Turlock - Stanislaus Council of Governments

May 2013

TABLE OF CONTENTS Section I ......................................................................................................................................1 Introduction ........................................................................................................................1 Overview of the Transit System ...........................................................................................1 Section II .....................................................................................................................................6 Operator Compliance Requirements ....................................................................................6 Section III .................................................................................................................................. 12 Prior Triennial Performance Recommendations ................................................................. 12 Section IV .................................................................................................................................. 13 TDA Performance Indicators .............................................................................................. 13 Section V ................................................................................................................................... 22 Review of Operator Functions ........................................................................................... 22 Operations ..................................................................................................................... 22 Maintenance ................................................................................................................. 25 Planning......................................................................................................................... 25 Marketing ...................................................................................................................... 26 General Administration and Management ..................................................................... 26 Section VI .................................................................................................................................. 28 Findings ............................................................................................................................. 28 Recommendations............................................................................................................. 30

Triennial Performance Audit of City of Turlock Transit Services – FY’s 2010-2012

Section I Introduction California’s Transportation Development Act (TDA) requires that a triennial performance audit be conducted of public transit entities that receive TDA revenues. The performance audit serves to ensure accountability in the use of public transportation revenue. The Stanislaus Council of Governments (StanCOG) engaged PMC to conduct the Transportation Development Act (TDA) triennial performance audit of the public transit operators under its jurisdiction in Stanislaus County. This performance audit is conducted for the City of Turlock transit services covering the most recent triennial period, fiscal years 2009-10 through 2011-12. The purpose of the performance audit is to evaluate the City’s effectiveness and efficiency in its use of TDA funds to provide public transportation in its service area. This evaluation is required as a condition for continued receipt of these funds for public transportation purposes. In addition, the audit evaluates the City’s compliance with the conditions specified in the California Public Utilities Code (PUC). This task involves ascertaining whether the City is meeting the PUC’s reporting requirements. Moreover, the audit includes calculations of transit service performance indicators and a detailed review of the transit administrative functions. From the analysis that has been undertaken, a set of recommendations has been made which is intended to improve the performance of transit operations. In summary, this TDA audit affords the opportunity for an independent, constructive and objective evaluation of the organization and its operations that otherwise might not be available. The methodology for the audit included in-person interviews with management, collection and review of agency documents, data analysis, and on-site observations. The Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities published by the California Department of Transportation (Caltrans) was used to guide in the development and conduct of the audit.

Overview of the Transit System The City of Turlock administers fixed-route and demand-response transit services within the city limits and its environs. Transit service was first established in 1975 with the implementation of a general public Dial-a-Ride service. As the city’s population and area grew, a fixed-route service was introduced in 1998 in concert with the Dial-a-Ride service. The fixed route service is branded under the name of BLAST, which stands for Bus Line Service of Turlock. The demand-response service is branded under the name of DART, which stands for Dial-a-Ride Turlock. Both BLAST and DART are operated under contract by First Transit and overseen by the City’s Transit Planner. Located in southern Stanislaus County near the border with Merced County, Turlock is the second largest city in the county. Based on the 2010 U.S. Census, Turlock’s population was 68,549, which grew 22.8 percent since the 2000 U.S. Census. The senior citizen population, comprised of PMC - 1


residents aged 65 and over is 11.7 percent. The 2012 population for Turlock is estimated to be 69,370 as reported by the State Department of Finance. The city covers a 16.93 square mile area. Turlock was established in December 1871 and incorporated on February 15, 1908 as a general law city. The City has a Council-Manager form of government with five council members. Boosted by agricultural growth, the city has attracted immigrants from across the nation and the globe. Turlock is also home to the 228-acre campus of California State University, Stanislaus with a student population of around 8,900. Major highways serving Turlock include State Routes (SR)-99 and 165. SR-99 is the main northsouth highway connecting Turlock with other major cities and towns in the San Joaquin Valley including the cities of Ceres and Modesto. SR-165 connects Turlock with the city of Los Banos located in adjacent Merced County. Major arterial streets traversing Turlock include Geer Road, Golden State Boulevard (Business Route 99), Lander Avenue, West Main Street and Monte Vista Avenue. System Characteristics The BLAST fixed route operates service along four fixed routes within the city of Turlock. All four routes originate and terminate at BLAST’s transfer hub located at the intersection of Dels Lane and Hawkeye Avenue near Donnelly Park. The routes are structured in a uni-directional orientation providing coverage throughout most areas of the city including school campuses and major shopping centers. Service hours for BLAST are Monday through Friday from 6:40 a.m. to 5:30 p.m. and Saturday from 9:25 a.m. to 4:00 p.m. BLAST and DART do not operate on the following holidays: New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. BLAST’s fixed route services during the audit period are described in detail in Table I-1. Table I-1 BLAST Fixed-Route Services Route A

Frequency/Operation Every 35 to 45 minutes (Monday through Friday from 6:40 a.m. to 5:30 p.m.) Every 1 hour, 20 minutes (Saturday from 10:00 a.m. to 4:00 p.m.)

Key Time points Lane & Hawkeye Avenue  Walnut Road & West Main Street  Lander Avenue & South Avenue  Colorado Avenue & Canal Drive

B

Every 35 to 45 minutes (Monday through Friday from 6:40 a.m. to 5:30 p.m.) Every 1 hour, 20 minutes (Saturday from 9:25 a.m. to 3:15 p.m.)

 Dels

C

Every 35 to 45 minutes (Monday through Friday from 6:40 a.m. to 5:30 p.m.) Every 1 hour, 20 minutes

 Dels

 Dels

Lane & Hawkeye Avenue  Countryside Drive & Monte Vista Avenue  Geer Road & Regis Avenue  Olive Avenue & Wayside Drive Lane & Hawkeye Avenue  Geer Road & Regis Avenue  Christoffersen Parkway & PMC - 2


Route

D

Frequency/Operation (Saturday from 10:00 a.m. to 4:00 p.m.)

Key Time points Crowell Road  Tergner Road & Powers Court

Every 35 to 45 minutes (Monday through Friday from 6:40 a.m. to 5:30 p.m.) Every 1 hour, 20 minutes (Saturday from 9:25 a.m. to 3:15 p.m.)

 Dels

Lane & Hawkeye Avenue  West Avenue & South Avenue  Berkeley Avenue & Brier Road  Johnson Road & Canal Drive

Source: City of Turlock

Dial-a-Ride In addition to the fixed route services described above, DART provides complementary demand response service within the BLAST service area as well as to unincorporated areas adjacent to Turlock such as Denair. Within the BLAST service area, DART service is available only to persons with disabilities, seniors 65 years of age and older, Medicare card holders, and elementary school students. For trips outside of the BLAST service area, DART service is available to the general public. DART has the same service hours as BLAST within that service area. In the Denair area, DART operates Monday through Friday from 9:00 a.m. to 4:00 p.m. and Saturday from 9:00 a.m. to 3:00 p.m. Figure I-1 shows the DART service area below. Figure I-1 DART Service Area


PMC - 3


The area shaded in yellow denotes the BLAST service area whereas all shaded areas denote the DART service area. The shaded areas in blue and yellow are within Turlock and the area shaded in red is outside Turlock. Reservations on DART can be accepted at least two hours in advance. After using DART regularly for two weeks, riders can take advantage of the subscription service. This service allows for riders to be picked up from the same place at the same time every day. Fares Turlock’s transit services accept a variety of fare media such as cash, passes, tickets and transfers. Transfers and All Day Passes are only available for purchase from the driver. Monthly passes and ticket booklets are available for purchase at Turlock City Hall, Finance Division. Drivers do not make change and exact change is expected. The City implemented a fare increase on BLAST in March 2011 for regular cash fares and certain pass categories. The fare structure for BLAST during the audit period is shown in Table I-2. Table I-2 BLAST Fare Schedule Fare Media Regular Cash Fare 0-3 Years of Age (limit 2 per adult) 65 Years of Age or Older/Disabled Medicare Card Holders Intraline Transfer (BLAST) Interline Transfer (BLAST to StaRT) All Day Pass “Discount” All Day Pass Monthly Pass Monthly Pass (Purchased after the 15th of the month) “Discount” Monthly Pass “Discount” Monthly Pass (Purchased after the 15th of the month) Student Monthly Pass Student Monthly Pass (Purchased after the 15th of the month)

Fare Prior to 3/2011 $1.25 Free $0.60 $0.60 $0.25 $0.25 $3.00 $1.50 $45.00

Fare Effective 3/2011 $1.50 Free $0.75 $0.75 $0.25 $0.25 $3.50 $1.75 $50.00

$22.50 $22.50

$25.00 $25.00

$11.25 $40.00

$12.50 $40.00

$20.00

$20.00


DART’s fare structure is based on the service area travelled. The cash fare for travel inside Turlock is $2.50 and $3.50 for travel outside Turlock. Children aged 0 to 3 years ride free (limited to two per adult). Ticket books of 10 tickets are $25.00 for travel inside Turlock and $35.00 for travel outside Turlock. In addition, 10-trip elementary student passes cost $30.00.

PMC - 4


Fleet There were 14 vehicles in the total fleet during the audit period including two CNG vehicles procured in October 2010. All vehicles are wheelchair accessible with tie-downs in compliance with the Americans with Disabilities Act of 1990 (ADA). Table I-3 shows the vehicle fleet information. Table I-3 Turlock Transit Fleet Year 2003 2005 2005 2007 2009 2010 Total

Make/Model Ford El Dorado Aerotech 220 Ford El Dorado Aerotech 220 Orion VII Chevy El Dorado Aero Elite 270 Ford Glaval Universal 450 Orion VII

Quantity 5 2 3 1 1 2 14

Seating Capacity 14 (2 W/C) 14 (2 W/C) 34 (2 W/C) 20 (2 W/C) 14 (2 W/C) 34 (2 W/C)

Engine Type CNG Gas CNG Gas Gas CNG

Service Mode BLAST & DART BLAST & DART BLAST BLAST BLAST & DART BLAST


PMC - 5


Section II Operator Compliance Requirements This section of the audit report contains the analysis of Turlock’s ability to comply with state requirements for continued receipt of TDA funds. The evaluation uses the guidebook, Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Agencies, September 2008 (third edition), which was developed by the Department of Transportation (Caltrans) to assess transit operators. The guidebook contains a checklist of eleven measures taken from relevant sections of the Public Utilities Code and the California Code of Regulations. Each of these requirements is discussed in the table below, including a description of the system’s efforts to comply with the requirements. In addition, the findings from the compliance review are described in the text following the table. Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements The transit operator submitted Public Utilities Code, Section Completion/submittal dates: annual reports to the RTPA 99243 based upon the Uniform FY 2010: October 15, 2010 System of Accounts and FY 2011: October 17, 2011 Records established by the FY 2012: October 18, 2012 State Controller. Report is due 90 days after end of fiscal year Reports were filed electronically (Sept. 28/29), or 110 days (Oct. 19/20) if filed Conclusion: Complied. electronically (Internet). The operator has submitted annual fiscal and compliance audits to the RTPA and to the State Controller within 180 days following the end of the fiscal year (Dec. 27), or has received the appropriate 90day extension by the RTPA allowed by law.

Public Utilities Code, Section 99245

Completion/submittal dates: FY 2010: March 29, 2011 FY 2011: March 29, 2012 FY 2012: Pending Completion The FY 2012 fiscal & compliance audit was submitted after 180 days following the end of the fiscal year and beyond the 90day extension period. Conclusion: Partial Compliance.

PMC - 6


Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements The CHP has, within the 13 Public Utilities Code, Section The City of Turlock, through its months prior to each TDA 99251 B contract operator, participates claim submitted by an in the CHP Transit Operator operator, certified the Compliance Program in which operator’s compliance with the CHP has conducted Vehicle Code Section 1808.1 inspections within the 13 following a CHP inspection of months prior to each TDA claim. the operator’s terminal. Inspections were conducted at the City Corporation Yard: Transit Operator Compliance Certificates applicable to the audit period were February 24, 2009; March 25, 2010; March 7, 2011 & March 26, 2012. Inspections were found to be satisfactory. Conclusion: Complied. The operator’s claim for TDA funds is submitted in compliance with rules and regulations adopted by the RTPA for such claims.


As a condition of approval, the City of Turlock’s annual claims for Local Transportation Funds and State Transit Assistance are submitted in compliance with the rules and regulations adopted by StanCOG. Conclusion: Complied.

If an operator serves Public Utilities Code, Section urbanized and non-urbanized 99270.1 areas, it has maintained a ratio of fare revenues to operating costs at least equal to the ratio determined by the rules and regulations adopted by the RTPA.

This requirement is not applicable, as Turlock only serves an urbanized area and is not subject to this standard. Conclusion: Not Applicable.

PMC - 7


Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements The operator’s operating Public Utilities Code, Section Percentage increase in Turlock’s budget has not increased by 99266 transit operating budget: more than 15% over the preceding year, nor is there a FY 2010: 5.2% substantial increase or FY 2011: 1.5% decrease in the scope of FY 2012: 8.3% operations or capital budget provisions for major new fixed Source: City of Turlock TDA facilities unless the operator Claims Budget for FYs 2009has reasonably supported and 2012 substantiated the change(s). Conclusion: Complied. The operator’s definitions of performance measures are consistent with Public Utilities Code Section 99247, including (a) operating cost, (b) operating cost per passenger, (c) operating cost per vehicle service hour, (d) passengers per vehicle service hour, (e) passengers per vehicle service mile, (f) total passengers, (g) transit vehicle, (h) vehicle service hours, (i) vehicle service miles, and (j) vehicle service hours per employee.


The City of Turlock’s definition of performance is consistent with Public Utilities Code Section 99247. A review of monthly reports from the contract operator during the audit period indicates that correct performance data are being collected. Full Time Equivalents (FTEs) are shown in the State Controller Reports as headcount, rather than the FTE definition of 2,000 hours per employee. FTEs are generally lower than headcount with the presence of part time employees and/or city staff who contribute partially to transit. Conclusion: Partial Compliance.

If the operator serves an urbanized area, it has maintained a ratio of fare revenues to operating costs at least equal to one-fifth (20

Public Utilities Code, Sections 99268.2, 99268.3, 99268.12, 99270.1

The Turlock Metropolitan Statistical Area is a federallyrecognized urbanized area. StanCOG set the City’s farebox recovery ratio for fixed route at

PMC - 8


Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements percent), unless it is in a 15 percent and 10 percent for county with a population of Dial-a-Ride. less than 500,000, in which case it must maintain a ratio of BLAST: DART: fare revenues to operating FY 2010: 11.17% 9.97% costs of at least equal to FY 2011: 14.50% 9.50% three-twentieths (15 percent), FY 2012: 15.14% 10.73% if so determined by the RTPA. The farebox ratio was exempt in FY 2010 from meeting the standard due to expanded services. The farebox ratio was not met in FY 2011, but was met in FY 2012. Source: State Controller Report Conclusion: Partial Compliance. If the operator serves a rural area, or provides exclusive services to elderly and disabled persons, it has maintained a ratio of fare revenues to operating costs at least equal to one-tenth (10 percent).

Public Utilities Code, Sections 99268.2, 99268.4, 99268.5

This requirement is not applicable, as Turlock serves only an urbanized area and is not subject to this standard. Also, DART serves the general public in addition to elderly and disabled persons. Conclusion: Not Applicable.

The current cost of the operator’s retirement system is fully funded with respect to the officers and employees of its public transportation system, or the operator is implementing a plan approved by the RTPA which will fully fund the retirement system within 40 years.


The City contracts with a private provider for operations, while the cost of City staff’s retirement is fully funded under the California Public Employees Retirement System (CalPERS). Conclusion: Complied.

PMC - 9


Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements If the operator receives state California Code of Regulations, As a recipient of State Transit transit assistance funds, the Section 6754(a)(3) Assistance Funds, the City of operator makes full use of Turlock utilizes federal funds funds available to it under the that are available to the agency, Urban Mass Transportation as reported in the National Act of 1964 before TDA claims Transit Database (NTD). are granted. FY 2010: Operations ($531,440) Capital ($79,634) FY 2011: Operations ($459,655) Capital ($1,877,937) FY 2012: Operations ($470,426) Capital ($1,605,663) Conclusion: Complied.

Findings and Observations from Operator Compliance Requirements Matrix 1. Of the compliance requirements pertaining to Turlock, the operator fully complied with six of the nine requirements. The operator was in partial compliance with the timely submittal of its annual fiscal and compliance audits and meeting the definitions of performance measures (e.g. FTEs), while also in partial compliance with meeting its farebox recovery ratio in two of three audit years. Two additional compliance requirements did not apply to Turlock (e.g., rural only and rural/urban farebox recovery ratios). 2. Turlock’s service modes are held to farebox recovery standards established by StanCOG: 15 percent for fixed-route and 10 percent for Dial-a-Ride. Due to expanded services, Turlock was granted a two-year exemption from meeting the farebox ratio that ended in June 2010, as allowed under TDA. In FY 2011, the farebox ratios were just shy of meeting the requirements. However, in FY 2012, both services met their respective ratios. Fixedroute farebox recovery ratios for the fixed route were 11.18 percent in FY 2010, 14.50 percent in FY 2011, and 15.14 percent in FY 2012. Dial-a-Ride farebox recovery ratios were 9.97 percent in FY 2010, 9.50 percent in FY 2011, and 10.73 percent in FY 2012. The average systemwide farebox recovery ratio was 12.40 percent during the triennial review period.

PMC - 10


3. The City of Turlock participates in the CHP Transit Operator Compliance Program and received vehicle inspections within the 13 months prior to each TDA claim. Satisfactory ratings were made for all inspections conducted during the audit period. 4. The operating budget increased marginally during the audit period increasing no more than 8 percent in one year. Cost increases in FY 2012 occurred for such items as the new transportation services contract and increased marketing, as well as new expenses for utilities and maintenance of the new Turlock Transit Center.

PMC - 11


Section III Prior Triennial Performance Recommendations The City of Turlock’s efforts to implement the recommendations made in the prior triennial audit are examined in this section of the report. For this purpose, each prior recommendation for the agency is described, followed by a discussion of Turlock’s efforts to implement the recommendation. Conclusions concerning the extent to which the recommendations have been adopted by the agency are then presented. Prior Recommendation 1 The City of Turlock Transit Planner and Engineering Supervisor should work with the StanCOG Transit Planner to assess the possibility of claiming Article 8 LTF funds rather than Article 4 funding for its DART services. Actions taken by the City of Turlock This recommendation was prompted by concerns that Turlock’s farebox ratio would fall below the required standard once the exemption period for new or modified services ended. The City of Turlock currently claims LTF funds under Article 4 of TDA. The Article 8 provision is applicable to cities and agencies that fully contract out their transit service. Through discussions with StanCOG and Caltrans, it was interpreted that Turlock would not qualify under this provision since the City owns and maintains its transit vehicles and keeps its farebox revenue. The only operational component that is contracted is in the form of labor (e.g. drivers and dispatching). Turlock has addressed its farebox recovery issues by cutting service hours in February 2011 and raising fares in March 2011. Conclusion This recommendation has been implemented from the standpoint that the City has worked with StanCOG to explore the possibility of claiming Article 8 LTF funds although it was interpreted that Turlock would not qualify under this provision.

PMC - 12


Section IV TDA Performance Indicators This section reviews Turlock’s performance in providing transit service to the community in an efficient and effective manner. TDA requires that at least five specific performance indicators be reported, which are contained in the following tables. Farebox recovery ratio is not one of the five specific indicators but is a requirement for continued TDA funding. Therefore, farebox calculation is also included. Two additional performance indicators, operating cost per mile and average fare per passenger, are included as well. Findings from the analysis are contained in the section following the tables. Tables IV-1 through IV-3 provide the performance indicators for Turlock systemwide, fixed route and Dial-a-Ride. Charts are also provided to depict the trends in the indicators. It is noted that the systemwide operating costs and fare revenues are based on audited figures, while fixed route and dial-a-ride costs and fare revenues are unaudited. The annual fiscal audits do not provide a modal breakdown.

PMC - 13


Table IV-1 Turlock TDA Performance Indicators Systemwide Audit Period

Performance Data and Indicators Operating Cost Total Passengers Vehicle Service Hours Vehicle Service Miles Employee FTE's Passenger Fares Operating Cost per Passenger Operating Cost per Vehicle Service Hour Operating Cost per Vehicle Service Mile Passengers per Vehicle Service Hour Passengers per Vehicle Service Mile Vehicle Service Hours per Employee Average Fare per Passenger Fare Recovery Ratio

FY 2009 $1,382,821 123,181 17,620 222,388 20 $148,639

FY 2010 $1,195,568 109,905 15,455 210,480 17 $129,357

FY 2011 $1,062,934 114,281 15,356 195,377 17 $135,079

FY 2012 $1,067,110 112,786 14,203 198,968 15 $145,827

% Change FY 2009-2012 -22.8% -8.4% -19.4% -10.5% -25.0% -1.9%

$11.23 $78.48 $6.22 7.0 0.55 881.0 $1.21 10.75%

$10.88 $77.36 $5.68 7.1 0.52 909.1 $1.18 10.82%

$9.30 $69.22 $5.44 7.4 0.58 903.3 $1.18 12.71%

$9.46 $75.13 $5.36 7.9 0.57 946.9 $1.29 13.67%

-15.7% -4.3% -13.7% 13.6% 2.3% 7.5% 7.2% 27.1%

Source: City of Turlock Financial Reports, State Controller's Reports FY 2009-11 operating cost & passenger fare figures are audited data, State Controller Report for FY 2012.

PMC - 14


Table IV-2 Turlock TDA Performance Indicators Fixed Route Audit Period


FY 2009 $770,789 109,528 14,193 177,759 10 $101,841

FY 2010 $837,447 99,879 12,816 175,593 10 $93,554

FY 2011 $715,906 104,332 12,873 163,818 10 $103,806

FY 2012 $709,873 100,890 11,491 163,793 9 $107,490

% Change FY 2009-2012 -7.9% -7.9% -19.0% -7.9% -10.0% 5.5%

$7.04 $54.31 $4.34 7.7 0.62 1,419.3 $0.93 13.21%

$8.38 $65.34 $4.77 7.8 0.57 1,281.6 $0.94 11.17%

$6.86 $55.61 $4.37 8.1 0.64 1,287.3 $0.99 14.50%

$7.04 $61.78 $4.33 8.8 0.62 1,276.8 $1.07 15.14%

0.0% 13.8% -0.1% 13.8% 0.0% -10.0% 14.6% 14.6%

Source: State Controller's Reports

PMC - 15


Table IV-3 Turlock TDA Performance Indicators Dial-a-Ride Audit Period


FY 2009 $455,497 13,653 3,427 44,629 10 $46,798

FY 2010 $359,071 10,026 2,639 34,887 7 $35,802

FY 2011 $329,163 9,949 2,483 31,559 7 $31,272

FY 2012 $357,237 11,896 2,712 35,175 6 $38,337

% Change FY 2009-2012 -21.6% -12.9% -20.9% -21.2% -40.0% -18.1%

$33.36 $132.91 $10.21 4.0 0.31 342.7 $3.43 10.27%

$35.81 $136.06 $10.29 3.8 0.29 377.0 $3.57 9.97%

$33.09 $132.57 $10.43 4.0 0.32 354.7 $3.14 9.50%

$30.03 $131.72 $10.16 4.4 0.34 452.0 $3.22 10.73%

-10.0% -0.9% -0.5% 10.1% 10.5% 31.9% -6.0% 4.5%

Source: State Controller's Reports

PMC - 16


Graph IV-1 Operating Costs Systemwide, Fixed Route & Dial-a-Ride

Graph IV-2 Ridership Systemwide, Fixed Route & Dial-a-Ride

PMC - 17


Graph IV-3 Operating Cost Per Passenger Systemwide, Fixed Route & Dial-a-Ride

Graph IV-4 Operating Cost Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride

PMC - 18


Graph IV-5 Passengers Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride

Graph IV-6 Fare Recovery Ratio Systemwide, Fixed Route & Dial-a-Ride

PMC - 19


Findings from Verification of TDA Performance Indicators 1. Operating costs systemwide decreased 22.8 percent over the past three years based on audited data from the FY 2009 base year through FY 2011 and State Controller Report data from FY 2012. Dial-a-Ride operating costs decreased 21.6 percent during the audit period while fixed route operating costs also decreased by 7.9 percent. The decline in operating costs reflects the cut in service hours on the fixed-route and the allowable prior exemptions for service modifications. 2. Ridership decreased 8.4 percent systemwide during the audit period. Fixed route ridership decreased 7.9 percent and Dial-a-Ride ridership decreased 12.9 percent. Ridership experienced the greatest decline in FY 2010 due primarily to local economic factors. Systemwide ridership fell from 123,181 FY 2009 to 109,905 in FY 2010, a 10.8 percent decline. Other factors affecting declining ridership include reduced service hours and a fare increase in March 2011. 3. The provision of revenue hours and miles exhibited decreases systemwide during the audit period as well as for all modes. Fixed route revenue hours and miles decreased 19 and 7.9 percent, respectively, while DAR revenue hours and miles decreased 20.9 and 21.2 percent, respectively. Systemwide, vehicle service hours decreased 19.4 percent and vehicle service miles decreased 10.5 percent. 4. Operating cost per passenger decreased 15.7 percent systemwide which is a positive trend. Cost per passenger was stable on fixed route, but declined on Dial-a-Ride by 10.0 percent. The trend for this indicator reflects a much greater rate of decline in operating costs than in the decline in ridership. 5. Operating cost per hour decreased 4.3 percent systemwide which is a positive trend. Diala-Ride had a cost per hour decline of 0.9 percent. The hourly cost per hour on the fixed route exhibited an increase of 13.8 percent. 6. Passengers per vehicle service hour systemwide exhibited an increase of 13.6 percent which is a positive trend. The rate of increase in this indicator for the individual service modes was comparable. The fixed route exhibited a 13.8 percent increase in passengers per hour and Dial-a-Ride saw a 10.1 percent increase. Systemwide the number of passengers per service hour increased from 7 passengers to 7.9 passengers during the audit period. The decline in service hours exceeded the decline in ridership. 7. The fare recovery ratio over the past three years increased systemwide as well as for both service modes. Farebox recovery for fixed route increased 14.6 percent while Dial-a-Ride increased by 4.5 percent. The overall increase systemwide was 27.1 percent. This is attributed to the fare increase implemented in March 2011. The fare increase resulted in

PMC - 20


a 5.5 percent increase in fare revenue for the fixed route. Fare revenues decreased 18.1 percent for Dial-a-Ride and 1.9 percent systemwide.

PMC - 21


Section V Review of Operator Functions This section provides an in-depth review of various functions within the City of Turlock. The review highlights accomplishments, issues and/or challenges that were determined during the audit period. The following functions were reviewed at the City of Turlock and the City Corporation Yard: 

Operations



Maintenance



Planning



Marketing



General Administration and Management

Within some departments are sub-functions that require review as well, such as Grants Administration that falls under General Administration. Operations The City of Turlock administers two modes of transit services on a contracted basis. The fixed route service, branded as Bus Line Service of Turlock (BLAST), was comprised of four routes (Routes A, B, C & D). BLAST has been in service since November 1999. Dial-a-Ride Turlock (DART) provides complementary ADA paratransit service in the BLAST service area as well as demand responsive service to the general public within the city of Turlock as well as adjacent unincorporated areas such as the community of Denair. DART has been operating since 1975. The transit vehicle fleet is City-owned and maintained with new buses acquired in October 2010. The City’s transit operations are currently contracted to First Transit, which provides drivers and dispatchers. First Transit is the United States subsidiary of First Transit PLC headquartered in the United Kingdom. U.S. operations are headquartered in Cincinnati, Ohio and local operations are conducted from the City Corporation Yard located at 701 South Walnut Road. The First Transit contract was renewed for a three year term in October 2011 with the same hourly rate for both BLAST and DART. In February 2011, service hours on BLAST were reduced by 1 hour and 15 minutes per route per day through elimination of the first and last runs as part of an effort to reduce operating costs and support the farebox recovery ratio. Other cost reductions included reducing the bus fleet size to reduce maintenance costs, reducing staff to one full time position, and emphasizing the use of the CNG vehicles to reduce fuel costs. The following month, Turlock implemented a fare increase

PMC - 22


while soliciting rider feedback and conducting low cost marketing. These actions were prompted by the anticipated expiration of service change exemptions. Most of the transit system’s ridership is comprised of the transit dependent with limited mobility options, which live in the southern and western parts of the city. The Countryside Plaza retail center along the SR-99 corridor between Fulkerth Road and Monte Vista Avenue generate a high number of trips on BLAST. Despite the fact that California State University, Stanislaus is located in Turlock, there is minimal ridership demand to and from the campus. There is a five minute layover at the end of each run except during the morning hours. BLAST Route D claims the highest ridership in the system. This route involves a deviation on Tuesday due to a local swap meet that generates heavy traffic. During the audit period, the City made significant strides toward the development of the Turlock Regional Transit Center located at the intersection of West Hawkeye Avenue and North Golden State Boulevard. The transit center will link travel to various activity centers along all scheduled fixed-routes providing connectivity between BLAST routes as well as to StaRT and Merced County Transit routes. The first phase of the transit center was completed in August 2012 and consists of bus loading platforms, passenger walkways, bus shelters, landscaping and an on-site park-n-ride lot. The second phase of the transit center project involves the acquisition of two additional parcels totaling 1.6 acres. In February 2013, the City Council unanimously approved the purchase of the two vacant pieces of property for $1.5 million to complete its Regional Transit Center. Once all phases of the Transit Center are completed, where the public can buy passes and get information, the City will consider moving its transit operations into the facility from the Corporation Yard. On-time performance is tracked by the drivers writing down the time of their first stop on the trip sheet. Dispatchers will call to verify the driver’s location and the General Manager will also follow behind the buses to check time adherence. Accidents reported on the system have been negligible. There was one accident reported in FY 2011 and three reported in FY 2012. There were no accidents reported in FY 2010 based on the contractor’s year-end summary report. In addition to tracking accidents, the contractor also tracks customer service performance. There were 12 complaints and one compliment on the BLAST system for FY 2012. On DART, there were five complaints and one compliment for FY 2012. There were no complaints and no compliments reported on both service modes for FYs 2010 and 2011. The fare counting and reconciliation process involves both the contractor and the City. The dispatcher counts the cash revenue from the farebox vaults. A second count is performed by another dispatcher. Coinage is counted and rolled up. The process involves documenting the bus number and the fare category and media. After the count is completed, the fares are placed into a deposit bag and taken to the City Finance Department daily. The deposit is then transported to the bank by an armored security service. Spreadsheets are used for reconciliation and

PMC - 23


verification. If efforts to address the farebox recovery, the Transit Planner closely monitors the fare collection practice to ensure proper fares are received. Dial-a-Ride Program & Policies DART provides demand responsive service to seniors 65 years of age and over, passengers with disabilities, Medicare Card Holders, and elementary school students with a DART Pass. For Dial-aRide trips outside the BLAST service area, DART service is available to the general public. Elementary students needing service inside the BLAST service area must have a DART Pass to ride, and service is limited to trips to and from school only. Outside the BLAST service area, normal rules and fares apply. The fare structure is based on zones. Ridership on DART average 1,000 trips monthly. Reservations can be scheduled as far as seven days to two hours in advance, although most riders schedule one day in advance. After using DART regularly for two weeks, riders can request to be picked up from the same place at the same time every day. Regular return trips can also be arranged. This subscription service continues automatically until the riders request a change. The contractor utilizes a hybrid system for dispatching. A new computerized dispatching system was acquired during the audit period, which uses an Excel-based program. As dispatch transitions to the computerized program, manual service logs are still being utilized. The contract operator tracks and monitors no-shows and cancellations, which are summarized in Table V-1:

Year 2010 2011 2012

Table V-1 DART No-Shows & Cancellations No-Shows Cancellations 343 1,299 309 1,128 287 880

Source: First Transit, Inc.

The number of no-shows and cancellations has shown a steady decline over the audit period. This trend reflects the decline in the number of passenger trips and better enforcement of the noshow policy. Personnel First Transit provides contracting staffing for the Turlock’s transit system. There are 13 employees on staff, which is comprised of 11 drivers (6 full-time and 5 part-time) and 2 dispatchers. Employees are non-union. Route assignments are scheduled on a seniority basis. BLAST drivers are rotated on a weekly basis. The most senior driver has been employed with the transit system 23 years and there has been minimal turnover. The current General Manager is relatively new to the Turlock operation having transferred from another property.

PMC - 24


Employees attend a monthly safety meeting as well as a monthly meeting with the mechanics. Presentations are also conducted by the safety manager. Employee incentives awarded include plaques, safety pins and lunch. Maintenance Turlock’s transit fleet is maintained and stored at the City’s Corporation Yard. The maintenance facility is equipped with three service bays and five lifts. The building design allows for proper venting of CNG vehicles. Preventative maintenance inspection (PMI) scheduling is computerized. The City utilizes MP2 software that tracks and flags vehicles for maintenance based on the fuel odometer reading. Vehicles undergo service every 3,000 miles or 45 days according to the PMI schedule. Maintenance files are kept on site and FTA rules are followed. The City employs Automotive Service Excellence (ASE)-certified mechanics including one mechanic dedicated to the transit system. Parts inventories are kept to a minimum and are limited to basic part supplies. Filters are procured from local vendors. Other part procurements are bid out by contract. The corporation yard is monitored by a series of surveillance cameras procured through a Proposition 1B Homeland Security grant. The corporation yard is equipped with four CNG fill stations in the bus parking area. Gasolinepowered vehicles are fueled at the Joe Gomes & Sons station located at 725 North Tully Road in Turlock. Based on a review of the contractor’s year-end summary reports, there were no roadcalls reported during the audit period. Planning The City commissioned and adopted the Turlock Short-Range Transit Plan (SRTP) Update FY 2009/10-2013-14 in July 2009. The purpose of the SRTP is to provide a detailed summary of current transit services and performance measures, as well as a brief overview of planned capital improvements and scheduled service enhancements over a five-year period to efficiently and effectively meet the needs of the public. The SRTP included a series of six transit service goals and supporting objectives that are mainly qualitative in nature: 1. Develop a transit system that is available and usable to an increasing number of persons living in all parts of the Turlock urbanized area; 2. Develop a transit system that attracts additional riders by expanding public awareness and opportunity of transit as a realistic alternative to individual vehicles; 3. Develop a coordinated transfer link to the County’s transit service (START) into a system that maximizes the public’s ability of regional transit opportunities; 4. Develop a system that is energy efficient and environmentally friendly; 5. Purchase vehicles and build stops, shelters, and transit centers that are accessible with persons with disabilities; and

PMC - 25


6. Maintain State required system-wide farebox-to-cost ratio. The Plan recommended the Transit Division collect data to monitor the performance of these goals and objectives. The next SRTP update will provide an opportunity to analyze these goals and objectives in light of recent performance trends. There is also a consideration that regional land use and transportation patterns will play in planning and attainment of transit improvements in the next five years. It is suggested that the City consider incorporating quantitative performance metrics in the next SRTP update that address, at a minimum, operating cost per hour, passengers per hour and operating cost per passenger. The City is also looking into improved route design to better serve the highest traffic generators such as school campuses. The City has sought to schedule runs that are based on bell times at the two local high schools, and is open to the concept of providing school tripper service. Marketing The City of Turlock utilizes a variety of methods and collateral to market its transit services within the community and region at large. The most prominent marketing tool is a multi-fold glossy ride guide that contains a system route map, schedules, fares and general information about BLAST. A Spanish language insert is also available. The ride guide underwent updates in March 2011 and August 2012. The March 2011 update was prompted by the fare increase that became effective at that time. The City provides a separate brochure for DART that includes contact information, fares hours of service and eligibility requirements. Bus stop signage contains the route identifier and bus shelters have system route maps and schedules posted. Transit information is also accessed online through the City’s Website (http://blastbus.com/). The Website’s main page provides a menu of links on the right margin to riding etiquette, routes and schedules, fares, system maps and information on connections to other transit services such as MAX, Merced County Transit and StaRT. The Easy Rider trip planning tool powered by Google Transit is also accessible on the Website, which has both local and regional applications. Public transit hearings were also publicized and held at City Hall. Topics of interest included the SRTP, proposed fare increases, route changes, and service hour modifications. The City held special public hearings in September 2009 and January 2011. Passenger surveys were conducted during the update of the SRTP, and in 2011 during the service reductions and fare increases. General Administration and Management The City of Turlock operates under a Council-Manager form of governance. The five-member City Council serves as the City’s principal policy making body. The City Manager, who is appointed by the City Council, oversees the operations of City departments including the Development Services Department, which is responsible for the provision of public transit services.

PMC - 26


The transit system is administered by a Transit Planner in the Engineering Division of the Development Services Department. The only full time City staff members have been the Transit Planner and one transit dedicated mechanic at the City Corporation Yard. The Traffic/Transportation Engineering Supervisor split his time between transit and other transportation duties until his retirement in December 2011; and then again as part-time until December 2012. The Director of Development Services has assisted the Transit Planner with the budgeting process on an as-needed basis. In addition, the Transit Planner has been involved in training another staff member to assist on a part-time basis and has received inquiries about internship opportunities from local college students. Grants Management Grant funding allocated towards supporting transit services are derived from local, state and federal sources. The primary source of transit funding support is derived from the Local Transportation Fund (LTF). Based on the claims submitted to StanCOG during the audit period, Turlock received $456,057 for FY 2010, $859,869 for FY 2011 and $1,190,324 for FY 2012. State Transit Assistance (STA) funding received was $13,989 in FY 2011 and $11,518 in FY 2012. The City received a Proposition 1B Homeland Security grant toward the acquisition of surveillance camera equipment for the Corporation Yard. The City has been successful in procuring federal grants such as FTA Section 5307 funding for capital and operating assistance. The Transit Planner maintains a funding scorecard spreadsheet that tracks the various funding grants that have been procured toward the construction of the Regional Transit Center. Such funding has included Proposition 1B PTMISEA, FTA Section 5307 and LTF matching funds. Turlock also received an American Recovery & Reinvestment Act (ARRA) grant toward Phase I of the construction of the Transit Center.

PMC - 27


Section VI Findings The following summarizes the major findings obtained from this Triennial Audit covering fiscal years 2010 through 2012. A set of recommendations is then provided.

Triennial Audit Findings 1. Of the compliance requirements pertaining to Turlock, the operator fully complied with six out of the nine requirements. The operator was in partial compliance with the timely submittal of its annual fiscal and compliance audits and meeting the definitions of performance measures (e.g. FTEs), while also in partial compliance with meeting its farebox recovery ratio in two of three audit years. The transit system was granted an exemption from the farebox requirement that ended in June 2010, and met the farebox in FY 2012. Two additional compliance requirements did not apply to Turlock (e.g., rural only and rural/urban farebox recovery ratios). 2. The City participates in the CHP Transit Operator Compliance Program and received vehicle inspections within the 13 months prior to each TDA claim. Satisfactory ratings were made for all inspections conducted during the audit period. 3. The operating budget increased marginally during the audit period increasing no more than 8 percent in one year. Cost increases in FY 2012 occurred for such items as the new transportation services contract and increased marketing, as well as new expenses for utilities and maintenance of the new Turlock Transit Center. 4. Under the prior audit recommendation, Turlock assessed the possibility of claiming Article 8 LTF funds rather than Article 4 funding for its DART services. This recommendation has been implemented from the standpoint that the City has worked with StanCOG to explore the possibility of claiming Article 8 LTF funds although it was interpreted by StanCOG and Caltrans that Turlock would not qualify under this provision since the City owns and maintains its transit vehicles and keeps its farebox revenue. 5. Operating costs systemwide decreased 22.8 percent over the past three years based on audited data from the FY 2009 base year through FY 2011 and State Controller Report data from FY 2012. Dial-a-Ride operating costs decreased 21.6 percent during the audit period while fixed route operating costs also decreased by 7.9 percent. The decline in operating costs reflects the cut in service hours on the fixed-route and the allowable prior exemptions for service modifications. 6. Ridership decreased 8.4 percent systemwide during the audit period. Fixed route ridership decreased 7.9 percent and Dial-a-Ride ridership decreased 12.9 percent. Ridership PMC - 28


experienced the greatest decline in FY 2010 due primarily to local economic factors. Systemwide ridership fell from 123,181 FY 2009 to 109,905 in FY 2010, a 10.8 percent decline. Other factors affecting declining ridership include reduced service hours and a fare increase in March 2011. 7. Both operating cost per passenger and operating cost per hour systemwide decreased during the audit period, indicating positive trends. By mode, Dial-a-Ride experienced reduced costs per passenger and per hour while there were increases in costs on a per hour basis for fixed route. 8. Passengers per vehicle service hour systemwide exhibited an increase of 13.6 percent. The rate of increase in this indicator for the individual service modes was comparable. 9. The transit vehicle fleet is City-owned and maintained with new buses acquired in October 2010. The City’s transit operations are currently contracted to First Transit, which provides drivers and dispatchers. The First Transit contract was renewed for a three year term in October 2011 with the same hourly rate for both BLAST and DART. 10. Service hours on BLAST were reduced in February 2011 as part of an effort to reduce operating costs and support the farebox recovery ratio. The following month, Turlock implemented a fare increase. These actions were prompted by the anticipated expiration of service change exemptions. 11. The City made significant strides toward the development of the Turlock Regional Transit Center. The transit center will link travel to various activity centers along all scheduled fixedroutes providing connectivity between BLAST routes as well as to StaRT and Merced County Transit routes. 12. The City commissioned and adopted the Turlock Short-Range Transit Plan (SRTP) Update FY 2009/10-2013-14 in July 2009. The SRTP included a series of six transit service goals and supporting objectives that are mainly qualitative in nature. It recommended the Transit Division collect data to monitor the performance of these goals and objectives. 13. Through staff attrition in the Development Services Department, full time staffing for transit includes the Transit Planner and one transit dedicated mechanic at the City Corporation Yard. 14. The City has been successful in procuring federal grants such as FTA Section 5307 funding for capital and operating assistance. The Transit Planner maintains a funding scorecard spreadsheet that tracks the various funding grants that have been procured toward the construction of the Regional Transit Center.

PMC - 29


Recommendations 1. Evaluate adding or modifying fixed route service to include school tripper service. As the City is looking into improved route design to better serve the highest traffic generators such as school campuses, the City has sought to schedule runs that are based on bell times at the two local high schools. This scheduling practice includes the concept of providing school tripper service where more direct fixed route service and shorter run times are provided to the schools before and after school bell times. While kept as a public transit route, the school tripper service connects students from home to schools and can substitute for a possible morning and/or mid-day bus run in keeping with the same relative level of service hours. 2. Update the Short Range Transit Plan. Transit operators that receive state and federal funding through the Transportation Improvement Plans (TIP) prepare, adopt and submit a Short Range Transit Plan (SRTP) that provides technical guidance on transit sustainability for the next five years. The last SRTP was prepared and adopted in July 2009. Generally speaking, SRTPs provide a list of suggested performance standards and benchmarks to help evaluate current services. Since the adoption of the last SRTP, the City adopted fare increases and service modifications to address the decline in farebox recovery. In addition, the City is considering improved route design in concert with the opening of the new Regional Transit Center. An update to the SRTP would enable the City to better structure its routes and services as well as provide performance benchmarks that would not only feature qualitative metrics but quantitative metrics that gauge farebox recovery, passengers per hour, operating costs per hour and operating costs per passenger. 3. Calculate Full Time Equivalents according to the TDA definition. The State Controller Reports compiled for Turlock transit services do not properly calculate for Full Time Equivalents (FTEs). The FTE data appear to be an annual total of the number of employees (headcount) rather than the product of dividing total annual employee hours by 2,000. Employee hours should include those from the contract operator and City personnel responsible for monitoring the operating contract and preparing the State Controller Report. It is suggested that time dedicated to the transit system be tracked as reasonably as possible and tabulated properly since it feeds into the State Controller Reports. The corrected FTE figure is generally lower than total headcount due to the inclusion of part time employees. Proper reporting of FTEs will result in more accurate performance indicators of productivity and responsiveness to the State.

PMC - 30