SUBMITTED TO BUTTE COUNTY ASSOCIATION OF GOVERNMENTS (BCAG)

Transcription

1 Final Report SUBMITTED TO BUTTE COUNTY ASSOCIATION OF GOVERNMENTS (BCAG) August 2010 Submitted by

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3 TABLE OF C ONTENTS TABLE OF CONTENTS 1 TABLE OF TABLES 3 TABLE OF FIGURES 4 EXECUTIVE SUMMARY 5 OVERVIEW 5 COMPLIANCE 5 PRIOR TPA RECOMMENDATIONS 5 PERFORMANCE INDICATORS 6 FUNCTIONAL REVIEW 6 RECOMMENDATIONS 7 INTRODUCTION 11 AUDIT SCOPE & METHODOLOGY 11 DESCRIPTION OF THE GRIDLEY GOLDEN FEATHER FLYER 12 AUDIT RESULTS 15 COMPLIANCE 15 COMPLIANCE REQUIREMENTS 15 PRIOR TPA RECOMMENDATIONS 20 Recommendation 1 20 Recommendation 2 21 Recommendation 3 22 Recommendation 4 23 Recommendation 5 24 PERFORMANCE MEASURES AND TRENDS 25 Performance Measures 25 TDA Required Indicators 27 FUNCTIONAL REVIEW 44 General Management and Organization 44 Service Planning 45 AUGUST 2010 PAGE 1

4 Scheduling, Dispatching, and Operations 46 Personnel Management and Training 47 Maintenance 48 Marketing and Public Information 48 FINDINGS & RECOMMENDATIONS 50 SUMMARY OF FINDINGS 50 Compliance 50 Follow-up of Prior TPA Recommendations 50 Performance Indicators 51 Functional Review 51 RECOMMENDATIONS 52 PAGE 2 AUGUST 2010

5 TABLE OF TABLES Table 1: Summary of Recommendations Table 2: Gidley Fares Table 3: Transportation Development Act Compliance Chart Table 4: TDA Performance Indicators Table 5: Operating Costs over the Audit period Table 6: Operating Costs: Actual versus Budget Table 7: Summary of Recommendations AUGUST 2010 PAGE 3

6 TABLE OF F IGURES Figure 1: The Gridley Golden Feather Flyer provides transportation... 5 Figure 2: Gridley Service Area Figure 3: Vehicles are equipped with wheelchair ramps Figure 4: Operating Costs increased Figure 5: Ridership has continued to decline over the 10-year period analyzed Figure 6: Fare Revenue Figure 7: Fare per Passenger Figure 8: Operating Cost per Vehicle Service Hour Figure 9: The increase in Operating Cost per Vehicle Service Mile Figure 10: Operating Cost per Passenger Figure 11: Passengers per Vehicle Service Hour Figure 12: Passengers per Vehicle Service Mile Figure 13: Vehicle Service Hours per Full-Time Equivalent Figure 14: Farebox Recovery ratio Figure 15: The Gridley Golden Feather Flyer Figure 16: The Gridley Golden Feather Flyer is a visible billboard PAGE 4 AUGUST 2010

7 E X ECUTIVE SUMMARY The Triennial Performance Audit was conducted in accordance with the processes established by the California Department of Transportation, as outlined in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities, as well as Government Audit Standards, published by the U.S. Comptroller General. The service operates one vehicle and has one full-time driver and a part-time reserve driver. The driver receives dispatches over a cellular phone. General management of the Gridley Golden Feather Flyer is the responsibility of the City s Finance Department. The Triennial Performance Audit has four elements: 1. Compliance requirements; 2. Follow-up of prior Performance Audit report recommendations; 3. Verification and analysis of performance indicators; 4. Identification and review of the transit operator s functions and activities. OVERVIEW The Gridley Golden Feather Flyer is operated by the City of Gridley. It provides demandresponse service for residents of the Gridley urban area who are senior citizens (62 years of age or older) and persons with disabilities. The service operates Monday through Fridays from 8:00 a.m. until 6:00 p.m. Service is available on Saturdays with reservations 24 hours in advance. Figure 1: The Gridley Golden Feather Flyer provides transportation for persons over the age of 62 and those with disabilities within the Gridley urban area. COMPLIANCE The City of Gridley administered TDA laws and regulations in an efficient and effective manner and was in compliance with TDA rules and regulations with one exception: 1. In both 2007/08 and 2008/09, the service s Farebox Recovery Ratio fell below the 10% required by California Code Regulations PRIOR TPA RECOMMENDATIONS The City has demonstrated commitment to improving its efficiency and effectiveness by partially or fully implementing three of the five prior recommendations: AUGUST 2010 PAGE 5

8 Recommendation 1 Implemented The City has employed a part-time relief driver to fill in for the primary driver when needed. Recommendation 2 Implemented The City has acquired a vehicle that can be operated using a Class C Driver s License. Recommendation 3 Not Implemented The City has not developed nor implemented a marketing campaign designed to increase both ridership and awareness of the Gridley Golden Feather Flyer. Recommendation 4 Not Implemented The City and the Butte County Association of Governments (BCAG) have not worked together to develop a Five-Year Service Plan, nor have they been comparing their respective performance standards. Recommendation 5 Partially Implemented While the city has worked to clarify certain calculation and performance measures, some aspects of reporting, specifically on the State Controller s Reports, still need to be improved for more accurate reporting. PERFORMANCE INDICATORS Ridership for the Gridley Golden Feather Flyer has decreased noticably over the prior two years of the audit. Furthermore, ridership has maintained an overall downward slope over the ten years analyzed. Cost efficiency, as measured by Operating Cost per Vehicle Service Hour (VSH) and per Vehicle Service Mile (VSM), increased unfavorably over the first two years of the audit, but decreased in the final year of the audit due to the decrease in overall Operating Costs. In spite of the drop in Operating Costs, the Operating Cost per Passenger, which measures cost effectiveness, reached a historic high in the final audit year, 2008/09. This increase only highlights how significantly ridership has declined. A decrease in VSHs and VSMs rendered the system s service effectiveness higher (as measured in Passengers per VSH and PVSM) for the first two years of the audit period; it was higher during these years than at any other time in service history. However, both figures decreased in the final year of the audit, due to the drop in passengers. The Farebox Recovery Ratio fell below the required 10% during the second year of the audit, and remained there during the third and final year. An increase in fare prices has not been able to noticeably increase the Farebox Recovery Ratio. FUNCTIONAL REVIEW General management of the Gridley Golden Feather Flyer is the responsibility of the City s Finance Department. The Finance Director oversees the transit operations. PAGE 6 AUGUST 2010

9 The City employs one full-time driver and one part-time driver. The vehicle for the Gridley Golden Feather Flyer can be operated by a driver with a standard Class C Driver s License. This has dramatically increased the applicant pool for relief drivers, and made it possible for the City to retain a part-time driver. Tickets for the Gridley Golden Feather Flyer are purchased in advance from City Hall, either in person or by mail. Social service agencies purchase the tickets on an annual basis. The timing of these bulk purchases has resulted in spikes and dips in revenues that are not related to ridership. During the audit period, tickets doubled in price from $1.00 to $2.00. Marketing has been nonexistent. The City has an informational flyer, but no other collateral. Ridership has decreased over the course of the audit, and has been declining overall for the past decade. The Golden Feather Flyer needs to consider expanding its service to the general public in order to remain viable. RECOMMENDATIONS RECOMMENDATION 1: Institute an Employer Pull Notice with the California Department of Motor Vehicles. Currently the Gridley Golden Feather Flyer can be operated by a driver who is in possession of a standard Class C Driver s License, due to the vehicle s size. Because of this, the California Highway Patrol does not need to perform an annual inspection of the Gridley Golden Feather Flyer. As the Gridley Golden Feather Flyer is no longer subject to the annual California Highway Patrol Inspection, Employer Pull Notices are not mandatory. It is recommended that the Gridley Golden Feather Flyer enroll all of its active drivers in the Employer Pull Notice Program with the California Department of Motor Vehicles. Providing ongoing safety training for all drivers will help keep the skills of the City s drivers current. RECOMMENDATION 2: Consider expanding the Gridley Golden Feather Flyer s service to the General Public. The Gridley Golden Feather Flyer has experienced a decrease in ridership over the three years of the audit period. The most recent year, 08/09, saw the service s second-lowest ridership for the decade. If the service were to open its doors to the general public, it would be able to increase its passenger counts and boost its farebox-recovery ratio. RECOMMENDATION 3: Ensure that vehicle mileage and service hours are correctly calculated and accurately reported in internal documents. Additionally, make sure that the information provided to the State Controller s Reports is accurate and up-to-date. There were discrepancies between the driver s log sheets of daily vehicle activities, including mileage and service times, versus those reported AUGUST 2010 PAGE 7

10 on the internal mileage report spreadsheets for each fiscal year. Several performance measures were incorrectly calculated: Vehicle Service Hours (VSH); Passenger Count; Full-Time Equivalent (FTE) Employees Correcting the methodology will ensure that future reports are accurate, and consistent with TDA guidelines. RECOMMENDATION 4: Develop and implement an effective marketing plan and public outreach program to increase ridership and raise awareness of the Gridley Golden Feather Flyer service. Marketing is currently based on word-ofmouth, and the visibility of the vehicle in the Gridley urban area. While these are effective mechanisms, they are not sufficient as stand-alone tactics to sustain and grow ridership. The trend indicates that ridership is not being replaced at the rate of attrition. One possible solution is to expand the market base beyond the traditional seniors and persons with disabilities. A short marketing plan would be beneficial in directing limited marketing dollars to effectively growing ridership and awareness. RECOMMENDATION 5: Work with the Butte County Association of Governments (BCAG) to develop a Five-Year Service Plan and measure performance against standards. With its farebox recovery ratio well below the mandated 10%, the City should review the Gridley Golden Flyer operations and look for opportunities to improve their efficiency and effectiveness. The Plan should address the following elements for the Gridley Golden Feather Flyer: 1. Overview of existing transit system; 2. Transit Demand Analysis; 3. Goals, Objectives, Measures, and Standards; 4. Service and System Evaluation; 5. Operations Plan; 6. Operations Budget; 7. Capital Improvement Program. A comparison of performance against performance standards and budgets, compiled in a report for Council members, BCAG, and the public, would provide improved accountability. RECOMMENDATION 6: Define management responsibility for the Gridley Golden Flyer. With the changes in the City s management structure, responsibility for the Gridley Golden Flyer personnel and operations is unclear and fragmented. Many of the issues noted in this audit were due to lack of oversight both of the operations and performance. A clear management structure with regular oversight of personnel, operations, and PAGE 8 AUGUST 2010

11 performance would help the City maintain a professional public transportation system that truly meets the needs of Gridley residents, and those of the surrounding area. The City has instituted a reporting policy that will assist in implementing the recommendation. AUGUST 2010 PAGE 9

12 Table 1: Summary of Recommendations RECOMMENDATION PRIORITY RESPONSIBILITY TIMEFRAME 1 Institute an Employer Pull Notice with the California Department of Motor Vehicles. 2 Consider expanding the Gridley Golden Feather Flyer s service to the General Public. High Administrative Officer 2010/11 High Administrative Officer 2010/11 3 Ensure that vehicle mileage and service hours are correctly calculated and accurately reported in internal documents. Additionally, make sure that the information provided to the State Controller s Reports is accurate and up-to-date. Medium Administrative Officer/Lead Driver 2010/11 4 Develop and implement a marketing outreach program. 5 Work with BCAG to develop a Five-Year Service Plan and compare performance to standards. 6 Define management responsibility for the Gridley Golden Flyer. High Administrative Officer 2010/11 Medium Administrative Officer 2011/12 High City Manager 2010/11 PAGE 10 AUGUST 2010

13 I NTRODUCTION The report of the Triennial Performance Audit for the City of Gridley, as the operator for the Gridley Golden Feather Flyer (Flyer), covers a three-year period ending June 30, The California Public Utilities Code requires all public transit agencies to conduct a Triennial Performance Audit in order to be eligible for Transportation Development (TDA) funding. The proposed audit is designed to be an independent and objective evaluation of the City of Gridley, as the transit operator. The Audit has four objectives: 1. Assess compliance with TDA regulations; 2. Review improvements that have been implemented and progress toward goals; 3. Evaluate the efficiency and effectiveness of the operations; 4. Provide sound, constructive recommendations for improving the efficiency and functionality of the City s transit operations. AUDIT SCOPE & METHODOLOGY The Performance Audit was conducted in accordance with the process established by the California Department of Transportation, as outlined in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities (3rd edition, September 2008), issued by the California Department of Transportation (Caltrans). The Standards for Audit of Governmental Organizations, Programs, Activities, and Functions (2007 Revision), published by the United States General Accounting Office and the U.S. Comptroller General, provides additional directives. The Performance Audit is a high-level review that evaluates the efficiency, economy, and effectiveness of the transit operation. While the primary purpose of the Audit is to ensure compliance with Transportation Development Act requirements, it also provides the City of Gridley with practical and useful recommendations to improve the efficiency and effectiveness of its transit operations. The Audit of the City s transit operations comprised the evaluation of four elements: 1. Compliance with the TDA requirements and regulations; 2. Status of the implementation of recommendations contained in prior Performance Audits; 3. Methodology for calculating significant performance measures and performance indicators; 4. Major functions performed by the City to support its public transportation operations, including General management and organization; Service planning; AUGUST 2010 PAGE 11

14 Scheduling of dispatching and operations; Personnel management and training; Maintenance; Marketing and public information. The Audit presents conclusions and recommendations to address opportunities for improvement based upon analysis of the previous four elements. The methodology for this Audit comprised interviews with key personnel with the City of Gridley, a site visit, verification of data sources, examinations of financial and statistical reports, and reviews of other relevant documents and reports. The Audit Report consists of four sections: 1. Executive Summary A brief summary of the key findings and recommendations developed during the Performance Audit processes. 2. Introduction Methodology of the Audit and pertinent background information. 3. Audit Results Progress in implementing prior Audit recommendations; Performance measures and trends; Functional review. 4. Findings and Recommendations A delineation of the key findings of the Triennial Performance Audit, recommendations for improving the efficiency and effectiveness of Gridley Golden Feather Flyer transit service operations, and a timeline for implementing the recommendations. DESCRIPTION OF THE GRIDLEY GOLDEN FEATHER FLYER The Gridley Golden Feather Flyer provides a door-to-door paratransit service to senior citizens (62 years of age or older), disabled persons, or persons with a certificate from a licensed physician indicting physical or mental impairment requiring transportation assistance. The service is available to all such persons who reside within Gridley and the surrounding area. The service operates within a two- to threesquare mile area, two-thirds of which is within Gridley city limits. It is available on weekdays from 8:00 a.m. to 6:00 p.m. In-depth discussion of findings surrounding each of the major elements of the Audit: Compliance with statutory and regulatory requirements; PAGE 12 AUGUST 2010

15 Ticket type Orange (City-City) Green (County-City) Prior June, 2007 June 1, 2007 Jan. 1, 2008 $0.70 $1.50 $2.00 $1.00 $1.50 $2.00 Figure 2: Gridley Service Area The population of the City of Gridley is 6, Approximately 16% are age 65 years or older 2, compared to the national average of 12%. In addition, 24% of the population has reported a disability status. Both the percentage of seniors (over the age of 65 years) and the percentage of persons with disabilities are above the national averages. In March 2007, the City Council of the City of Gridley received the TDA audit report for Flyer. That report identified a deficiency in the farebox ratio for Flyer. To handle this issue, Flyer proposed a timeline to notify residents and customers of a proposed fare increase that would boost revenue and farebox ratios above the minimum requirements. Below is a summary of the changes: 1 California Department of Finance E-1: County/City Population Estimates 1/1/ Census 2000 Table 2: Gidley Fares Tickets for the Flyer must be purchased in advance, either by mail or in person from the Finance Department at Gridley City Hall. Service is provided throughout the Gridley area, and is divided into a three-zone system. The fare for Zone 1, within city limits, is now $2.00. Fare for Zones 2 and 3, outside of city limits, are also $2.00. Fares are paid through tickets purchased at Gridley City Hall during normal business hours, and are presented to the driver when the passenger is picked up. An additional service provided is bill and mail drop-off/pick-up. This service costs two tickets. Flyer will also deliver tickets for the charge of one ticket. Callers are requested to call at least one hour in advance; however, advance appointments have priority. Butte County subsidizes trips outside the City limits, based on the zone tickets are collected in. The City receives $3.00 per passenger trip provided in Zone 2, and $3.25 per passenger trip in Zone 3. The Finance Department bills the County for its appropriate subsidy. AUGUST 2010 PAGE 13

16 On a monthly basis, the tickets received by the driver are delivered to City Hall for retention. The driver summarizes the Zone 1, Zone 2, and Zone 3 tickets. The Finance Department bills the County for its appropriate subsidy relative to Zone 2 and Zone 3 tickets. Farebox revenue is recorded on a cash basis at the time the tickets are sold. Figure 3: Vehicles are equipped with wheelchair ramps. PAGE 14 AUGUST 2010

17 A UDIT R ESULTS COMPLIANCE This section examines the City of Gridley s compliance with the Transportation Development Act and relevant sections of the California Code of Regulations. An annual compliance and fiscal audit confirms TDA funds were apportioned in conformance with applicable laws, rules, and regulations. Although compliance verification is not a TPA responsibility, several specific requirements concern issues germane to the Performance Audit. The TPA findings and related comments are delineated in Table 3, which begins on the next page. Compliance was determined through interviews with City of Gridley staff, along with physical inspection of relevant documents including the fiscal audits for each year of the triennium, performance reports, and other related documentation. COMPLIANCE REQUIREMENTS The City of Gridley administers Transportation Development Act (TDA) laws and regulations related to the operation of the City of Gridley Golden Feather Flyer in an efficient and effective manner, and is in full compliance with TDA rules and regulations, with one exception: the previous fiscal year, 2006/07. This decrease and increase contributed to a farebox recovery ratio that was below the required 10% level. While the farebox recovery ratio increased slightly in 2008/09, it is still under the required operating minimum. PUC (CCR 6633) requires operators in non-urban areas to maintain a farebox recovery ratio of 10%. A 10% recovery ratio is also required of transit services for seniors and persons with disabilities PUC (PUC ). Note: A California Highway Patrol inspection is required, per Public Utilities Code section 99251, to ensure that employer notification, outlined in the California Vehicle Code section , is occurring in all cases in which the operated service vehicle meets the specifications listed in the California Vehicle Code, section (k). As the Gridley Golden Feather Flyer vehicle does not conform to the specifications outlined in the California Vehicle Code section (k), the subsequent section text has no bearing. In 2007/08 the farebox recovery ratio dropped to 5.2%. Fare revenues experienced a decrease, while operating costs increased over AUGUST 2010 PAGE 15

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19 Table 3: Transportation Development Act Compliance Chart REQUIREMENT REFERENCE COMPLIANCE COMMENTS The transit operator s annual reports to the RTPA, based upon the Uniform System of Accounts and Records established by the State Controller, within 90 days of the end of the fiscal year. The operator has submitted annual fiscal and compliance audits to its RTPA and to the State Controller within 180 days following the end of the fiscal year, or has received the appropriate 90-day extension allowed by law. The CHP has, within the 13 months prior to each TDA claim submitted by an operator, certified the operator s compliance with Vehicle Code Section , following a CHP inspection of the operator s terminal. PUC PUC In Compliance In Compliance State Controller s Reports were correctly prepared and submitted according to guidelines: 2006/07 10/01/ /08 09/24/ /09 10/19/2009. The financial audits prepared by Nystrom & Company LLP, Certified Public Accountants, comply with the regulations, and submittal dates met the required deadlines: 2006/07 02/16/2008; 2007/08 02/12/2009; 2008/09 02/01/2010. PUC In Compliance The California Highway Patrol has concluded that a Commercial Driver s License (CDL) is not required for the operator of the Gridley Golden Feather Flyer, as the vehicle in service was not designed to carry more than ten passengers, including the driver. The CHP no longer provides terminal inspections for Gridley. The operator s claim for TDA funds is submitted in compliance with rules and regulations adopted by the RTPA for such claims. PUC In Compliance Claims were submitted to and approved by Butte County Association of Governments (BCAG) in accordance with established rules and guidelines. The operator does not routinely staff with two or more persons any public transportation vehicle designed to be operated by one person. PUC In Compliance The Gridley Golden Feather Flyer routinely staffs the vehicle with only one person. AUGUST 2010 PAGE 17

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21 REQUIREMENT REFERENCE COMPLIANCE COMMENTS The operator s operating budget has not increased by more than 15% over the preceding year, nor is there a substantial increase or decrease in the scope of operations or capital budget provisions for major new fixed facilities, unless the operator has reasonably supported and substantiated the charge(s). PUC In Compliance Operating expenses have not increased by more than 15% over the preceding year for each year of the Audit: 06/07-4.3%; 07/ %; 08/ %. No operator or transit service claimant shall be eligible to receive money during the fiscal year from the local transportation fund and the State Transit Assistance fund for Operating Costs, in any amount that exceeds its actual cost. CCR 6634 In Compliance The City is in full compliance with TDA rules and regulations, and does not receive fiscal financing for operating costs in an amount that exceeds the total Operating Costs. If the operator provides only services to elderly and handicapped persons, the ratio of Fare Revenues to Operating Cost shall be at least 10%. CCR Exception Noted The City s Farebox Recovery ratio fell below 10% in 07/08 and was below the minimum requirement in 08/09. Fare revenue in 07/08 and 08/09 decreased and operating costs decreased: 2006/ % 2007/08 5.2% 2008/09 5.8% If the operator receives State Transit Assistance funds, the operator will make full use of funds available to it under the Urban Mass Transportation Act of 1964 before TDA claims are granted. PUC 6754 (a) (3) In Compliance City records supplied by the Finance Department indicate full compliance with State Transit Assistance funds requirements. AUGUST 2010 PAGE 19

22 PRIOR TPA RECOMMENDATIONS The implementation of the prior Triennial Performance Audit recommendations provides a measure of each transit operator s efforts to improve its efficiency and effectiveness. The prior Audit made five recommendations, two of which were considered high priority, and three of which were considered medium priority. Two addressed the related issues of personnel and fleet, two addressed planning (of service and marketing), and one addressed reporting. Both recommendations that were considered to be high priority recommendations were implemented within the defined timeframe. However, the remaining three recommendations that were considered to be medium priority recommendations have yet to be implemented. RECOMMENDATION 1 Recommendation: Reduce operator overtime by employing a part-time relief driver and consider options to relieve the driver from taking requests while driving. STATUS: Implemented. RATIONALE: During the last Audit period, the previous contract arrangement for operation of the service was terminated and the contractor became a full-time City employee, adding the cost of benefits and overtime for the driver to the operating costs for the service. Partly as a result, operating costs rose 71% during the prior Audit period while Vehicle Service Miles and Hours declined. The prior Audit recommended hiring a part-time driver to alleviate rising labor costs due to the accumulation of overtime. The position for a relief driver was open at the time, and the Audit noted that the City had experienced difficulty in finding an individual, with the required qualification of a Class B Commercial Driver s License, to fill the position. The prior Audit also suggested that, by hiring a regular relief driver, the City could ensure that all operators have received the mandatory safety training. In addition, the prior Audit suggested structuring the part-time/relief driver s hours so he or she could take trip requests during the busiest parts of the day, to relieve the primary driver from the potentially dangerous and distracting need to manage the telephone and reservations while operating the vehicle. This recommendation was considered a high priority for 2007/08, under the likely supervision of the Administrative Officer. DISCUSSION: A part-time relief driver has been employed to cover for the primary driver in instances of absence or other times where a relief driver is needed. PAGE 20 AUGUST 2010

23 This has been accomplished because of the change in service vehicle. The current service vehicle is not of a size and category requiring its operator to be in possession of a Class B Commercial Driver s License. This change in vehicle type made the acquisition of a relief driver relatively easy, as the pool of qualified applicants was greatly expanded. The current driver in operation of the vehicle is still managing telephone calls and taking trip requests. The addition of a relief drive has not removed this function from the primary driver, even during the busiest parts of the day. RECOMMENDATION 2 RECOMMENDATION: Acquire a replacement vehicle which may be operated using a Class C license. STATUS: Implemented. RATIONALE: The Commercial Motor Vehicle Safety Act of 1986 established minimum standards for Commercial Driver's Licenses, with three separate classes of driver's license to be issued by each state: Class A: Any combination of vehicles with a gross vehicle weight rating (GWVR) of 26,001 or more pounds, provided the GVWR of the vehicle(s) being towed is in excess of 10,000 pounds. Class B: Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing a vehicle not in excess of 10,000 pounds GVWR. Class C: Any single vehicle, or combination of vehicles, that does not meet the definition of Class A or Class B, but is either designed to transport 10 or more passengers, including the driver, or is placarded for hazardous materials. The prior Audit noted that the Golden Feather Flyer was using a vehicle that required a Class B Commercial Driver s License. Based upon the difficulty the City had been encountering in finding a relief driver with a Class B Commercial Driver s License, as well as FTA recommendations regarding a replacement schedule for light-duty vehicles, the prior Audit recommended that the City consider replacing the existing vehicle with one that could be driven with a Class C Driver s License. This recommendation was considered a high priority for 2007/08, under the likely supervision of the Administrative Officer. DISCUSSION: The Gridley Golden Feather Flyer acquired a vehicle that, due to its size and passenger capacity, can be operated by an individual in possession of a general Class C license (the most commonly issued driver s license). AUGUST 2010 PAGE 21

24 Although the recommendation called for a vehicle that could be operated with a Class C Commercial Driver s License, the Gridley Golden Feather Flyer service opted for a vehicle that does not seat more than ten passengers including the driver and therefore can be operated by anyone with a Class C driver s license. RECOMMENDATION 3 RECOMMENDATION: Develop and implement an effective marketing plan and public outreach program to increase ridership and raise awareness of the Gridley Golden Feather Flyer service. STATUS: Not Implemented. This is a valid recommendation that will be carried forward. RATIONALE: The prior Audit noted that marketing based on word-of-mouth and the visibility of the vehicle in the Gridley urban area, tactics used during the prior Audit period, were not sufficient to sustain and grow ridership. The Audit further noted a downward trend in the 10-year ridership analysis. The prior Audit recommended a short onepage marketing plan to direct limited marketing dollars toward effectively growing ridership and awareness. The Audit recommended that the plan include the following elements: 1. Description of target market (defined by the prior Audit); 2. Marketing goals and objectives (defined by the prior Audit); 3. Marketing strategy (defined by the prior Audit); 4. Marketing tactics (defined by the prior Audit to include: An up-to-date marketing brochure and webpage on the City s website, A systemized program for distributing rider information to social service agencies and other public places). This recommendation was considered a medium priority for 2007/08, under the likely supervision of the Administrative Officer. DISCUSSION: As of this time, the Gridley Golden Feather Flyer has not made use of any of the marketing tactics suggested for the marketing plan discussed in the prior audit. The Gridley Golden Feather Flyer still relies on word-of-mouth and the visibility of the vehicle in the Gridley urban area. The continued decrease in ridership underscores the need to develop and implement a solid marketing strategy. Marketing the Gridley Golden Feather Flyer to the community will help ensure that the community is aware of the service and its function. PAGE 22 AUGUST 2010

25 RECOMMENDATION 4 RECOMMENDATION: Work with the Butte County Association of Governments (BCAG) to develop a Five-Year Service Plan and compare performance to standards. STATUS: Not Implemented. This is a valid recommendation and will be carried forward. RATIONALE: The prior Audit noted that Butte County Association of Governments (BCAG) would soon begin developing its Regional Transportation Plan (RTP), to include Short-Range and Long-Range Transit Plans for Butte Regional Transit (B- Line). The Audit recommended that the City negotiate with BCAG to include the Gridley Golden Feather Flyer in the RTP s Transit Element. The Audit recommended that the Plan address the following elements for the Gridley Golden Feather Flyer: 1. Overview of existing transit system; 2. Transit Demand Analysis; 3. Goals, Objectives, Measures, and Standards; 4. Service and System Evaluation (including Americans with Disabilities Act (ADA) compliance); 5. Operations Plan; 6. Operations Budget; 7. Capital Improvement Program (primarily related to vehicle replacement). The Audit further suggested a comparison of performance against standards and budgets, compiled in a report for Council members, BCAG, and the public, to provide improved accountability. This recommendation was considered a medium priority for 2007/08, under the likely supervision of the Administrative Officer. DISCUSSION: A Five-Year Service Plan has not been developed for the Gridley Golden Flyer. Due to changes in personnel, Gridley has worked with BCAG to implement this recommendation. Performance indicators are not reported to the council or reviewed by City management on a regular basis. However, the City administrator has implemented monthly checks in order to maintain a higher degree of management s oversight of the Gridley Golden Feather Flyer. Performance measures are usually entered into an Excel worksheet for tracking only once a year, when required for the State Controller s Report. During the Audit period, all ridership and all performance indicators of service and cost efficiency and productivity have weakened. After achieving 12.7% in 06/07, the Farebox recovery ratio has fallen well below the TDA mandated 10%. It was 5.2% in 07/08, and 5.8% in 08/09. This is primarily due to AUGUST 2010 PAGE 23

26 a continuous loss in ridership. As a result, TDA funding for Gridley Golden Flyer is at risk. RECOMMENDATION 5 RECOMMENDATION: Ensure that calculations of all performance measures are correctly submitted to the State Controller s Report. STATUS: Partially Implemented. RATIONALE: The prior Audit noted that several performance measures had been incorrectly calculated in the past: Vehicle Service Hours (VSH) had not recorded and properly excluded any driver breaks of 15 minutes or more, as should be done in accordance with TDA regulations, and to document that the City is complying with Wage Order Number 9, requiring driver breaks; Passenger Counts had not included non-ticketed passengers, as required by TDA, and had incorrectly counted nonpassenger delivery runs as one or two passengers; Full-Time Equivalent (FTE) had not been defined using TDA standards based on hours. The Audit noted that these errors did not materially affected the City s reporting on the State Controller s Reports, but that correcting the methodology would ensure future reports were accurate and consistent with TDA. This recommendation was considered a medium priority for 2007/08, under the likely supervision of the Administrative Officer. DISCUSSION: Gridley has made efforts to improve its calculations of performance measures, and how they are reported on the State Controller s Reports. A review of reporting documentation indicated that administrative and reporting errors were still occurring: Passenger counts were not entered into the tracking spreadsheet for 09/08; instead, the prior year s numbers were reported; A review of driver logs to the reported VSH and VSM indicated inconsistencies. The deduction of driver breaks of 15 minutes or more from vehicle service hours could not be confirmed. Vehicle service miles reported on the Driver Logs did not match the reported VSM on the tracking sheets. A better accounting of Full-Time Equivalent employees is occurring, but these hours are still not being noticeably differentiated from Vehicle Service Hours. Some changes in how Gridley tracks and maintains certain performance indicators and figures is warranted. PAGE 24 AUGUST 2010

27 PERFORMANCE MEASURES AND TRENDS Performance indicators are frequently used to quantify and review the efficiency and effectiveness of a transit operator s activities. Such indicators provide insight into current operations. The Transportation Development Act requires recipients of TDA funding to report five performance indicators: Operating Cost per Vehicle Service Hour; Operating Cost per Passenger; Passengers per Vehicle Service Hour; Passengers per Vehicle Service Mile; Vehicle Service Hours per Employee. The Act also requires achievement of a Farebox Recovery ratio of 10 percent of Operating Costs for services used exclusively by elderly and handicapped persons. To assess the validity and use of performance indicators, the Audit team performed the following activities: 1. Assessed internal controls in place for the collection of performancerelated information; 2. Validated collection methods for key data; 3. Calculated performance indicators; 4. Evaluated performance indicators. PERFORMANCE MEASURES The procedures used to calculate TDArequired performance measures for the Audit period were verified and compared against measures as stated in different reports. OPERATING COSTS Operating Costs were not independently calculated as part of this Audit. Operating Costs from the fiscal audit reports (City of Gridley Senior Taxi Fund Financial Statements) were prepared by Nystrom & Company LLP, Certified Public Accountants for all three years of the performance audit, 2006/07, 2007/08, and 2008/09. The Operating Costs from the audited reports are consistent with TDA guidelines, and appear to accurately reflect all the costs in the expense object classes for the City s transit services. In accordance with PUC (a), the reported cost excluded depreciation expenses. Operating Costs from the fiscal audits were compared to the Operating Costs reported on the State Controller s report, and no discernable differences were noted. VEHICLE SERVICE HOURS AND MILES By TDA definition, Vehicle Service Hours (VSH) and Vehicle Service Miles (VSM) include only those times/miles the vehicle is in revenue AUGUST 2010 PAGE 25

28 service, i.e., only those times from the first scheduled pickup to the last scheduled drop-off. Deadhead time and scheduled breaks longer than 15 minutes are to be excluded. Vehicle Service Hours are currently calculated using the driver s daily route schedule, which indicates all times that are slated from the first pick-up to the last drop-off. To calculate Vehicle Service Miles (VSM), odometer readings are taken at the beginning and the end of the day, as well as at the first and final stops of the day. The driver calculates VSM by subtracting the deadhead mileage from the total mileage driven each day in compliance with the TDA definition. The driver logs are submitted monthly to the City. The Lead Driver enters the VSH and VSM for each service day into an activity summary spreadsheet. The spreadsheet sums up the information for each month and for the year. A review of the logs compared to the tracking spreadsheet noted several inconsistencies. Driver breaks could not always be determined. Instances were noted where the VSM reported on the spreadsheet did not match the VSM on the log sheets. PASSENGER COUNTS By definition, the number of total Passengers is equal to the total number of unlinked trips (i.e., those trips made by a passenger that involve a single boarding and debarkation), whether revenue-producing or not. The city captures the number of Passengers by recording the passengers picked up on a daily manifest carried by the driver. This ensures that riders who do not pay a fare, such as attendants for ADA passengers, are counted as passengers. Passenger counts are being counted correctly. EMPLOYEES Employee Hours is defined as the total number of hours (regular or overtime) that all employees have worked, and for which they have been paid a wage or salary. Full-Time Equivalents are calculated by dividing the total number of Employee Hours by The City s FTE s reporting methodology determined that the Golden Feather Flyer does not fully document all hours related to the operation of the Gridley Golden Feather Flyer. The driver/operator is counted as one FTE. Additional hours are not documented or added to the total. A small percentage of an FTE should be added for two clerks in the Finance Department, which handle sales. However, this would be a very minor addition to FTEs. Maintenance is classified as an outside service, and those hours are not included. The number of FTEs was rounded to one (1) on State Controller s reports. Correctly counting the number of hours and dividing by 2000 would not fundamentally change the number. However, overtime hours and administrative hours should be added and divided by 2000 to correctly calculate the FTE. PAGE 26 AUGUST 2010

29 REVENUES The City of Gridley s procedures for revenue collection and cash management are consistent with industry standards for a transit operation of its size and scope. All fare media is pre-paid and purchased from the City s Finance Department at City Hall. Tickets may be purchased in person or through the mail. The Finance Department is responsible for selling the tickets and accounting for the Fare Revenue. The accounting clerks each have a cash drawer in which collected revenues are secured. The revenues from the transit ticket sales are kept separate from other collected revenues, and deposited daily in a separate transit account. The fares that are reported to the State Controller for each year match the reported fare revenues in the annual fiscal audits. TDA REQUIRED INDICATORS The Transportation Development Act requires a review and analysis of five performance indicators: Operating Cost per Vehicle Service Hour, Operating Cost per Passenger, Passengers per Vehicle Service Hour, Passengers per Vehicle Service Mile, and Vehicle Service Hour per Full-Time Equivalent employee. While the analysis focuses on the three-year Audit period for each of these services, the previous years are shown to provide perspective. To calculate the TDA indicators for the Gridley Golden Feather Flyer, data was verified and the following sources were used: Operating Costs were obtained from the fiscal and compliance audits for each year, and excluded depreciation; Vehicle Service Hours were obtained from the State Controller s reports (Transit Operator s Financial Transactions Report) for each year of the Audit; Vehicle Service Miles were obtained from the State Controller s reports (Transit Operator s Financial Transactions Report) for each year of the Audit; Ridership was obtained from the State Controller s reports (Transit Operator s Financial Transactions Report) for each year of the Audit, except for the 2008/09 fiscal year, when ridership was obtained from internal reports; Fare Revenues were obtained from the fiscal and compliance audits for each year. Financial and operating data for 1999/00 through 2005/06 were obtained from the TDA Triennial Audits prepared by Transit Resource Center, Nelson/Nygaard, and Majic Consulting Group. AUGUST 2010 PAGE 27

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31 Table 4: TDA Performance Indicators PERFORMANCE MEASURES 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Operating Cost (Actual $) $45,374 $47,735 $52,891 $53,978 $64,737 $80,457 $92,480 $95,367 $98,428 $95,028 Annual Change 5.20% 10.80% 2.06% 19.93% 24.28% 14.94% 3.12% 3.21% -3.45% Operating Cost (Constant $) $45,374 $45,757 $49,238 $48,972 $57,664 $69,357 $76,523 $76,329 $76,141 $72,554 Annual Change 0.84% 7.61% -0.54% 17.75% 20.28% 10.33% -0.25% -0.25% -4.71% Fare Revenue (Actual $) $7,942 $7,514 $12,871 $5,881 $12,581 $9,901 $8,606 $12,102 $5,165 $5,509 Annual Change -5.39% 71.29% % % % % 40.62% % 6.66% Vehicle Service Hours 2,614 2,400 2,392 2,472 2,446 2,195 2,214 2,198 2,072 2,069 Annual Change -8.19% -0.33% 3.34% -1.05% % 0.87% -0.72% -5.73% -0.14% Vehicle Service Miles 21,997 16,948 20,029 18,392 17,853 14,997 15,136 13,871 13,155 13,002 Annual Change % 18.18% -8.17% -2.93% % 0.93% -8.36% -5.16% -1.16% Passengers 10,551 9,863 11,045 10,774 8,785 8,432 10,265 10,471 9,725 8,665 Annual Change -6.52% 11.98% -2.45% % -4.02% 21.74% 2.01% -7.12% 10.90% Full-Time Equivalent Employees Annual Change 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% PERFORMANCE INDICATORS Operating Cost per VSH (Actual $) Annual Change $17.36 $ % $ % $ % $ % $ % $ % $ % $ % $ % Operating Cost Per VSH (Constant $) $17.36 $19.07 $20.58 $19.81 $23.57 $31.60 $34.56 $34.73 $36.75 $35.07 Annual Change 9.84% 7.97% -3.76% 19.00% 34.03% 9.39% 0.47% 5.82% -4.57% Operating cost per Passenger (Actual $) $4.30 $4.84 $4.79 $5.01 $7.37 $9.54 $9.01 $9.11 $10.12 $10.97 Annual Change 12.54% -1.06% 4.62% 47.09% 29.49% -5.58% 1.09% 11.13% 8.36% Operating Cost per Passenger (Constant $) $4.30 $4.64 $4.46 $4.55 $6.56 $8.23 $7.45 $7.29 $7.83 $8.37 Annual Change 7.88% -3.91% 1.96% 44.41% 25.31% -9.37% -2.22% 7.41% 6.95% Passengers per VSH Annual Change 1.81% 12.36% -5.61% % 6.96% 20.69% 2.75% -1.48% % Passengers per VSM Annual Change 21.33% -5.24% 6.23% % 14.26% 20.62% 11.31% -2.07% -9.85% VSH per FTE 2,614 2,400 2,392 2,472 2,446 2,195 2,214 2,198 2,072 2,069 Annual Change -8.19% -0.33% 3.34% -1.05% % 0.87% -0.72% -5.73% -0.14% Farebox Recovery 17.5% 15.7% 24.3% 10.9% 19.4% 12.3% 9.3% 12.7% 5.2% 5.8% Annual Change % 54.60% % 78.37% % % 36.37% % 10.48% CPI Actual Annual Change 4.32% 2.97% 2.61% 1.85% 3.33% 4.18% 3.38% 3.47% 1.32% Cumulative 4.32% 7.42% 10.22% 12.27% 16.00% 20.85% 24.94% 29.27% 30.98% AUGUST 2010 PAGE 29

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33 OPERATING COSTS Operating costs remained relatively constant over the audit period. In actual dollars, operating costs dropped slightly between 07/08 and 08/09, representing the first decrease in operating costs in more than a decade. In constant dollars, operating costs decreased slightly in each of the three years. The Consumer Price Index for Northern California grew less than eight percent over the three-year audit period between 05/06 and 08/09. In constant dollars, operating costs decreased slightly in each of the three years of the Audit. Operator Costs, including salaries and benefits, have increased over the prior three fiscal years. Meanwhile other costs, such as those associated with the maintenance and operation of the vehicle, have decreased over the Audit period with the purchase of a new vehicle that is under warranty. This increase in Operator Costs, coupled with the decrease in the associated vehicle and maintenance costs, accounts for a total operating cost that has remained relatively steady not increasing or decreasing by more than three percent over the prior three fiscal years. Table 5: Operating Costs over the Audit period. 06/07 07/08 08/09 Operator Salaries $47,698 $49,242 $53,705 Benefits Miscellaneous $21,571 $1,726 $28,861 $1,624 $26,265 $3,145 Total Operator Costs $70,995 $79,727 $83,115 Communications $1,000 $853 $872 Maintenance $6,672 $1,353 $1,280 Office $1,038 $381 $0 Professional Services $270 $0 $0 Publications $513 $860 $0 Casualty & Liability $1,504 $2,006 $700 Special Departmental $6,700 $7,204 $4,304 Administrative $6,675 $6,044 $4,757 Other Costs $24,372 $18,701 $11,913 Total $95,367 $98,428 $95,028 AUGUST 2010 PAGE 31

34 $125,000 Operating Costs $100,000 $92,480 $95,367 $98,428 $95,028 $80,457 $75,000 $50,000 $25,000 $45,374 $47,735 $41,026 $40,927 $52,891 $53,978 $43,932 $43,944 $64,737 $52,185 $63,654 $71,283 $76,329 $76,141 $72,554 $0 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Actual $ $45,374 $47,735 $52,891 $53,978 $64,737 $80,457 $92,480 $95,367 $98,428 $95,028 Constant $ $41,026 $40,927 $43,932 $43,944 $52,185 $63,654 $71,283 $76,329 $76,141 $72,554 Actual $ Constant $ Figure 4: Operating Costs increased an average of less than 3% in actual dollars, and less than 2% in constant dollars over the Audit period. PAGE 32 AUGUST 2010

35 RIDERSHIP The ridership of the Gridley Golden Feather Flyer (Senior Taxi) is restricted to elderly and disabled citizens of the City and surrounding area. Ridership over the 10-year period has oscillated between 12,000 and 7,000, reaching its highest level in 2001/02 and its lowest level in 2004/05. The linear trend line demonstates a steady decrease, which is supported by the three-year moving average. A continued decline in ridership is indicative of a service that has not added new customers at the same rate that existing customers are lost. Improved marketing and public outreach can often reverse the trend. Ridership for the 2008/09 fiscal year is only slightly above the lowest level of ridership experienced in 2004/05. Between 2007/08 and 2008/09, ridership declined by more than 1,000 riders, approxmiately an 11% decrease. Over the Audit period, the passenger count fell by over 15 percent. 12,000 Ridership 11,000 10,000 9,863 10,551 11,045 10,774 10,265 10,471 9,725 9,000 8,432 8,665 8,000 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Ridership 10,551 9,863 11,045 10,774 8,785 8,432 10,265 10,471 9,725 8,665 8,785 Ridership Linear (Ridership) 3 per. Mov. Avg. (Ridership) Figure 5: Ridership has continued to decline over the 10-year period analyzed. AUGUST 2010 PAGE 33

36 FARE REVENUE The annual fluctuation in Fare Revenue is a result of the City s prepaid ticket policy. Large bulk purchases vary by year. Both the linear trend line and the three-year moving average demonstrate that Fare Revenues are decreasing at a rate very similar to the decrease being experienced in passenger trips. A fare increase occurred in 07/08, raising the fare from $1.00 to $2.00. However, Fare Revenues still dropped by more than 57% between 06/07 and 07/08. As mentioned, this discrepancy in fare revenues appears to be due to large bulk ticket purchases in 06/07. Fare Revenues have increased by approximately 7% between 07/08 and 08/09. Even with the increase in the ticket price, with the continuing decline being experienced in ridership, Fare Revenues continue to decline. $15,000 $12,500 $12,871 Fare Revenue $12,581 $12,102 $10,000 $9,901 $7,500 $7,942 $7,514 $8,606 $5,000 99/00 00/01 01/02 $5,881 02/03 03/04 04/05 05/06 06/07 07/08 $5,509 $5,165 08/09 Fare Revenue $7,942 $7,514 $12,871 $5,881 $12,581 $9,901 $8,606 $12,102 $5,165 $5,509 Fare Revenue 3 per. Mov. Avg. (Fare Revenue) Linear (Fare Revenue) Figure 6: Fare Revenue. Fluctuation over the Audit period is caused by the timing of bulk ticket purchases. PAGE 34 AUGUST 2010

37 FARE PER PASSENGER The average Fare per Passenger mirrors the fluctuations noted in the Fare Revenues. Using a three-year moving average of Fare Revenue and dividing by the number of Passengers provides a better indicator of the average Fare per Passenger, which jumped in the first year of this Audit ( 2006/07), but decreased in the subsequent year, 2007/08, and increased only slightly in 2008/09. anomalous considering the recent fare increase. However, the relatively low Fare per Passenger is likely due to bulk ticket purchases made in 2006/07, before the fare increase took effect. The Fare per Passenger is expected to rise, due to the fare increase. Both the three-year moving average and the trend line demonstrate that the Fare per Passenger has been declining slightly over the audit period event with the fare price increase. The current Fare per Passenger is much lower than the system s average, which appears $1.50 Fare per Passenger $1.43 $1.30 $1.17 $1.17 $1.16 $1.10 $0.90 $0.75 $0.76 $0.84 $0.70 $0.64 $ /00 00/01 01/02 02/03 $ /04 04/05 05/06 06/07 07/08 08/09 Fare per Passenger $0.75 $0.76 $1.17 $0.55 $1.43 $1.17 $0.84 $1.16 $0.53 $0.64 $0.53 Fare per Passenger Linear (Fare per Passenger) 3 per. Mov. Avg. (Fare per Passenger) Figure 7: Fare per Passenger. Calculating the three-year moving average of fares alone, and then dividing that by the number of passengers, provides a better measure of this indicator. AUGUST 2010 PAGE 35

38 OPERATING COST PER VEHICLE SERVICE HOUR (VSH) Operating Cost per Vehicle Service Hour (VSH) measures service efficiency. The lower the Operating Cost per VSH, the more efficient the operation. Vehicle Service Hours have decreased during the Audit period, and Operating Costs have remained relatively stagnant. The Operating Cost per Vehicle Service Hour has increased slightly during the first two years of the audit period. However, the decrease in operating costs last year, coupled with a decrease in Vehicle Service Hours of just a fraction of a percent, saw the Operating Cost per Vehicle Service Hour drop by 3.5%. In constant dollars, the Operating Cost per Vehicle Service Hour has increased by just over one percent during the audit period; this is exhibited in the three-year moving average. $50.00 Cost per VSH $41.77 $43.39 $47.50 $45.93 $40.00 $36.65 $30.00 $26.47 $31.60 $34.56 $34.73 $36.75 $35.07 $20.00 $17.36 $17.36 $19.89 $19.07 $22.11 $21.84 $20.58 $19.81 $23.57 $ /00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Actual $ $17.36 $19.89 $22.11 $21.84 $26.47 $36.65 $41.77 $43.39 $47.50 $45.93 Constant $ $17.36 $19.07 $20.58 $19.81 $23.57 $31.60 $34.56 $34.73 $36.75 $35.07 Actual $ Constant $ 3 per. Mov. Avg. (Constant $) Linear (Constant $) Figure 8: Operating Cost per Vehicle Service Hour has been rising steadily for the last decade, but this figure experienced a decrease in the final year of the audit, due to the decrease in operating costs. PAGE 36 AUGUST 2010

39 OPERATING COST PER VEHICLE SERVICE MILE (VSM) Although it is not a TDA-required indicator, Operating Cost per Vehicle Service Mile (VSM) provides another measure of cost efficiency. As with the Operating Cost per VSH, Operating Cost per VSM has shown an upward trend, continuing to increase for the first two years of the Audit though at a slower rate than in the previous Audit period. In the third year, 08/09, the indicator declined, and service efficiency therefore increased in both constant (3.6%) and actual (2.3%) dollars. However, over the Audit period, Cost per VSM increased over 10 percent in constant dollars. Vehicle Service Miles have decreased at a similar rate to the Vehicle Service Hours, while operating costs increased over the Audit period. $8.00 $7.00 $6.00 Cost per VSM $6.11 $5.36 $6.88 $7.48 $7.31 $5.00 $4.00 $3.00 $2.00 $1.00 $2.06 $2.06 $2.82 $2.70 $2.64 $2.46 $2.93 $2.66 $3.63 $3.23 $4.62 $5.06 $5.50 $5.79 $5.58 $ /00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Actual $ $2.06 $2.82 $2.64 $2.93 $3.63 $5.36 $6.11 $6.88 $7.48 $7.31 Constant $ $2.06 $2.70 $2.46 $2.66 $3.23 $4.62 $5.06 $5.50 $5.79 $5.58 Actual $ Constant $ 3 per. Mov. Avg. (Constant $) Linear (Constant $) Figure 9: The increase in Operating Cost per Vehicle Service Mile over the Audit period indicates a decrease in costefficiency. AUGUST 2010 PAGE 37

40 OPERATING COST PER PASSENGER Operating Cost per Passenger likewise inversely measures cost effectiveness. As the Operating Cost per Passenger increases, the cost effectiveness of the service decreases. Increases in Operating Costs or decreases in the number of passengers affect this indicator unfavorably. Although Cost per Passenger was relatively flat in the first year of the Audit period, cost effectiveness over the Audit period decreased as the indicator increased (12.3% in constant dollars). Operating Costs per Passenger reached its highest rate in a decade in 2008/09 at $10.97 ($8.37 in constant dollars) per passenger, due to high operating costs and a noticeable decline in ridership. While operating costs were at their highest in 2007/08, the level of ridership during that fiscal year was much higher than it was in 2008/09. Operating costs decreased by approximately 3.5% (4.7% in constant dollars) between 2007/08 and 2008/09, but ridership decreased by nearly 11%. As a result, the operating cost per passenger increased by 7.0% (8.4% in actual dollars). $12.00 $11.00 $10.00 $9.00 Cost per Passenger $9.54 $9.01 $9.11 $10.12 $10.97 $8.00 $7.00 $7.37 $8.23 $7.45 $7.29 $7.83 $8.37 $6.00 $5.00 $4.30 $4.84 $4.79 $5.01 $6.56 $4.00 $4.30 $4.64 $4.46 $4.55 $ /00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 Actual $ $4.30 $4.84 $4.79 $5.01 $7.37 $9.54 $9.01 $9.11 $10.12 $10.97 Constant $ $4.30 $4.64 $4.46 $4.55 $6.56 $8.23 $7.45 $7.29 $7.83 $8.37 Actual $ Constant $ Linear (Constant $) 3 per. Mov. Avg. (Constant $) Figure 10: Operating Cost per Passenger did decrease in the last year of the audit, but is continuing to increase over time. PAGE 38 AUGUST 2010

41 PASSENGERS PER VEHICLE SERVICE HOUR (VSH) Passengers per Vehicle Service Hour (VSH) provides a measure of service effectiveness or productivity. The service is more productive, the more Passengers it carries per VSH. Passengers per Vehicle Service Hour improved slightly over the 10 years analyzed. The indicator reached its lowest level in 2003/04 and improved, reaching a historic high in 2006/07. It began dropping again in 2007/08, due to a decrease in passengers. Nonetheless, the 2007/08 fiscal year is the second-highest, or second-most-effective, year on record in terms of Passengers per Vehicle Service Hour. Due to a significant decrease in ridership in the 2008/09 fiscal year (approximately 11%) and a nearly imperceptible change in vehicle service hours, the rate of Passenger per Vehicle Service Hour decreased by a very similar amount, 10.8% Passenger per VSH /00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 Passenger per VSH /09 Passenger per VSH Linear (Passenger per VSH) 3 per. Mov. Avg. (Passenger per VSH) Figure 11: Passengers per Vehicle Service Hour increased to a historic high in the first year of the Audit period, but maintained a very high rate throughout the audit period. AUGUST 2010 PAGE 39

42 PASSENGERS PER VEHICLE SERVICE MILE (VSM) Passengers per Vehicle Service Mile (VSM) provides another measure of service effectiveness or productivity. The service productivity increases as the number of Passengers carried per VSM increases. The effectiveness of the passengers per Vehicle Service Mile improved slightly over the 10 years analyzed. As with Passengers per Vehicle Service Hour, the performance indicator became noticeably more favorable during the three-year Audit period ( 2006/07 through 2008/09). Like the Passengers per Vehicle Service Hour performance indicator, the Passengers per Vehicle Service Mile performance indicator reached a historic high in 2006/ Pass/VSM /00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 Pass/VSM Pass/VSM Linear (Pass/VSM) 3 per. Mov. Avg. (Pass/VSM) 08/09 Figure 12: Passengers per Vehicle Service Mile improved incrementally over the 10 years analyzed, and reached a historic high in 06/07 PAGE 40 AUGUST 2010

43 VEHICLE SERVICE HOURS PER FULL-TIME EQUIVALENT (FTE) Vehicle Service Hours per Full-Time Equivalent (FTE) employee is an indicator of service productivity. An increase in the Vehicle Service Hours per FTE demonstrates improved productivity. By this measure, the Gridley Golden Feather Flyer has experienced a slight drop in productivity over the three-year Audit period. The number of FTE has remained constant at one, although the actual number is slightly higher. The decrease in productivity is a result of fewer VSH. However, with only one employee, the indicator is not an accurate gauge of the system productivity, but rather a direct gauge of the number of Vehicle Service Hours. 2,700 2,600 2,614 VSH/FTE 2,500 2,400 2,472 2,400 2,392 2,446 2,300 2,200 2,214 2,198 2,100 2,195 2,069 2,000 2,072 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 VSH/FTE 2,614 2,400 2,392 2,472 2,446 2,195 2,214 2,198 2,072 2,069 VSH/FTE 3 per. Mov. Avg. (VSH/FTE) Linear (VSH/FTE) Figure 13: Vehicle Service Hours per Full-Time Equivalent demonstrates lower productivity during the Audit period. AUGUST 2010 PAGE 41

44 FAREBOX RECOVERY RATIO Farebox Recovery ratio is calculated by dividing Fare Revenue by Operating Cost. A paratransit service for the exclusive use of the elderly and handicapped is required by the TDA to maintain a Farebox Recovery ratio of at least 10%. For the first year of the audit, the Farebox Recovery ratio was 12.7%, above the required 10% minimum. However, the second and third year of the audit saw the Farebox Recovery ratio decline to 5.2% and 5.8%, respectively. The declining Farebox Recovery ratio can be attributed almost entirely to the significant drop in ticket revenues, as operating costs were relatively unchanging over the audit period. As many ticket sales and the associated revenues occur in bulk purchases, averaging revenues with a three-year moving average and then dividing that by Operating Cost for the given year produces more-accurate and higher Farebox Recovery ratios. However, the resulting Farebox Recovery ratio is 9.1% and 7.9% for fiscal years 2007/08 and 2008/09, respectively: these are still below the required level. Should ticket sales and subsequent revenues not increase substantially in 2009/10, the Farebox Recovery ratio will continue to be under the required level mandated by TDA statutes. The data show a significant downward trend in the Farebox Recovery ratio over the past decade. PAGE 42 AUGUST 2010

45 30.0% Farebox Recovery Ratio 25.0% 24.3% 20.0% 15.0% 17.5% 15.7% 19.4% 10.0% 5.0% 10.9% 12.3% 9.3% 12.7% 5.2% 5.8% 0.0% 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 Farebox Recovery Ratio 17.5% 15.7% 24.3% 10.9% 19.4% 12.3% 9.3% 12.7% 5.2% 5.8% Farebox Recovery Ratio 3 per. Mov. Avg. (Farebox Recovery Ratio) Linear (Farebox Recovery Ratio) Figure 14: Farebox Recovery ratio. A decline in Farebox Recovery is primarily the result of lower ridership, but the trend was also affected by the timing of large bulk ticket sales over a year or more. 08/09 AUGUST 2010 PAGE 43

46 FUNCTIONAL REVIEW The functional activities performed by the City of Gridley, as operator for Gridley Golden Feather Flyer, are examined in this section. The degree to which each function is performed and the level of resources committed to the function are reviewed. An appraisal of the efficiency and effectiveness of each activity is included. The following functions are included in this review: GENERAL MANAGEMENT AND ORGANIZATION; SERVICE PLANNING; SCHEDULING, DISPATCHING, AND OPERATIONS; PERSONNEL MANAGEMENT AND TRAINING; MAINTENANCE; MARKETING AND PUBLIC INFORMATION. GENERAL MANAGEMENT AND ORGANIZATION The Gridley Golden Feather Flyer is administrated by the City of Gridley s Finance Department and is managed by the Finance Director of the City of Gridley. During the Audit period, the Finance Director, as well as the City administrative changes. In addition, the Lead Operator, who handles most of the operational functions related to the Gridley Golden Flyer, was out for an extended period of time due to illness. The Lead Operator for Gridley Golden Feather Flyer, Recreation Coordination and five staff members report to the Finance Director. While the Finance Director handled most of the transit related duties, transit-related duties account for less than two percent of the Finance Director s total responsibilities. These duties appear to now be performed by staff. No one individual appears to be responsible for transit operations and reporting. As a result of the personnel changes and the loss of institutional knowledge, many of transit responsibilities previously performed by the Finance Manager were not done or errors were made. The Finance Department staff is also responsible for the sale of fare media or tickets and reconciliations. The City Administrator is beginning to implement monthly checks in order to maintain a higher degree of management s oversight of the Gridley Golden Feather Flyer. Monthly reports will be prepared and submitted to the City Council, outlining the performance of the service. In addition to operating the service, the Lead Operator inputs performance measures. The driver s log sheets are submitted to the Finance Department daily. However, the performance measures are usually entered on spreadsheets only once per year. Measures for PAGE 44 AUGUST 2010

47 each day are entered. The spreadsheets total the daily entries to provide monthly and annual performance statistics. An analysis of actual expenses in comparison to the set budget indicates that salaries and benefits initially escalated more than planned. However, actual operating costs decreased during 2008/09 while they were budgeted to increase. Table 6: Operating Costs: Actual versus Budget Actual Operating Costs Budgeted Operating Costs 06/07 07/08 08/09 $95,367 $98,428 $95,028 $93,792 $98,063 $103,033 Difference $1,571 $365 $8,005 Percentage Difference Percentage related to Salaries & Benefits SERVICE PLANNING 2% 0% 7% 74.7% 81.0% 87.1% The planning of routes, schedules, and other service attributes determines if the service provided is appropriate to meet the transit needs within the community. Planning is assessed through a review of Short Range and Long Range Service Plans, surveys, and ongoing evaluation tools, such as monthly and annual reports. Although goals and objectives for the transit service were referenced in the previous Audit, no documentation was provided to indicate that measures and indicators were established for the objectives or that the goals and objectives are used to evaluate the quality of service. The goals and objectives were appropriate, although general: 1. Provide safe, reliable, high quality, and economical public transportation: a. Provide safe transit; b. Provide reliable transit; c. Operate transit efficiently; d. Provide an adequate level of transit service to meet the needs of the elderly and disabled residents of Gridley; e. Increase the level of public information about transit services; f. Provide up-to-date management information; g. Ensure flexibility for local residents. 2. Coordinate transit system development with community planning and social service agency transportation. 3. Coordinate with social service transportation services. AUGUST 2010 PAGE 45

48 The purpose of the planning function is to ensure that the service adequately addresses the transportation needs of the population it serves and that the service is run efficiently and effectively. While a small one-vehicle service does not need an elaborate plan, a review of the current service parameters and five-year plan that addresses the service parameters, operating costs, and ridership would be beneficial. SCHEDULING, DISPATCHING, AND OPERATIONS Since the Gridley Golden Feather Flyer, also known as the Senior Taxi, is a specialized service utilizing one vehicle and one driver, making scheduling and dispatching simple. To schedule a ride, riders either call the operator s cell phone or the City Office. Riders are encouraged to call from 24 hours to one hour in advance of the time they need to be picked up. Typically most riders can call with half an hour notice and are able to be scheduled into the service s operation. The driver is often operating the vehicle while taking trip requests over the telephone. Current studies have indicated that talking on the telephone may cause the driver to be distracted while driving. However, the driver implements a hands-free device when operating the vehicle and is therefore operating in accordance of the recent California Vehicle Code Hand-Held Wireless Telephone: Prohibited Use. The City may want to explore other dispatching options to relieve the driver from answering reservation requests while operating the vehicle. The driver may not pick up when particularly busy with driving or assisting passengers, thus missing calls and it does not appear to rollover to an answering service. Although regular riders know to call City Hall, this may frustrate or confuse new riders. Other driver responsibilities include logging the name, pick-up time, and drop-off time on the driver s log sheet and collecting tickets. Figure 15: The Gridley Golden Feather Flyer driver uses a cellular phone for dispatching. In addition to providing rides, the Gridley Golden Feather Flyer will drop off bills, mail, or other items. The charge is two tickets. PAGE 46 AUGUST 2010

49 PERSONNEL MANAGEMENT AND TRAINING Personnel management oversight is administered by the Administrative Officer in the City s Finance Department. Due to the acquisition of a vehicle whose passenger capacity does not require a Commercial Drivers License, only a standard Class C Drivers License with no added endorsement is required to operate the vehicle. The Lead Operator no longer possess or is required to possess a Class B License with a Commercial Drivers License endorsement. The new part time driver and Lead Operator previously possessed, but are not required by the City to maintain a Class B License. The City does not reimburse the drivers for the cost of maintaining a license. Drivers are required to maintain an excellent driving record. However, a Employer Pull Notice Program through the California Department of Motor Vehicles is not currently in place to ensure that an employed driver is maintaining a clean driving record. Drivers are required to pass an employment physical examination (pre-employment or renewal), including a substance abuse screening. The driver must maintain CPR and First Aid cards and carry them at all times while on duty. The driver/operator is required to perform the following: Assist persons with disabilities onto and off of the wheelchair lift, and aid in handling safety restraints, as requested by the passenger; Comply with all City and state traffic and safety regulations pertaining to the operation of buses; Safely and efficiently board, debark, and transport customers; Deliver passengers to their requested destination and accommodate passengers schedules in providing service; Maintain an accurate daily log of passengers served, miles traveled, and service hours. Perform pre-trip and post-trip vehicle inspections and document daily inspections through the daily log; Fuel vehicle, and secure regular vehicle preventive maintenance as needed. The drivers do not participate in any ongoing training or safety programs. Break times are not regularly recorded. The service provides many points of down time, it is very unlikely that the City is in violation of Wage Order Number 9, which states: No employer shall employ any person for a work period of more than five (5) hours without a meal period of not less than 30 minutes (11.A) AUGUST 2010 PAGE 47

50 And: Every employer shall authorize and permit all employees to take rest periods, which insofar as practicable shall be in the middle of each work period. The authorized rest period time shall be based on the total hours worked daily at the rate of ten (10) minutes net rest time per four (4) hour worked. (12.A). MAINTENANCE The City adopted the maintenance schedule recommended by the vehicle manufacturers. The driver inspects the vehicle daily before each run, and completes a Daily Vehicle Inspection (DVI) Sheet. When defects of conditions are noted to need repair, the condition is flagged on the sheet. A review of the DVIs indicates that the driver does not routinely check each individual item on the sheet, but just a single okay. As a result, it is not documented that the Driver actually reviewed/tested each item on the sheet. Preventive Maintenance Inspections are conducted between 3,000 and 6,000 miles. Maintenance is performed at the local Ford garage. The air conditioning system is inspected annually at the Veolia Transportation facility in Chico. The driver maintains a log of the maintenance activities. The log includes the date, mileage, and repair or maintenance conducted. The maintenance history is reported monthly to the City Finance Department. During the audit period, the vehicle used for the Gridley Golden Feather Flyer s services, averaged just over 13,000 miles per year. This is very close to the national average number of miles traveled per year, per vehicle. If the wheelchair lift fails during the pre- or post-trip inspections or during the service day, the vehicle is removed from service for repair and is sent to Veolia s facility in Chico. The outof service vehicle is replaced by a backup vehicle with a working lift. The vehicle is not placed back into service until the lift is repaired. MARKETING AND PUBLIC INFORMATION During this Audit period, the City did not have a marketing plan or public outreach materials. The only collateral material is a onepage sheet outlining eligibility, fares, hours of operation, and other services and telephone numbers. It is in English only. While only 13% of Gridley s population is Hispanic, this is an important segment. The flyer is kept on the bus, but is not widely distributed to social service agencies and the public. Recent use of the Gridley Golden Feather Flyer for operation to and from the Gridley Farmers Market is beneficial in increasing public awareness of the service. However, as the main service is restricted to seniors and the disabled. PAGE 48 AUGUST 2010

51 mouth to promote the service. While a wellmarked bus is, perhaps, the most effective marketing tool, it is rarely an efficient marketing tool without supporting materials. Figure 16: The Gridley Golden Feather Flyer is a visible billboard for the service in the small community, but the marketing needs to be supported by collateral materials and public outreach. The Gridley Golden Feather Flyer relies primarily on the bus visibility and word-of- Should the city expand the service to the general public to assist in raising Farebox Recovery ratio, then increased marketing to the general public would have to be implemented. Currently, the City is responsible for marketing. Even though the community is small and the bus is very visible, additional marketing would be required to maintain and increase ridership and awareness. AUGUST 2010 PAGE 49