bud9ets El

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    THEME V Maximizing Capital Budgets teuons LeCitltt.d fn Tran.slt Etfidtr1(5fs, Revenue evteratlon. (md Cost Reduction 5. Investing in RECARO seats has reduced workers' compensation ba<:kinjuriessignificantlyat Sunline Transit. (Thousand Palms, Caliromia} 6. Metro Link utilizes minihigh platfonns at its stations with bridge plateS for people in wheel chairs, eliminating the need for mechanic31lifts which require maintenance. (Los Angeles, California) 7. The introduction of high pressure, hot water, mobile wash teams has increased the effective ness of the station cleaning operation :n New York City Transit. With the expansion of the mobile wash vehicle lleet to SO, it will be possible to realign night station cleaning operations so that mobile wash teams substitute for cold water wash teams to reduce the overall cost of cleaning by $1,163,000. (New York, New York} 8. MUNI has had considerable problems with assaults on bus operators, resulting in injuries and expenses. Their maintenance personnel have designed and installed a full operator area enclosure to protect them from assaults on a demonstration basis on 60..foot articulated MAN buses. (San Fran cisco, California) 9. Community Transit uses waste oil for heating the maintenance building, thereby reducing the cost of heating, and eliminating the cost of disposing of such waste oil. (York, Pennsylvania} ACquiring Vehicles that Reduce the Cost of Operations and Maintenance Fleet standardization is not as popular as it once was. Transit agencies are benefitting from "rightSCOnsio) 2 Ben Franklin Transit is acquiring a 26-passenger megavan to convert passengers from two 15passenger vans into a single16-passenger van. The mega van is used to transport employ ees to a federal nuclear reservation. The cost of operating and maintaining the vehicle

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    Lessons L t arntd bt Transit Efrlcltndes. Rtvtnue Gtnuatlon. and Cost Rtductlon ($14,000) is complete! y reco vered from fares paid by t h e passengers, as well as the ca p ital replacement costs. The megav an is operated by one of t h e passengers, jus t as i n a v anpool. This also helps avoid the $150,000 an n u a l cost of operating an express bus. (Richland, w...shington) 3. Golden Gate Transit has purch a.ed new 45-foot buses with 57 seats versus the 39 seats in current bu..s, resul ting in annu al savings from a reduction of more than 200,000 vehicle miles and 6-7 bus operator positions without any increase in vehicle maintenance costs. (San Francisco, California) 4. SC RT' s fleet o f 95 CNG buses (comprisin g 47 peiUilt of the total bus fleet} have proven to be reliable, with lower maintenance costs than their diesel counterparts.ln a ddition the prioe of CNG (on an equivalent energy basis) is considerably less than that of diesel fuel, resulting in a savings in operating coSts of about $2 million per year. However t h e total additional capital coSt of acquiring the fleet and fueling facility was about $7 .S million more. Conse quently, it will take about four years to "break even" on the inveStment. (Sacramento, California) Facility Investment to Reduce operating costs New tran sit facilities can be extremely expensive, but t he savings to be realized f rom addin g or consolidatin g focilities can provide far greater retums in reduced operating expenses. Of course, the transit agency typically pays only the local share for these rnci.lities, thereby multip ly ing the COSt savings achieved. 1. Palm Tran operates i n on e o f the largest counties east of the Mississippi, and i s actively expanding its service.lt d etermined that building a new satellite operating facility would be COst effective. Although S1 million in local match.,..., required to build the SS million facility, the location saves the agency $800,000 per year in operating costs due t o reduced deadhead mileage, or S 16 million in current terms over t h e useful life of the facility. (Wes t Palm Beach, Florida} 2. T he KYD Yard is a join t -use facility for Metra Electric Discrict mainte nance-of-way and mechanical departments. located within the new $34.8 million facility are shops an d welfare facilities for mechanical, signal, communications, electrical, traek, buildings :and bridges, an d substation maintenance personnel; outdoor storage; office space; and a new fueling facility. Also located a t KYD Yard is a heavy car repair shop which rep laced a leased facility, a THEME V Maximizing Capital B"dgets

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    THEME V Maximizing Capital Budgets Lessons Leamed I n Tran.sk EtflcJendes, Revenwe and cost Redwctlon passenger tick et ing/ commwlicationscenter, and the district police department. In tOtal, operating and maintenance functions previowly performed a t six different locat ions were con solidated at this one facility, saving $1.4 million annually (2 percent of the overall budget). Additional savings come from improved inventory control, operational and management control and more efficient milization oflabo r and equipment. (Chicago, Illinois) 3. Sunline Trans.it's opening of the Indio-Clean Air Center has resulted in the second largest area of savings to the agency with the reduction of deadhead hours and milC$. This facility hoUSC$ 12 out of 40 buses which now begin and end their routes in their service areas. The same facility houses Sunline's paratrans.itservice and saves the agency over $60,000 a year by owning versus leasing. (Thousand Palms, California) 4 The consolidation of SEPT A management into one office building at 1234 Market Street will result in a S95 million reduction in operating expenses over the C$tUnated 30-year useful life of the building, due to eliminated rent payments. (Philadelphia, Pennsylvania) CGpitalization of operating EXpenses The majority of trans.it agencies are taking advantage of the flexibility now available in using capital funds for mainte nance ex p enses that have been operating expenses in the past. A few good ex amples are provided below. 1. LYNX uses urbanized area formula capital funds for the capital cost of contracting to cover the capital costs of paratransit,leasing administra tive and operating space, and purchasing associated capital and mainrenance equi p ment Total savings realized is $2.8 million annually (Or lan do, F lorida) 2. Tolls generated by local expressway authorit ies are used as soft ma tch for Sectio n 9 capital dollars, saving S2,054,500annuallyat LYNX. The downside of this technique is that the roll revenue creditS are not "real dollars; resulting in a total capital budget that is reduced by 10-20 p ercent. However, the savingsto a l ocal trans.it agency by no t havin g to fund t he local share for federal capitol dollars is substantial. The Metro-Dade Transit Agency has d one the same thing, saving $2.3 million in 1996. (Orlando 211d Miami, Florida) 3. The Metro-D a de Transit Agency also optimizes operating funds through t h e use of federal capital revenue for p l anning and capital maintenance activities, including $2.5 million of capitalized Metrobus, Metro rail, and Metro mover vehicle repairs (Miami, Florida)

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    Vehicle Maintenance Techniques That Extena the Ufe of vehicle systems ana Parts A number of systems id e n tified various bus compon e nts and maintenance practices tha t help reduce costs by extending the l ife of vehicle systems and pans, such as t-ransmiss io n re-tar ders> synthetic fuel, oil analysis, aluminum wheels, ere. L At Napa Valley Transit, engine, transmission fluid, and coo l ant analysis are perlormed peri odically o n all buses. The y perlonn opacity testing monthly on all buses, and penalize their contractor for any failed opacity tests. (Napa, California) 2. PENTRAN estimates that aluminum wheels on thirty-nine 1991 Flxible Metro buses will produce a projected annual cost savings of $70,000 as a result of extended brake life, elimination of heat-related tire damage, zero painting costs, and increased fuel eff iciency. (HamptOn, Virginia) 3. Recycling oil filters and uti lizing cleanable and reusable oil filters have proven to be less expensive than disposable oil filters in the long run at Connecticu t T ransit.(Hartford, Con necticut) 4. Transmission retarde,. have been used tO extend brake life and reduce the number of brake jobs at a savings of $76,445 per year at LYNX. (Orlando, Florida) 5. At LYNX, oil samples are taken every 3,000 miles and sent to Chicago to determine if fuel has slipped into the crankcase, which can ruin an engine within 48 hours of use, requiring a full engine rebuild. Estimated savings are $100,000 per year. (Orlando, Florida) 6. Community Transit uses a synthetic transmission fluid that doubles the interval betv,,en fluid changes. Transmission ret<>rders have doubled brake life. (York, Pennsylvania) THEME V Maximizing capital Budgets

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    THEME V Maximizing Capital Budgets Lrsso.u uarnN In 1ranslt Efficittlcits. Revenue Generation, ana cost Reduction Key Lessons Learned in Theme V-Maximizing capital Budgets 1. The evidence is mounting-Transit systems often agonize over the v.Jue of investing in certain tcclmologies. It is clear that a number of agencies have very positive repons on the benefits of certain technologies such as automated passenger counters aummated scheduling. and autom:tted telephone customer service. There are fewer, but still pos i rive, experiences with tr:UISfer machines, automated ticket vending machines, desktop publishing, automated v ehicle location systems and traffic signal pre-emption equip ment. More systems firmly maintain that alremative fuel vehicles are less expensive to operate and less expensive over the life cycle of the bus Many of these techno logies are applicable to paratransitaswell as transit. 2. Low tech counts, too-Ideas requicing less sophisticated solutions can come from any where in a transit agency, and all should be explored for their effectiveness. Employee sugg e stion awards can encourage the development of creative ideas centered around standard equipment. 3. Rightnu the jketandfacilities-]ust as agencies carefully review how they allocate service hours in their communities, they should also examine how they comprise their fleet an d allocate their major facilities. Smaller buses save fuel, while larger buses can provide extra capacity a t reduced costs. Train consists can be reduced in size to reduce electrical costS and general wear and tear, while providing a greater sense of seeurity for passengers. Similarly, transit agencies should carefully determine if there are more savings in consolidating or decentralizing facilities. 4. Capitali.zeoperatingexpemes ifd.sirabk-Capita! budget dollars can be used to payforthe capital costS associated with a contracted service. Soft mateh such as toll revenue credits can reduoelocal dollars needed for seeuringcapital grants. More transit mainte nance expenses, prev i ousl y paid for with local operating dollars, can now b e paid for with federal capitol grants. 5. Long live the thing-Transit agencies repon savings as a result of reducing the frequency of cenain maintenance procedures or e xtending the life of vehicle components. Examples include recycled oil filte.., synthetic lubricants, transmission retarde.., alumi n um wheels, and frequent oil analysis. Transit agencies would be well served to estab lish an electrOnic clearinghouse among their maintenance functions to share informa tion on what is working{and what is not).

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    Lessons LtGrnta in Transit ftficifndes, CtnerQtion. and cost RNwction THEME VI Improved Management of Internal Resources ""f1his theme is rather broad ond includes the activities transit agencies are taking to reduce ex l penses through better management of their organization, resources, and processes. As one t .ransit manager of a northeaster n t.ransit agency who had to enact considerable cost cutting has noted, the general media and business reo.ction was "ItS about time you stOpped begging and started managing." While that might be a little harsh, the fact of the matter is that transit agencies "'ere able to be a bit lax in years past. Managers mUSt now explore all opportunities to trim unnecessary expenses. The techniques described in this theme reflect a response to the need to question the starus quo. They deal with a more thorough ex=.ination of internal matters, versus opportunities for partnerships or cooperative ventures. Reorganlmtion/Redwctlon In Force Many transit agencies have no choice but to reduce the size oftheir staff in order to balance their budget. The general approach is to downsize administrative staff first. This avoids reducing actual service, and it also avoids possible penalties associated with contractual obligations when eliminat ing bargaining Wlit employees. Attrition and retirement provide opportunities for less painful staff reductions, but more proactive measures have also been successful. I. Sheboygan Transit modified position responsibilities upon the retirement of a maintenance supervisor. The existing evening supervisor..,,.. laterally tranSferred 10 maintenance supervi sor, and the safety and training officer was laterally transferred into the evening supe.rvisor position With only two operator classes a year, the safety and training officer position was eliminated saving $30,000 per year, or approximately 1.5 percent of the budget. There has been no apparent reduction in service quality or supervisory performance. (Sheboygan, Wisconsin) THEME VI Improve
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    THEME VI lmprovea Management Of I nternal UUOilSLeorned Jn rror1stt fftJ(lfndts. Revenue etneratlOfl, and C&St Reduction 2. Through aurition, COTA is shifting job responsibilities IX> do more with less. I t is projected that COT A will save$450,000 (or I percent of the mnual operating budget) in reduced staff cost. As administrative employees l eave, through retirement or to other job opportuni ties, each position is evaluated thoroughly IX> detennine if that position's responsibility can be spread out amongst existing staff people.lt is recognized that the downsizing of adminis trative st.'lff is !inUred. However, up IX> this point there has been no decrease in productivity. (Columbus, Ohio) 3. A reorganization effort that took three years was coordinated in-house by senior manage ment, Human Resoutces and the unions, resulting in an annual savings of $6.6 million at BART. Sixty-seven Administrative/Management positions were reduced, as well as 27 Line Service positions across all depanments T he Distr ict offered a severance package to 20 managers, which included t hree weeks pay for every year of service (contractual) and accrued vacation, sick leave, a nd holidays. The cost of the severance package totaled $2.1 million which was expended entirely during FY 1996. Beginning with FY 1996, 21\Dual sav ingstotal $6.6 million, or 2.5 percent of the proposed operating budget. These actions also enabled the District to streamline the management structure to support a movement tO wards flattening the organization. (Oakland, California) 4. The Metro+ Plus and fixed-route units were combined at Madison Metro, allowing the position of Metro+ Plus Operations Manager to be elinUnated. The Transit Store, which was within 10 blocks of the Administrative Offices was dosed, enabling the elimination of another position and the cost of rent for t h e facility. Five other positions were also elimi nated. These actions resulted in savings of $420,000 annually, or 2 percent of the budget (Madison, Wisconsin) 5. A major organizational review has aimed at stroamlining m21ta&ement and ensuring that the front-lin e employees have the tools, training, and suppon required to provide quality bus service at New York City Transit The agency has sigruficantly reduced the central staff devoted to budget, human resources, material control information systems, and labor rela tions. Division or borough level staff have also been reduced by 75 percent. These actions will save $5,318,000 annually. (Ne w York, New York) 6. New York City Transit is reorganizing the depot structure to create a separate route manage m ent urut to provide self-sufficient depots and centralize the road control function Depot staff will ensure that buses and operators are fit for service; route managers will focus on reliability. This will generate a savings of $2,141,000 annually. (New York, New York)

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    Lessons Ltarntc:lln rronslt: Efflcltnclts. Revenue Generation. onc:l cost Reduction 7. As part of Dade County government, MDTA participa te d in an early retirement program which wos used by 125 MDTA employees. The county offered to pay pmgr.un participants $300 per month or full payment of the County's cost of single health coverage in a County approved group health plan (medical and dental) for a minimum of eight years and pay men t of 100 percent of the emp loyees' sick leave balance as well as other leave balances. MDT A was encouraged by the County to also delay refilling budgeted positions as l ong as possible to generate offsetting savings for leave payouts unless i t resulted in clear service disruptions The use o f overtime and temporary agency emp loyees was also prohibited. (Miami, Florida) 8. METRO staff, together with consultants, reviewed operational support functions over a two-year time period and eliminated204 salaried positions, or approximately 17 percent of its total salaried work force. This was achieved without a material negative impact on any of METRO's pmgrams. Through careful analysis of METRO's needs versus resources, posi tion eliminat i ons involved recombining work previously dispersed among several positions to eliminate vacant: positions, a sizable early reti remen t offer to free some positions for elimination {accompanied by the recombining of management functions previously dis persed among multiple positions) and to allow replacement for other positions at lowe r salaries, and some layoffs of persons whose functions were no longer required by the size or n ature of METRO's programs. Th is effort saved approximately $10.5 million per year, or 4.5 percent of the operating budget. (Houston, Texas) 9. SEPTA has targeted 510 administrative positions for elimina t ion in FY 1997. Most of this reduction will be achieved through retirements, including an early retirement package of fered to employees. The consolidation of SEPTA management into one office building has also resulted in administrative savings. There were expenses involved in thi s downsizing program, including additiona l pension coSts, incentive stipends offered to employees not eligible for early retirement, actuary costs unemploymen t costs, and out-placement COSts, totaling $3.5 million. However, the agency anticipates saving $25 million in 1997, or 3.5 percent of its annual operating budget. (Philadelphia, Pennsylvania) 10 Attrition-based headcount reductions totaling more than 700 positions were conceived and initiated in 1990 and continued through 1995 in order to slow the rate of operating coSt grov.'th at Long Island Rail Road. Avoidance oflayoffs and/ or furloughs was desirable to avert incurring multi-year, contractually-defmed payments (of up to 60 percent of pay for up to five years) to employees whose jobs v.ere eliminated. This in -house technique resulted in significant reductions to payroll and ben efit expenses. Allowing natural artrition to occur THEME VI Improved Management of Internal Resources

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    THEME VI Improved Management of Jntental Resources Wi.SOIULt41rned In rranJit ff{ldmclts, Revenue and Cost Reduction to downs.iz.ingi$ not an innovative technique. However, it does minimize the impact o n individuals as the process transpires. Qamaica, New York) contractjOutsource or Retain FUnctions Each tran sit system needs co examine its >Std conduct a cost benefit .analysis of whether it is bucside source, if possible. I 2. J. 4. s. 6. 7. 8. Sponran olllSOurc:es mapping, scheduling, and demographic functions to the regional MPO through an interlocalagreement They als<> <>ut.source their plannerto the MPO and pay f<>r services w ith capital funds. (Shreveport, Louisiana) The Regional T ransp<>rtation Commission controccs out its money counting process to Ar mored Car Carrier. This saves approximately $20,000 annually in sWf time. (Reno, Nevada) Metro Area Transit ret.ined its money counting functions, but reduced its costs by hiring pan-time retirees to penorm this iunction.(Omaha, Nebraska) New York City Transit outsoun:es the audit function and reduces cycle counts in order to save $250,000 annually and reduce five quota positions. (New York, New York) NYCT also oucsources the facility manageme nt and maintenance functions in order tore duce total costS by \()percent {$343,000 annually). (New York, New York) One of the private carriers that had provided <<>mmuoer rail servic e under Orated undercoating into the scope of programmatic maintenance for a savings of S931,000 annually. (New York, New York) Sportran contracted out
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    Lessons Learned in Transit Efficiellcies, Revenue Cel'tftation, and Co!t ltedwctlon Improved Methods of Procurement Purchasing parts, consuma bles, and services constitutes the second highest expense for transi t agencies, after labor. The prices paid for these items can be reduced through alternative methods of procurement. Agencies often benefit from investing in consultantS with special expertise. L Sheboygan Transit broadened t he amount of competition in the acquisition of bus pam. To speed up the process they developed a method of obtaining fax quota t ions from various vendors for bus pam. The agency believes i t saved as much as $20,000, or a little less than 1 percent of the agency budget, on bus parts as a result of this process. (Sheboygan, Wisconsin) 2 Commercial Insurance (General, Property, Crime and Auto) costS were reduced by over $200, 000 per year by following a new two-tiered procurement procedure tha t combines the best features of low bid and negotiation methods. The first phase involves the evaluation of brokers' proposals resulting in the selection of three brokers to provide services to Pace. Pace works with the three brokers to develop specifications for each specific type of insur ance required. Unlike the open bidding approach, in which each broker is one of many to be considered Pace's approach encourages brokers to devote the time necessary to develop the best possible specifications and obtain the best possible price. After obtaining input from the three brokers, a base bid specification is prepared and all t h ree brokers are required to submit a price for the base bid specification. They are also allowed to propose alternative terms and conditions. The knowledge that the competition is limited to t hre e identified brokers encourages more intense competition than would normally be found for a relatively smal l account such as Pace. Coverage has improved as well. The auto coverage limit has been increased from $1 million t o $2 million, and the selfinsured retention for the general l iabi lity p olicy has been reduced from $10,000 to zero. All rates are fixed for three years. (Arlington HeightS, Dlinois) 3. At Connecticut Transit, a broker was selected jointly by management and the union to renew employee benefit coverages. By analyzing benefits, bidding coverages, and negotiating rateS with various providers, the broker has saved the agency more than $700,000 with no dimi nutio n of benefitS. Best of all, the broker's fee is paid by the carriers (Hartford, Connecticut) 4. LYNX is l=ing a Greyhound garage and 5-acrc site for $77,250 per year instead of buying a comparable property and facility for $1.2 million. If used for 5 years, it will save $813,750. A similar 5.85-acre site that was a forme r trucking maintenance business also came available with a capacity o f80 buses. A fiveyear lease and improvementS will cost LYNX $2. 4 million versus $10 million for a new site, saving $7,600,000 over five years. (Orlando, Florida) THEME VI Improved Management of Internal Resources

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    THfMf VI Improved Management of '"ternal Resources Ltssons ltGrnf'd In Transit Eftfdettclts Rtvtnue Ctntrotion and Cost Rtductfon 5. The Miami Valley Reg ional Tr.msit Authority consolidated medical insurnnce coverage with one carrier and co mpetitively bid when renegotiating the labor agreement. An insurance eonsultMt was hired who worked lim with management. The oonsultant structured an ideal program tO win premium reductions, then solicited and evaluated bids. The oonsult ant then participated in join t meetings of management and labor where presentations wer e made by insurance companies. The oonsultant's fee was $10,000, but the authority realized a savings of over $500,000 annually. (Daytan, Ohio) 6. The Metropolitan Bus Authority decided to purchase, rather than lease, tires for its bus fleet. A lease contract was canceled and tires were acquired by purchase or were retreaded. The agen cy spent $6,637 to purchase a new tire changing machine, but the chang e resulted in a savings of approximately $250,000 annually, or 0. 8 4 p ercent of the annual budget. (San Juan, Puerto Rico) 7 New Jersey Transit has utilized fuel hedging t echniques for a number of years. By using oil futures to lock in at a fixed price, the agency has been able to stabilize fuel costs. The agency has the o p tio n, dep ending on market conditions, of locki ng in prices or floating with the market. Between FY 1990 and FY 1996, diesel fuel cost s fo r the agency decreased by ap proximately $2 million, o r 1 0 percent, despite an increase in service levels and gallons of fuel usedduringthispe riod. (Newark, N e w Jersey) 8 MART A enters into an nual agreements with commodity bro kers by competitive bid to "hedge" the price of diesel fuel. MART A is currently using a "fixed-for-floating swap" in which a hedge price is negotiated (fixed) and each month the hedge price is compared with the average Atlanta cost for diesel (floating}. If the average cost exceeds the hedge price, the bro k er pays MART A the difference for the number of gallons of diesel in the contraCt for that month (which was detertnined based on MARTA's budget for diesel). The reverse occurs if the average cost is less than the hedge price F uel hedge saving have totale d $2,276,611 since 1987. Through ninemonthsofFY 1996, MARTA saved $276J56. MARTA claims other utilities can also be hedged. (Atlanta, Georgia) 9. Fuel c osts soared from $0.72 per gallon in 1991 t o $1.09 per gallon by mid-fiscal yeMand continued to fluCtuate thereafter at PAT. Diesel fuel swaps are i mp lemen ted completely using in-house staff who arrange bidders, perform analyses, set pricing parameters, and stage the bid process. Only 20 ho urs o f staff time arc needed tO complete the arrangemen t PAT has experienced budget reduCtions of $0.12 per g allon since FY 1991 and has re:Uized a n et b enefit of S350,000overthis period. (Pittsburgh, Pennsylvania)

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    Lessons Learned In Tran s it Effl>atts of electric power from the Western Are a Power Administration Once the allocation was received, a one-year effort was required t o pass legislation requiring the local utility to deliver power from Federal Marketing Power Agencies to multiple points while continuing to treat the power as t hough de l ivered to a s i ngle meter. This resulted in annual savings of $1.2 million, or a bou t 0.6 percent of the total operating budget With the legislation in place, BART applied for an d received a t emporary allocation of 55 megawattS from Western and has e n tered into a 20-year contract with Bonneville Power Administra t ion, another Federal Marketing Power Agency, UJ supp l y mOSt o f BAKf' s power needs. This will result in annual s avings of$5 to $7 million (2.5 to 3.3 percent o f the annual operating budget). (Oakland, California) 14. San Diego Transit financed t he purchase of 130 new coaches by using Certificates of Panici p ation, which help the agency make necessary major purchases, beat the cost of inflation and reduce m aintenance expenses on an aging bus fleet. (San Diego, California) 15. Du rham Are a Regional Transit purchases tires with cap ital dollars, th en sells virgin carcasses to t rucking co m panies, tire recappers, etc., at double the cost of t he local share forthe tire when it was purchase d new. New tires are alwoys on buses, and t he agency saves by making no local contrib ution to tire purchases. (Durham, North Carolina) THEME VI Improved Management of Internal Resources

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    THEME VI Improved Management of Internal Resources Lesson.s teornH In TrDnslt EffJdtncles. Revenue Ge'ntration. and Cost Reduction Managing Major EXpenses Certain e> i n ex cess of S 2 million per year in electric bil ls, plus another $500,000 in natural gas bills. The demand side management concentrated on replacing standard fluorescent lamps and mag netic ballasts with energy-efficient tubes and electronic ballasts. The ageney has also installed computerized building control systems in bus gorages, major tenninals, and other facilities to operate the lights, heating, ventilating, and air condi t ioning systems. On the supply side of

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    Lessons Lear ned frl Transit ffic.l tncies Rtvenue Ctnt r auon. ana Cost Reduction management, negotiat i ons with the electric utilit ies resulted in a three-year contract which reduces the cost of traction power by about $500,000 per year. Over the coune o f three years, a capital expenditure o f S5 milli on has produced S2.5 million per year in operating savings. (Newark, New Jeney) 5. PAT's hourly employees are required to fumish a certificate from an attending physician for illnesses of two or more working days in order to be compensated for absences due to illness. An inordin ate amoun t of requests "'ere being completed by the same physician. A decision was made to conduct. an i ntensive review of all sic k pay requests from the most recent two-year period. A special audit! review was pedormed by in -bouse staff. As a result of the special audit, 10 percent of all s ick pay requests are now reviewed quarter l y on a continuing basis. Knowing that sick leave requestS are now subject to audit, employees' use of sick leave has been affected. PAT had averaged 4,500 requests annually prior to review and i s averaging approximately 3,600 requ ests post review. This effort i s estimated to save $280,000 per year. (Pittsburgh, Pennsylvania) 6 The Region al T ransporution Commission pedormed a baseline marketing study to mea sure the public image of the agency and gain a better understanding o f t h e types of indi viduals who used the public transit service. The information from that study helped deter mine where the agency's advertising/ promotion efforts and funds were best placed, resulting in a net savings in advertising dollm of approximately $45 ,000 a year. Remaining mar keting dollars were shifted to more effective and less costly promot ional/ marketing effons. (Reno, Nevada) 7. CDTA now self insures itself for worken' compensation and has established a Retrospective Plan. The carrier now does claims management and provides excess coverage. Claims are now significantly lower than former premiums, and the agency i s saving approximately $100,000 annually. (Albany, New York) 8 -Sunline assumes the risk of liability claims at the $125,000 selfinsured retention level. This has con tribu ted, in conjunction with in-bouse claims adjusting and safe driving records bolstered by train ing, between $50,000 and 575,000 a year to savings in insurance premium deposits. Sunline challenges every claim they feel is illegitimate (rather than senling), and their hard stance on these matte r s has discouraged further claims from being f ile d (Thousand Palms, Califomia) 9 BART is self-insured for both industrial and non -industrial disabiliry (first six months) claims. A Third Party AdminiStrator (TPA) is contracted to provide day-to-day case management THEME VI hnprovea Management Of Internal Resources

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    THEME VI Improved Management of IMtcrnal Resouras L&ons Lt41rttd In Tronslt [ffJ c knclts. Rtvtnut Gtntrotfon. and cost Rtductiott and claims administration services. Directed by the Human Resources Department, the TPA is effective in driving the claims process t o ensure that employees are provided the benefits for which they are eligible while also monitoring cOSts and rerum -to-work abilities. With the award of a contract ro a new TPA in April1995, all earlier "tail claims'' (previously handled by three other administrators) were forwarded to the n ew TPA which has resulted in an increase in case closures and daim settlementS. In addition the utilization of a Preferred Provider Network reduces treatment cOSts through the discount agreementS negotiated with the treaters. (Oakland, California) 10. A Temporary Modified Assigrunent Program enables BART's recovering workers or those with minor injuries co rerum to modified or alternate assignments (or a period of up to 90 days. This program reduces overall costs by minimiz.ing the need for replacement payroll costs while also paying the disabled wor ker temporary disabi l i t y benefits The program crear.esa "win-win" as the employee' s recuperation is often enhanced by the ability to rerum to an active dury sra rus, the employee retums to a regular p a y statuS, and District work is aocomplished rather than being delayed as a result of the absence. The co m bined efforts on the Disability Programs Management efforts have saved the District approximately $1 mil lion per year in costs that would have otherwise been allocated ro Workers Compensation daims payment and/ or reserve funding. (Oakland, California) 11. In !99!, Long Beach T ransit's expenses for liability were $1.2 million and $1.3 million f or workers' compensat>on (out of a total budget of S26 million) In 1996, LBT's expenses for liability have been reduced to Sl million and $800,000 for workers' compensation (out of a t otal budget of $36 million). This $700,000 savings is attributed to tracking all ris k com closel y and instituting light duty assigrunents for those o n wo r kers' comp e nsation w hile emphasizing training, accident investigation, and aggressively challenging false claims. This requires someone dedicated to tracking these manen, staying on top of attorney's cOstS, and making good evaluations. (Long Beach, California) 12. Metro Area Transit has experienced a reduction in absenteeism f rom 12 to 8 percent This is attributed to two initiatives. First the agency has mandarory meetings (held at three different t inies i n one day) every quarter for every employe e The importance of safety is stressed (ovenin1e is not paid for safetyrelated meetings) and the general manager gets the opportu nity to share informat i on and ideas wi t h his workforce. One such idea is the iniportance of good attendance. Second, MAT Stations a doctor at the agency offices two half -
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    Le.ssons Learned in Transit Efficiendts, Rtvtnue GtntrGtlon, and con Reduction 13. Accidents were costing Metro Area Transit $400,000 a year. That cost has been reduced by $374,000 a to a level of S26,000 annually. They anribute this tO challenging every questionable claim against the agency, and by stressing the im portance of safety at their quarter ly meetings w i th all employees. Their safety record has also allowed them tO reduce their insurance costs from S350,000 to $62,000 annually (for an annual savings of S288,000). (Omaha, Nebraska) 14. Various techniques have been implemented at the Maryland Mass Transit Administration to reduce electrical consumption, including : (I) operating Metro rail car v ehicles in coasting mode, (2) shutting down various Metro rail car systems during yard storage, and (3) assuring shop lighting is turned off during hours when not in use. Implementation of these cost saving items i s estimated to hav e resulted in over $500,000 in a nnual savings. (Baltimore, Maryland) 15. Sound management investmen t policies and on oversubscription of the Bus Operator Pen sion Fund has enabled Golden Gate Transit to negotiate a reduction in its contribution to the Bus Operator Pension Fund, saving $3.5 million over a three-year period. (San Rafael, California) 16. With joint union and management efforts, workers' compensation payouts have been re duced at SEPTA from $26 million in FY 1995to $23 million i n FY 1996, with a further reduction to $21 million in the FY 1997 budget The Authority has achieved savings by reducing employee l ost time injwies, and hiring a third party administrator to handle medical bills for employees on workers' compensation. H owever, the cornerstone of the program invol ves providing temporary duty jobs to employees who ar e injured and establishing a proactive approach in returning employees to their original permanent positions {Philadelphia, Pennsylvania) 17. Palm T ran instituted safety programs four years ago and no t iced a substantial decrease in liability experience pined against premium. The agency converted its workers' compensation to a Retro Plan which has the capability of saving up to 80 percent on workers' compensa tion premiums. In the f.m quarter of 1996, Palm T ran ran at 1.1 percent experience against premium. The savings are substantial and could reach $500,000 per year. (\Vest Palm Beach, Florida) 18. After automobile insurance premiums skyrocketed to S I million in 1986, RTC established a Self-Insured Retention (SIR) program in which RTC pays any loss up to $100,000 and THEM VI Improved Management of Internal Resources

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    THEME VI Improved Management of Internal Resources LessoN in Tr-ansit E'f'tfdendes. Revenue Genff'atlon. and Cost Reduction contracts for insurance coverage above that amount up to $10 million. RTCsimultaneously initiated a Safety Program to update driver trainins. and implemented two award programs for safe driving, including monetary bonuses. RTC also took a strong stance against poten tially false accident claims, going to court even iftbeir expenses exceeded what they could senle for. Tocal claims and paid losses have declined, and the agency has saved $3.7 million dollars over 10 years. In comparison to 1988, the premium has decreased by $395,169. (Reno, Nevada) Reengineerlng Internal Processes Al t hough details were often sketchy, some transit agencies reported that they were re-thinking various processes to determine how they could be accomplished less expensively. Reengineering normally refers to radical changes in the way an enterprise accomplishes its mission. The types of changes reported were more in line with total quality management reviews, but they do demon strate tramit's growing ability to question how i t is doing business. !. At Long Island Rail Road, organizational analysis and process re-engineering are two tech niques used to supplement tne attrition based staff reductions. It has been used to review administrative functions for efficiency opportunities including operating department func tions (track installation, motor rebuilds) and contract reviews. Oamaica, New York) 2. SCAT employs the concept of multi tasking through designating one bus operator position as a "Utility Bus Opera t or" who is responsibl e for bus benches, shelters, bus stop signs, and other miscellaneous duties This position also fills in for driving assignments when needed. (Sarasota, Florida) 3. Bus maintenance interVals have been modified at the Maryland Moss Transit Administration. Scheduled maintenance intervals hav e been eXtended from 6,000 to 9,000 miles with a n estimated annual cost savings of approximately $2.5 million. This chang e bas been in effect for a yeu and little if any increase in other maintenance costs have been noted as a r esult. (Baltimore, Matyland) 4. At Madison Metro Transit, one fulltime Sales Outlet Coordinator position was replaced by a part-time cashier in 1991, by using UPS and mail services to distribute tickets and passes to and from sales outlets in 1991 and computerizing the process of issuing tickets and passes. Thistechniquesaves$12,000annually (Madison, Wisconsin)

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    LtfSOns Lt41rntd In Tra nsit rfickl!cltf, Revenue Generation. tlrld Cost Reduction 5. At New York City Transit, the midnight shift is responsible fora vety low proportion of toto! issues from storerooms. By pre-issuing commonly-used materials, the Material Division can close the 33 storerooms located in bus depots and car maintenance shops on the midnight tour. (New York, New York) 6. New York City Transit raised the petty cash limit to $500 and allowed t he use of credit cards to purchase small items. This reduced the procurement quota by 10 positions at a savings of over $600,000annually. (New York, New York) 7. Sport ran (Shreveport, Louisiana) now relies more heavily on contacts with other transit systems instead of consultants to fmd solutions to problems. The Center for Urban TransponationResearch, through funding from the Florida Department of Transportation, ".;n tie all transit systems in Florida electronically to allow the 20 agencies to share e-mail. This more flexible form of communication will provide more effective communication among the agencies to obtain assistance on problems from each other, and share information o n successes (and failures) among transit systems within the state. 8. By utili zing a Total Quality Management process, Pierce Transit has reduced a rebuild process from s ix weeks and $928 per unit to no wait time and $357 per unit. The agency also aggressivcly pursued """""ties on vehicles as ""11 as components, saving more than S200,000. (Tacoma, Washington) 9. A Currency Unfo lder Incentive Program was designed by PAT to reduce the cycle time for depositing farebox receipts and to recognize ex
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    THEME VI Improved Management of Internal Resources Ltuons Ltarntd fn Transit Efflcitndt.S, Gtrteration, and Cort Reduction time from farebox to the bank, improved attendance, and a reduetion in departmental over time. (Pittsburgh, Pennsyh'
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    Lessons Learned I n Transit EftltlencJes, Revenue c;e.neratJon, and Cost ReducVon Key Lesso11s Lear11ed i11 Theme VI-Improved Management of Internal Resources L 'litke painfol opJJ07tlmities-Normal attrition and retirements provide opportunities to reconsider responsibilities and assignmelltsamong remaining staff. Early retirement incentive plans are another means of quietly reducing adJninistra. tive coSts. Thes< types of actions should be considered on a regular basis to help avoid more drastic changes that might be needed at a later time. 2 Use outside help if appropriate-Having expert advise from organiz.arionalspecialists can provide objective recommendations on highly sprise-The purchaso o f fuel is a major part of transit agencies' bud gets. Fue l hedging can stabilize t h e price of fuel and help avoid unexpected ex penses in the m iddle of a budget year. 6. Follow the While there are opportunities for savings throughout a transit agency, it makes sense tO look at the areas of greatest ex pens< to realize the greatest savings. Liability insurance, fuel, workers' compensation, health insurance, absenteeism, and energy management serve as primaty examples. It often makes good sense tO hire expertS or to increas< in-house capabilities in such areas. The more you know about the company you purchase from, the mor e apt you are to be able to work with them in acquiring the bestdeol. THEME VI lmprovea Management of Internal Resources

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    THEME VI Improved Management of Internal Resources Lenons Ltarnea in Transit EfflcJencies. Revtnwe Generation, and cost Rtd'uctlon 7 Assume lhemponsibility-Many if not most, transit agencies have selfinsur anc e programs. This causes them to be accountable for every claim, but also pro vides the opportunity to save money if their elaims are less than the amount they budgeted for self-insurance. This great accountability creates an environment of wantingm minimize risks and maximize rew:uds. This has resulted in more emphasis on safety, fewer accidents and absences and redued costs. Transit agencies are also well served by challenging all questionable claims against them, regardless of the possibility of settling for payments le.s than the cost of defending againSt the claim. 8. Reduce absenteeism-A number of transit systems have had success using third party .&ministrators to provide day "tO-day case management and claims administration ser vices. Light duty or temporary modified assignments discourage those who migh t abuse workm' compensation benefitS, while providing valuable serviewthe agency. Auditing sick pay requests on a random basis has proven effeerive in reducing the use of sick leave. Having doetors or nurses perform physicals on--sire has also proven succes<;ful in reducing obsen((:S and keeping employees healthier.

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    LtSSOns Lt'Mrt< In Trc:tn.slt El'fiCitnCies, Rtvtnue Gtntr'atlon ond cost Rtductlon Conclusions Tr.msit agencies clearly have many experiences to share that can help their counterpartS reduce costs or generate new revenues, without resorting to raising fares or cutting The bottom line results are rypieall y new revenue or savings of betWeen 5-10 percetlt of an operating budget (though it could be considerabl y more). While this does not completely solve transit agen cies' funding problems, it oertainly helpstbe bottom line and avoids passing oosts on to pasoongers. It is very difficult to try to condense this report into a few words of wisdom. It was difficult enough to condense all the ideas submitted by transit agencies into six different themes. However, there is at least one thing that is striking in its irony. The term "Mass Transit" conveys an image of a singular type of one-siu-fits-all servioe, which might have been an appropriate term more than fifty years ago when lan d uoo and public transportation were more closely aligned with each other A monolithic service provider could serve the needs of most people living in more compact communities. Given today's urban spraw l, there is no hope that a single type of transit service provided by an insular agency can succeed. The automobile has clearly spoiled us, but can also teach us what people want. People crave flexibility and convenienoe. Their needs frequently change. Classical mass tranSit is only applicable in certain markets. Transit agencies now need to focus on providing options, staying in tune with changing market needs, and providing service supply that is consistent with demand. As Rob Gregg, Planning Director for LYNX in Orlando, has said, "Mass Transit has to change its focus to Mass Customization." There needs to be more emphasis on personalizing transit's interactions with passengers and the communities it serves. Many of the rypes of actions t h at have resulted in increased revenue or COst savings are a r esult of customiud agreements with a host of new partners, more flexible service and fares, or creative cooperative agreementS with public and private entities. Many of these activitio-s succeed on the basis of working hard tO establish relationships with as many different entities as possible. Fortu nately, these relationships do not only result in cost-saving or revenue-geoenting opportunities. They also help ro build broader support for public transit in the community. They create more energy from more sources to promote tnnsit options.

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    T r.mit agencies that re having ping these types of relationships are ta!Vng >dvantage of the nawrnllinkages t hat exist between themselves and other ent ities. America is a nation characterized by mobility. After food, shelter clothing, and a job, mobility might be the next most important necessity. One-sixth of the nation's economy is based on t ransport>tion functions. It should be no wonder that chere are linkages to explore and relationships to build. Transit systems can leverage their capitol, their service, their ability ro link people"' places, and their goodwill to new opportuni ties [() reduce costs or generac.e rJ'$ to max.imizc positive energy from t:Very one of their employee< and as many membe"' of the comrnu nity as possible. Somet.imes all they need to do is ask. The more transit system show they care about others, the more othe"' will show they care bout the transit SJ'$tem. The more others care about the transit sysrem in a community, the greater its chances of securing friends, partners, and funds. The pressure on transit systems' budgets is not expected c o end anytime soon. AU transic systems must corulnueto bQme more sdfrtliant. Thi$ L$ conslstenc with the broader n2tlonal theme,: of grea ter individuo.l responsibility, welfare relonn and devolution of autho rity from federal to mt>re local jurisdictions. Just as in.lividuo.ls will need to improve thei r skills, so are t>=sit agencies being asked to be more creative and self-reliant. This report hopes to contribute t oward the accomplish ment of these goo.ls.

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    Lt.ssons Ltamtd In Tronsit EfficlencJts, lttvenwe Gentrotlon and cost ltedwctlon Appendix A survey

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    l.lSSOI'tS LtGrntd In Transit Efficlencfts Revttlut Gtntfiltlon, and cost CENTER FOI\ UI\BAN TRANSPORTATION RESEARCH Date. 1996 Oltec:tor Tranlit Agency Ad
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    Lesklns in Tronslt Efficitndes, Rtven.ut Generation, ana Cost Rtductfon N a tional Transit Efficiencies Survey Center for Urban Transportation Rosoarch (CUTR) At Cll\l't o! lhe WOfk p.'OOI'8m tor h National. Urt.an Trn slt ll'l$tii!At (NU'TI), ...mlc:h i$. fune eac:h method Please make copies of this bm and distri bute to Mdl department V'lat you WiSh to PJitie:ipate In 11\e s urvey. P#eue UN following quutloM when ductjb}ng each of tiN nv. ttchnlqu.s: 1 WNt ltdlnique has your agency UMd that has saved rooney or generated new 2. 'IJhat agency initia'tivo, QOI'Qm, or problem PfOmpted 1tle implemetltatio n Of !:he technilque? 3. Whit was the pedod or time between concept deftnitlon aM ectua1 implementation? (e.g . Ina thM a yoar, -yeor>, ete.) 4. Waa the tecllniqut In-house, \lr1tt\ c:ontrec:ted suppoc1, otttlrough a paltr'lef'Shlp? &. Wht are tho implementation costs ? (e g .. opetali\g. eepltal. 6. 'M'Iat are the ne'topetational imi*U (e. g dOIIats saved Of genet'lted) In abSolute terms and -.rptQIOd IS peteentage of 'fOUl O'llerall budget? 7. Why Is 1t1e technique a &UCCe&$ !!or your department/agtrq'? a Does the tedrique aWl aerou l'h)dot: or i $ It mo6e speei!\e? PloH complete the fOllowing lfffonnetJon: ________________________________________________ Heme of depal'hent UN'I'Y'-' --------------------------------------S)'Mim tu {Mimber OfWI'ItcfM):'-------------------------------------------Addf9u ( ltr'Mt. dty, ateW, :dCI):'--------------------------Name end of eontlet p.e.-..on for thl ------------------------Pte ... meil b.J;, 21.1tKto: Joel voar.kl. o.,My Dl...etor fOf TNI'III!t Olflt8t fOf Urt:t.n T,.n1pottlltlon ReMarch of Unlv.,.hy ol South F lortda .U02 E. ro.rMr CUT 100 Tampa, fl. 33i2o-83T& PhoM 113-174-9$47, Fax 11 34744118 E-mail

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    U!$SOPIS t.e'1r"ed irl Transit Efriclendes, Revenue Genuadon and cost Redwctlon

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    Ltssont in rrontlt Efficimclts. R tvtnut Ctnuation. ona Cost Rtductlon Appendix B survey Participants City of Albuquerque Transit and Parking Department (Albuquerque, NM) John Parker, Service Development Manager Phn. (505) 764-{)105 Fox (505) 764-{)146 AnnArborTransportationAuthority(AnnArbor,MI) Gregory E Cook, Executive Director Phn. (313) 973-6500 FaJ< (313) 973-6338 Bay Area Rapid Transit (Oakland, CA) Roy Nakadegawa, Director, District 3 Phn. (510) 464-6000 Ben Franklin Transit Ed Frosc!David Rodrick Allen R. Walch, Adminiscracive Services Manager Phn. (509) 735-4131 FaJ< (509) 735 Broward County Division of Mass Transit (Pompano Beach, Fl.} Lorraine Smith, Transit Manager, Administration Phn (954) 357-8300 Fax (954) 357 The BUS-City and County of Honolulu (Honolulu, HI) Public Transit Authority Phn (808) 523-4445 Fax (808) 596-2380

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    LessOf'ls Ltamed 1ft Traruft ffficfendes, Revenue Generation, and cost Reductfon Capital Area Transportation Authority (Lansing, MI) John Kirk, Mainoonance Supervisor Phn. (517) 394-1100 Fox (517) 594-3733 Capital District Tr:111sp0rtation Authority (Albany, NY) Jack Riley, D i rector of P l anning and Development Phn. (518) 482-1125 Fax {518}482-9039 Cen t ral New York Regional Tr:111sp0rtation Authority {Syracuse, NY) Joe Calabrese, Executive Director Phn. (315)442-3300 Fax (315} 442-3337 Central Ohio Transit Authority (Colwnbus, OH} Raymond C. Miller, Assiswlt General Manager Phn. (614) 275-5806 Fax (614} 275-5894 Chula Vista Transit (Chula Vista, CA) William Gustafson, Jr., Transportation Coordinator Phn. (619)691-5260 Fax (619) 691-5171 Corpus Christi Regional Tr:111sp0rtation Authority (Corpus Christi, TX) Linda Watson, General Manager Len Brandrup, Direcr.or of Operations Phn. (512) 88}.2287 Fax (512) 88}.99 38 CITRANSIT (Cf) David Lee, General Manager Phn. (860)522-8101 Fax (860}247-1810 Durham Area Transit Authority (Durham, NC) Allen Carter, General Manager Phn.(919)68S-1475 Fax {9!9}68S-2611 Eastern Contra Costa Transit Authority (Antioch, CA) Sreve Ponte, Senior Transit Planner Phn. (510)745-6622 Fax (510)757-2530

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    uorntd In TrGnslt l:tfidtncie!, aevenwe and cost aeawction Escambia County Area Tr:msit (Pensacola, FL) Kenneth P. Westbrook, Resident Manager Phn (904) 436-9394 Fax (904) 436-9847 Fort Worth Transportation Authority (Fort Worth, TX) John P. Barrosiewicz, General Manager Phn (817) 871-6221 Fax (817) 871-6217 Fairfield/Suisun Transit System (Fairfield, CA) KevinS. Daughton, TransponationP lanner Phn. (707) 428-7590 Fax (707) 4287607 Golden Gate Bridge Highway and Transportation District (San Rafael, CA) Cynthia B. Petersen, Associate Planner Phn. (415) 257-4465 Fax (415) 257-4416 Indianapolis Public Transportation Corporation (Indianapolis, IN) Ted Rieck, President & General Manager Phn. (317)635-2100 King County Department of Metro politan Services/Metro (Seattle, WA) Rick Walsh, General M:arutger, Tr.msit Phn. (206}684-1619 Kosdusko Area Bus Service (Warsaw, IN) Tom Sherron, General Manager Phn. (219) 267-4990 Fax (219) 267-4990 Lakeland Area Mass Transit District (Lakeland, FL) Steve Githens, Transit Director PlUl. (941) 688-7433 Ext. 121 Fax (941) 683-4132 livennore/ Amador V..Uey Transit Authority (Livermore, CA) Austin O'Dell, Planning Manager Phn. (510}455-7555 Fax (510)443-1375

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    Ltssons Ltarntd In Transit Effldtndes, Revenwe Generation, and Cost Rtdwctlon Long Island Rail Road Gamaica, NY) Thomas F. Prendergast, Presid ent Phn. (718) 558-8252 Fax (718) 657-9047 t:J LYNX/Central Florida Regional Transportation Authority (Orlan do, FL) Rob Gregg, Direete r of Planning and Development Phn (407) 841-2279 Fax (407) 245-0327 Madison Metro Transit (Madison, WI) Ruth Ann Transit Finance Manoger Phn. (60S) 267-8766 Fax (608) 267-8778 MARTA/Metropolitan Adanta Rapid Transit Authority (Adanta, GA) Ken Sadeckas Phn. (404) 848-5780 Fax (404) 848-5421 Mass Transit Administntion (Baltimore, MD) Thomas E. Holsclaw, Chief, Financial Management Phn. (410) 767-3742 Fax (410) 333.0504 Metra (Chicago, IL) Phillip A Pagano, Executive Director Phn. (312} Metro-Dade Transit Agency (Miami, FL) Pamela Levin, Cruef, Management and Information Services Phn. (305) 375-5675 Fax (305) 375-4605 Metropolitan Bus Authority (San Juan, PR} Hector R. Rivera, Presideot Phn. (809) 767-7979 Fax (809) 751.0527 Metropolitan Transit Authority (Houston, TX) Francis M. Britton, ill, Assistant General Manager, Office Management Budget Phn. (713} 739-4000 Fax (713) n9-4925

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    Metropolitan Transit Development Board (San Diego, CA) Thomas F. Larwin, General Manager Phn. (619}234-3407 Fax (619) 234-3407 Miami Valley Regional Transit Authority (O")'ttn, OH) RichardM. Delon, Chief Financial Officer Phn. (513) 226-1333 F3X (513) 443312 1 Milwaukee County Transit System (Milwaukee, WI) Anita Gulotta-CoMelly Phn.(414)937-3291 Fax (414) 344-0148 City of Napa, the VINE, and Napa Valley Transi t (Napa, CA) Celinda D:ohl&rcn Phn. (707) 257-9520 Fax (707) 257-9522 NJ Transit (Newark, NJ) H. Charles Wedel Phn. (201) 491 Fax (201) 491-8218 New York City Transit/MTA (Brooklyn, NY) Barba.-.R. Spencer, Executive Vice President Phn. (718) 243--4321 Fax (718) 596-2146 PACE Suburban Bus Division ofRTA (Arlington Heights, IL) Je
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    Lessons Learned In Tronsit Effidendes, Revenue Generation, and cost Reduction Pierce Transit (Tacoma, WA) DonS Monroe, Executive Director Phn. (206) 581-ll080 Fax (206) 581 Port Authority of Allegheny County (Piu.sbu rgh, PA) Claudia L Hussein, Director of Finance Phn. {412) 237 7324 Fax (412) 23701 Port Authority/Trans-Hudson Corporation Oersey City, NJ) Hugh P. McCann, Deputy Gen.eral Man.ager Phn. (201 )211Xi249 Fax (201)211Xi266 PART /Putnam County Planning Depmment (Cannel, NY) John M. Pilner, Transportation Planner Phn. ( 9 14)87S.3480 Fax (914)878672 1 Regional Transportatio n District (Denver, CO) John W. Davis, Senior Operations Analyst Phn. (303} 299 Fax (303) 299 2061 Regional Transit (Sacramento, CA) Douglas L. WentwOrth, Director of Planning. Finance and Administration Phn. (916) 321 Regional Transportation Commission (Reno, NV) C elia G Kupersrnith, Executive Dire=r Phn. (702) 348.0400 Rochester-Genesee Regional Transportation Authority (Rochester, NY) John A. Garrity, Executive Director Phn. (716) 654-0200 Fax (716) 65+0289 San D iego Trans it (San D iego, CA) Cliffi>rd J. Telfe r V ice Presiden t. Finance/ Administration Phn. (619)238.0 100 Fax ( 6 19) 696-8159

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    Les.soM Leorned In TraMtt EffJclendes. Reven11e Generation, and cost Reduction San Francisco Municipal Railway (San Francisco, CA) Clare l.eung,i\$sistant to the Deputy Director Finance, Adrninisua tion and Personnel Phn. (41 5 ) 92:>-2561 Fax (415) 92325Q2 Santa Clarita Transit (Santa Clarita, CA) Nicole K v:uda, Administrative Analyst, Tronsit Division Phn. (805) 294-2507 Fax (805) 294-2517 Santa Monica Municipal Bus Lines (Santa Monica, CA) Roben LAyer, Assistant DirectorofTransponation Phn.(310)451 Fax (310)451 3 SCAT /Sarasota County Area Transit (Sarasota, FL) Jay Goodwill, Executive Director Phn (941)316-1007 Fax {941) 316-1238 Shelx>ygan Transit System {Sheboygan, WI) Steven A. Billings, Director P hn. (414) 459 Fax (414) 459.{)231 Springs Transit {Colorado Springs, CO) Jerry Mooney, General Manager Phn (719) 475.{)635 Fax (719) 575.{)430 SporT ran (Shreveport, LA) Ge n e Eddy, Manager P hn.(318)67:>-7400 F ax {318)673-7424 SCAT /Sun Cities Area Transit System (Sun City A'Z) Dale R. S hocklay, President Phn. {602) 977-8363 Transit Authority of Northern Kentucky (Fort Wright, KY) Mark Donaghy; General Manager Phn. (606) 341-8265 Fax (606) 3311526

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    wson.s Lt>mMd In Transit Effidmclts, Rtvtnue GtMratfon, and cost Rtduction Topeka Metropolitan Transit Authority (Topeka, KS) Ronald D. Buns, General Manager Phn. (913) 233-2011 F ax (913) 233-3063 VIA Metropolitan Transit (San Antonio, TX) Barbara E. Hassmann, Director of Finance Phn. (210)277 -5371 ext.7000 Fax (210) 270-0215 V

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