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Publication No. DOT-T-97-23 June 1997 Lessons Learned in Transit Efficiencies, Revenue Generation and Cost Reductions University Research Institutes Program US Department of Transportation Research and Special Programs Administration Washington, DC 20590

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Lessons Learned in Transit Efficiencies, Revenue Generation and Cost Reductions Final Report August 1995 Prepared by Joel Volinski National Urban Transit Institute at the Center for Urban Transportation Research University of South Florida 4202 E. Fowler Avenue Tampa, Florida 33620-5375 Prepared for University Research Institutes Program Research and Special Programs Administration US Department of Transportation Washington, DC 20590 Distributed in Cooperation with Technology Sharing Program Research and Special Programs Administration US Department of Transportation Washington, DC 20590 DOTT -97-23

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Lessons Learned in Transit Efficiencies, Revenue Generation, and Cost Reductions Author: Joel Volinski Project Staff: Green, Joel Rey, Patty Turner, Laura Lachance Center for Urban Transportation Research College of Engineering, University of South Florida 4202 E. Fowler Avenue, CUT 100 Tampa, Florida 33620.5375 (813) 974-3120, Fax (813) 974-5168 Web: hrtp:/ /wUJ'Uu:utr.eng.usfedu Gtrry L Brosch, Dimtor June 1997

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contents ExerutiveSwnmar:r ...... ............................................. .................................................. :..... . 1 A ckn o wledgxxle:rn:s . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . . . . . 13 In.troduction ... ... .. .. ... .... .. ... .. ... . .... .. ... .. .... .... .. .. ..... ... .. ... ..... . ..... .......... .. .. ...... ....... ...... 15 Theme I-Positive Opportunism....... ................. .......... ........ ... ... .. .. ........................ ........... 19 Sale of Advertising Rights ... ...... ... . ......... ................ : ......... ........................... ...... . ... ............ . 19 Key Lessons Learned in Sale of Advertising Rights ............ :............... ...... ............................ ... 24 Utilizing Transit Facilities to Generate New Revenlies .................. . ...... . ........ ............ .... . .... 25 Utilizing Transit Equipment to Generate New Revenues ...... ......... ..... .................................... 29 Key Lessons Learned in Facilities 311d Equipment That Help Generate New Revenues ........... 33 Taking Advantage of Transit's Employees as Unique Assets ..................................................... 34 Taking Advantage of Transit's Passengers as Unique Assets.............................................. .... .. 36 Key Lessons Learned in Taking Adv3lltage of Transit Employees 3lld Passengers as Assets ...... 38 Theme ll-Partnersh.ips ... ........ ........... . . ..... ..... ...... ... .. ..... ...... .......... .. .... .. ....... ... ... .... ......... "YJ Sector Partners Supportive of New Transit Service .......... ......... .... ... ... ...... ...... ........ ... 39 Public Sector Partners Supportive of New Transit Service ............. ... ...... : ... ;... ............... ...... ... 41 Public or Private Entities Assisting with New Transit Facilities or Equipment........................ 43 Public or Private Entities That Support Existing Transit Service. ..... ............ ................. .... ..... 47 Key Lessons Learned in Theme ll-Partnersbips .... ................................ .... .............................. 50 Theme ill-Cooperation ... .. .. . .... ....... ..... ..... ..... ... ...... ...... ... .. ...... ... . ....... ..... ...... ...... .. .... 53 JointPUJCllasing 53 Sharing/Trading of Services, Facilities, or Funds ................. ............................................. . ..... 54 Providing Experience, Employment, or Service Opportunities for Other Agencies . ..... .... ... 56 Coordination of Transit and Paratransit Services .............................. . ... ..... ............................. 58 Cooperative Agreements with Transit Labor Uni on................................................................. 59 Key Lessons Learned in Theme ill-Cooperation .... ...................... ................ ...... .. ........ .. .. ... .... 63

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Theme IV-Service Planning, Marketing, or Delivery Methods........................................ 65 More Careful and Prudent Resoun:e Allocation Decisions ....... ..... ..... ......... .............. .. ..... ....... 65 Modifying the Basic Methods of Service ........................................................ .......................... 67 Contracting for Services Through Competitive Bid.................................................................. 71 Mainstreaming Paratnnsit Users to Fixed-Route Service........................................................... 72 Marketing and Fares .......... . ........ ..... .................. .... ... ............... ......... ........ ........................... 73 Key Lessons Learned in Theme TV-Service Planning, Marketing, or Delivery Methods......... 76 Theme V -Maximizing Capital Budgets................................................................................ 79 Use of New technology.............................................................................................................. 79 Relatively Low-tech Solutions That Save Labor and/ or Parts Costs................................................ 83 Acquiring Vehicles That Reduce the Cost of Operations and Maintenance ......................... ... ....... 84 Facility Investment to Reduce Operating Costs . ........... .... ... ... ...... ..... ..... ......... .... ........ ..... ... ........ 85 of Operating Expenses .. .. ........ ..... .. ........ ....... ............. ...... ....................... .......... ... 86 Vehicle Maintenance Techniques That Extend the Life of Vehicle Systems and Parts .... .... . ..... 87 Key Lessons Learned in Theme V -Maximizing Capital Budgets ...... ..... ...... ..................... ....... 88 Theme VI-Improved Management of Internal Resources .......... ................... ............. .......... 89 Rtotga.n.izat:io.n/R.eduction in Force ... . . .... .. . .. ... ....... .. . . . .. .... .. .......... ......... ......... . .... .. ........... 89 Contr;act/Outsource or Retain Functio.ns .. .... ....... .. ...... .. ....... ........ ...... .............. .......... ..... ............. 92 Improved Methods of Procurement............................................................................................. 93 Managing Major Expenses . . . . . . . .. . . . . . . .. . .. . . . . . . .. .. . . . .. ... . . . .. . . . . .. . ... . . . . .. . . . . 96 Reengineering ln.temal Processes ........ ................ ........ ... .............. ........ ...... ... ........ ..... ...... ..... 100 Key Lessons Learned in Theme VI-Improved Management of Internal Resources ................. ...... 103 Conclusions . . ..... . . . . .. ... .. .. .. .... .. . . .. . ... ...... .. ... .. ... . ... ... ...... ... .. ... ....... .. . .... ... . ... ..... 105 Appendix A . . . ... .. . .. .. ..... .. .... .. ...... ........... ... . ...... .... . .... .. ... .. .... ......... ..... ... ....... ... ..... .. ... 107 Appendix B ... .. ..... ... ... .. ........ ... ... .. ... ... . ...... .... ........ ..... .... ....... ...... ....... ..... ........ .. ...... ...... 111

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Lessoru Learrled In Transtt Effldencles, Revenue Gerteratk>n, and COSt Redwrtlon Executive summary Background Transit agencies are no different than virtually all other public ogencies, private companies, or households in at least one fundamental respect: all of them need money to function. Securing sufficient funds to operate has been perhaps the biggest challenge facing transit systems in the past !\ow years. Declining fedetal transit operating assistance, costly legislative mandates (e.g., Americans with Disabilities At:t and drug testing requirements), and resistance to increasing taxes have made balancing budgets that much more difficult. According to a survey conducted by the Ameri can Public Transportation Association, 56 percent of all transit systems had raised their base fares an average o percent in FY 1995 and/or 1996, while 48 pereentofallsystems cut an average of 12 per<:ent of their vehicle miles of fixed-route service during that same time period. It is true that public transit agencies face a multitude of difficulties in sustaining service as their external environments change and create new pressures. However, it is inherently inconsistent for a service industry that emphasizes "CustOmer Service" to reduce service and raise fares as primary options when dealing with tight budgets. Making the passenger (or customer) bear the brunt of tight budgets by paying more and/ or getting less is not being CustOmer friendly, and usually results in lower ridership and revenue. Better options are to increase productivity and/ or reduce costs to continue to remain attractive to cusromers who have choices. While public transit agencies serve customers that many regard as "captive," in truth, everyone has options on how, or how often, they traVel., Purpose of Project The purpose of this research project was to gather and redistribute information on how transit agencies are generating new revenues or reducing costs without harming the best interestS of their passengers. This project was based on the idea that transit agencies have a great deal to learn from each other in the areas of raising new revenues or reducing costs. A very simple survey was "Adversity is the firn[Htlh rot:ntth. -Lord Byron

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Lesson.s Leomtd 1ft n-anslt Effldtnclts, R.tVenue GtMt'GHOfl, cutd cost Rtductlon developed and sent to more than 400 transit agencies in the United States, asking them to provide a brief description of the five most effective methods used b y their respective agency that have generated new revenues and/ or saved money. Re$J>onses were received from 75 transit agencies. Many of the techniques were similar among agencies (e.g., advertising on buses or bus shelters). However, even in those areas of similarity, there were distinctions that should be of interest tO transit systems that might wish to adjust their methods of doing similar activities. summary of Findings There were over 180 unduplicated methods of saving money or generating revenues submitted by the 75 transit systems te$J>Onding to the survey. All of these techniques are incl uded in the full report. However, it is important to understand th2t there are six common themes among these many different techniques. By undemanding these basic themes, transit leaders can more effectively encourage their managers tO recognize similar opportunities in their own systems. The common themes among successful techniques are described andswnmarized below: Theme 1. Positive Opportunism This theme is meant tO clescribethose actions taken by transit agencies that take advantage (without harming anyone else) of their unique assets. Many people have a perception of transit agencies as black holes of unending expenses. However, transit agencies have many assets that are of value to others and can become profit centers. One of transit's defining characteristics is that it provides transportation lin/t411f$li:>r people and communities. Positive opportunism encourages transit manag ers to envision new linkages with other public or private entities that can generate revenue as well as additional support for transit. Subcategories within this theme are: sale of Advertlsl119 Rights Transit agencies sell space for advertising on buses, benches, shelters, rail cars, vans, automated guideway cars, schedules, transfers, passes, ticket books, property, etc. One transit system enjoys such a fine image that it makes royalties from the sale ofT-shins and mugs with its logo on them. Within this subeategory, there are different ways of administering an advertising program. For instance, some agencies have doubled or tripled revenues by bringing the transit advertising function in-house versus contracting this responsibility to national brokers. Advertising in-house has also created stronger linkages to local businesses that advertise on the system, who then have another reason to support the transit service in the community. The transit system may collect

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Lessons Learned In Tr'anslt Effldtntles Revtnwe cenerat1on. anc:l cost Reduction substantial dollars rorthese advertising opportunities, or trade the value of the opportunity ror other goods or services that help th e m more effectively market their sysrem. The LYNX system in centnl 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. Fadlltles that Help Generate New Revenues Examples include perrorming vehicle maintenance work (for profit) for other agencies out of transit's facilities, charging for parking under guideways, leasing rights-ef-way along rail col' ridors to telecommunications companies, renting excess building space (taking adv.ontage 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 Genemte 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 perrorming repairs. Ttlklng Advantage of Tmnsit's Employees as Unique ASsets A common phrase heard is that the most imponant 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 are indispensable panicipants in "gainsharing" programs that have saved at least one agency millions of dollars. In addition, transit employees are a unique asset that can generate new revenues through the sale of the expertise they have gained in matters such as hazardous materials training, Commercial Drivers License testing, simulator training, or rail operations planning for international consulting purposes. Taking Advantage ofTmnslt s Passengers as Unique ASsets Aocess to tranSit's customers is valuable to entities otherth:in the tranSit sysrem. 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 cost. One transit agency

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t.mons uari1Cd In TrGnJit fflldtndts. llttw'I'Utt Cf'lltnltiOtt, Gild cost RHuctlon charges companies for the right to distribute discount coupons to passengers wh o buy monthly passes. Joint promotions with private companies at transit centers, or on board transit vehicles, increases ridership and revenue. School Bo.trds in some districts will pay the tranSit system for each student carried as they pursue every method to increase the educationalattinment of their young anzenry. Theme 11. Partnerships Transit agencies have long operated in the spirit of partnership with federal and state governments for transit operating and capital as$istance. What has changed is the need to expand the list of partners. Transit agencies do not have the financial resources to independendy accomplish all they would like to do in their communities, nor can they rely as heavily on a federal government that is hoping to reduce its massive deficit. Hence, transit systems are looking to ieflerage their limited resources by forging new partnerships that bring non-traditional sources of support. These part nerships allow transit agencies to provide services or facilities where it would not otherwise be feasible. Subcategories within this th"""' include: Prlwte sector Partners supportive of New Transit service Example$ include agreements with malls, business parks, ID2jor employ=, associations of busi nesses, or hospitals for new services paid partially or fully by the private entities. The majoriry of these partnerships are initiated by the private sector partners. Pulllk sector Partners supportive of New Transit service Example$ include agreements with military bases, universities, public schools, transpOrtation man ageme.ot associations, downtown development authorities, convention centers, or cities for new or extended s e rvice paid for partially or fully by the other public agencies. These agreements also provide opportunities for transit agencies to restructure existing nearby services to be more productive. Public or Private Entitles Assisting with New Transit FGcllltles or fqulpment Examples include agreements with cities or private developers to pay for portions, or the entirety, of new transit Ucilities; agreements with air pollution control districts or utility companies to pay for all or substantial portions of the cost of new transit maintenance f.ocilities or equipment ranging from bike racks to alternative fuel buses; agreements with redevelopment agencies to provide

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LUS011S Leomed ln Trcmsft Effidenclts, Rewl'nlr Generation, and cost Reduction physico! improvements or complimentary services in or near transit passenger facilities; andMPOs that allocate funds from new ISTEA soun:es for ADA imp"""""'entS or environmental remediation. PUblic or Priwte flltities that support Existing Transit service Examples include agreements with employers that buy r.ransit passes for their employees; busi nesses that sell pass materials at their facilities; businesses that agree to maintain bus stops, shelters, or stations; businesses that sponsor events that promote transit; private carriers that strategic:Uly utilize transit agency services for special events; businesses that make their parking facilities available for tr.ansit patrons when space is awilable; and newspapers that write stories on r.ransit service. at no cost to the transit agency. Theme 111. cooperation 1bis theme inclUdes additional e:>
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Ltssort.s teamed In Trc:rftsft tfldtrtdts kw.nwt Ctnuatlon, and C01t ReductiOn Providing Experience/service/Employment opportunities for Other Agencies 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 entry, graffiti removal, research, schedule distribution, etc., at very low cost. Similarly, some transit systems are benefitting from low cost labor provided through sheriff's work incarceration programs or other community service programs for station cleaning and landscaping services. coordination of services Serving as a coordinator for paratr.uiSit services has allowed some systems to realize savings. They are in a better position to mainstream paratransit passengers to less expensive fixedroute options, coordinate various paratransit providers to encourage multi-loading, and reduce the capital expense by maximizing the use of para transit vehicles through coordinated use of vehicles among agencies. cooperative Agreements with lnlnslt Labor A number of transit systems have successfully negotiated with their bargaining units to reduce cOstS through the foUowing 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 wage increases; changing to managed health care versus select health care; early retirements coupled with pension modifications; changing separate sick and annu.alleave to consolidated paid time off; and salary freezes and cooperative measures to fmd savings. Theme IV. service Planning, Marketing, or Delivery Methods Not surprisingly; the highest cost element of any transit system is the actu.al operation of service. The methods transit agencies have used to provide service have not changed dramatically in the past fifty years. However, the areas they serve have changed significantly, and sources of funding seem harder to secure. T r.uiSit systems must become more disciplined or creative in the traditio no! methods of providing service, and/ or find 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 foUowing subcategories:

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LtSSons Learned In Tranflt Efficiencies, ReW.nue Generouon, and cost Reduction More careflll and Prudent Resource Allocation [)e(isions Examples include consolidating or interlining routes; minimizing service on clays oflow..r demand such as Martin Luther King Day and the day after Thanksgiving; thoroughly scnninizi.ng and reducing deadhead mileage and overtime; using a productivity frequency index to makeservi"!' cutS with the least possible impact on ridership; allowing bus open>.torsto construct their. own runs within recognized par:uneters; and reducing the size of trains or buses to better reflect demand. ModifYing the Method of Service . Many tnnsit systems are making fundamental changes to the way they provideservice that re sponds to the changing urban form and! or the desires of their customers. Some of the new methods that have worked for transit agencies include changing radial service to more grid-like service; modifying fixed-route service to point deviation (either entirely or during off-peak); providing demand-responsive service in low density areas or in off-peak times; and replacing apress service with van pools or megavans. Point deviation has been helpful not only in attracting additional passengers due to its conveni.;,ce, but also by allowing agencies to reduce the amount of separate paratransit services required. contracting for services Through competitiVe Bids Some tn>.nsit agerlcies contract all their bus or rail service every few years at substantial savings. Others contract out only a portion of their service, but still realize the benefits of competition through subsequendy more effective negotiations with their own . Mainstreamlng Paratranslt Use;s to F"IXed-Route service Many transit systems have persuaded state Medicaid programs to purchase bus passes rathertlian paratransit services for their clients, resulting in win-win-win results. Two systems report smogs as a result of moclifying multiple subscription para transit routes to new, more cost-effective "community routes." Marketing and Fares The attractiveness oftransitservice can be enhanced through the fore structure. Passes of various durations (one clay, weekend, four-day visitor, weekly, summer, en:.) have proven to be extremely

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LesJOIIt Leomtd fit n-omtt Eftkltndts. Atvmwe and Cost popular. Family fares (kids ride free) and "friends ride free" programs, as well as deep discount fares for frequent passengers, have increased ridership and revenue for many trans it systems. Theme v. Maximizing Capital Budgets Although federal operating assistance has been cut, capital dollars have generally been available and are more politically palatable to those who question the level of suppon transit should receive. Strategic use of capital funds can reduce operating costs while increasing productivity, and sometimes 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 llehnology Transit has been generally slow 10 experiment and implement new technology. However, many transit systemS credited new technologies for generating cost savings. Among the suocessful appli cations have been automated passenger counters, automated scheduling for fiXed-route and paratransit applications, signal pre-=ption systems, desktop publishing. automatic vehicle location systems, video surveillance in money rooms and on board buses, automated ticket vending, transfer dispensing machines, and automated customer information service for fix.ed.route and paratransit. Relatively Low nch SOlutions that save LDbor and/or Parts costs Not all operating cost reductions require high technology. Transit agencies reponed savings duem illvestments such as new brake lathes, a deep water ..,11 for bus wash machines, metal bus benches in place of wood, ponable shelter cleaning equipment, seats that reduce workers compensation claims, an automated lubricating device for bus maintenance, high platfonns at commUter 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 repon that alternative fuel buses reduce operating costs over the life of the vehicle.

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Lessoru LUnteclln Trcr"slt Efflclettdes. Revenue GenBatJon, and cost Rtdwct&on Facility Investments to Reduce operating COSts Sometimes costS can be reduced by consolidating facilities such as administration offices or rail maintenance facilities. Other times it pays to build additional bus operations facilities to reduce deadhead mileage expense. While the costS and lienefits must be reviewed very carefully on. a by-ase basis, capital grants provide the opportunity for such major investments, when they make sense. capitalization of operating EXpenses Federal capital grant dollars can be used to pay for the capital costs associated with contracted fixed-route and parar.ransit service. They can also be used to pay for costs such as leasing adminis trative and operating space and purchasing associated capital and maintenance equipment, provid ing substantial relief to the agency's operating budget. Tolls generated by local.,.Pressway authori ties can be used as soft match for federal capital grants, thereby saving local tranSit systems the normal cost of matching such grants. Vehicle Maintenance Techniques that EXtend the Life of vehlde systems and 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 ted with oil changes, and performing frequent oil analysis and opacity testing. Transmission brake reWders were cred ited with at least doubling the life of brakes, and aluminum 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, resouroes, expenses, and processes. These activities reflect transit's willingness and need to question the status quo. This theme concentrartS on internal matters versus external partnerships or cooperative ventures. The methods being used fall into the (ollowingsubcategories: Reorganization/Reduction In FOree A number of systems have reduced the size of their administrative staffs and agency budgets by reorganizingtheageneyuponretire.mentsorthrougbattrition.Anrition\ssometimesenoouragedby

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Leuon.s Learned In Transit Rewnwe Ctnerotlon. ond Cost Reduction departure incent iv e (early retirement) plans that incur up-front costs, but long-term savings as lower cost professionals are hired. Other agencies do not have the luxury of waiting for retire ments and 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 those who...., left to deal with more functions and decisions. contract/OIItsollrce or Retain FUnctioiiS Elements of transit management such as planning. scheduling. building maintenance, inventory, or money counting are either "farmed out" or retained, depending on which option is more cost effective. Smaller systems might outsource vil:rually every function and focus on managing con traCts containing incentives and penalties. Improved Methods of Procurement The purchase of major items such as insurance can be aided by combinations of low bid and negotiation procedures with multiple brokers, or by using an insurance broker to analyze benefits and negotiate rateS w i th various proposers Leasing can be more effective than purchasing when procuring f.lcilities, but purchasing tires versus leasing them allows the transit agency tO resell the tire can:asses at a price higher than their 10 percent capital match spent on the tire when it was new. Fue l hedging has allowed many agencies to benefit from stabilized fuel costs. Bulk purchase of certain items can reduce the unit cost by as much as 15 percent. Managing Major EXpenses Certain expenses that are common among most transit agencies and represent substantial portions of their operating budgets have been effectively reduced through focused efforts. Examples in clude energy costs that have been reduced through investing in expertise tO better understand the rate structure of power companies and to improve the management of their electrical power demand; liability expenses that have been r e duced through self insurance programs that cost less than premiums when combined with an emphasis on safety, training, accident investigation, and chall enging claims; reduced work e rs' compensation claims as a result of having carriers perform claims management functions and establishing light duty or temporary modified assignment pro grams for those receiving workers' compensation benefits; reductions in sick leave as a result of spot a uditing of sick pay requests and stationing doctors and nurses at transit facilities to perform

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Lessons Learned In Transit tfldtndes, Rtwnwe GeMtcrtk'", and cost lleductk)n physicols; perfonning baseline marketing stUdies to g.Un a better undei'SWlding of who uses transit 110 help determine the most cost-effective W2}'110 spend advertising dollars; utilizing commercial paper lines of credit to access funds at a low interest rate to maintain access to low-cost funds to keep projects moving; and managing pension policies carefully to reduce necessary oontributions. Reengineering Internal Processes Although details were sometimes sketchy, transit agencies reponed that they were re-thinking processes such as track installation, train m010r rebuilds, contract reviews, distribution of passes 110 vendors, and petty cash procurement to determine how they could be accomplished less expen sively. One system noted that it now confers with other transit agencies instead of consultants for advice. Another agency has established a "utility bus opera110r" position that can perform multiple tasks besides operating a bus. Bus main=ance intervals have been extended 50 pen:ent, thereby decreasing main=ance expenses with no increase in service failures. Finally, the pre-issuance of commonly used materials prior to the midnight shift allows the closing of storerooms during that shift, with attendant reduction of staff requirements during the shift. conclusions Transit agencies clearly have many to share that can help the industry reduce costS or generate new revenues without resoning to raising fares or cutting service. The techniques discov ered through this survey are not a panacea for the financial pressuresmost transit systems are experiencing. The bottom line results are typically new revenue or savings of between 5 and 10 percent of an operating budget (though it oould be significantly 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 nonheastern U.S. transit property had to institute service cuts, but he also presided over a number of new revenue generating techniques. He noted that, "We had 110 make a number of difficult choices, but the general response from the media and business community""'" 'It's about time you stopped begging and started managing. mIn short, the process of a more businesslike approach leveraging limited resources through partnerships and cooperative arrangements with public and private agencies, encouraging entrepreneurial thinking, and finding new ways to serve the public will ultimately improve a transit agency's standing in the community as well as its bot110m line. In some instances, however, there may be a need to be sensitive to the reactions of tax paying private companies who might r e sist a transit agency that starts doing new work that could be done by local oompanies.

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Lts.sons LtOmed In Transit ftJclendts, Rrwttur Ga.eratkm, ond cost eduction In his book entitled The Seven Habits of Highly Flfoaiw Peopk, author Steven Cov e y writes about the need for each individual to evolve from being a dependent person to an independent and in terde pendent person to achieve full effectiveness. This advice applies to transit agencies as well. They must minimize their reliance on federal operating assistance, and increase their capabilities of gen erating necessary revenues. Clearly, there is a movement in the country for le$S government and greater self-reliance. This is perhaps best illustrated by the broad support for welfare reform. Just as individuals will need to improve their skills, so are transit agencies being asked to be more creative and self-reliant. This report hopes to contribute toward the accomplishment of that goal.

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Lessons Wrned fn TrattsJt Efficlendes, Revenue GeMtatlon, and Cost Redwctfon Acknowledgments TheCenterforUrbanTransportationResearch(CUTR)wouldliketoacknowledgetheassist:ance of many peop l e w h o helped in various ways to enhance the quality of this report. T h e drafts of the survey instrument were tested and completed by Celia Kupersrnith, General Manager of Citif= and the Regional Transportation Commission (Reno, Nevada), Gregg Cook, General Manager of the Ann Arbor Transportation Authority, Jay GQodwill, Director of Sarasota County Area Transit, and Ron Nawrocki, Direetor of Budget and Management Analysis for MAJcrA. CUTR thanks Tony Kouneski and Dennis Kouba of APTA for their help in increasing the re sponse to the survey by advising the transit community about the survey and project in an article in the June 1 0 1996 issue of Passenger Transport. In addition, the following transit professionals reviewed the draft of the report and offered constructive comments for improving the final report: Sheila Barbarini Transit Planning Manager Regional Public Transportation Authority (Phoenix) Susan Hafner General Manager Riverside Transit Agency Carla L Lakatoo Director Mad
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Lasons Ltamtd In Traruit lJTidtndes, Rtvtnut CfrrtratiOn, and cost Rldwalon Ne:UManske Interim Public T rms.itDi.rector Public Transportation Depanment (Phoenix) Perry Maull Director Regional Transit System (Gainesville, FL) John Neff Director of Policy Ana!Y"is N!fA Richard Schreiner DirectOr of Service Development Housatonic Area Regional Transit District JoAnn Woodhall Transportation Planner Kiu:hener Transit (Ontario, Canada) CUTR. is gr;oteful to everytrms.it system that responded to the survey. The nam e of each person who responded to the survey is provided in Appendix B of this report. Without their willingness 10 share their success stories, this report would not be possible. Any refuences to sp e cific products in this report should not be regarded as an endorsem ent of those products by CUTR. Transit agencies tha t have reported positive experiences with those products should be con =
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L.Woru Leamed fn Transft Eftldt.ndes. Rtvenue Generation. and cost Reducdon Introduction Background Transit systems througho u t the country are strUggling with the burdens of decreased federal operating assistance and increasing costs caused by legislative mandates such as the Americans with Disabilities Act (ADA) and drug testing. Resistance to increasing taxes at the local level has made it more difficult 1D secure the 'funda necessary 1:0 maintain service, while expenses continue tonse. Too often, transit agencies have taken the quickest path 1:0 balancing their budgets. According 1:0 a survey conducted by the American Pub lit Transit Association (APT A), 56 percent of all transit systems had raised their fares an average of 26 peroentin Fiscal Year 1995 and/ or 1996, while 48 percent of all systems cut an average of 12 percen t of their vehicle miles of ftxed-route service during that same time period These actions, however, normally oont ribute ro ridership declines, thereby eroding the primary goals of most transit agencies to help increase mobility, decrease traffic congestion, and improve air quality. Public transi t agencies seem to face an unending series of challenges as their external environ ments change and cre ate new pressures. However, it is generally not advisable for a service industry that emphasizes "CUstOmer Service"ro reduce service and raise prices as primary options when dealing with tight budgets. Making passengers bear the blUilt of tight budgets by paying more and/ o r getting less is not b eing cUS1Dmer friendly, and can easily start a spiral of decreasing ridership and revenue. IndUstries that wish to retain competitive positions should look first to increase productivity or reduce costs to continue to remain attractiv e t o c ustomers wh o have choices. While public t ransit agencies serve customers t hat many regan! as "captive," in truth, every passenger has op tions on how, or how often, they travel. "Prosperil:y is a great teacher, adversity is grrater. Possession pampers the mind. Priva-tion trains and strmgthens -WJliam Hazlitt

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propte seldorr!: ;mptote'llhen they havtiUiolher mode boa them .elves to copy afor." GcldsmiJh In Transit rflcJtndtS, Jtevt:nut: Gfl'leratJon. and COst Rtdwctlon Purpose of Project Tno.nsit agencies are no diffe r ent than v i rtually all other public agencies, private compani es, or households in at least one fundamental respecr: all of them need money to function. Securing sufficient funds 10 operate has been perhaps the biggest challenge facing transit systems in the past few years. The purpose of this research projeCt was 10 gather and redistribute information on how tno.nSit agencies are finding ways to either generate new revenues or reduce costS without harming the best interms of their passengers. This research was inspired by the Small Opera10rs' Forums held at APT A's Annual Conferences. At these sessions, there are no fonnal speakers or agendas. Instead, a facilita10r encouno.ges everyone in attendance 10 share their successes (or failures) in any number of areas of common interest among transit managers. There is a lively and informal exchange of valuable experiences that enables all panicipants to learn from each other Similarly this resem:h projeCt was based on the idea that transit agencies have a year deal to learn from each other in the are
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t.es:soru Learned frl Transit Effldtnclts, Rewnue and cost Reduction on generating revenues or saving money could come from any ohhe operating divisions within a transit agency. Since no one person in the agency had all the information readily available, the survey became that much more difficult to complete. The ftnal survey instrument was modified based on feedback ftom t h e test survey to make it less bulky and intimidating (see Appendix A). Every agency was promised a copy of the final report if they answered the survey, and the cover letter noted that an aword would be given to the agency that demonstrated the most outstanding examples of creative and effective techniques. In addition, while each agency was asked to respond in writing if they could, they were also advised to respond by phone or e-mail if it was more convenient to &o so. Three agencies lfid respond via e-mail. No agency initiated a phone response. Thirty-five transit agencies responded to the final survey by regular m:Ul. Twenty other agencies ""'recalled and asked if they would please respond if another oopy of the survey was faxed to them. MoSt of those agencies did respond. Finally, twenty additional agencies were oontacted by phone and provided information 10 the author in that way. In the end, over 340 ideas were submitted by 65 tranSit agencies who took the trouble to slwe their success. Ten other agencies claimed they had nothing to report or no time to report it. The total of 75 agencies represented an 18.75 percent response rate. Clearly, there are many more ideas to identify from the induruy, but the information in this report should prove very useful. Report Format This report attempts to "make sense" of the 180 unduplicated revenue generating or coSt saving techniques by finding the oommon traits among them Each reported technique is therefore in cluded in one of six categories or "themes" that help simplify the fundamental character of each technique. By undemanding these basic themes, transit leaders can more effectively enoourage their managers to reoognize similar opportUnities in their own systems. The six themes are: Positive Opportunism This theme describes those actions taken by transit that take advan tage of their unique assets including advertising space, facilities, equipment, employees, and pas sengers, all of which have value to others and can become profit centers .. Partnerships Transit agencies have expanded their liSt of partners far beyond the state and federal governments, leveraging their limited resources by attracting non-traditional sources of support that pay partially or fuJ!y for new services or facilities where they would not otherwise be feasible.

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Lt.s.sons Ltanted ln Effkitftdts, Rtvmwe GentrGtlon, Qlld co.st Jtdwctlon Ccoperati
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Less011s Learned bt Tramlt ffJdendes. R.evmwe ceneratJon. and cost Reduction THEME I Positive Opportunism Trmsit systems are sometimes regarded by pessimists as black holes of unending expenses. Until recently, there has been little recognition that trmsit systems can also have multiple "profit centers" that are capable of generating revenues beyond those collected through thefarebox Transit employees might not view their own assets as being particularly unique since they are common to most trmsit agencies. They also will not recognize the opportunities to take advantage of their assets if they don't look outside their own borders of responsibility. Various trmsit assets have real value to a multitude of other parties who might have no special interest in transit itself. T rmsit agencies are quickly learning to take advantage of their uuique assets. This could be re ferred to as being opportunistic. However, opportunism often implies a sacrifice of principle. There is nothing hannu1 in what transit agencies are doing to take advantage of theiruruque assets. Hence, these actions are referred to in this report as being within a theme called "Positive Oppor tunism. This is fostered by looking for oppommities to link with other public and private agencies who can benefit from transit's properties, facilities, equipment, employees, or passengers. The actions taken by trmsitsystems in all of these categories are explained in greater detail below. sale of Advertising Rights Clearly, this technique is the most common method used by transit agencies across the country to generate non-farebox revenue. Transit systems now sell the rights for companies to advertise on buses, benches, shelters, station platrorms, rail cars, automated guideway cars, schedules, trmsfers, passes, ticket books, System maps, property, etc. One wonders what the limit is. Will we see supervisors' vehicles carrying advertisements as taXis do, or operators' unifonns with patches promoting private products on them as professional tennis players do? ':4wiseman willmakerrwre opportunities than he finds. -Franro /3aJ:gn

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Lessons Lear n e d In Tran s i t Eftldenda. Revmur CirMrariOfl, cand Cost ltrdllrtiOft The transit system can realize cash revenue, or be compe n sated in trade (e. g getting "free" advertising on radio stations that are advertising on the bus) The "trade" items can also provide prizes that can be given away as part of marketing campaigns, or to use as prizes for bus or rail roadeos. The advertising space on the bus provides no end of generating opportuniti.,; for good will wi t h community agencies who might be allowed to advertise on the bus ortrain at no cost on space available basis (when all space is not sold out}. Described below are examples of transit systems who reported gaining revenues or other benefits from selling advertising rights. L Springs Transit modified its on-bus advertising contracts to allow for "vi n yl wrap" buses, resulting in a four-fo l d increase in advertising revenues. The agency also changed its bus bench contraCt and the city ordinanc.,; to allow for bus shelter advertising that will generate $100,000 per year for 150 shelterS. (Colorado Springs, Colorado) 2 The Sheboygan Transi t Commiss ion expanded the sale of advertising o n their buses from rear frame only to side ($600 per bus per month) and rear ($750 per bus per month) frames. Some of the space was sold t o radio swions who paid partially in cash and partially in trade, allowing for promotion of the transit serv ice on those radio stations. The trade was recog niz.ed by its value and checks were exchanged. By allowing transit to expense this trade, it increased state subsidy by 42 cents on the doUar since it was a recognized transit expense. (Sheboygan, Wisconsin) 3. The Central Ohio Transit Authority brought the onbus advertising function in-bouse and increased revenues from $300,000 per year to $1,000,000 per year, for an increase of $700,000 or 1.5 percen t o f the annual operating budget. AU sales are handled by asingle staff marketing professional who is paid partially by salary and partially by commission. The emphasis is on seUing ad space to local companies, which not only generates more money, but results in COT A =blishing closer relationships with local busin= who now have another reason to support transit in the community. (Columbus, Ohio) 4. At PENTRAN, advertising revenue on buses and vans is the agency's greatest revenue generator, having produced enough income t o provide the local match for the Capital lm provement Program since 1991. The program is administered in-house and offers three approaches for advertisers. They can either pay for individual racks on buses at rateS that encourage multi month purchases, or they can participate in the Adopt-A -Van or AdoptA Bus program. The "adoption" programs provide advertisers with exclusive access to the vehiel.,;' interiors and exteriors There is a one-time preparation charge of $750 for painting the bus a base color prior to the application of graphics and returning the bus to PENTRAN

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Lessons Learned In Transtt Etflclendes, Revenue Generatfon, and Cost Rtdwction colors at the end of the contract. The advertising charge for a one year contract is $800 per month, and $750 a month for a two-year contract. The respective charges for the Adopt-A Van program are $300, $300, and $250. {Hampton, Virginia) 5. The Golden Gate Bridge; Highway, and Transportation District anticipates collecting $500,COO per year for exterior on-bus side adnTtising with only non -perman ent adhesive vinyl (not frames) to cut down on operational cost$. In addition, the agency is seeking proposals to sell advertising in Golden Gate Bridge toll and Golden Gate Transit ticket books. More than 1.2 million toll and transit books are printed annually. Advertising in both books will be stan dardized to better attract advertisers and will be available on both sides ofaonHheetinsert. The number of inserts could be increised if additional advertisers justify the added cost. The program is intended tO offset District .costS of printing ticket books, for a potential annual savings of $123,000. (San Rafael, California) 6. At Golden Gate Transit, a Request for Proposals {RFP) was issued fora private contractor to rebuild maintain and sell advertising on 106 GGT bus stop shelters, and to reconstruct kiosks at its San Rafael Transportation Center and larkspur and San Francisco Ferry Terminals for continuation of advertising sales. Advertising revenues will be S48,000 from shelters and $93,COOfrom kiosks. In addition, an annual savings of $100,000 in cleaning and construc tion maintenance is estimated, for a total combined annual gain of $241,000 per year. (San Rafael, Gilifomia) 7. TheBus Logo-Licensing Agreement provides a 6 pereentroyalty payment for use of"TheBus" logo on T-Shirts, coffee cups, etc. (Similar to the University of Hawaii atbleticdepattment). This program generates about $20,000 per year, based on the popularity ofTheBus with tourists and many residents. (Oahu Transit Services, Inc. Honolulu, Hawaii) 8. Santa Clarita Transit has agreements with contractors to install and maintain transit amenities (benches, shelters, and trash receptacles) at no cost to the City in exchange for the right to advertise. This saves $360,000 in the construction cost of 56 shelters (plus $48,000 in annual maintenance expense), as well as the $200,000expense of installing224 bus benches (44 with trash receptacles) and the $55,000annual maintenance expense. The innovation is that instead of collecting a percentage of advertising revenue, the city opted to maximize the provision of shelters by requiring the contractors to provide non : advertising shelters and benches. (Santa Clarita, California) THEME I Positive Opportunism

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9. In King County, the normal sale of space on the outside and inside of buses generates approximately $2.3 million annually. The "commercial painted bus program has generated an additional S268,000sioce 1994. Limiting the number of painted buses to ten per year, they charge $3,000 per month for a 40-foot bus and $4,000 month for a 60 foot bus Wtder contractS that typically last one year. The advertiser pays all coStS of production, ap;:olying the design, and .restoring the coach 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 cover the contractor's cost of posting non-commercial, transit-related exterior or interior signs including bus fare information, safety and conduct messages, and special transit promo tion messages. Normally the contractor would charge between $1 and $15 for the labor involved with placing transit promotion placards and signs. However, in this case the con tractor absorbs this expense within the pen:entage of retained advertising revenues The "posting credit" has saved the operating budget over $100,000sioce 1994. (Seanle, Washing ton) 10. LYNX does not approach on-bus advertising as a by-product, but as a primary product, making it an active division that generates revenues. LYNX invested in a Macintosh Com puter System and hired artists to both design and paint the buses. There are stringent qu:ility controls and all art work must be agreed to by the client and LYNX. They accept no advertising for prodUctS that can't be used by a minor. This generates $3,000,000 in cash and trade (for a system of only 200 buses}, including television advertising during the Super Bowl and other highly rated programs. (Orlando, Florida} 11 The Sacramento Regional Transit District generates $160,000 annually from advertising on light rail vehicles in addition to $300,000 generated from on-bus advertising. (Sacramento, California} 12 In Sacramento, shelter and bench advertising is provided through a contractor, with the transit agency receiving 10 percent of the gross advertising revenue which is $200,000 annu ally. The contractor acquires and installs the shelters and benches. The contractor also maintains the shelters, saving the agency at least $150,000 annually. (Sacramento, California} 1l. MARTA currently has con= with private contractors, and agreementS with local govern ments, to pl>ce over 250 shelters along bus routes. The shelters are erected by the contractor at no cost to MARTA. The contractor rentS advertising space on these shelters, and is responsible for repairs, lighting, and trash removal. MARTA netS approximately $150,000

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Lessons Lel.lrntd In Transit ftJclendes. Revenue GenerAtfon, And Cost Redwttlon annually, with an additional S 150,000 paid by th e contractorro local governments. MARTA avoids the expense of constructing each shelter ($8,000 per shelter) and its maintenance and repair (approximarely S2,000per year). (Adanta, Georgia) 14. MARTA frequendy trades advertising space and promotions on the system with loal! papers and radio and television stations for spaoe and airtime to advertise MARTA. Only excess, unsold space is offered for barter, so no potential revenue is lost In some years MARTA has saV1!d over SSOO,OOO in adV1!rtising expenses. (Atlanta, Georgia) 15. The Eastern Contra Costa Transit Authority has a with an advertising shelter agency to install, maintain, and replace bus stop shelters. This contract has decreased the time needed to research, buy, and maintain bus srop 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 was the time spent developing the contract and negotiating with the members of the joint Powers Authority to approve the style of shelters. The advertising shelter agency pays a percentage of their advertising revenues ro each city within the Joint Powers Authority as well asECCfA. (Antioch, California) 16. The Regional Transportation Commission in Reno hired an additional staff member to func. tion solely as an in-house transit advertising soles professional (working for straight salary). Posters are placed on IITC buses by the agency's maintenance employees, Revenues in creasedfromS70,000peryearin 1994to S12S,OCOin 199Sandare projected to be$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 onetime customers. (Reno, Nevada) 17. In addition to advertising on the sides and rear of the bus, Santa Monica Municipal Bus Lines traded out the front advertising space to a local radio station for advertising on the air. A review revealed that the Bus Lines could make more money sellingthespaoe at a flat rate to the concessionaire. The Bus Lines is now guaranteed $90,000 annually for the front space, plus $15,000 support for its Bus Roadeo and S3,000 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 wh0le-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 potential revenue from whole-bus advertising over the five-year

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Lesson.s Ltarftltd In Tn:uutt Effldendes, Rnenwe Cielltratfon, and COst Reductfon term could be as much as $1.2 million per year (above and beyond tbe S1.88 million guarantee). However, the whole-bus advertising program was discontin ued because of aesthetic concerns voiced by citizens. (Washingron, D. C.) 19. Revenue from advertising on buses bas increased by 22 percent in a year for the Regional Transportatio n District, to a total of $2.2 million. Full wrap (painted) buses have gained in popularity (generating $340,000 in 1995). RID has stream lined its procedw-es allowing Denver Transit Advertising to concentrate on sales, and IITD no longer dvertises its own services on the buses during the busy advertising seoson of June through September. (Denver, Colorado) 20. The Regional Transportotion Commission conducted a boseline transit advertis ing sales effectiveness study to meosure the effectiveness of extemaldvertis ing on transit vehicles. Using a set of Citifare buses and benches, the study provided valuable infomation on the effect of the quantity of displays, place menton the bus, response over time, size of display, and what types of persons respond to different displays. This has convinced local and regional advertisers of tbe effectiveness of transit advertising and increosed revenues by $50,000 annually. (Reno, Nevada)

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t.essoru Lecamed In Tram.ft Gellerotlon, and Cost Reductlon utilizing Tl'anslt Facilities 'RI Generate New Revenues Transit facilities have intrinsic value to transit agencies, but they can also have value to a variety of includingtelecommmications companies, neighboring businesses, investment :firms, school boards, and municipalities. Taking advantage of these common interests can generate new revenues, good will, support, and favorable community response for transit agencies. Even agency downsizing provides opportunities for profit by leasing or selling surplus space. Examples of exucising positive opportunism through transit facilities are provided below. L Golden Gate Transit is considering the sale ,or lease of approximately 2.7 -acres of surplus property, all of which was acquired with local funds, next to its S.Wta Bus Terminal.&! I I dan't krww anythingabmt lude. fvenever banked unit, andfmlljraid ofpeopJeuho do. Luck to me is scmethingelse: hard 'I!Xlrk and retdizingwhat is oppqramityand what is -Lucille Ball

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Lessons Ltarned In rransJt Effldt:ndts, Jtevmue Cttteratlon. c:1nd cost Jttductfon unofficial estimate of the fair market value of the surplus property is $550,000. GGT has a saying that they have never lost money on the purchase of land, and is not hesitant to purchase enough land for possible expansion. The original purchase price of the land in the 1 970s was $20,000. (San Rafael, California) 2 LYNX has an agreement with a full service waste management company that pays tO cents for every gallon of waste oil generated by LYNX (approximately 2,500 gallons per month), while charging $25 per barrel to collect and dispose of crush e d oil fdters. The revenue received for the waste oil and the expenses associated with the crushed oil fdters caned each 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 mmifested and only sold to companies that agree not to subcontract any pan of the disposal process. In addition, the waste oil tak e n from LYNX is tested by the waste management company with a portable tester to provide further evidence that the oil from the transit agency is not contaminated. (Orlando, Florida) 3. In PuertO Rico, a private company provides service on one bus route that has been con and uses 33 percent of a tenninal owned by the Metropolitan Bus Authority. This company shares the expense of paying for maintenance at tbe tenninal. In addition, parking spaces that became available due to downsizing of the administrative staff wer e rented to another governmental agency located neMby For these two items the agency is receiving $236,357 annually, representing 0.7 percent of the oper.lting budget. (SanJuan PuertO Rico) 4. The Regional T1110sportation District leases the air rights over a portion of the Civic Center bus transfer f acility which is located underground at one en d of the 16th Street Mall in downtoWn Denver. The air rights are used for a multi-story office building tha t rental payments to the District currently established at $216,901 for 1997 and scheduled to increase by one percent per year through tbe year 2074. As collateral for the lease, the District must maintain an account balance with a minimum market value of$1,.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 pan of the District's restricted assetS. (Denver, Colorado) 5. The Eastern Conm Costa Transit Authority (TriDelta Transit) leases a portion oftheir operating/ administration f:acilityto Laidlaw T=it, Inc., who currently provides services to the agency under contr.ICt. Laidlaw works from the same facility to provide services for another entity under a different contract T ri-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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Lmons Leamed 111 Tra11slt EffJclenc&es. R.evenwe Generatlotl, c:md cost Rtductton work on the other contract. This arrangement allows Tri-Delta Transit to enjoy an economy of scale, as Laidlaw provides extra mechanics, supervisors, and drivers at no additional cost to ECCTA. Laidlaw does this because they reali..e a savings by operating out of the facility, and want to remain as good renants. In addition to a monthly spare lease charge, Laidlaw is also charged a portion of the facility operating overhead (electricity, landscaping, repairs). This has resulted in a cost savings of approximately 3.5 percent of the total operating budget, and a higher level of service and employees. (Antioch, California) 6. Escambia County Area Transit contracts with Countydepartmentsandnonprofit agencies to maintain the vehicles of these departments and agencies from its transit facilities. Accounting must be kept separate as no federal 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 thought needs to be given. However, "profits made from this activity (ap proximately $160,000 per year) are used to offietthecost of mass transit. (Pensacola, Florida) 7. Recent budgetary cutbacks resulted in The Central New York Regional Transportation Authority (Centro) having spare space in its facilities. All vacant space in its 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 $23 million in operating revenue over the next 10 years through leases to private businesses and agencies of its fiber optics netWork along \VMATArights-of-way. This program will yield approximately S2 million dollars a year for WMATA while allowing telecommunications to give improved service to their customers. (Washington, D.C.) 9. MARTA leases aVlU1able space along the rail line to the telecommunication industry. This includes leasing available system duct to telecommunication affiliates for fiber optic cable, leasing real estate fortelecomm.unication toWers, and leasing areas in stations and tunnels for cellular phone equipment. Unsolicited proposals were received from the telecommunica tions industry. Implementation costs were less than $250,000, resulting in returns of $500,000 annually. (Atlanl>!, Georgia) 10. An RFP was issued inviting the private sector to address BARf's needs for telecommunications improvements and to propose a revenue-generating use of BART's rights-of-way. As a result, an agreement was reached withMFS Network Technologies (MFSNT) to develop a "Conduit System" within BART's r-o-w. MFSNT will then generate revenue by marketing

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and operating the Conduit System for use by private telecommwlications companies for a fee. The revenue generated will be split by BART and MFSNT with 91 percent of gross revenue to BART and 9 percent to MFSNT. Annual payments to BART should reach S 1.0 million. Additional agreements are being negotiated. The intent is to generate at least suffi cient annual revenue from third party use of BART's r-o-w to cover BART's annual obliga tion 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 via a Lease-Purchase AgreemenL (Oakland, California) 1L Dallas Area Rapid Transit is pursuing changes to state legislation that will make feasible the use of U.S.based leasing techniques to generate as much as S5 million in up-front cash from their administration and light rail facilities. {Dallas, Texas) 12 York County Transportation Authority (CommwUty Transit) has agreements to perfomtmain tenance on city vehicles from irs transit maintenance facilities. This provides some additional revenue and builds stronger relationships with other public bodies. (York, Pennsylvania) 13. New York City Transit charged $75 for copies of books used to bid construction projeCts, whichdidnotcovertheoostofproducingthe book. By raising the fee to $125, the agency will eam over $200,000 additional revenue per year. (New York. New York) 14. The Metro-Dade Transit Agency (MDT A) plans to enter leveraged lease-back agreements to generate up-front revenue from its transit maintenance facilities, parking garages, and the Metrorail and Metromover guideways. (Miami, Florida) 15. MDT A leased an area under its Metro rail guideway to a devdoper who is building a super market on the adjacent property. The leased area will be used for parking, generating an annual rent of $27,000. This concept is attracting many other owners of property adjacent to the Metrorail guideway. This not only generates revenue for MOTA, but also places the burden of maintenance on the adjacent property owner. (Miami, Florida) 16. The Capital Area Transit Authority is considering accepting outside work generated by requests from mwlicipalities and local school districts for maintenance of their fleets at the transit maintenance facilities. They currently maintain rubber-wheel trolley vehicles owned by the state of Michigan. (Lansing. Michigan) 17. Through a Livable Commwllties Initiative grant, Corpus Christi Regional Transportation Au thority bought an old bank building and designed a tranSfer facility around it. The authority

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LeSsons Ltamed In Tromtt lffldendu, Reverawe Generation, tuld Cost RfdwctiOI'I rents space to private businesses including a barber shop and florist. The investment in the transfer center also helped spur other development in the immediate area. (Corpus Christi, Texas) utilizing Transit Equipment TO Generate New Revenues Similar to irs facilities, transit agencies control equipment that is somewhat unique within 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. L Palm Tranmorethandoubledits bus service in 1996. In anticipation oftheneedfornew maps, schedules, and other printed materials, it purchased a $2.50,000 printing press with 80 percent federal funding. The press has the capacity to produoe all of Palm Tran's printed material at half the coot of private Palm Tran has agreed with Palm Beach County to allow county pe=nnel to run the press, and the exoess capacity of the press is used to sell services to other county departments. It is estimated that the $50,000 local share of the cost of the equipment will save $1,000,000 over the expected tenyear life of the press. (Palm Beach County, Florida) 2 Ben Franklin Transit has 100Fordvanpool vansand30paratransit vehicles that are on Fonl chassis. With this fleet and their facility and tools, the transit agency applied for and gained designation as aFordAuthoriud Warranty Center. Ben Franklin Transit now pedOnns all the warranty 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. Fonl also pays Ben Franklin Transit 20 percent above each part's cost as administrative fees. Furthermore, Fonl provides training to the agency's mechanics for free. There is little controversy sinoe BFT only does warranty work on its own vehicles, and the margin for profit for warranty work for private dealers is minimal. Fonl dealers were unable to quickly tum around warranty work prior to BFT's designation as a warranty center. Consequently, they are also enjoying the advantage of less down time for their fleet. Ford is now interested in using BFT as a test center for new vehicles, and would provide tbe agency with free test vehicles and pay for necessaty repairs at the noted above. (Richland, WashingtOn) 3. Six sale/leaseback tranSactions have generated $18 million for The Metropolitan Transit Development Board in San Diego since 1981. All of the light rail vehicles and 97 new I THEME I r f sitive Opp1ortut1iSm

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LeSSON Lecrmt4 Jn TrGMit EtrJcltndts, Cienctotfon, Gftd Cost Red'Wct:IOII natural gas (CNG} buses have been "sold" for taX purposes involving different parties 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 already leased vehicles. (San Diego, California) 4. The Sacramento Regional Transit District entered a cross-bonier lease with Deutsche Bank AG for I 0 light rail vehicles. This agreement, though carrying 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) S. Since July 1990, New Jersey Transit bas 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-front benefit paid to NJ Transit. Since 1990, the agency has received a total financial benefit of approximatdy $3.5 million from various leases on rail cars, locomotives, and buses. This revenue has allowed the agency to avoid fare increases and reduce reliance on federal and state subsidies. (Newark, New Jersey) 6. A lease agreement with DB Ext>ort-uasing GmbH for It light rail vehicles allowed the Regional Transportation District to sell and lease back the vehicles for a period of 18 years, providing net additional proceeds of $600,000to RTD. In addition, RTD entered into three, seven-year leasing agreements and other related agreements with JL Massive,JL Elbert, and JL Persephone uase Companies, LTD., for a total of 85 buses. The additional revenue generated by these transaCtions were approximatdy $600,000. (Denver, Colorado} 7. New Jersey Transit invested $480,000 for 13 simulators designed by in-house staff and built by outside contractors. The simulators enable i.nstruetors to train more drivers in less time than with traditional methods. Use of the simulators is expected to result in annual savings of approximately $100,000 by cutting training costS, reducing accidents, and lowering insur ance premiums. (Newark, New Jersey} 8. One hundred buses werucquired by the Port Authority of Allegheny County (PAl), using cross-border financing teChniques with the assistance of contracted legal, financial advisory, and financial arranger services paid from the proceeds of the transaction. Net revenue produced was approximatdy $500,000, effectivdy reducing the cost per bus by $5,000 per unit. (Pittsburgh. Pennsylvania)

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r.tssons Lerned tn TransJt ffldendes, Rtvtnue Gentratlon, and cosr Reduction 9. Centro subcontracts to private charter bus companies that fmd it to their advantage to lease some or all of Centro's 22 over-the.road (MCI) coaches. Those vehicles are used by Centro for doily peak hour express service and regional bus service, but are generally available during off-peak, and evenings. Centro has an agreement with three charter ca.nim that have kept their fleet size small enough to cover routine demands, and then use Centro buses for infrequent events requiring more capacity, resulting in a win-win solution for all parties. This activity provided Centro with over $60,000 in new net revenue. (Syncuse, New York) 10. The Capital Area Transit Authority operates rubber-wheel trolleys owned by die State as part of regular fixed-route service during the week. On weekends, these vehicles are available for charter for minimums of four hours at $85 per hour. CATA has gained the approwl of the private bus company in the community by requiring those interested in chartering the trolleys to make arrangements through the private company. In this manner, people believe the private company is responsible for the service, and the company receives a $25 adminis trative fee for taking each reservation. {Lansing, Michigan} 11 Golden Gate Bus Transit provides bus service from Santa Rosa and Larkspur to most pre season and regular season San Francisco 49er home football games. This service is only offered during off-peak, non-commUte hours and does not interfere with regular fixed roUte service. During the 1995-96 season, net profit from ticket sales was nearly $13,000. (San Raael, California) 12. Suntran is planning on utilizing Chance CNG trolley buses to provide charter service through areas of great tourist interest. Though they have not yet started the service, they hope the Federal Transit Administration will allow such service to be provided on the basis of the uniqueness of the product Suntran believes it can charge $300 an hour. There has been at least one request per week for such service, which could generate approximately $1500 per month in new net revenue. (AlbUquerque, New Mexico) 13. Centro with 20 Ford paratrans it vans, has become an authorized Ford warranty center. Centro now performs the warranty repairs and gets paid by Ford in a manner resulting in profits for the agency. Their designation as a warranty dealer also allows them to compete for warranty work on other Ford vehicles owned by social service agencies that also provide paratransit service with vehicles tbat have been purchased through a state Government Services Agreement contract. (Syracuse, New York}

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14. DART will utilize cross-border leasing techniques for a major bus purchase and for their light tail and commuter tail vehicles to geneme almost $20 million that D.AKI' will receive in up-front cash. (Dallas, Texas) 15. Metro Link Commuter Rail utilized a United States Leveraged Lease for all 98 of its cat$ and engines, receiving $21 million in up-front cash which has been reserved for capital mainre nance purposes. (los Angeles, California) 16. T r.msit will lease its Metro rail cat$ to a lessor that can claim tax benefits as a result of its investment in the transaction, followed by a leveraged leaseback of those assets to MDT A. This is expected to generate S6 million in proceeds. (Miami, Florida) 17. At Capital Area Transportation Authority, the bus wash machines are used to clean not only their own buses, but other municipal fleet vehicles and private Recreational Vehicles, which are very popular in Michigan In addition, CATA serves as a subcon=r to a local bus rebuilder, whereby CATA performs brake repairs for the rebuilder due to the availability o f their brake lathe. CATA usually works on two sets of brakes per week for $150 and has g e nerated appmximtely $6,000 per year. This allows the bus rebuilderto avoid the cOst of a new brake bthe ($45,000) which is only needed occasionally. The job is not bbor intensive, and requires no.dditionalmechanicsto be hired at CATA. (Lansing, Michigan) 18. Durham Area Transit Authority has identiJiedckan ing and washing vehides from othet City Departments and private such as Duke University and Southern Cooch as an opportunity for new revenues. They are also exploring opportunities to maintain heavy duty diesel vehicles for selected markets. (Durham, North Carolina)

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Le.ssot.s Lecamea tn Transit f11dendes, Revtnue Gtneratlon, and cost

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LesiOfiS Le.,.., Ill TrGIISlt Ef!kleftcles, ReYeft .. ,....,.atlon, ond Cost Udwctlon Taking Advantage of Transit's Employees as Unique Assets Labor may well be the single largest expense of most transit agencies, but transit's emp loyees can also make significant contributions towards generating revenues or reducing cosu. As one transit c onsultant noted, for every pair of hands you hm, you get a brain thrown in for free. They contribute cost-saving ideas through employee suggestion programs, offer special ex pertise to other public and private agencies, indispensable participants in "gainsharing" programs. detailed explanations of techniques in this provided below. 1. As noted in the previous "Equipment" subcategOry, New Jersey Transit plll'Cb=d 13 simu lators to train their own operators effectively, and has cut costs of training and liability by $100,000.In addition, the agency has =eived state certification for providing bus driver training to other agencies and is anticipating $100,000 in annual revenues associated with NJ Transit trainers providing this service. (Newark, New Jersey) 2 Transit Authority will take advantage of their unique personnd expertise by providinghazanlousmaterialstrainingforprivateorpublicorganizations, training and certifying other bus operators within DATA territory, and conducting security checks for other bus operations in North Corofina_ (Durlwn, North Corolina) 3To promote a entrepreneurial environment, Centro all staff members are for all dements of their sections' budgets. Each one is encouraged to establish "profit centers" and to be as as possible in finding opportunities to generate new revenues. They to re-examine all their processes and Mtionships. Their advertising contract was to open up inventory for sale, and managing garage and surface lots much aggressively to maintain market competitiveness. (Syra cuse, New York) 4. In 1992, the government of Argentina decided to privatize their national commuter railroad system. Private businesses w e re invited to bid on seven different commuter rail and subway lines located in the capital of Argentina. One of the for the contract with the Argentine government was that they have a contract for technical assistance with an existing rail operator BART was sdected 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 automatically An additional $50,000 is paid to BART as a non-refundable deposit for any for technical assistance received during the year. Work beyond the $50,000 billed and received before the work begins. Subject

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Lessons LeGrned Jn Transit Eff1clendes, Revenue GenerAtion.. and Cost Reduction BART staff have provided technical assistance on include IV!anagement and Organizational Structure, Organizational Issues, Fare Collection, Budgeting, Physical Review of Locomotives, Shop Maintenance, Maintenance Shop Work Flow, Locomotive Reliability, and a Mod ern Commuter Rail S tudy. Total billings on this project have been $1,600,000. BART staff contributing to this contract have included staff from Rolling Stock, Transportation, Engi neering, Budget, and Joint Development. After fully recovering all costs and overhead expenses, the Argentina project has contributed $400,000 after three years. (Oakland, Califor-nia) 5. Similarly, BAliT wos selected by Parsons Brinckerhoffto provide operational training to the transit operator of the new commuter railroad in Cairo, Egypt. BART developed training materials, student teXtS, and instructor's guides for all six of the classes for InstructOrs, Train Drivers, Station Masters, StationAttendants,LDcal Switch Board, and Central personnel BART staff have provided the training and gone to France to studytbe central equipment at the factory and at railroads in France where it is being utilized. This one}'ear contract has utilized personnel from Transportation and Rolling Stock. The contract is expected to extend approximately one more year. Total billings to date have been $1 million After fully recover ing all costs 211d overhead expenses, the Cairo project has contributed $250,000 to BART. (Oakland, California) 6. Metro Area Transit has instituted a bonus plan for all employees that provides cash payments if the agency achieves certain thresholds, including coming in under budget, decreased absenteeism, safety, and reduced accidents. Eighty-five percent of aU employees qualified for the $550 bonus. An external auditor conftrmed the agency finished the year $600,000 under budget. (Omaha, Nebraska) 7. The Metropolitan Transit Authorityk Houston established a successful gainsharingprogram for salaried petSOnnel to focus their aaention on control/ reduction of operating costs. An outside consultant was hired for $100,000 to ensure an objective review. The cost target was defined as the total operating .,Penses exclu(l;ng contingency. Any savings below the cost target 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 was equal to or less than the ridership of the prior year, the salaried employees would earn 40 percent of their share of savings. If the current year ridership wos eqUal to or greater than the previ6Usyear's ridership, the salaried employees would earn between 40percent and 100 percent of their share, apportioned in relatio.nship achieved threshold and target

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ridership. The program resulted in $5 million in savings, with S I million paid out to salaried employees for a 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 the ridership threshold was not met. (Houston, Texas) Taking AdVantage ofTtansit's Passengers as unique .ASSetS Access to transit's customers is valuable tO entities other than transit agencies. They represent a market for other goods or services that can be effeaively reached given their use of transit vehicles or facilities. Oearly, some of the advertising noced in subcategOry A is an =mple 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 transit's passengers, as noted below: t At Golden Gate Transit, "Merry Ferry" special promotions for twO weeks before Christmas include free fashion shows, wine tasting, music, and visits from Santa, all provided by restau rants and retailers to promote themselves to a captiv e ferry audience. This adds value to utilizing transit and helps build ridership and revenue. Ridership increased 202 percent compared with the same runs during the rest of the winter on weekends and 121 perceot on wmdays. (San !Wael, California) 2. "Lunch for the Office Bunch" on the GGT Sausalito ferry encourages lunch getaways during the summer with a variety oflive entertainment. "Jazz on the Ferry" on summer Fridays also artracts additional riders who see a good time and extra value in these trips. (San Rafael, California) 3. Centro hasrecendy developed monthly passes and 10.pacls 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. However, 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 ftrst few participating companies judiciously and possibly offer them a deal that beneftts the companies as well. (Syracuse, New York). 4. Centro negotiated a deal with AT&T for the installation of telephones in bus shelterS. Centro receives $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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l.tS$0ns Learned fn Transit Efficiencies. Revenwe c;enerat:Jon, and cost Redwctlon service information center. Phones are programmed to shut off after midnight as a way of cooperating with local police who arc concerned that such facilities are used to conswnmate illegal activities. (Syracuse, New York) 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 TransitAuthorityofNorthemKentueky. TANKnowgivesmoreemphasistoattractstUdent passengers, keeps electronic tallies of their boardings, and invoices the school districtS for allstudentstheycarry. (FortWright,Kenrucky) In WMATNs rail system, pay telephones were initially placed in the mezzanine area of each station. As a means of increasing revenue, it was thought that the platform location 'WOuld be a more convenient location for phones for passengers, encouraging the use of phones for impulse calling with no fear of missing a train. no cost to implement this change, since the exchange carrier was already under contract to provide pay telephone service. In Fiscal Year 1989, prior to the installation of platform telephones, revenue for the use of pay telephones was S76,500. It is projected that in Fiscal Year 1996, the amount of revenue generated from pay telephones now on platforms will exceed $700,000. (Washington, D.C.) 7. The Metropolitan Transit Development Board awards a single Master Concessionaire con tract to administer the various concession operations at transit sites in the San Diego area. This Master Concessionaire solicits for mobile kiosks ("push carts") at major bus stOps and park-and-ride lots. These push carts sell transit tickets and passes, Soda, coffee, post cards, and other small merchandise. They bring in small amounts of revenue for the transit sy&tems, but add presence to the stop area. Goodwill donation facilities, with attendants, add a low-key use and some additional presence at similar sites. (San Diego, California) 8. In 1992, BART staff retained consultant assistance to assess the viability of a competitive solicitation to secure a new pay telephone contract in order to generate additional revenue. At the time, Pacific Bell had the pay phone concession contract with BART; there were approximately 525 phones on BART property being used by BART transit patrons and BART was guaranteed $500,000 per year in revenue from these phones. Based on the consultant's analysis, BART released an RFP to solicit a new contract to gener.ue additional revenue and services for its patrons. Five proposals were received and evaluated. Arntel Communica tions, Inc., was selected by BART. The new pay phone contract was for a minimum annual guarantee of S 1.0 million, or 40 percent of gross income, whichever was greater. (Oakland, California) I Positive I Opt'ort:u l11Sttl

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Ltssorrs l.IGrnf'd In rrorrslt EffkJt.rtcla. Rtvetue Gtntratlon, cmd cost Reduction Key Lessons Learned In Taking Advantage ofTmnslt Employees and Passengers as Assets 1 ,, l. Market)OUT fiJlpn:>dualine--Transit emplayeesgain special expertise in areas such as safety training, HAZMAT handling, and security that can be sold to other agencies with transportation functions. Effurts can even be international in scope. 2 Think win-win-Collectively, transit employees can help achie\'e agency goals while saYing money if there are.clear pedonnaoce go:als and reasonable incentives tied to those go:als. This is good for the individual employee, the organization, and 3. Add Joint promotions provide wonderful oppottunities to :'treat" your custQmers and-give them extra Vlllue for their choice of transit. This increases ridership and revenue and builds customer loyalty. 4. W'tZAni-Discouotcouponsissuedtoregclaq>assengersare m:ellent wlue-adders by themselves, but transit agencies can :also charge oompa nies for the right to give those coupons to customers. This same principle applies to telephones at transit facilitieS, concessions, or other servicu. They not only provide revenue for the transit agency, but a convenience for the passenger as weii, and add "presence and security to the facility. S. It's theptmenger, stupid-Wheolocatiogany (such asteJe. phones), think like a passenger and place the -services where they are mosdikdy to be used most frequendy.

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Lessons Llanted In TransJt Effklmcles, Revenue and Cost Rtdwcd0t1 THEME II Partnerships Transit agencies have often referred to t he federal and state governments as their partners in various transit projects. The federal government remains an active partner in helping to fund capital projects, but it is steadily reducing its contributions for operating assistance. Some state governments have helped pick up the federal operating slack, but there are few examples of stateS that have made up the difference entirely. There is a need for transit agencies to expand their list of partners t o include major employers, universities, municipalities, downtown development autbori ties, public school districts, and various other entities. Transit systems can leverage their limited resources by forging new partnerships that can bring non-traditional sources of support. These new partnerships allow 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 encourage transit agencies to more assertively pursue and offer such opportunities. Transit and transportation are all about linkages, allowing people to travel for many different life functions. Given the critical need for mobility in American society, it shouldn't be surprising that there are oth er entities that also regard the mobility provided by iransit as critical to their own success. Examples of how transit agencies have gained new partners is provided in greater detail below Private sector Partners supportive of New n-ansit service Transit agencies have found new partners among private businesses and major employers who regard transit as important to their own self interests, and are willing to pay fully or partially for new service that would otherwise not be possible to provide. L Springs Transit 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 "Fantasiesaremore thanSHbltiiUII!$foy theyarealsod= rrhetmals,p/ans. AfJaasperformai inthewmfdber)n in the imagina-tion.. --Barbm-a Htrrison

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is using the land for the previous emp loyee 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 hospital pays 100 percent of the fully-allocated cosu to operate 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 respon d to employer requestS for new and additional transit s ervices in areas located more than one-half mile from the n earest transit service. This program helps reduce air pollu t ion and improves access to jobs for unemp l oyed Milwaukee resi dents One of the requirements of the ETRR Program is that benefitting employers participate in funding the local cost of the services. Other funding has com e from the Congestion Mitigation & Air Quality (CMAQ) Program, state, and fares. N o Milwaukee County Transit funds are used to support these services. N many as 12 employ ers have contributed a total of over $90,000 per year towards the cost of these services. (Milwaukee, WlSCOilsin) l In the Orlando area, the Seminole Towne Center (the newest mall in the region) approached the City of Sanford about serving the site with transit. The developercontnbutes SlO,OOOte LYNX toward the cost of the service, and the City of Sanford matches that contribution. (Orlando, Florida) 4. LYNX operates under an agreement with the International Drive Master Transit and lm provement District for !$-minute frequency service from 6:00a.m. tO 1:30 a .m serving the corridor that supports Walt Disney World, Sea World, Uni v ersal Studios, Disney/MGM Studi os, Epcot Center 23,800 h o tel rooms, and the convention center. LYNX receives $1,623,000 per year (all fully-allocated costs for the servi c e 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, informatio n dissemination ete. The division has its ow n dedicated fleet of vehicles. LYNX gets t his opportunity over the private sector in l arge part because of its outstanding and colorful image. (Orlando, Florida) S. The Indianapolis Public Transportation Corporation was approached by 20 employers who pooled their resources and paid 70 percent of the expense of p r oviding late evening and weekend bus services due to an emp loyee shonage problem caused by the lack of transpor tati o n for such workers (e.g., fast food restaurants, m ov ies, hotels, etc ) Out of p o cket expenses for surveys cost $5,000. Where poss ib le service on the street was reprogrammed

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Lmons learned In TrartSit ffidendes, Keven we Gmeratlcm, mtd COSt Reduction to reduce the cost of meeting the employers' needs. The program is called Metro Works, and has in creased ridership in the late evenings. (Indianapolis, Indiana) 6. Escambia County Area Transit entered into an agreement with twO malls to underwrite the cost of transportation from the Pensacola Nav:d Air Station to the malls during the weekend and on nights when normal bus service was unavailable. The malls decided to split all COstS not covered by the fareboxon a 50/50 basis. This premium service is provided at no cost to taXpayers and is open door. Implementation costs were minimal. (Pensacola, Florida) 7. The largest hospital in the region had a shortage of 400 parking spaces and reached an agreement with Community Transit to establish a park-and-ride service that not only pro vided direct service for hospital employees but also allowed the authority to restructure and improve its Service in the area at no additional cost. The $140,000 received from the hospital covered all expenses related to service improvements and provided 8,000 new passengers per The hospital has also agreed to subsidize the cost of transit passes for its employees. (York, Pennsylvania) Public sector Partners supportive of New Tmnsit Service There are numerous public agencies such as cities, universities, development authorities, and public schools that have interests that can be best served by helping to fund transit service improvements that are targeted to their areas of interest. These partnerships also allow the transit agency to improve its services and image, while gaining more "friends" in the community. L PACE entered into an agreement with the Waukegan School District, which was closing one of two schools and would be experiencing much higher student transportation costs. The school district agreed to pay PACE $186.50 per student to allow students to ride from 6:00a.m. to 8:00p.m., with only minimal additional service being provided. Ridership increased by over 50 percent. All costs associated with additional service are covered 100 percent through the agreement. This has not been duplicated in other partS of the service area due tO active resistance from private operators of school transportation services. (Ar lingron Heights, Dlinois) 2. A new two-directional, 10 minute frequency shuttle provided by King County Metro was made available to all etnployees and residents between Microsoft campuses and park-and ride lots. This new service was funded through an FTA demonstr.uion grant, with contribu tionsfromtheCityofRedmondandtheOverlakeTransportationManagementAssociation.

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LWOfiS Ltomed '" Tra"slt ffldendn:. Revmwe Generation, and cost Reduction D u e to low ridersh ip, it was canceled in February 1997, but serv e d as an example of the services that can be provided through public partnership. (Redmond, Washington) 3. LYNX receives funding from a number of public partners to provide new services in its region. The University of Central Florida voluntarily contributes 550,000 (through student fees) for fixed routes and circulators that serve the university. The City of Orlando pays LYNX $52,560 annually for shuttle services provided from Downtown to the Centroplex. The Orange County Convention Center :also pays LYNX $25,850 annually for shuttle ser vices from the parking area to the door. The Downtown Development Board sponsors ($513,000 annually) theFreebie, a downtown circulator with S.minute head ways from 6:20 a.m. to 7:00p.m. (Orlando, Florida) 4. Centro contracts with two universities to p.rovide service in a manner that generateS new revenues and riders. In one contract, they receive fixed revenue per vehicle hour that more than covers their coSts, allowing th e m to provide fare-free service for everyone on exclusive campus routes. In another contract, Centro provides service that goes through areas of the city as well as the campus, and receives r evenue from the university based on estimated hoardings, while operating open-door service throughout. (Syracuse, New York) S. Capital District Transit Authority signed agreements with twa universities to provide most of their transportation services. All additional coSts were covered through the agreements which provide $200,000 in new revenues. The revenues are secured through the charging of student fees by the universities, which allow students to ride for free. While the agreements are generally revenue neutral 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 Board was able to garner 54 percent of the region's federal CMAQ funding for transit A major part of the CMAQ is dedicated for construc tion of future Light Rail Transit (l.Rl) extensions. However, CMAQ has also been approved and used for op e ration of new bus and LIO" services, which i s allowed for up to three years of the new service. (San Diego, California) 7. All municipalities that have Madison Metro bus service contribute the net local share, in cluding capital, of operating the applicable service. In addition the Madison Metro School District pays for the routes that are added during the school year to :u:commodate the students, and the University of Wisconsin pays for the special campus routes. These contri

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Lessons Learned In rranstt Efflclendes, Revenue ceneratton, and cost Reduction butions total $1.4 million annually. In addition, Dane County purohases group access service from Madison Metro, providing the agency with $118,000 in revenue annually. (Madison, Wisconsin) 8. Broward County Transit bas reached agreements with seven different cities in the County that reduce costs by 90 percent while quadrupling ridership in areas o f relatively low de mand. BCf 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, BCf provides each city with S 18,000 per year, per vehicle to h e l p pay for operating costs. How ever, each city is responsible for operating andmainrainingtbe vehicles with their own Staff. BCT provides free training and technical assistance in scl;leduling, placing bus stops and developing printed material, if requested. The service provided is far more flexibl e than th a t provided by BCT, and bas much more local energy to help it succeed_ These agreements have reduced BCf's costs of providing service from $180,000 per year to $18,000 per year per vehicle, and ridership has typically tripled or quadrupled due to the greater marketing effort made at the city lew!. This service also helps reduce BCT's cost of providingparatransit service, since the minibuses are accessible and able to provide route deviation service. (Pompano Beach, Florida) 9 The Sacramento Regional Transportation Commission participated in a fund swap negoti-. ated by the Sacramento Area Council of Governments. The Sacramento Regional District (SKID) provided $39. 3 million in unusable state capital funds to the Metrop olitan Transportation Commission, who in turn gave SRlD $32.7 million in highway funds. SRTD gave these highway funds to the city ofFolsumfo r a new bridge. In turn, Folsum will pay SRTD $40.4 million over 12 years t o pay for the operation of an extension ofthelightrailsystem. (Sacramento, California ) Public or Pr'illate Entities Assi s ting witt! New 'O'ansit Facilities or Equip ment New partners such as cities, air quality boards, or private businesses have shown theirwillingness to partner with transit agencies to pay for all or substantial portions of the costs of new transit facilities or equipment ranging from alternative fueled buses to major transfer stations. l At Napa Valley Transit, all buses are equipped with signal pr&emption that is triggered automatically when buses are more than five minutes late. The Op ticomsignal works off of a global positioning system (GPS) which also does real time vehicle tracking. N a pa Valley Transit waschosenbythe3MCompanyasademonstrations i teforthedevelopmentofthis

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uuons Leamocl In TrCMslt fj!ktald.,, lllmlut lit-Ott. """ COJt lloclwc:tlon integrated SJ1$tem. Consequendy, the transit agency paid $130,000 for only the signal pre emption upgrade portion of the system. (Napa, California) 2. Since 1991, the Sacramento Regional Transit District has benefitted from the lntermodal Surface Transponation Efficiency Act (ISTE.A) flexibility by receiving $18.8 million in CMAQ and $4.6 million in Surface Transportation Program {STP) funds for multiple projects in cluding new alternative futling facilities, bicycle lock=, 20 CNG bwes, ADA improve ments, light rail line extensions, double tracking, and environmental remediation. (Sacra mt'n!O, Califumia) 3. Pierce Transit encouraged partnering on capital projects with other jurisdictions wing 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 partnered with private bwinesses to malte existing parking available to Metra commuters on a shared basis. Bwinesses and organizations size their parking facilities to meet their own peak parking demand period. When this time period is different than when rail commuters require parking. an opportunity to joindy use the facility is possible. This scenario increases parking capacity available to commuters and at the same time provides 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 Metra overS 10 million {$4,000 per space). (Chicago, Dlinois) S. A partnership venture between MART A, the State of Georgia, and Atlanta GasLight Com pany (AGLC) has substantially reduced the cost to MARTA to implement and operate a new CNG fleet of 118 bwes. AGLC provided $3 million for construction of a CNG fueling facility and $2.9 million toward the expense of the bwes (covering the difference between the cost of diesel buses and CNG buses).lt also agreed to provide heavy maintenance for the fueling facility for 20 years and guaranteed a set price for fuel for five years. Th e State of Georgia also provided $5.8 million for the procurement of the bwes, and the U.S. Department of Energy provided $500,000 as well. (Adanta, Georgia) 6. Centro partnered with Niagra Mohawk Utilities for the installation of a CNG futling facil. ity. State and federal grants paid for 90 percent of the fueling facility, with Niagara Mohawk paying the 10 percent local share of $350,000.1n 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 (SSOO,OOO).In exchange, Centro will purchase fuel from Niagara Mohawk. (Syracwe, New York)

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Less011s Leamed In Transit Effldendes, bwnwe GelleratlDf'l, and con Rectuctkn 7. The City of Schenectady agreed to serve as a supplementary sponsor along with the Capital District Transit Authority for a new downtown boarding center, providing $50,000 of the $225,000 local match. (Schenect.dy, New York) 8. WMATA has entered into an agreement with a private developer (RF&P), whereby the developer will design and build a new Metro rail station as part of a new 342re develop ment {Potomac Yard Project). This 16,000,000-square foot, mixed-use development was approved by the City of Alexandria on theconditionRF&P builds anddesignstheMetrorail station at no capital cost to WMATA whatsoever. The cost to design and build the station is anticipated to exceed $25 million. The developer is responsible for all com associated with the project which will be deeded over to WMAT A, which will operate and maintain the station. It is anticipated that the new station and development will generate sufficient riders (estimated at 14,600perday) to morethanofsetthecostof operation. (!'his is no different than having a small development pay for and install a bus stop at a subdivision). The project will provide for a bus loading/unloading facility as well as a kiss-and-ride facility. (WashingIX>D,D.C.) 9. The Metropolitan Transit DevelopmentBoardispartnering with the local redevelopment agency to use some transit capital funding, along with local capital improvement and rede velopment monies, to complete a ten-block street improvement project. Included will be a rehabilitation and improvement oftwo light rail transit stations, along with a major corridor change to create supponive transit uses in and around the corridor. The MTDB has also partnered with cities to use a combination offederal and local funds to build sideWlllks that include improved bus stbps designed to be consistent with ADA requirements. (San Diego, California) 10. Large and small examples of joint development in San Diego all result in increasing transit ridership which increases revenue (in addition t o whatever lease revenues might be made). Elwnples range from a LRTstation where a child care facility was developed along with residential uses on the site, to stations where multi-story office uses are part of the station. (San Diego, California) 1L In San Diego, the local match for new CNG buses was provided through Air Pollution Control District vehicle regisuation fee revenues, and the local utility took financial responsi bility for building the required fueling station$. (San Diego, California) 12 Suntran partnered with the city of Albuquerque and anew developer tO expand its ridership and park-and-ride facilities. As part of the local development review process, a new mall

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Less011s Learned In TraftsJt lffklmcles, Revtftwt GtntrGtton, anti cost ltedwctiOtt 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 vicinity. 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) U. 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 oost of the fueling station (saving $160,000). That facility is also used to serve other agencies, and the agency will charge an administrative fee at a few centS per gallon of fuel. (York, Pennsylvania) 14. Two major joint developmentS have OUrred at two M e trorail stations in Miami, with a third major development nearing reality at a Metromover station. The joint development at the Dadeland South Metro rail station includes twO class A office buildin&$ totaling over 410,000 square feet. with 40,000 square feet of retail and a 305 room luxury Marriott hotel, and is expected to generate over $900,000 annually in lease payments to MOTA The joint development at the Dadeland North station includes 320,000 square feet of multi -
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In Transit !ftld
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ride the buses at no cost. The business park pays a flat amount per month to the agency based on deep discount rates that provide a 40-ride punch pass for only $24. (Livermore, Oolifomia) 5. The Metropolitan Transit Development Board's Adopt a bus stop program reduces mainuo nance corn where adjacent businesses or residences "sign up" to maintain the bus stop in front of their building. (San Diego, California) 6. Madison Metro has arrangements with the University ofWisconsin and Edgewood College 10 provide semester passes 10 students. The schools will reimburse Metro for the estimated lost revenue. The benefits to Metro will be increased ridership and the potential for future customers and revenue. (Madison, Wisconsin) 7 As part of a broader effort to stay in touch with the concerns of passengers and neighbor hoods, San Francisco MunicipaiiUilway (MUNI) sent a query letter to community papers to see if they would like a regular MUNI colwnn in their newspapers. Five papers indicated they would, providing MUNI with an inexpensive method of communicating its services to the public. (San Francisco, Califurnia) 8. King County Metro has entered an agreement with Microsoft (a very high profile employer) to encourage high occupancy vehicle use while generating revenues for Metro in new ways. The FlexPass partnership provides a comprehensive single pass approach for commuters using a variety of non-drive-alone traVd modes. Microsoft is CWTently distributing FlexPasses (a sticker applied to the back of employee badges) to over 16,000 regular and contract employees at eight work sites in the King County area. With their FlexPass, employees have free access 10 all regular bus service, vanpools, and the Home Free Guarantee program. In similar programs, transit ridership has typically increased by about 140 percent during the first year of FlexPass use. The Metro/Microsoft partnership includes the following proviSions: The FlexPass is a deeply discounted pass providing unlimited acoess 10 bus service. A pass is provided 10 all employees, though transit costs are based on actual use only Costs to the company of increased transit use in following years are discounted, until full COstS of actual transit use are home in the fourth year. New trips have been added (11 trips on four existing routes) tailored to employee schedules, for which the company is providing 80 percent funding. A discounted van pool program is provided which covers all costs of new riders {up to a 10 times increase in riders)

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Lessons learned In Transit [ffldendes, Revmwe Ge:neratlon, cmd cost aedwctlon during the fmt year then requires Microsoft to fully subsidize these costs on a phased basis over a four-year period. (Seattle, Washington) 9. Centro has promoted the concept that companies that pay for employees' parking should also be willing to buy monthly passes for employees who use bus service. Twenty-eight employers are now subsidizing pass pw-chases for their employees. (Syracuse, New York) 10. Napa Valley routinely involves the private sector in sponsorship of events. Some examples are Earth Day promotions recycling center), special service for the Fair (service clubs sponsor free trips), Youth Pass Qocal business pays printing cost in exchange for advertis ing), Rides hare Week (giveaways for raffles), bus christening party (all of the food, flowers, t:able decorations, and for the event is donated), and the annual Tour brochure where advertising on the brochure pays for the printing oosts. (Napa, Califumia) 1L Regional Transit Service entered into a partnership with Rite Aid, a drugstore chain, to market the agency's tickets and passes. RTS had been losing sales oudets, due to bank mergers and lack of interest. The agreement with Rite Aid COstS the agency nothing. Rite Aid has sold nearly $2 million in tickets and passes for RTS over a three-year period. {Rochester, New York)

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,. L 2. Key Lessons Leamed in Theme II -Partnerships Seek and ye shall find-Entities such as hospitals, malls, universities, employer.;, towistartr.ICI:ions, etc., have typically initiated pan:nerships with traosit agencies. Tnnsitagencies might wdl creole considerably more partnerships that can result .in new and more effectively- 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. TimSit is all oboutlinkages, not just forgetting people from point A to point B, but linking public transit with community goals. Those linkages should be positively exploited. 3. other public and private entities might not only pay for new service, but allow the mnsit agency to restructure existing service to help gain additional riders .and revenue. Iflocal 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 tne7XYTh e more local a service is, the more attention the sponsoring agency is likely to give it. There is simply more energy per unit of service helping the service to succeed. Local sponsors are subject to more scrutiny, and they are on the hook for their own investment. Hence, it is often wise to decentralize and customize transit services with the help of local sponsors. S. Stay dose w your friends-Transit 3fplciesare very likely to benefit from funding agencies with complimentary community improvement goals, such as Air Quality

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Lessons Learned fn Transft ffldendes. Revenue Genenrtfon, and COSt Rtductlon 6. 7 . Districts, state EPAs, Downtown Development Awhorities, Councils of Gpvemments, and MPOs. Transit agencies need to attend those meetings andlwow .what their interests-arc, then make every. effort to 1-et:tliem. know tr.W.Sit-is: a 'Villint partner in improving the quality of life in tbeirar:ea. .

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U:sso11s Larlled 111 rrarrsft EfJ'Idtlrda, Revmur Gtntf"crt1on, O't'ld cost Reduction

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Lmoru uamr.d fn Trmtsft Efttdmcfes. Revenue Generation, and cost Red"uctlcm THEME Ill Coopercrtlon Thisthemeincludesadditionalexamp lesofuansi tsystemsworkingwithotherpublicorprivate entities, or their own workforce. It differs from the "Partnership" theme in the sense that the transit system is already engaging in the activity in question. No entirely new service or facility is being created. However, by cooperating with other agencies, or groups, tr211sit systemS can either reduce their costs or gain yeater benefits, while once again enharicingtheir image and increasing their chances for support from the external environment. Examples of cooperation are explained in greawr detail below. joint Purchasing Transit agencies are procuring goods or services through pre-established state contracts, forming consortiums among multiple agencies to purchase items of common interut, "piggy-backing" on othercontraets, and participating in regional effurts to maximize marketing budgets. 1 Ben Franklin Transit US
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while providing much broader coverage. RTA's previous transit liability coverage was SIO million in excess of a $2 million deductible. The current coverage is S 10 million in excess of a $250,000 pool deductible and in excess of Sl,OOO individual property deductible. In the last ten years, the Authority has had two claims exceedS I million in settlement, but less than the previous 52 million selfretention. (Dayron, Ohio) 3. The Regional Transit Commission utilizes another local entity (Washoe County) tO joindy 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 under the umbrella of the Metro politan Transit Development Board. While Chula Vista (and a number of other local provid ers) is responsible for route scheduling and operations, information for aU transitservioes in the metropolitan area is provided regionally. This allows each operating ageney to foeus on operations and spreads the cost of marketing over the entire region, allowing certain itemS (such as transfers, schedules, etc.) tO be purchased at a reduced bulk price. (Chula Vista, California) S. The Transit Authority of Northern Kentucky worked with the Southwest Ohio Regional Transit Authority (Cincinnati) tO purchase fuel and fareboxes. This increase in purchasing power decreased their total capital costs by $4,000 and operating cost by $46,000. (Fort Wrigbt, Kenrucky) 6. In the procurement of paratransit vehicles, Sunline Transit "piggy backed" on a larger agency's bid paekages with minimal cost to Sunline and a savings of SS,OOO per purchase. (Thousand Palms, California) 7. Twenty-two 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-pocket costs are slighdy less per test, the most significant benefit is that aU administration of testing proce dures is handled by the vendor. The consortium keeps all records on safety-sensitive employees, works with the Medical Review Officer (MRO), makes the random selection, completeS reports tO the FTA. = (York County Transportation Authority, Pennsylvania) Sharing/l)'adlng of services, Fadlitles, or FUnds Transit systems are finding ways to minimize expenses by sharing facilities, tradingitetns of v.Uue, and utilizing other public agencies' expertise at vittually no cost. They are also sharing expenses of

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Lessons Lurned In TrGnslt Efflcltndes. Reve11ue GeMratlon, CJf'ld cost RtdWctlon common service, ond in some cases finding.ways to fund their operating expenses by trading capital dolbrs for operating dolbrs. 1 Tri-Delta Tr.witond Central Contra Co$ta Tr.>J1$itAuthoritysplitthetotalcootofoperating a fixed-route service from one service area rothe other. CCCTA provides the bus and half the operating cost and Tri-Delta provides the other half of the operating casts for the service. This allOW$ both agencies to split the cost of service, while helping their customers anddemonstratingthespiritofcoordination that taXpayers expect. (Antioch, California) 2. &ing a part of county government, SCAT takes advantage of numerous administrative support services at minimal cost to the transit program, such as Personnel, 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 for higher' earnings rates since funds are part of a larger investment pool. (Reno, Nevada) 4. Fairfield/Suisun Transit has developed partnerships with 14 different parties whereby they purchase service from others or others purchase service from them, allowing operational costs to stay the same overtime. 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 without additional costs. (Fairfield, California) S. MTDB exchanged federal capital funds to another operator in California for "flexible" mon ies. The downside of this transaction is thatMTDB rtccived only 80 cents on tbeirdollar in the swap of capital money for operating money, but it did provide them with sufficient operating funds to maintain service in spite of a tight operating budgasituation. (Son Diego, California) 6. Volusia County Transit (VOTRAN) implemented new service in an area of the County (DeLand/Deltona) that had no operations facility, resulting in 284 deadhead miles per day (at a cost of $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 transit buses. The daily deadhead miles were reduced to 120, resulting in a savings of $8,100 per month, or $97,200 per year. No rentis paid by VOI'RAN, though they realize they are guescs and make improvements tci the facility where they can. There was a consensus between the County Conunission and the School Board that the public wanted to see differ.

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ent public agencies share resources for the common good. This in tum has resulted in a better relationship between VOTRAN and 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. VorRAN tenninao!d a contract with a private marketing consultant finn in favor of working with the Volusia County Public Information Office at a savings of S 12,000 annually. That office does not charge VOTRAN for the marketing services it provides, and it can be included in ads that are produced for other County departments such as the Beach Depart ment, the Ocean Center, and the Airport. This arrangement has elevated VOTRAN's statUS tO be considered as one of the primary public services that contribute tO economic develoP' ment and murisrn in the County. {DaytOna Beach, Florida) 8. MUNI arranged for refresher customer service training for its Telephone Infonnation Personnel by an outside customer relations professioml known for his expertise and attention to detail. It was atTanged by the trading of bus ad space to publiciu Ca!Train in exchange for the special training services that Cal train had under contract. (San Francisco, CalifonW) Providing EXperience, Employment, or service Opportunities for other Agencies Volunteerism and apprenticeships are not entirely dead. A number of transit systems are realiuog genuine benefits from utilizing summer youth employees, college interns, and volunteers who provide valuable services ranging from data entry, graffiti removal, research, schedule distnbution, etc. at very low cost. Similarly, other transit agencies are benefitting from low coSt labor provided through sheriffs' work incarceration programs or other community service programs. !. Napa Valley Transit has a travel training/ orientation program Staffed by ten trained user volunteers who work one on one with new riders. The "Transit Ambassadors" also assist by Staffing booths at events, doing graffiti abatement at the downtOWn tenninal, and helping out in the office by stuffing mailers, daily data entry, etc. This program was originally deveJ. oped using a $25,000 grant, and is now self-supporting from money raised through a "Catch the Bus" game the agency has at faits and events. (Napa, California) 2. High school Students do real work (uaffiti removal, backlogged data entry, other limited term projects) for Milwaukee County Transit through a Summer Youth Employment Pro gram. ThisallowsMCTtogetneededworkdonewithouthiringadditionalregularemploy

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Lessons Leorned Jn rransft Effldencfts, Revtnwe Gtneradon, and Cost Reduction ees or paying excessive overtime. The cost of the program is $63,000, but the value of the work is $161,000, resulting in annual savings of $98,000. The program focuses on minorities and other disadvantaged youths, providing them with real work experience. Mer also assists the stUdents with resume preparation, interviewing, and other job search techniques. The program bas the fu1l cooper.ttion and participation of the transit union. (Milwaukee, WISCOil sin) 3. PENTRAN participates in several internship programs in oonjunction with the Deparunen.t of Services, local colleges, technical training schools, and higb school job training programs. Through these progr.uns, interns are able to gain valuable work experience while providing much needed clerical support at no cost to PENTRAN In addition, several internships have resulted in permanent employment which curbs recrui t ment costs. (H:amPton, Virginia) 4. Work Program uses incarcerated individuals and the Sacramento V o cational Services Program uses developmeotally.
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LeSSOns Leamec:f In Transit fffJclendts, ltevenwe-Ge:rteratlon, and Cost Reducdon COOrdination of ll'ansit ana Paratranslt services Serving as a coordinator for paratranSit services has allowed some systems to realize saving>. They are in a better position to mainstream para transit passengers to less expensive ftxed-route options, coordinate wrious paratransit providers to encourage multi-loading, and reduce capital expenses by maximizing the use of paratransit vehicles through coordinated use of vehicles among agencies. L Centro now serves as the broker for all trips provided through Medicaid funding (there is $300 million spent annually on Medicaid transportation in the stare of New York). Calls for such service in the Syracuse area now oome to Centro as broker, and they direct all the trips they can to the bus service (rather than paratransit). In addition, a group called Peace Incor porated now works at the Centro facilities as a separate workforce, but side-by-side with Centro workers. 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 ofHMOs, who Centro is working with now to get into a position to receive a fee for all trips that will be funded through the liMOs. (Syracuse, New York) 2 MediCal provides health services to Medicaid recipients in California. MediCal pays Fairfield/ Suisun Transit to make sure their patients are at appointments on time. Fairfield/Suisun has inoorporated 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 each trip provided. There are no additional costs. (Fairfield, California) 3. N the Consolidated Transportation Service Agency, Sunline coordinates all transportation services provided by socw service agencies 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 has 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, helping to offset the cost of one of the mechanics They also rent unused space to community 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 stare service provider, saving $376,000. (Taooma, Washington) 5. The Metropolitan Bus Authority invoices oth er agencies for para transit services MBA pro vides in areas providing fixed-route service since all agencies receiving federal funds for

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Lessons Learned In tronsftffldencles, Rn-enue Generatfon, and Cost ReductiOtt transportation must have complemenwyparattansit service. They receive $511,267 annually, or 1.5 percent of t heir o peratin g budget, from this source. (Sanjuan, Puerto Rico) cooperative Agreements with 'Tl"anslt Labor unions Cooperation is just as important within a transit agency as it is with the external environment. Almost 70 percent of the cost of operating most transit systems is attributable to labor, the vast majority of which is for emplO}'I!es in collective bargaining units. A number of transit systems have successfully negotiated with tb.eir bargaining units to reduce costs through greater use of part timers, extended wage progressions, two tiered wages (particuhrly for smaller vehicle operators), one-time bonuses versus base wage increases, changing to managed health care, and early retirements. L Wichita Falls Transit has formed a pool of parttime drivers to fill in when needed (vaca tions, charters, sickness, etc.). They are part-time in the fullest sense, receiving no benefits. This reduces overtime, benefits, and operating costs, and gives the agency a chance to evaluate a person before he or she is selected for full-time employment. (Wichita Falls, Texas) 2 The Central Ohio Transit Authority now offers all empl. it must bring sides wg:rher. -]esse]ack.on

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Ltssons LeGrntd In Trcmslt Rn'tftwe Genuatlon, cmd Cost Recfvctfon 4. The Miami Valley Regional Transit Authority negotiated a two-tiered wage system for opera tors. This w.os 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 Cincinnati Metro contract, this an-angement resulted in a wage rate of $8.10 per hour instead of $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 com of growing ADA service, permitting the RTA to maintain more fixed-route service. {Dayton, Ohio) 5. The Miami Valley RTA negotiated the institution of pantime operators with their union This was prompted by a need to reduce com for new contracts with schools for a.m. and p .m. trippers. They now have over 40 pantime emplcyees working 30 hours per week, saving approximately $500,000 or more annually in avoided costs (If fulltime 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 health care plan to a managed health 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. Pieroe Tnnsit also negotiated a second tier wage for entty level operators (about 16 peroent of the workforce) in exchange for providing a contracted service directly. The economic benefit w.os substantial enough to allow an expansion of service which generated an increase inriders!tip. Thishassavedtheagency $280,000annually. (Tacoma, Washington) S. In negotiating wage increases for both represented and non-represented employees, Pierce Transit approved a cash lump sum payment in lieu of a salary schedule percentage increase. This resulted in a savings of $300,000 per )"'at. (Tacoma, Washington) 9. A labor-management task force was created in 1993 in Indianapolis to a ddress double 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 find ways to reduce insur ance com. The first Y"ar of the collaboration saw a reduction of 12 percent ($250,000} in premiums paid by employees and Metro, and increases have been limited to less than the rate of inflation since. (Indianapolis, Indiana) 10. SCAT uses part-time bus operators (14 out of61 total) for lunch reliefs, morning show-ups, fill-ins for vacation, etc. (Sarasota, Florida)

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t.mons t..eGrned Jn Tramlt Effldendes, ReVenue Generation. Md Cost Reduction 11 The Capital District Transit Authority reached an agreement with its ba.gaining unit to estab lish a weekend part-time workforce. This gave full-time operators guaranteed weekends off, and saved the agency $600,000perycar. (Albany, New :'fork) 12 Negotiations between TANK and their b;ugaining unit changed formerly restrictive language to pennit the use of managed health care, saving between $150,000 and $200,000 per year. (Fon Wright, Kentucky) 13. Sunline Transit froze salaries for administration staff for three years, and union salaries for two years, and saved over $260,000 during that period. Cooperative relationships between management and labor low ers labor legal costs and results in an efficient workforce. (Thousand Palms, California) 14. At DART, a five-year progression for bus operators' wages was negotiated (versus the previous progression), resulting in of S1.5 million. (Dallas, Texas) 15. DART modified its management of Paid Tim e Off (PTO). Employees used to be eligible for as much as 26 vacation days and 12 sick days a year, with employees having the rightto cany over and "bank" all their hours (making them eligible for huge pay-offs at retirement). PTO will now consist of vacation and sick leave lumped together. New emplO}'I!es will sian at 17 total PTO days for the first five years, increasing by three days for every five years, capping at 29 PTO days. DART will buy out all accrued vacation at the end of the year. These steps are estimated to savemorethan$11million over 10years. (Dallas, Texas) 16. The Kansas City 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 KCATNs rota! of 38) that serve low density suburban markets where ridership was light. KCATA saves approximately $17,500 per year, per bus, for a total savings of $350,000 in 1996. This new rate will also allow KCATA to expandserviceandhire 50 additional opera tors. (Kansas Oty, Missouri) 17. The recent negotiation of the labor agreement between \VMATA and I.ocal689 of the ATU provides for improved employee compensation and pension benefits wlu1e retuining to WMATA a net-zero cost contract by the utilization of moie part-time operators. a five year new hire pay rate progression, a coswavingnew health care delivery System, and cosvsaving modifications in the management of the pension plan to include an early retire-

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Lessons LtGNitd 111 Transit fffkltl'ldts, Rtvtttwe 4114 Colt Rtductlon ment buyout of expensive senior employees. The labor contract term from May I, 1995 to April30, 1998 gives WMATA $14.7 million dollars in savings as follows: New Hire Pay Rate Progression Changes in Pension Management Managed Health Care Plan Improvements in Productivity Work Rules Total Savings: Wage/Longevity Rate Increase/ Pensio n Benefit Improvements N
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Learned In Transit Etflderacles, Rtvtnue cenercrUon. and cost Reduction

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6. ':. . LeSsons t.tarned In Transit (f'Jdendel. Cbltratlon, and Cost Rtdwctlon Common ground-Change is often feared and JeSisttd by labor unions. Hawever, some ofthe changes in the nature of service arw.s densities, greater sprawl) can resul. t in service modifications with mutual benefits for labor and manage ment New methods of providing more flexible transit service with smaller vehicles proviile opportunities for competitive bidding, including bids from labor unions.Apeements can be reached for lowuwagescales for operator$ of smaller vehicles.J;Jiis.reduoes service costs and expands the number of bargaining unit jobs. AnoiJierexampleofsharedinteresu is greater attention to employees' safety with;abSenteeism

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ussons Learned Jn Trarult Etflclendts. Ratn.ue Generation, and cost Reduction 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 transit agencies ha:ve used to provide service ha:ve not changed dramatically 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 systems must become more disciplined or creative in the uaditio.W methods of providing service, and/ or find new and more cost-effective ways to serve the traveling public. This theme shows how transit systems are responding to the need to improve the productivity of their service. More careful and Prudent Resource Allocation Decisions In government, things often don't change unless they absolutely have to change. If there is one positive aspect of the increasingly tight budgets at transit agencies, it is the trend of more prudent decisions being made by staff and policy boards on what services should and should not be provided. More transit agencies are realizing that they must make better decisions on how they allocate their scarce resources. Many of them are reducing operasing costS with no negative impact on their ridership. L Putnam Area Regional Transit, a SDlail system with eight buses, reviewed route perfonnanoe, consolidated routes, and reduced hours of service withoutlosing ridership. These actions helped reduce expenses by approximately 5 percent. (Cannel, New York) 2. The Port Authority Trans-Hudson Corpor.ation has reduced the train oonsist size on the off peak hours to reflect the reduced ridership during those hours. This reduces the expense of power consumption, as well ":5 wear and rear on vehicles. (fersey City, New Jersey) THEME I V I Set-vJCe I I P cmnmg, , /l;1 m cctmy, I o r Oc/Jvcty Methods "Jt is COJnm()n sense to take a method and try il; if it foils, admit it frankl:yandtry awJther. Buza/mJe ali try something. -Franklin D. ROOff!f.l!ll

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THEME IV service Planning, l\lcfrl
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LtS.Sons Learned ltt Transit Effidencies, Keven we Generation, cmd cost Reduction 8. The Maryland Transit Authority provides bus service from four bus divisions. To reduce 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 berween divisions. This ongoing process is expected to result in annual cost savings in excess of $500,000 when fully implemented. (Baltimore, Maryland) 9. New York City Transit reduces train lengths in off-peak hours, thereby requiring less staff. Train cutting improves personal security and reduces ear mileage, saving power and car maintenance costs for an annual savings of $405,000. (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 altering the bus operating facility assignment of buses to produce .a shorter distance and/ or faster speed betWeen the faeility and the place where the bus went into revenue service, changing the route that the bus took between the faeility and the place where it went into service tO take advantage of new stl1)Cts or road work, reducing recoveiy time, and reduo ing layover time where excessive. Schedules ""'re 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 S1.8 million in 1995, or 0.9 percent ofthe annual operating budget. The entire savings were reinvested in new services. (Houston, Texas) 11. The Orange County Transportation Authority utilized a consultant (IBI Group) to review performance to attract more riders, improve efficiency and effectiveness, and to provide more bus options for discrecionary users without a cost increase. Alter receiving extensive public input, the consensus was to eliminate W!productive routes, provide more small buses circulating in neighborhoods (eight new commwtity routes), provide faster and more direct service on major arterials, and restructure transi t services to provide a threetiered family of services. They determined they couid not be everything to everybody. The result has been a 10 to 15 percent increase in ridership and a 5 percent redw:tion in net operating costs, amounting to a $5 million annual savings for OCTA. (Orange County, Califumia) ModifYing the Basic Method of 5e1VIce While some systems are simply making more business-like decisions within traditional methods of service, other agencies are making fundamental changes to the ways they provide service due to changing urban form and travel behavior. Some of the methods that are working well are chang-. I THEJ\1E IV I Setv1ce Pletnning. Marketi119, or OeHvety I Methods "Awidingdangeris no safer in the longrrm than oumghtexporure. The[tAr{ultrre caught as often as the bold. -Helen Keller

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! III.Ml I V \, T\/1( ( :>ilfllillllq :';luJ llt'fi'H1. 01 f)l'IIViT)' ''.k I hot h t.nsons UO'mt4 In Trarutt ltfldendes, Ieven we Gtlltratlon, and Cost Rtd"c:tlon ing nwlial servi"" to grid servi.,.,, modifying fixed-mute service to point deviation (ei ther all day or during peak only), providing demand-responsive service in lower density areas, and replacing express service w ith van poo l s Point deviation has the added benefit of reducing paratranSit ex penses. 1. The Kosciusko Area Bus Service changed its eight -vehicle system from fixed-route to point deviation in August 1995 and beyond theitmost optimisti c hopes. Ridership increased by 41 pe=t while total v e hicl e miles decreased by 24 pe=t. Fare recovery per passenger increased by 12 pe=nt, partially due to increased ridership and partially due to a deep discount fare structure instituted along with the servi"" structUre. K.ABS was able to expand both its operational hours and its servi"" area due to these changes. K.ABS no longer runs buses when they were not being used, and can match buses with actual passenger needs. All buses are allowing them to provide better servi ce to the disabled popula tion whil e e liminating admi nistrative costs associated with ADA cenification. (Warsaw, Indiana) 2. After thoroughly rmewing ADA legislation and regulations and holding public hearings, Wichita Falls decided to modify its fixed-route system to a route deviation system. Bus "stops" were changed to bus "route" s igns, thereby abandoning the fixed-route structure. They now deviate up to two blocks from the published route and rejoin the route where convenient. With no bus stops, they pick up anywhere, mid-block, etc. "This servi"" structure complies with ADA requirements, obviating the need for a complementary paratransit ser vice. Only one suff person was added, a dispatcher that schedules the route deviation pick ups that must be requested a day in advance. The agency saved the cost of establishing a complementary paratransit service, estimated to cost between $750, 000 and $1,000,000 per year. (Wichita Falls, Texas) 3. Corpus Christi Transi t modified its fixed-mute service to allow point deviation at the end of a route on an isbnd. Passengers must call in advance to make reservations. "This helps build ridership and mainstreamS paratransit users to regular transit service. (Corpus Christi, Texas) 4. Ben Franklin Transit
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Lessons LeGrned rn Transit lfflclendes. Revenue GenerAtion. and cost Rtductfon 5. The Fort Worth T1'311SitAuthority (The T) has purchasedvonsandsmill buscstoope121eon a flexible, demand-responsive basis in law density suburban neighborhoods. Passengers can arrange trips by either calling dispatch, boarding the bus along itS fixed route, orte!ephOJling the operator who is equipped with a cellular phone to arrange for transportation. Purchase price of the vehicles ranged from $21,000 for a 15-passengervan 10 $60,000 fora small bus. The cost of advertising the service was less than $10,000. Service bas been e:xperimenta! on three routes and will be expanded in the future. The operational impact is that the "The T" is now utilizing a greater number of snWI vehicle operators with an approximate 1 pen:ent reduction in overall costS(Fo.n: Worth, Te:xas) 6. "The T" has replaced some low productivity express buses with vanpools. The van pools are provided from a park-and-ride locatio n to major industrial plantS just as the buses were previously provided. The fare for the van pool is subsidized down to the monthly bus fare ($40.00). Theaveragecostforane:xpress bus ride was $9.00pertrip. The van substitution ridecostslessthan$1.25 per trip. {FortWo.n:h, Texas) 7. The largest single saver of money at Sunline Transit was the realigning of bus routeS to a modified pulse system. This allowed the agency to provide almost identical service, yet deamatically 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 called Metroflex, utilizing 12-passenger vehicles to serve areas of relatively low transit demand. These vehicles provide fixed-route service during peak hours and route deviation services during off-peak hours. They operate at a rate of 55 peroent less than the rate oflarge bus operation expenses. (Kansas City, Missoun) 9. In 1995, Suntrao revised their entire route system 10 a more grid-like service. \Vhileretaining the same number of service hours and miles, ridership increased 4 percent, while fare box revenue increased 7.3 percent. (Albuquerque, New Mexico) 10. In more rural areas, Community T1'311Sit has replaced traditional fixed-route service with point deviation servioe, referred to as "checkpoint" servioe, using smaller vehicles. The op erators are paid the same wage, but there are still savings of $15,000per year, per route, and the productivity over the previous paratransit servioe has tripled. (York, Pennsylvania) 11. In 1996, Connecticut T1'311Sit conducted the most extensive market research in its history, yidding significant information that will form the basis for new and improved servioes. For example, all bus routes currendy converge in downtown Hartford and New Haven. Their THEME IV Service Planning, Marl
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, . Lessons LearMd In Transk lfl'ldtndu, Rtvtnut Cf'fttratfon, anti Cost Jtt.:c:tuctlon research indicates i t will be much more effective to offer direct service to suburban hubs that do not pass through downtown. (Hartford, Connecticut) 12 METRO's servic e area is 1,250 square miles with multiple large activity/employment cen ters. Radi.J bus service to other areas than downtoWn is extremely expensive, due to the dispersion of centers and the long travel distances. In 1995, the METROVan program was impl e mented in partn e rship with the following entities: (I) the employer "sponsors" the METROVan program for employees, providing subsidies to help reduce the cost to employees and offering guaranteed rides home, (2) the private vendor leases vans to van drivers at fixed rates based on mileage, (3) one employe e per van serves .S the van driver and receives free rides and can use the van for person.J use for free excep t for gas; other em ployeeriderspayafare to the driver which is based on thetot:al operations and maintenance cost of the van, less the contribution by the employer and METRO, and (4) METRO's contribution is based on which plan option the employer sel e cts (such as, whether the em ployer offers guaranteed ride home or not) and the cost of the van. METRO now has 146 METROVans carrying approximately 55,000 passenger trips per month. METRO saves (in terms of reduced subsidy) approxim ately $1.29 per van passenger trip as compared to the average subsidy of a fixed-route bus passenger trip. At current ridership rates, this represents approximately 0.4 percent of the annu.J operating budget. (HoustOn, Texas) 13. As noted earlier, Broword County Transit has reached agreements with a number of cities within the county to establish a level of service consistent with the leve l of demand in relatively low density areas. The cities are far more familiar with their areas and have ongoing relationships with businesses and communities, which can apply energy more effectively at the l oc.J level tO promote transit usage. This method of service has allowed BCT tO discon tinue operating large buses in areas that do not require them In addition to reducing costS by 90 percent, ridership has typically quadrupled due to the more effectiv e loc.J promotion and the more flexible type of service provided with smaller, more neighborhood friendly ve hicles. (Pompano Beach, Florida) 14. Bike racks were placed on all Livermore/ Amador Valley Transit Authority buses rwo years ago. The agency now carries aver 260 bicyclists per month. Accessibility by bike effectively increases the service area of the transit agency with no new buses or routes. The agency believes that at least b.J f tbe bicyclists are new riders. (Livermore, California)

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LeS.sons Learned ht Transit Effidendes, Revenwec;eneration, and Co.st Reducrk)n Contracting for services Through competitive Bid One transit agency director in the western United States noted that the policy board there believes t hat government exists to provide public services, not a job for life. Some transit agencies seek competitive bids for all of their service every few years, whil e others contract out only a portion of their service, but still benefit from more effective negotiations with their bargaining units as a result. 1. Chula Vista has contracted out both transit operations and maintenance functions for many years. In order to i ncrease competition and lower costs, the agency now purchases and retains ownership of all buses. Contracts are re-bid every five years. Generally, the contractor changes each bidding cycle (since their costs go up and new bidders can come in with lower prices). Transit serv ices cost only $2.55 per mil e Services are currently provided by San Diego Transit, which was able to win the bid based on the establishment of a bus operator classification called Community-Based Drivers who drive 35-foot buses at a significantly lower wage. (Chula Vista, California) 2. The Capital District Transit Authority contracts out service in suburban areas 10 companies that provide service with smaller buses, at a savings of $8 per hour, or $35,000 per year ; (Albany, New York). 3. Metro Link contracts with Amtrak 10 operate commuter nil service that utilizes two-man crews with a single conducror'and an engineer. Twenty-five peroentof all tickets are checked, and fare evasion has been determined to be less than 1 percent The contract is performance-and incentive-based, and has been peer reviewed and found to be as efficient as be. (Los Angeles, California) 4, The City of Indianapolis diverted 25 percent of Metro s funding to itself. The city used that mo;,ey to bid out routeS financed by those funds and operated by Metro. The process forced Metro's l abor union and management 10 work together to create an economically competitive contracrual arrangement, allowing Metro to save 200 jobs and the taxpayers 15 percent of operations expenses, representing approximately S 1.5 million dollars per year (Indianapolis, Indiana) 5, Napa Valley T;..,.it contracts out all of iis services (mclW:ling janitorial services), with the agency having only two permanent staff members, ATC!Vancom provides all day-to-
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THEME IV Service Planning. J\t1arl
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Lessons t.eamed In Tra:ltSit Effldendes, ReVenue Generation, on4 Cost ReG'wctlon 3. As the designattd Conununity Transportation Coordinator, VOTRAN is responsible for the oversight of the Medicaid transportation contraCt. If Medicaid recipients are usingpanuransit services to go tO at least three Medicaid compensable appointments and can access the fixed-route bus, they are encouraged to purchase a Medicaid Bus Pass. The client pays $2.00 for unlimited usage during the month. Medicaid clients who take advantage of the Medicaid bus pass program relinquish their para transit rights (though they can switch back if the bus service doesn't meet their needs). The Medicaid Bus Pass program generated $120,000 in revenue for VOTRAN and saved Medicaid $862,389 in one )"'at. (Daytona, Florida) 4. The "Local Motion service has been expanded tO include route enabling many users that were previously demand-response users to be mainstreamed to modified fiXtdrouteservice, saving the agency a minimum of $151,000 annually. (Madison, Wisconsin) S. At Transit, the Metropass Program transitions Medicaid clients on a voluntary basis away from the expensive paratransit service to the relatively inexpensive ftxed-route public transportation service. From May 1993 to June 1996, the Metropass Program pro : vided a monthly fixed-route public transit pass to 21,665 Medicaid clients, thereby saving the State of Florida $3,825,326 in paratransit costs. This program also generated over one milliondollarsinrevenuetoMDTA,resuhinginawin-win-winsolution.MDTAestablisheda similar program for passengers that used its own Special Transportation Services (STS). The project encourages people with disabilities, who are STS certified, to use fixed-route service at no cost using their ADA identification card. In seven months time, the tOtal number of STS trips decreased by 10 percent, resulting in a savings of $884,000. (Miami, Florida) Marketing and Fares The attractiveness of transit service can be enhanced through the fare structure. Passes of various durations (one day, weekend, four-day visitor, weekly, summer, etc.} have proven to be extremely popular. Family fares (kids ride free) and "friends ride free programs, as well as deep discount fares for frequent passengers, have increased ridership and revenue for some transit systems. There is growing evidence to suggest that the traditional elasticities between fares and iidership don't always apply, particularly when careful packaging of fare structures are developed. I. The Long Island Rail Road used a more creative and aggressive approach tO attract ridership to off-peak travel. Forms of promotion traditional to active marketing outreach, but new to the LJRR (giveaway items, ceremonial kickoffs of seasonal service, recognition oflong time CUStOmers, discount specials, etc.}, were initiated to draw new customers. The services. pro-T JH\'lE IV Mctrl
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THEME IV Service P/CH1t1ing, or Delivery Methods Lessons Learned In rranslt Etflckncles, ltevtnwt Cenatlon, and con Rt41Utl011 moted included beach travel, evening and weekend travel into New York City (for entertain ment), regional sporting events, holiday time travel to attractions in New York City, and special tours in the region. Off peak revenues have grown $2.3 million d u ring this period, attributable to this promotional outreach. (Jamaica, New York) 2. A four-day visitor bus pass program has been instituted by Oahu Transit Services. It costs about $20,000 for printing scratch-off passes but is expected to result in sales of 50,000 units ($500,000 per year) for a net additional revenue of$100,000 (Honolulu, Hawail) 3 A S5 Weekend Pass was implemented by Metra in 1991. In FY 1995, a toto! of 625,055 Weekend Passes were sold, a 39 percent increase over 1992. Pass sales in FY 1996 are 20 percent above 1995. Fihy-five percent of Weekend Pass buyers said that the ticket inllu enced them to ride Metra. Over 33 percent purchased six or more passes throughout a year. This pass, promoted in conjunction with Weekend Famil')l Fam (kids under 12 ride free per fare-paying adult) continues to attract non -users to Metra. (Chicago, Dlinois) lies in the hands 4. During summer, Metra offers travel guides from downtown stations, discount "value added" coupons, and extends Weekend Family Fam to include weekdays (kids under 12 ride free per fare-paying adult). Sales of onew ay tickets increased 10 percendrom 1993 to 1995. Key findings from survey data highlighted t hat 70 percent who used Metra were influenced by the travel guide to take the t rain, and 82 percent who visited attractions claimed that the coupons influenced them to visit. (Chicago, Dlinois} of the creatively -Martin Luther King, Jr. 5. TheRTDimplementedtheEco Pass program in 1991 to increase bus useinordertoreduce air pollution and traffic congestion while increasing transit ridership The Eco Pass is an annual photo LD. transit pass purchased for all fulltime employees in an organization with an option to exclude part time employees. The employee may then ride free with unlimited rides on any Local, Express, Regional, Light Rail, or DIA service. It also includes the Guar anteed Ride Home Program which guarantees any Eco Pass holder a free ride home in emergency situations via wei. The program has not incurred any operating or capitol costs, but has generated $2.9 million in revenue since i t was implemented. (Denver, Colorado) 6 Summer Youth passes were promoted by the Indianapolis Public Transportation Corpora tion in partnership witb the State of indiana Attorney General's Office, who provided anti drug abuse funds. The significant media coverage helped the agency selll ,OOO passes the first year (at $20 apiece for unlimited use in the summer), and sales have increased to 3,000, thereby increasing ridership. (Indianapolis, Indiana)

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Lessons Learned m rransJt Efficiencies. Revenue cenenrtkm, and Cost Redwctlon 7. Fairfield/Suisun Tr:ansit structured a str.ttegic fare policy t hat rewords frequent usern. The base cash fare was increased, but tickets can be purchased in bulk iii a discount. Revenue has increased, and ridet>hip has increased between 10 and 21 percent each of the last eight years. The use of tickets has decreased boarding time for passengers, allowing the agency to avoid increasing headways or adding buses to maintain schedule. (Fairfield, California). 8. Livermore/ Amador Valley Transit implemented a deep discount "Farebuster" program. The agency raised their basic cash fare to $1.00, but offered a ten-ride ticket package for only $6.00, and a 40.ride punch pass for only S24 .00. Although it oost $25,000 to market the new fare media, the agency realized an $80,000 increase in the sale of passes in a year. Annual ridernhip increased 15 percent while farebox revenue increased 16 percent, with only a very minor increase in service. (Livennore, California) 9. Contrary to examples provided above, the "The T" eliminated any discounts for tokens which are purchased in lots of ten. They are now offered simply as a convenience for passengers at the full adult fare. There have been no detrimental operational impacts, and revenue has increased modestly, by approximardy $8,000 per year. (Fort Worth, Texas) 10. From Memorial Day to Labor Day a "friends ride free" program is offered on all Sundays bytheMetropoliWl Transit System to boost system use on the weakest day of riding. This program is based upon a successful promotion over Thanksgiving and Christmas when it was found that ridership was up an aggregate 14 percent and fare revenue was up 15 percent for those periods over the year earlier. (San Diego, California) 11. Deep discount fares have increased revenue modestly, while helping to stabilize ridernhip 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 instituted an all-day pass. The base fare is $1.00 and the daily pass can be purchased on any b.;. for $2.50. Fareboxes can issue the passes which are then entered into the farebox every time the passenger boards. The farebox return has increased from 16 to 24 percent and ridership has increased by approxi mately 6 percent in the fimsix months of tltis fare method. Additional benefits of the all day pass is that it eliminates transfer abuse and transfer theft, reduces disputes between bus operators and passengers, and speeds boarding. (St. Petersburg, Florida) 13. COTA restructured fares in May to generate additional revenue. The 13 percent in crease in fares is expected to generate close to a million dollars over a one-year period. The THEME IV I setvtce Pla1nning, , Mm1 elivery Methods

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THF .. IM I V .C,ctvice PlmHllllfJ MCltfn't H1CJ. o r OdtVI:'ty t1'ldhot1s fare structure has been ac.:epttd by the public with very litt le negative publicity or com ment. The public recognius the loss of federal operating 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 tx> $.90 with no loss of ridership (neighbor ing Los Angeles MT A base fares are $1.35, enabling LBT to raise fares whil e still being reasonable in the eyes of passengers). The agency also tightened the enforcement of student fare collection by requiring students tx> 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) .... -. ... . .. . 3. -' .. Key IV-Niarlcetfng, o.r Delivery Metllods ." ridership -or This has been ac.:omplished through cl.resouire'ollocation decisions. The identifi. cati()n of' inefficient service can :result in savings or provide the 't-esow-cesne;e,Cied for-newse..Vice: Transit ageocies. might wish to consider using Wliocan provide special expertise' and perhaps a more objective analysis of existing services. . onesiuikiem'tfit allTlie
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Lessons Learned bt Trcmslt Effldencles, aevenwe Generadon, and cost RedUction on .wi).p,itis-ervesbest,arid ..... . . . THEME IV setj"ice Plonniny, I I Mew OY Met' hods

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THf/\1 IV .Ci:ervice Plcuming. Modccting. or Delivery Methods

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Lessons Learned In Transit Eftidendes, Revtnue GerlerGtfon, Gnd cost Redllcti'on THEME V Maximizing capital Budgets A !though federal opeMing assistance has been cut, capital dolbrs have genenilly been available I\and are more politically palarable to those who question the level of support transit should receive. Strategic use of capital funds can reduce opeMing costs while increasing productivity, and sometimes results in profits. This theme shows how tranSit systems are utilizing capital dollars as investments that allow them to maintain or improve service levels. V"lltUally every transit agency takes advantage ofui:ilizingtheflexibility offered by the Federal Transit.Administcition to use their capital grant funds to pay for what used to be opeMingmaintenance expenses. However, there are many other techniques being used which are described in more detail below. use of New Technology Transit is not a huge market, and high tee)mology applications are sometimes slow to develop when a 121"gf market does not exist for their applications. However, many transit systems credited n e w teChnologies for generating cost savings. including automated vehicle location systems, automated passenger counterS, autOmated scheduling, desktop publishing. automated customer information service, and video surveillance, among othm described in more detail below. L Palm T=t has recently installed IRD Teleride automated scheduling and run cut software, which has enabled them to implement efficiencies they estimate are worth over $200,1)()() per year. (West Palm Beach, Florida) 2. All buses in Napa Valley are equipped with signal preemption equipment which automati cally triggexs traffic signals to go green for buses when they are five or more minutes late. This allows the buses to stay on schedule, and helps avoid the com of placing extra buses in service to maintain head ways. (Napa, California) "In great straits andvhn hopeissma/4 the boldest counsels are the safest. -Li'U)I

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THEME V JlMl .x im iz in g Capital Hudgcts "If we are to perreivea/J rheimp/i<4tium of the neu; we must risk, at least tenpati!Ji disrmJer. -JJ GorrJq, 3. T riDelta Transit pun:hased a fuctd-route scheclule writing program and re:ilized a savings of 30 hours of Staff time three times per year. Operational costS were also reduced by decreas ing layover, deadhead, and total hours. The program cOSt $20,000 to implement, but has resulted in ongoing savings for the symm. (Antioch, California) 4. Milwoukee Counry Transit installed an automated scheduling symm which allows them to put work together more efficiently and to write operators' schedules more quickly. This has significantly reduced scheduled pay hours for operators. It has also allowed them to virtually eliminote overtime in the Scheduling Department, despite the fact that they have lwl major route and schedule changes on almost every pick and even a number of extra picks. The estimated annual savings is over $900,000. (Milwaukee, Wisconsin) S. Automatic passenger counters in King County record passenger boarding and alighting act.iviry at bus srops. The APCs are a cost effective woy to collect ridership information that would oniinarily require riding monitors or extensive involvement from vehicle operators. The APCs provide information for service planning, facilities planning, and regulatory reporting such as National Transit Database (NTD) and Title VI. The cost of the program is $200,000 annually. If done manually with riding monitors, it would be $2,000,000 annually. For NTD alone the cost would be approximarely $90,000. (Seattle, Washington} 6. BUSTIMEisK.ingCounry'sautomatedcustomerinformationsymm.Customerscanphone in and receive computer voice generated information on bus routeS and schedules. Over 600,000 calls are handled each year, with annual operations and maintenance coru of appraximatdy $180,000. BUS TIME takes the place of appraximatdy 17 telephone information Staff positions thu would cost $680,000, resulting in an annual savings of $500,000. (Seattle, Washington) 7. CDTA utilizes a software program that locks confirmed paratransit schedules into an auro mated voice response service. Passengers wishing to confirm their trips can have their quts tions answered automatically, allowing Staff to focus on other activities. (Albany, New York) 8. COT A utilizes paratransit scheduling software that has enabled the agency to achieve a 7 percent increase in on-line passengers per hour. (Albany, New York) 9. Easily understood timetables and maps are available 2t all Santa Monica libraries and are now available on the Internet. These methods help promote the use of transit and reduce queuing for telephone information. (Santa Monica, California}

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Lessons Ltartted In Transit ffldendes. Revenue Generation, and cost RtductJon 10. Desk Top Publishing is used extensively at Sunline Transit for producing forms, ride guides, maps, passenger alerts, PowerPoint productions, etx:. They rarely contract out any printed productS since they can produce professional, full-color products with Desk Top. This has resulted in over S30,0CO in annual savings. Sunline Transitestimat
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THEME V capital BudCJCtS ltsSCUU Lt.Dnttd In Transtt Eftldt:rtdtJ, GtMtGtiOf'l, Olld Cost RtdllctfOft planning, dispatch, route and trip scheduling, and payroll, as well as Internet access for certain employees and E-mail forthe majority of employees. The net operating savings is $402,000, or 2 percent of the operating budget (Madison, Wisconsin) 16. Madison Metro Transit inStalled a dosed-circuit TV in the money room, and one will be purchased for the service lane to reduce losses due to theft and to promote safety of the employees. In addition, Silent Witness (a camera syStem) was inStalled on certain buses to help reduce problems that arise on buses.lt could aid in lawsuits and the recovery of vandal ism com, providing potential for large savings. (Madison, Wisconsin) 17. Community Trmsitutilizesan autOmatic lubricating device placed within each bus that hits all lube points on a bus on a continuous timed basis while it is in service. This device, and an extension of preventive maintenance intervals from 3 ,000 to 6,000 miles, saves $2,500 per year per bus. (York, Pennsylvania) 18. The Jacksonville Transportation Authority utili :res automated passenger counters to provide more detailed analysis of hoardings and deboardings which has allowed the agency to reduce service by approximately 5 percent while losing virtually no ridership. (Jacksonville, Florida) 19. DART inStalled a G/Sched Optimivr in 1996 to set the exact number of runs per type they needed to maintain their work rules. They were able to realize about a 2 percent savings compared with previous runs. They are able to 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 Teleride to cut all of itS bus schedules. To detennine t h e 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 percent when compared to previous pay hours (Chicago, Ulinois) 21. COTA imp lemented a Transit Operating System written in COBOL on a VAX/VMSbased symm. It is inStalled in twO garages, and tracks around 400 bus operators. By having inStant access to timekeeping reportS, management was able to mak e adjustmentS in time to even the workload and reduce payroll by $4,000 every two weeks for an annual savings of S 100,000 per year by reducing guarantee payments (Columbus, Ohio)

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Leuons Learned fn TrQI'IsJt EffJdendes, Revenue Generation, and cost Reduction 22. Palm Tran installed the Teleride 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 believes the cost of acquiring ti)e system will be returned within the fim year of operation. (West Palm Beach, Florida) Relatively Low-Tech solutions That save Labor and/or Parts costs Adv.mced electronics are not the only technical solutions for reducing costs.lnvestments in brake lathes, meto! benches, portable shelter cleaning equipment, and using waste oil for heating facilities are among the many examples of lowtech 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 truck type brake lathe that was replaced would leave high spots on the brake shoes which would lead to poorbr eak-in wear, g lazing, and shorter brake life. By increasing the mean time between 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. W i th t h e agency p aying only 10 percent of the capital cost, the brake lathe has more than paid for itself in the savings noted above. (Sheboygan, Wisconsin) 2. The Metropolitan Bus Authority drilled a deep water well and installed a water pump at a cost of $15,780, primarily to provide water needed for bus washing. Savings over prior costs of water service provided by the local utility is approximately $48,000 per year, or 0.14 of the annual operating budget. (SanJuan, Puerto Rico) 3. RTC 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 frequendy targeted bus stops. (Reno, Nevada) 4. Shelter window washing is a time consuming activityatRTC (up to three times weekly). Bus shelter windows are now cleaned with a portable power washing unit, using recycled water, with glazing spot-cleaned between power washing. The power washing reduces the time necessary to keep the shelters clean, and the recycled water minimizes gluing streaking (Reno, Nevada) THEI\1E V Budgets I

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THMf V MUXItllllUlq Cap itol Huclgrts ussofts "" TrQflslt ft'fJclfncfts, Jtevenw cmercrtlon, and cost Redllctl
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Lessons Learned In Transit Revtnue cmeratlon, and cost Reductfon ($14,000) is completely recovered from fares paid by the passengers, as weU as the ""pita! replacement costs. The megavan is operated by one of the passengers, just as in a vanpool. This also helps avoid the $150,000 annual cost of operating an express bus. (Richland, 3. Golden Gate Transit has purcltased new 45-!0ot buses with 57 seats versus the 39 seats in current buses, resulting in annual 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. SCRT's fleetof95 CNG buses (comprising47 percent of the total bus fleet) have proven to be reliable, with lower maintenance costS than their diesel COUiltelparts. In addition, the price 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, the total additional capital cost of acquiring the fleet and fueling facility was. about $7.5 million more. Conse quently, it will take about !Our years to "break even" on the investment. (Sacramento, California) Facility Investment to Reduce Operating Costs New tranSit facilities can be exttemely expensive, but the savings to be reali%ed from adding or consolidating facilities can provide far greater returns in reduced operating expenses. Of course, the transit agency typically pays only the local share for these facilities, thereby multiplying the cost savings achieved. 1. Palm Tran operates in one of the largest counties east of the Mississippi, and is actively expanding its service. It determined that building a new satellite operating facility would be cost effective. AhhoUgh S l million in local match was required to build the $5 million facility, the location saves the agency $800,000 per year in operating costs due to reduced deadhead mileage, or $16 million in current terms overtheusefull.ife of the facility. {West Palm Beach, Florida) 2 The KYD Yard is a joinvuse facility !Or Metra Electric D ist rict maintenance-of-way and mechanical departments. Loeated within the new S34.8 million facility are shops and welfare facilities for meChanical, signal, communications, electrical, traCk, buildings and bridges, and subStation maintenance personnel; outdoor stOrage; office space; and anew fueling facility. Also lo.,.ted at KYD Yard is a heavy car repair shop which replaced a leased facility, a V Maxi, mi7.ing Capital Budgets

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lHFME V Maximizing Capital Bud g ets LfSSON t.urntd In Trarutt t:tfldertde.t, Jtevtnue and cost R.edwctfon passenger ticketing/ communications center, and the district police deparunent.ln total, operating and maintenance functions previously perfonned at six different locations 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, op e rational and management control, and more efficient utilization of bbor and equipment. {Chicago, Dlinois) 3. Sunline Transit's opening of the Indio-Clean Air Center has resulted in the second Lugest area of savings to the agency with the reduction of deadhead hours and miles. This facility houses 12 out of 40 buses which now begin and end their routes in their service areas. The same facility houses Suoline's paratransit service and saves the agency over $60,000 a year by owning veiSUS leasing. (Thousand Palms, California) 4 The consolidation of SEPTA management into one office building at 1234 Market Street will result in a $95 million reduction in operating expenses over the estimated 30-yearuseful life of the building, due to eliminated rent payments. (Philadelphia, Pennsylvania) capitAlization of operating Expenses The majority of transit agencies are taking advantage of the flexibility now available in using capital funds for maintenance expenses that have been operating expenses in the past. A few good ex amples are provided below. I. LYNX uses urbanized area fonnula capital funds for the capital =t of contracting tO cover the capital costs of para transit, leasing administrative and operating space, and purchasing associated capital and maintenance Total savings realized is $2.8 million annually. (Orlando, Florida) 2. Tolls generated by local expressway authorities are used as soft match for Section 9 capital dollars, saving $2,054,500 annwlly atL YNX The downside of this technique is that the toll revenue credits are not "real dollars, resulting in a total capital budget that is reduced by 10-20percent. However, the savings to a local transit agency by not having to fund the local share for federal capital dollars is substantial. The Metro-Dade Transit Agency has done the same thing, saving $2.3 million in 1996. {Orlando and Miami, Florida) 3. The M etro-Dade Transit Agency also optimizes operating funds through the use of federal capital revenue for planning and capital maintenance activities, including $2.5 million of capitalized Metro bus, Metro rail, and Metromovervehicle rejnirs. (Miami, Florida)

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Lessons Leamed tn Transit Effldmcles, Revenue Generation, and Cost Reduction Vehide Maintenance Tuhniques That Extend the Life of Vehicle systems and Parts A number of sjstems identified various bus components and maintenance practices that help reduce costs by extending the life of vehicle systems and parts, such as transmission retarders synthetic fuel, oil analysis, aluminum wheels, etc. 1. AI. Napa Valley Transit, engine, transmission fluid, and coolant analysis are performed peri odically on all buses. They perform opacity testing monthly on all buses, and penalize their contractor for any failed opacity teSts. (Napa, c.lifomia) 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 efficiency. (Hampton, Virginia) 3. Recycling oil filters and utilizing cleanable and reusable oil filters have proven to be less expensive than disposable oil filters in the long run at Connecticut Transit. (Hartford, Con necticut) 4. Transmission retarders 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) S. At LYNX, oil samples are raken every 3,000 miles and sent ro Chicago to deJennine 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 $100,000peryear. (Orlando, Florida) 6. Community Transit uses a synthetic transmission ftuidthat doubles the interval between fluid Transmission retarders have doubled brake life. (York, Pennsylvania)

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THEME V Maximizinq capital Bu<>-Ideas requiringless$0pbmicated$0lutions c... : comefroniahy : ;; where in a transit igency, and all should be aplored fur, their effectiveneSs. . :: can the develop1iwit ocreative ; stnilard""nm' ,_.... . ,. .... .. -' \ ,, . 'i; .,, ,_. wliilelarger busesCilll, capacity at reducedc.osts. Train consists. = be reduced in reduce_ ; : elediica! ..iii general and tear, while providing a of secUrity" .. : . ' cap'!w oosts ;us6clared' with a contracted ser.vice. Soft match sudt as 11;>11: : ,._ c:redi!Scan redacelocaldollarsneededforsecuringcipitalgrants. : Moretransitmaime. ,; with loCal operating dollars,'can now be:pai#or : .. ' granrs. ' : 5. Long l#;erhe thingTransit agencies reponsavings as a result of reducing of ceiuin maintenanceproced)U"OS or extendi!!gthe life of vehicle com.pOneats. &. amples inclUde recycled oil filters, syntheticlubricams, tranSIDission retarders; alillnf num wbeCls,:uid frequent oil anal)'$is. Transit agencies would i1e well served ro esW>i ., lish: an elea:ronic among their minteaaace functionsro-share infurma , . :. :

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Lessons Learned In Trcmslt .Effldtllcles, Revenue: cenerauon, ana COlt Reduction THEME VI Improved Managemen t of lntemal Resources 'T"'his tlieme is rather broad and includes the activities tranSit agencies are taking to reduce expenses through better management of their organization, resources, and processes. As one transit manager of a northeastern transit agency who had to enact considerable cost cutting has noted, the general media and business rea<:tion was "Its about time you stOpped begging andstaned managing! While that migbt be aliule harsh, the fact of the matter is that transit agencies were 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 status quo. They deal with a more thorough examination of internal matters, versus opportunities for partneeships or Cooperative ventures. ReorganlmtlonfRecluctlon 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 6rst. This avoids reducing actual service, and it also avoids possible penalties associated with contr.ICtU:I! obligations when eliminat ing bargaining unit employees. Attrition and retirement provide opportunities for less painful staff reductions, but more proa<:tive measures have also been successful. 1. Sheboygan Transit modified position responsibilities upon the retirement of a maintenance supervisor. The existing evening supervisor was laterally transferred to maintenance supervisor, and the safety and training officer was laterally transferred into the evening supervisor 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 lm'provcd Manbgemctlt I of Internal I "It isn't evil thta is ruining the ttrrth,buzmediocri:y. Theonis not that Nero pkrytdwhileRome bumM, Ina that he played badly.. -NedRorem

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THEME VI Improved Management of lnterncfl Resources 2. Through attrition COTA is shifting job responsibilities to d o more with less. It is projected that COTA will sav e $ 450,000 (or 1 percent of the annual operating budget) in reduced staff cost. A:. administrative employees leave, through retirement or to other job opportuni ties, each position is evaluated thoroughly to determine if th a t position's responsibility can be spread out amongst existing staff people It is recognized that the downsizing of adminis trative staff is limited. However, up to 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 Resources, and the unions, resulting in an annual savings of $6.6 million at BART. Sixty-seven Administrative/Management positions were reduced, as "oell as 27 Line Service positions across all departmentS The District offered a severance package to 20 managers, which included three weeks pay for every year of serv ice (contractual) and ac crued vacation, sick leave, and holidays. The cost of the severance package totaled $2.1 million which was expended entirely during FY 1996. Beginning with FY 1996, annual sav $6.6 million or 2.5 percent of the proposed operating budg e t These actions also enabled the District t o st reamline the management structUre to support a moveme n t towords flattening the organization. (Oalcland, California) 4. The Metro+P lus and fixed-route unitS were combined at Madison Metro, allowing the position of Metro+ Plus Operations Manager to be eliminated. The Transit Store, which was within 10 blocks of the Administrative Offices was closed, enabling the elimin at ion of another position and the cost o f rentfor the facility. Five other pos itio ns were also elimi nated. These actions resulted in savings of $420,000 annual ly, or 2 percent of the budget (Madison, Wisconsin) S. A major organi7.ational review bas aimed at streamliningmanagetnent and ensuring that the front-line employees have the tools, training. and support required to provide quality bus service at New York City Transit. The agency bas significantly reduced the central staff devoted to budget, human resources, material control, information systems, and labor rela tions Division or b o rough level staff h ave also been reduced by 75 percent These actions will save $5,318,000 annually. (New York, New York ) 6 New York City Transit is reorganizing th e depot structure to create a separate route manage ment unit 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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t.nsons Learned In Transit Effldendts .. Revenwe Generation, cmd cost Reduction 7. As part of Dade County government, MOTA patticipated in an early retirement program which was used by 125 MIJI"A employees. The county offered to P"Y program participants $300 per month or full P"Yment of the County's cost of single health coverage in a County approved group health plan (medico! and dental) for a minimum of eight years and pay ment of 100 percent of the employees' sick leave balance as well as other leave balances. MDT A was encouraged by the County to also delay refilling budgeted positions as long as possible to generate offsetting savings for leave payouts unless it resulted in clear service disruptions. The use of overtime and temporary agency employees was also prohibited. (Miami. Florida) 8. METRO staff, together with consultants, reviewed operational support functions over a two-year time period and eliminated 204 salaried positions, or approximately V percent of itstotalsolaried work force. This was achieved without a material negative impact on any of METRO's programs. Through careful analysis of METRO's needs versus resources, posi tion eliminations involved recombining work previously dispersed among several positions to eliminate vacant positions, a sizable early retirement offer to free some positions for el.im.ination (accompanied by recombining of management functions previously dis persed among multiple positions) and to allow replacement for other positions at lower salaries, and some layoffs of persons whose functions were no longer required by the size or nature of METRO's programs. This effort saved approximately $10.5 million per year, or 4.5 percent of the operal.ing budget. {Houston, Texas) 9. SEPTA has targeted 510administrative positions for elimination 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 resulood in administrative savings. There were expenses involved in this downsizing program, including additional pension costS, incentive stipends o.ffered to employees not eligible for early retirement, actaary cOSts, unemployment 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 growth at Long Island Rail Road. Avoidance oflayoffs and/ or furloughs was desirable to a vert incurring multi-year, contractually-defined payments (of up to 60percent of P"Y for up to five years) to employees whose jobs wer:e elimirutted. This in-house technique resulted in significant reductions to payroll and benefit expenses. Allowing natural attrition to occur . THEME VI lml'roved MOI1C4f.1e111ent of lntenwl Resources

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TJIEME VI Improved Management of Internal I
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Lessons Ltarntd In rrv.uult Eff'lclt ndts, Revtm.tt Cent.n:rtlon, and cost Reduction Improved Methods of Purchasing parts, consumablcs, and services constitutes the second highest expense for transit agencies, after labor. The prices paid for these items can be reduced through alternative methods of procurement. Agencies often benefit from investing in consuhants with special expertise. L Sheboygan Transit broadened the am own of competition in the acquisition of bus parts. To speed up the process they developed a method of obtaining fax quotations from various vendors for bus parts. The agency believes it saved as much as $20,000, ora little less than I 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 that 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 Paoe. Paoe works with the three brokers to develop specifications for each specific type of iJlsur. ance required. Unlike the open biddingapproacb, in whicheacb brokerisoneofmaoyto 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 o\Mininginputfrom the three brokers, a base bid specification is prepared and all three brokers are required to submit a prioe for the base bid specification. They are also allowed to propose alternative terms and conditions. The knowledge that the competition is limited to three identified brokers encourages more intense competition than would normally be found for a relatively small aooount such as Pace. Coverage bas improved as well. The auto coverage limit bas been increased from $1 million to $2 million, and the self-insured retention for the general liability policy has been reduced from S 10,000 to zero. All rates are fixed for three years. (Arlington Heights, Dlinois) 3. At Connecticut Transit, a brokerwassdected jointly by management and the union to renew employee benefit coverages. analyzing benefits, bidding coverages, and negotiating rates with various providers, the broker has saved the agency more than $700,000 with no dimi nution of benefits. Best of all, the broker's fee is paid by the carriers. (Hartford, ColUlecticut) 4. LYNX is leasing a Greyhound garage and 5-acre site for.$77,250 per year inSI>'AA of buying a comparable property and facility for $1.2 million. If used for 5 years, it will save S8!3,750. A similar 5.85-acre site that was a rormertrucking maintenance business also came available with a capacity of 80 buses. A five-year lease andimprovemeniS 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 JIM4 heme nt of Infernal Resources

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THEME VI Improved Mmwgement of Internal Resources 5. TheMWni Valley Rfgional Transit Authority consolidated medical insurance coverage with one carrier and competitively bid when renegotiating the labor agreement. An insurance consultant was hired who worked first with management. The consuluru structured an ideal program to win premiwn reductions, then solicited and evaluated bids. The consultant then participated in joint meetings of management and l abor where pre=tations were made by insurance companies. The consultant's fee was $10,000, but the authority realized a savings of over $500,000 annually. (Dayron, Ohio) 6. The Metropolitan Bus Authority decided to pw-chase, rather than lease, tires for its bus fleet. A lease contract was canceled and tires were acquired by purchase or were retreaded. The agency spent $6,637 to pw-chase a new tire changing machine, but the change resulted in a savings of approximately $250,000 annually, or 0.84 percent of the annual budget. (SanJuan, Puetto Rico) 7. New Jersey Transit has utilized fuel hedging techniques foranurnberofyeors. By using oil futures to lock in at a fixed price, the agency has been able to stabilize fuel costs. The agency has the option, depending on market conditions, of locking in prices or floating with the market. Between FY 1990 and FY 1996, diesel fuel costs for the agency decreased by approximately $2 million, or 10 percent, despite an increase in service levels and gallons of fuel used during this period. (N e wark, New Jersey) 8. MART A enters into annual agreem e nts with commodity brokers by competitive bid to "hedge" the price of diesel fuel. MARTA is currendy using a f.xed-for-flo ating swap in which a hedge price is negotiated (fixed) and each month the hedge price is compared with the average Adanta cost for diesel (floating). If the average cost exceeds the hedge price, the broker pays MART A the difference for the ntimber of gallons of diesel in the contract for that month (which was determined based on MARTA's budget for diesel). The reverse occurs if the average cost is less than the hedge price. Fuel hedge saving have totaled $2,276,611 since 1987. Through nine monthsofFY 1996,MARTA saved $276,756. MARTA claims other utilities can also be hedged (Atlanta, Georgia) 9. Fuel costs soared from $0.72 per gallon in 1991 to $1. 09 per gallon by mid-fiscal year and continued to fluctuate thereafter at PAT. Diesel fuel swaps are implemented completely using in-house staff who arrange perform analyses, set pricing parameters, and stage the bid process. Only 20 hours of staff time are needed to complete the arrangemen t PAT has experienced budget reductions of $0.12 per gallon since FY 1991 and has realized a net benefit of $350,000 over this period. (Pittsburgh, Pennsylvania)

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Lessons Leamed lf'l n-ansit Rfvtnue Gent.ratlon, and COft R.eductiot'J 10. Trnnsit reviewed the c ost of maintenance items and found that the contrnctor could purchase some items a much lower eo5t. Through a contract amendment, ECCT A reduced th e cost of some maintenance items by IS percent. (Antioch, California) 11. DART has taken advantage of the availability of Commercial Paper to establish a $300 million line of credit. The Commercial Paper has a maximwn life of 270 days a t interest rntes of only 3.5 percent. DA.F:I' continually rolls these funds to mainW.. access to a low interest rnte for borrowing money to build the new light rail and commuter rail systems. (Dallas, Texas) 12. SEPTA has mlized health care savings as a result of aggressive use containment, successful negotiations with major providers, and selective increases in theco-payfor Paid Prescription and Dental. Over $40millionhas beensavedsiru:e FY 1993. (Philadelphia, Pennsylvania) 13. With an annual e lectric pOWtt bill of $22 million, BART hired a consultant who, over a 10year time frame and at a cost of approximately $150,000, assisted BART in applying for an 0..0. the allocation was received, a on&year effort was required to pass legislation requiring the local utility to deliver power from Federal Marketing Power Agencies to multiple points while continuing to treat the power as though delivered to a single meter. This resulted in annual savings of $1.2 million, or about 0 6 percentofthetotal opernting budget. With the legislation in place, BART applied for and received a tempornry allocation of 55 megawatts from Western and has entered into a 20-ye
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THEME VI lmpvoved Mawgement of ltltenwJ Resources LtsSon.s Ltarntd In Tn:uult Etftdtndt.s ReVe-nue Gtnuaticm, and Cost Reduction Managing Major EXpenses Certain expenses ore common among most transit ogencies, particularly liability due to accidents, injuries, ond absences. These ond other cost factOrs such as energy utilization or marketing repre sent substantial portions of operating budgets that have been effectively reduced through focused efforts. 1. Connecticut Transitenjoyslowerelectricity rates by agreeing to run building generators wh en general demand for power is high. The loc:d utility company provides very advantageous rates to customers who are willing to run generators during peak demand periods (mainly in the summertime). Connecticut Transit maintains standby generators in each division to oper ate essential equipment in the event of a disruption of electrical power (Hllttford, Connecticut) z The Miami Valley Regional Transit Authority had a good workers' compensation claims record, but they were subsidizing the stote fund. The age ncy f ound a loophole in state statutes requiring all public bodies 10 be members of the state system. The new system cOstS about $300,000peryear, including stop-loss insurance, eu:., but they realize a gross savings of $845,000 (or a net savings of $545,000 annually). (Dayton, Ohio) 3. Metro achieves ongoing savings through the implementation of an e nergy demand manage ment program, installing electronic recording meters 10 provide for coincident demand, combining accounts to eliminate duplicate service charges, cycling equipment to shift the onset of heavy loads to off-peak periods, rescheduling work tasks to off peak periods, reducing peak loads by controlling HVAC usage in maintenance yards, and consolidating hundreds of electric accounts into one billing invoice. T he program requires hiring one person to establish a cl= working relationship with the utility company and to become knowledgeable of rate structures, components of rates, different periods for peak pricing, etc. Current cost savings are about$! million annually, or0. 3 pen:ent of the overall budget (Chicago, Dlinois) 4. A small in-house staff of industrial engineers in NJ Transit has implemented both demandside management and supply-side management programs to produce annual savings in excess of $2 million per year in electric bills, plus another $500,000 in natural gas bills. The demand-side management concentrated on replacing standard fluorescent lamps and mog" netic ballasts with energy-efficient tubes and electronic ballasts. The agency has also installed computeriud building control systemS in bus garages, major terminals, and other facilities to operate the lights, hearing, ventilating, and air conditioning systems. On the supply side of

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Lusons Learned In Trcmslt EffidenciU. Rtvtnwe Gftltratlon, and co.st Reduction management, negotiations with the electric ut,ilities resulted in a three-year contract which reduces the cost of traction power by about $500,000 per year. Over the course of three years, a capital expenditure of $5 million has produced $2.5 million per year in operating savings. (Newark, New Jersey) 5. PAT's hourly employees are required to furnish 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 inordinate amount of requestS were beingcomplete!i by the same physician. A decision was made to conduct an intensive review of all sick pay requests from the most recent twO-year period. A special audit/review was performed by in-house staff. As a result of the special audit, 10 percent of all sick pay requests are now reviewed quarterly 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 is averaging approximately 3,600 requests post review. This effort is estimated to save S280,000peryear. (Pittsburgh, Pennsylvania) 6. The .Regional Transportation Commission perf\,rmed a baseline marketing study to mea sure the public image of the agency and gain a better understanding of the types of indi vi duals 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, result ing in a net savings in advertising dollars of approximately $45,000 a year. Remaining mar keting dollars were shifted to more effective and less costly promotional/marketing efforts. 7. CDTA now self insures itself for workers' compensation and has established a Retrospec tive Plan. The carrier now does claims management and provides excess coverage. Claims are now significantly lower than former premiums, and the agency is saving approximately $100,000 annually. (Albany, New York) 8. Sunline assumes the risk of liability claims at the $125,000 self-insured retention level. This has contributed, in conjunction with in-house claims adjusting and safe driving records bol stered by training, $50,000 and $75,000 a year to savings in insurance premium deposits. Sunline challenges every claim they feel is illegitimate (rather than settling), and their hard stance on these matters has discouraged further claims from being filed. (Thousand Palms, California) 9. BART is self-insured for both industrial and non-industrial disability (fustsixmonths) claims. A Third Party .Administrator (fPA) is. contraCted to provide day-to-day case management VI I Mcmagen1ent of Internal Resources

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THF M VI Improved lt lanngen1ent of lntenwl Resow-ces l.eSSOm Learned frl Trcmslt Effldmdes, ltevenwe Generation. and COst Reduction andcbims administration services. by the Hwnon R.esoun:es Depanment, the TPA is effective in driving the claims pro$$ to ell$\lte that employees are provided the benefits for which they are eligible while also monitoring costS and mum-to-work abilities. With the award of a contract to a new TPA inApril1995, all earlier "tail claims" (previously handled by three other administrators) wtre forwarded to the new TPA which has resulted in an increase in case closures and claim settlements. In addition, the utilization of a Preferred Provider Nerwork reduces treatment costs through the discount agreements negotiated with the treaters. (Oakland, Oilifomi>) 10. A Temporary Modified Assignment Prognm enables BART's recovering workers or those with minor injuries to retUI'Il to modified or alternate assignments for a period of up to 90 days. This prognm reduces overall costs by minimizing the need for replacement payroll costs while also paying the disabled worker temporary disability benefits. The program creates a "win-win" as the employee's recuperation is often enhanced by the ability ro return to an active duty status, the employee returns to a regular pay status, and District work is accomplished rather than being delayed as a result of the absence. The combined efforts on the Disability Programs Management efforts have saved the District approximately $ t mil lion per year in COsts that would have otherwise been allocated to Workers Compensation claims payment and/ or reserve funding. (Oakland, Oilifomia) 11. In 1991, Long Beach Transit's expenses for liability wtre $1.2 million and $1.3 million for workers' compensation (out of a total budget of $26 million).In 1996, LBT's expenses for liability have been reduced to S t million and $800,000 for workers' compens ation (out of a total budget of $36 million). This $700,000 savings is attributed to tracking aU risk costs closely and instituting light duty assignments for those on workers' compensation, while emphasizing training, accident investigation, and aggressively challenging false claims. This requires someone dedicated to tracking these matters, staying on top of attOrney's cOSts, and making good evaluations. (Long Beach, Califomi>) 12. Metro Area Transithasexperiencedareduction in absenteeism from 12to Spercent. This is attributed ro two initiatives. First, the agency has mandatory meetings Qteld at three different times in one day) every quarter for every employee. The importance of safety is stressed (overtime is not paid for safety-related meetings) and the general manager gets the opportu nity to share information and ideas with his workforce. One such idea is the importance of good attendance. Second, MAT stations a doctor at the agency offices two half -
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Lessons Leamed In TrCVIslt Eftldencits. R!wnue Genenrtlon$ and cost Reduction 13. Accidents were costing Metro Area Transit $400,000 a year. That ccm has been reduced by $37 4,000 a year, to a level of $26,000 annually. They attribUte this to challenging every que$tionable claim against the agency, and by stressing the importance of safety at their quarterly meetings with all elllplayees. Their safety record has also allowed th= to reduce their insurance COSts from $350,000 to $62,000 annually (for an annual savings of $288,000). (Omaha, Nebraska) 1 4 Variousrechniqueshave been implemented at the Maryland Mass Transit Administration to reduce electricol consumption, including: (1) operating Metro rail car vehicles 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 is estimated to have resulted in over $500,000 in annual savings. (Baltimore, Marylmd) 15. Sound management investment policies and an oversubscription of the Bus Operator Pen sion Fund has Golden Gare Transit to negotiate a reduction in its comribution 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 PY 1995 to $23 million in PY 1996, with a further reduction to $21 million in the FY 1997 budget. The Authority has achieved savings by reducing employee lost time injuries, 3nd hiring a third party administrator tO handle medicol bills f o r employees on workers' compensation. However, the cornerstone of the program invol ves providing temporary duty jobs to employees who are injured and establishing a proactive approach in returning employees to their original permanent positions (Philadelphia, Pennsylvania) 17. Palm Tran instituredsafety programs four years ago and noticed a substantial deciease in liabilityexperienoepittedagainstpremium. Theagencyconverteditsworkers' compensation to a Retro Plan which has the capability of saving up to 80 percent on workers' compensa tion premiums. In thefirstquarrerof Palm Tran ran at 1.1 peroent experience against premium. The savings are substantial and could reach $500,000 per year. {West Palm Beach, Florida) 18. After automoblle insurance premiums skyrocketed to $1 mlllion in 1986, RTCestablished a Self-Insured Retention (SIR) program in which RTC pays any loss up to $100,000 and : ;., I THEME VI ImProved Management I I ot l f ltenw Re.o:;p u r ces

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lH/lU: VI lmptovet;j Ma1wgement of Internal Resowces Les.softs Learned fft Transft frfcltftc:les, Revenuf Cetlfratfon. and cost Redwctton contracts for insur.mc:e coverage above that amount up to $10 million. RTCsimultaneously initiated a Safety Program to update driver training, and implemented two award programs for safe driving, including monetary bonuses. RTC also took a strong stance against poten tially l2lse accident claims, going to court even if their expenses exceeded what they could settle for. Total 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) Reenglneerlng Intemal Processes Although deu.ils were often sketchy, some transit agencies reported that the y were re-thinking various processes to determine how they oould be accomplished less expensively. Reengineering nonnally refers to radical changes in the way an enterprise accomplishes its mission. The types of changes reported were more in line with total quality managemen t reviews, but they do demon strate transit's growing ability to question how itis doing business. l At Long Island Rail Road, organizational analysis and process re-engineering are two tech niques used to supplement the anritionbased staff reductions. It has been used to review administntive functions for efficiency opportunities including operating department func tions (track installation, motor rebuilds) and contract reviews. Qamaica, New York) 2 SCAT employs the concept of multi-tasking through designating one bus operator po
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Le.ssonsl.tArnta In Trdrrslt Efficiencies, Revenwe Gtnerot:Jon. and cost Reduction 5. At New York City Trnnsit, the midnight shift is responsible for a very low proportion oftotal issues from storerooms. By pre-issuing commonly-used materials, the Marerial Division can close the 33 storerooms located in bus depots and car maintenance shops on the midnight tour. (New York, New York } New York City Transit raised the petty cash limit to $500 and allowed the use of credit cards to purchase small items. This reduced the procurement quota by 10 positions at a savings of over $600,000 annually. (New Yotk, New York} 7. Sportran (Shreveport, Louisiana) now relies more heavily on contacts with other transit syStems inStead o f consul tants ro find solutions to problems. Center or Urban Trans portation Research, through funding from the Florida Department of Transportation, will tie all transit sysrems in F l orida elecu:onically to allow the 20 agencies to share e-mail. This more flexible form of commwlicatioo will provide more effective commwlication among the agencies to obtain assistance on problems from each other, and share information on successes (and failures) among transit syStems within the State. 8. By utilizing a Total Quality Management process, Pien:e Transit has reduced a rebuild pro cess from six weeks and $928 per unit to no wait time and $357 per unit. The agency also aggressively pursued warranties on vehicles as well as components, saviogmorethan $200,000. (Tacoma, WashingtOn) 9. A Currency Unfolderincentive Program was designed by PAT to reduce the cycle time for depositing fare box receipts and to recognize exceptional performance in th e routine task of preparing currency for deposit. Each Currency Unfolder was required to process a mini mum of $8,000 dollar bills daily. The following incentives were paid for average monthly processutg: Avenge Daily$ value 8 ,000 10,000 12,000 14,000 Inceptive .(). $50 Additional $25 Additional $25 The program resulted in a reduction of three Currency Unfolder positions at an approximate annual savings of $86,000. Other benefits included improved cash flow, reduction of cycle THEME VI Improved Matwgement of Internal Resources

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THfMf VI Improved Monayement of lntcmc.tl R t?SOilfCt?S time from farebox to the bank, improved attendance, and a reduction in departmental over time. (Pittsburgh. Pennsylvania) tO. Citifare has developed a new approach to driver nm picks that is "OutSide the Box. Drivers construct their own work weeks from a list of ovailable pi eces of work and days off. Management still decides how the bus blocks are divided into pieces -late or early straights, howsmallorlarg
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Lt.ssons Leamed In Transit Eftldencks, Revtrute GtflerQtion, and cost Reduction . . . . . : THEME VI lmprovea Mcna9ement of Internal Resources

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THf/Vi( VI Improved IM nil Clgeme n t or hlternul Resount:'S ' 7.: the mpomibi/ily-Many, if not most, transn agencies have enacted self-insur a'noe programs.; This to be a
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t.e:ssons Learned ftt ttGmlt Effldencles, Revtnue GtnuatJon, and cost Redwc.tfOt'l conclusions Transit agencies clearly havemauy experiences to share that can help their counterparts reduce com or generate new revenues, without resorting to raising fares or cutting service. The bottom line results are typically new revenue or savings of between 5-10 percent of an operating budget (though it could be considerably more). While this does not completely solve transit agen cies' funding problems, it certainly helps the boanm line and avoids costs on to passengers. 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 them es. However, there is atleast one thing that is striking in its irony The term "Mass Transit" conveys an image of a singular type of onwi2.-lits-all service, which might have been an appropriate term more than fifty years ago when land use 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 sprawl, there is no hope that a single type of transit service provided by an insular agency can succeed. The automopile has clearly spoiled us, but can also teach us what people want. People crave flexibility and convenience. 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 types of actions that have resulted in increased revenue or cost savings are a result of customized agreements with a host of new partners, more flexible service and fares, or creative cooperative agreements with public and private entities. Many of these activities 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-generating opportunities. They also help to build broader support for public transit in the community. They create more energy from more sources to promote transit options.

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Transit agencies that are having success in developing these types of relationships are taking advantage of the natural linkages that exist between themselves and other entities. America is a nation characterized by mobility. After food, shelter, clodtiog, and a job, mobility might be the next most important necessity. On.,..;,nh of the nation's economy is based on transportation functions. It should be no wonder that there are linkages to explore and relationships to build. Transit systems can leverage their capital, their service, their ability to link peop le to places, and their goodwill to establish new opportunities to reduce costs or generate revenue. Transit agencies must find ways to maximize positive en ergy from evety one of their and as many members ofthe commu nity as possible. Sometimes all they need to do is ask. Tbe more transit systems show they care about others, the more others will show they care about the transit system. The more others care about the transit system in a community, the greater its clances of securing friends, partners, and funds. Tbe pressure on transit systems' budgets is not expected to end anytime soon. All tranSit systems must continue to become more self-reliant. This is consistent with the broader national themes of greater individual responsibility, welfare reform, and devolution of authority from federal to more local jurisdictions. Just as individuals will need to improve their skills, so are transit agencies being asked to be more creative and self reliant. This report hopes to contribute toward the accomplish ment of these goals.

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Lessons Learned In Transtt Efrldtndes, GtMration. ond cost Jttclwctton Appendix A survey mr,., UiGI fiu:qa&ai!M m

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Dolo. 1188 -T,_Agoncy ---Clly, Stot. ZIP Door __ oiSoud'l Rotktl C...,.ol<4101 0./f 100 fL JU10-S11S (tiJ)f14o)llO fAX {tin 91-t:SI .. .warded grant to kSenttty tne WIYI nnea egenc:iN .,. ._ HYing money or _. ... _, new rwenuet dU'friO theM cllllo.lll a.c.l timel. N ,.,.,..l.niln; decnlaaer and ...,_ tax Mntfrnentl lnc:reae. nn.1t egendel .. beComlnO men relient on their own aklll 8nd MIOt.I'C8I ta _. .. neoatery lnlrlg. Y041 help II needed to dow W to ldtnatJ outltMCiinta 8:ICMlpll:l oltrlnlit ell'lcMnclel thet can bt thtrtd .tth, tt'ld duplctted by, ottw e:Qenciea. 1hla II not the box: c::loH04nd IArlfrt. W. rw aklng etch tnna1t aotMY In the Urftrcll....,. end C.Mde to proll'ldle nanatl .. dMcrtptlon (notjUiteltltlnt) of the ttv. most endtor autNe waye they MWI eHbtr ge'*'*CI new rw.nuee Ot MYeCI monoy. Wo.,. orly io-.-ln e--tholor now ,.....,.., .tlhoutctcaalftg ......... rlderlhlp. TheWom..tlon you '*-wiD beofgtMtwbt to_..,.--11wtUthoo N........,.ec.g-1 rep 111 speIIIIQ etlht ....CN'TA Conf.....-.ce .-.dthat trant11 must do bellotjobol-llo-ondlloototoy_ol __ All lbdltntnl to thla: ....... COt all...,.,. eamplea of how' ....... tranelt egenc:IM .,. ftnclng creative Ml)'t to...,.. mone)' atWJtot genll'ate n. .-mplea .,. onty Intended to be .._-. .. -youtunuouel-1 CUTR w11 pVVIcte 8'Wirda to1hl the tnllhodl. Ycu wll bt prolltcl lnCIIIR'Ip-ondlnlonnolionon,..._ ... bo_to __ jooonall wei. We fiiCPI!Cl tht *'IW'f ,_,Ill d bt pNMntild .t the APTA AMutl Conf....nce In Oc:tobw, 1888. AI of tht lnfolldoll cclecload wUI bt made .vallatlle through the l neemet. Of c:ocne. evrery v..c r.apondt to the IUtW'f .t1 receive copy of our rtpoct n,_.,. ...,._, )'OUifW/oollmo o1 (813) 87..-7, -tu to(8i3)97ol-6188, or tend en Hntll to lit your c::onwnltnc:e. Pte ... mel. t.x. or e-mtl your ooooopoiOd ..._no--Juno 21, 19IMI. H l II not.,.._ to-,...p1oooo oollmo (or 11M.,-col moo) dlrodl)' It'd 1,..-,... lnrormollon ,._tho -. ... ---l'm_,ol.,._ol_toot_,..._ond I W8'll: to make )'OW pet1idpltb I .. MIY -poulble. 'Think; )'OU "' tdMc:e for your coopemlon. SlncMt; -

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Lessons Ltarned In Transit Effldendes. ReVenue Generation, CMd Cost ltedwct1on National Transit Efficiencies Survey Center for Urban Tran sporta tion R-rch (CUTR) Pirone J)fOVIdt a brief namaliw ciMeriplion of the ttv. moat fll'hJctJw used by your Q1nCY ttlat have genet11ted new revenues ancllor saved money. To stve tim&, If you aJreacty have infonnadon (e.g., artldes, broctwrea, videos, lntsrnet home pages. etc.) that deea1bes lnnovaliYe tedlniq.s piNse provide us vritl'l .,_11\formaliOn. If not. you fn1Y use tne rev.rse tkft of lh1s form end attach as m&t'IY pages ea needed to describe each melhocL Please make c:oplet ol th1$ fOrm ancl distl'itiWIIO each department tha t you wiSh 10 pattieipato in 1t1o ltii'WY P/Nae .,.,_tho following queationa wlltn of tho """IKI>nlquu : 1 W\at technique has yOU/agency usoel that has saved money or generated new reYer\UeS? 2 Wha t InitiatiVe,. concem, or problem PfOmPled lhe Implementation ot the 3 What wu lht period of time betWeen concept definitiOn and ocNal implomtnta&on ? ( e .g., leu than e year HVeral years. eec.) 4. Wls t\8 technique lr'nptementeclln.houae, fth CIOI$8*<1 support, or through a pamMtlip? &. 'M'Iatere the imp)amentallon c:o.t:s? (e.g., operaeing, Clpilal, etc ) 8. Wha t are 0.0 n e t operational Impacts (e.g., dollltl saved or gtnOraMd) terms end expressed as a pen:entl!ge of your overall budget? 7. Why Is the leCfrique consJcMted e succea& b your dapertmantfagency? a Does the ttchtdque apply aeroa mod or IS tt mode specific? Pl .... compl ... lho foiJowlng lnform01/tm: Notnfl8ttqertey: ----------------------------------------&r'"'lllre{numbwofwhlclee): ___________________ AdctNu ( tnet. chy,.at:e,zJp):, ______________________ N.,.eandttUeofcontact,....onlorW.N"VtJ:-----------------_____________________________________________________ ___ JMII, fix. Ote.ft .. .,.wt Npor.M by Jyne 21,1tM to: Joel Vollnil1d, Ohctorfor,_.ll ceneerlof'Urten AeeNI'Gh con.,. o1 E...,..,.na, UnMNty Of SoUI'I Florlde .U02 B. Fov.ler Avenue. CUT 100 PL 31S20Qf6 Ptlone 11Uf441141, Fax lts.t74-1111 E.oftldl

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Lessons wrned In Transit Etpcltndes, GenuatJon, and cost Reduc:tfon Appendix B survey Participants City of Albuquerque Transit and Parking Department (Albuquerque, NM) JohnParker,ServiceDevelopmeru:Manager Phn (505) 764-6105 Fax (505) 764-6146 Ann Arbor Transportation Authority (Ann Arbor, Ml) Gregory E. Cook, Executive Director Fax Bay Area Rapid Transit (Oakland, CA) Roy Nakadegawa, Director, District 3 Phn. (510) 464-6000 Ben Franklin Transit Ed Frost/David Rodrick Allen R. Walch, Administrative Services Man:oger Phn. (509) 7354131 Fax (5o9) 735-1800 Brmvard County Division of Mass Transit (Pompano Beach, FL) l..omine Smilh, Tr.msitManager, Administration Phn. (954) 357-8300 Fax (954) 357-8305 The BUS City and County of Honolulu (Honolulu, HI) Public Tr.msitAuthority Phn. (808} 523-4445 Fax (808) 596-2380

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Ca),>ital Area Transportation Authority (lansing, MI) John Kirk, Mainrenanoe Supervisor Phn. (517) 39+ 1100 Fax (517) 59+3733 C2pital District Transportation Authority (Albany, NY) Jack Riley, Director of Planning and Devclopment Phn (5 18) 482 Fax (5 18) 482 Centr.al New York Regional Transportation Authority (Synaue, NY) Joe Cabbrese, Executive Director Phn. {315)#2-3300 Fax (315)#23337 Centr.al Ohio TnnsitAuthority (Columbus, OH) Raymond C. Miller, Assistant Gener.!Manager Phn. (614) 275-5806 Fax {614) 275-5894 Chula Vuta Trmrit(Chula VISta, CA) William Gustafson, Jr., Transpo!Ution Coordinoror Phn. (619}691 Fax (619) 691 Corpus Christi Regional Transportation Authority (Corpus Christi, TX) Linda Watson, Generol Man3&1'r Len Brandrup, Director of Operations Phn. (5 12) 883-2287 Fax (5 12) 883-9938 CITRANSJT (CT) David Lee, Genero!Manager Phn. (860)522-8101 Fax {860) 247 810 DurhmlAreaTnnsitAuthority(Durbam,NC) Allen Carter, Gener.l Manager Phn. {919} 688 Fax {919) 68&-2611 Eastern Contra Trmrit Authority (Antioch, CA) Ponte, Senior Transit Planner Phn. (510} 745-6622 Fax (510) 757

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Ltssons ucarnea 11'1 fffklerJcffs. aevtnue Gc'fleratlon. and C4Jt R eductkm E=mbia County Area Transit (Pensacola, FL) Kenneth P. Westbrook, Resident Manager Phn {904) 436-9394 Fax (904) 436-9847 Fort Worth TranspottltionAuthority (Fort Worth, TX) John P. Bartosiewicz, General Manager Phn. (817) 871-6221 Fax {817) 871-6217 Fairfield/Suisun Transit System (Fairfield, CA) Kevin S. Daughton, Transportation Planner Phn. (707) 428 Fax (707) 428-7607 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 Transpottltion Corporation (Indianapolis, IN) Ted Rieck, President & General Manager Phn. (317) 635-2100 King County Department of Metropolitan Services/Metro (Seattle, WA) Rick Walsh, General Manager, Transit Phn. (206) 68+1619 Kosciusko Area Bus Service (Warsaw, IN) Tom Sherron, General Manager Phn. (219) 267-4990 Fax (219) 267-4990 Lakeland Area Mass Transit District (Lakeland, FL) Sreve Githens, Transit Director Phn {941)688-7433Ext. 121 Fax (941) 683-4132 Livermore/ Amador v.illey Transit Authority (Livennore, CA) Austin O'Dell, Planning Manager Phn. (510)455-7555 Fax (510) 443-1375

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LeSSons Learned fn Transit ffldmdes. Revenue Generatfon, and cost Reduction Long I sland Rail Road ijamaica, NY) Thomas F. Prendezgast, President Phn. (718) 558-8252 Fax (718) 657-9047 t) LYNX/Centrol Florida Regional Thansportation Authority (Orlando, FL) Rob Gregg, Director of Planning and Development Phn. (407) 84!-2279 Fax (407) 245-0327 Madison Metro Transit (Madison, WI) RuthAnn Wohle,., TronsitFinanoeManager Phn. (608) 267-8766 Fax {608} 267.$778 MAirrA!Metropolitan Atlanta Rapid 'Ii-ansit Authority (Atlanta, GA) Ken Sadeckas Phn. (404) 848-5780 Fax (404) 848-5421 Mass Transit Administntion (Baltimore, MD) Thomas E. Holsclaw, Chief, Financj,d Marugement Phn. (410} 767-3742 Fax (410} 335-0504 Metra (Chicago, IL) Phillip A. Pagano, E=utive Director Phn. (312}322-6900 Metro-Dade Transit Agency (Miami, FL) Pamela Levin, Chief, Management and Information Services Phn. (305} 375-5675 Fax (305} 375-4605 Metropolitan Bus Authority (San Juan, PR) Hector R. Rivera, President Phn. (809} 767-7979 Fax (809} 751.0527 Metropolitan Transit Authority (Houston, TX) Francis M. Britton, ID, Assistant General Manager, Office Management Budget Phn. (713) 739-4000 Fax (713} 739-4925

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lt$$0its lf.Qfned In Transit tflclendes, Generation, attd Cost Reduction Metropolitan Transit Development Board (San Diego, CA) Thomas E Larwin, Generol Manager Phn. (619) 234-3407 Fax (619) 234-3407 Miami Valley Regional Transit Authority (Dayton, OH) Riclwd M. DeLon, Chief Financial Officer Phn. (513)226-1333 Fax (513) 443-3121 Milwaukee County Transit System (Milwaukee, WI) Anita Gulotta.COnnelly Phn. (414)937-3291 Fax (414) 344-0148 City of Napa, the VINE, and Napa Valley Transit (Napa, CA) Celinda Dahlgren Phn. (707) 257-9520 Fax (707) 257-9522 NJ Transit (Newark, NJ) H. Charles Wedel Phn. (201) 491-7000 Fax (201) 491 New York City Transi t /MTA (Brooklyn, NY) Barbara R. Spencer, Executive Vice President Phn (718) 243-4321 Fax (718) 596-2146 P A CE Suburban Bus Division of RTA (Arlington Heights, IL) Joseph Dijohn, DireCIOr Phn. (847} 2211-2301 Fax (847) 364-7276 PalmTl'an (West Palm Beach, FL) Irving A Cure Executive Director Phn. (407) 233-1199 Fax (407) 2331140 Peninsula Tl'anSpOrtation District Co111Dli$sion (Hampton, VA) Sybil H Ellsworth, Grants Ac:lmioistrator Phn (804) 722-2837 Fax (804) 722-9662 .

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Pierce Transit (Tacoma, WA) DonS Monroe, Executive Director Phn. (206) 581-8080 Fax (206) 581-8076 Port Authority of Allegbeny County (Pittsburgh, PA) Claudia L. Hussein, Director of Finance Phn. (412) 237-7324 Fax (412) 237-7101 Port Authority /Trans-Hudson Corporation Oener City, NJ) Hugh P. McCann, Deputy General Manager Fax PART /Putnam County Plonning Department (Cmnd, NY) JohnM. Pilner, Transportation Planner Phn. {914) 878-3480 Fax (914) 878 6721 Regional Tronsportation District (Denver, CO) John W. Davis, Senior Operations Analyst Phn. (303) 299-2124 Fax (303) 299-2061 Regional Transit (Sacramento, CA) Douglas L. Wentwonh, Director ofPianning, Finance and Administration Phn. (916) 321-2800 Regional Transportation Commission (Reno, NV) Celia G. Kupemnith, Executive Director Phn. {702) 348-0400 lloc:bester-GaJcste Regional 'fr.anJportation Authority (RDdtester, NY) John A. Garrity, Executive Director Phn. (716) 654-0200 Fax {716) 65+0289 San Diego Transit (San Diego, CA) Clifk>rd J. Telfer, Vice President, Finance/ Administration Phn. (619) 238-0100 Fax {619) 696-8159

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leSSOns Learned bl Tl' .. slt Eflkle!tclts, Rtven .. Generation, and COSt Re
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Topeka Metropolitan Tr.msit Authority (Topeka, KS) Ronald D. Butts, General Manager Phn. (913) 233 Fax (913) 233-3063 VIA Metropolitan Transit (San Antonio, TX) BarbanE. Hassmann, Director of Finan"' Phn. (210) 277 ext.7000 Fax (210) 270-0215 VOTRAN !East Volwia Transportation Authority (South Daytona, FL) Becky Weedo, Transportation Planner Phn (904)756-7496 Fax (904)756-7487 Washington Metropolitan Area Transit Authority (Washington, D. C) Robert L. Polk, Acting General Manager Phn. (202) 962 City of Wichita Falls (Wichita Falls, TX) Robert E. Parker, Di=torofT.-.ffic, Transportation, and Aviation Phn (817) 761 York County Transportation Authority (York, PA) Stephen Bbnd, Executive Director Phn. (717) 846-5562 Fax (717) 848-4853

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NOTICE This document Is disseminated under the sponsorship of the U.S. Department of Transportation in the interest of information exchange. The United States Government assumes no liability for its contents or use thereof. The United States Government does not endorse manufacturers or products. Trade names appear in the document only because they are essential to the content of the report. This report is being distributed through the U.S. Department of Transportation's Technology Sharing Program. DOT-T-97-23

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DOT-T-97-23 Technology Sharing A Program of t he U .S. Department of Transportation