ORANGE COUNTY TRANSPORTATION AUTHORITY. Transit System Study Pilot Project Implementation Plans. Attachment A

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1 ORANGE COUNTY TRANSPORTATION AUTHORITY Transit System Study Pilot Project Implementation Plans Attachment A

2 ATTACHMENT A 1 Transit System Study Pilot Projects Implementation Plan Report May 25, 2012 Background New Service Concepts for Orange County Following the completion of the Transit System Study in December 2011, a group of potential pilot projects was selected to allow for evaluation of faster and more cost-effective services. The following recommendations from the TSS were advanced as potential pilot projects: Limited stop service on Harbor Blvd Intercounty Express on SR-22 Intracounty Express on SR-73 Route 70/90 Service Connection Improvement Same-day taxi service and station-based vans in limited zones Analysis of Alternatives For each pilot project concept several alternatives were evaluated to consider different routing and operating options. Order of magnitude estimates for operating cost, ridership, and revenue for each of the proposed pilot project alternatives were developed to assist in identifying a package of specific pilot project alternatives to implement within funding constraints. Following the identification of the most viable pilot alternatives additional refinement will occur to develop more precise implementation plans. Recommended pilot projects were selected based on screening using OCTA Board of Directors approved Guiding Principles which outlined key overall system goals. A full explanation of each alternative evaluated is provided in the appendix. Guiding Principles Implementation plans will be prepared for each proposed project. Each plan will include purpose and need, markets served, costs, projected revenues and ridership, start date based on resource availability, Title VI analysis (see below), and quantifiable metrics. Each implementation plan will include a proposed sunset date if goals (measured by quantifiable metrics) are not achieved.

3 2 Each implementation plan will be constrained to the amount of Congestion Mitigation Air Quality (CMAQ) and other funds available for that service. To the extent possible, toll credits will be used to reduce federal matching fund requirements. A proposed project should contribute to an overall increase in the OCTA farebox recovery. Projects that generate new federal Section 5307 revenue for OCTA will be given a high priority for implementation purposes. New station vans proposed by local agencies, potentially funded with competitive Measure M2 funds, will be considered as part of the current Project S call for projects. Station van concepts proposed by OCTA will be considered for CMAQ or other funding sources. Recommended Pilot Projects Limited Stop Service on Harbor Boulevard Purpose and Need Purpose and Needs Route 43 operates local bus service on Harbor Boulevard from Costa Mesa to Fullerton and is the second busiest route in the OCTA system with over 13,000 weekday boardings 1.As discussed in the TSS Market Assessment, Route 43 operates through the core market area along a key linear network corridor with development patterns supportive of transit ridership generation. Additional future development along the corridor will strengthen the demand for transit service. Corridors with sufficient density and a mix of activity centers are strong candidates for transit investment. Offering more frequent service with faster travel times will increase the attractiveness of service to all market segments, both inducing additional use by existing riders and encouraging new riders to begin using the service. Harbor Boulevard represents a dominate north-south network spine in the OCTA network. Route 43 s highly productive service performance of over 50 passengers per revenue vehicle hour, the second most productive route in the system, illustrates the strength of the market for transit along the corridor. 2 Given existing high performance, additional service investment is warranted. While current local service operates every 15 minutes, a historic precedent for higher service frequencies along the corridor existed prior to recent service reductions. Providing a high quality transit service with higher frequencies and with faster travel times supports development of sustainable communities and proves mobility options for residents and employees. The existing strong performance of Route 43 suggests that service investments will generate additional ridership and revenue, and improve the travel experience for a full 7% of current OCTA riders by 1 OCTA On-Board Ride Check Reports used in Transit System Study 2 OCTA On-Board Ride Check Reports

4 3 providing additional trip options, less passenger waiting time, and faster overall travel times. The high financial effectiveness of Route 43, over 40% of the costs of service provision are recovered through fare revenue, indicates that investments in the route would support OCTA s system-wide farebox recovery. 3 Markets Served Existing riders on Harbor Blvd, improve retention and induce additional trips Existing riders on parallel lines making network based trips New riders including workers and residents Corridor companies Alternatives Considered A selection of alternatives was considered based two different alignments and four possible service levels. Alignment 1: Limited stop bus service from Fullerton Transportation Center to Costa Mesa (Triangle Square) via Harbor, with supporting Local service from Fullerton Transportation Center to Newport Beach. Alignment 2: Limited stop service from Fullerton Transportation Center to MacArthur via Harbor, with supporting Local service from Fullerton Transportation Center to Newport Beach. Service Level 1: Maintain existing local service at 15 minute frequency, add limited stop overlay with 10 minute all day frequency. Span: 4AM to 1AM. Service Level 2: Maintain existing local service at 15 minute frequency, add peak only limited stop overlay with 10 minute frequency. Span: 6AM to 9AM, 3PM to 6PM. Service Level 3: As part of phased approach, adjust local frequency to 20 minutes, add limited stop overlay with 10 minute peak frequency and 15 minute off-peak frequency. Span: 5AM to 6PM. Service Level 4: As part of phased approach, adjust local frequency to 30 minutes, add limited stop overlay with 10 minute frequency. Span: 4AM to 1AM. Recommended Alternative The new service would operate weekdays at a ten minute peak and 15 minute off-peak frequency between Fullerton Transportation Center and MacArthur Blvd. The existing local bus service would be reduced to a 20 minute frequency along the entire route (cities of Fullerton to Costa Mesa). 3 OCTA On-Board Ride Check Reports

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6 5 Cost and Revenue This service would use the local fare. Limited Stop Service on Harbor Boulevard YEAR 1 YEAR 2 YEAR 3 YEAR 4 Cost Operating Cost $1,848,000 $1,879,000 $1,952,000 $2,003,000 Marketing & Survey Costs $100,000 $100,000 $0 $0 Capital Costs $200,000 $0 $0 $0 Total Cost $2,148,000 $1,979,000 $1,952,000 $2,003,000 Revenue Fare Revenue $753,000 $941,000 $941,000 $941,000 Capital Revenue (5307) $0 $0 $150,000 $150,000 Total Revenue $753,000 $941,000 $1,091,000 $1,091,000 Ridership Projection At the end of the first year of service ridership is projected to be an additional 845,000 boardings on the corridor. Resource Requirement Operation of this pilot project would require an additional 12 peak vehicles. Marketing Plan Marketing and outreach will play a key role in evaluating the outcomes of limited stop service implementation on Harbor Boulevard. Information Gathering: The initial stage of the process will consist of information gathering. First, the marketing team should work to build a clear understanding of the market along the corridor including identification of major employers and a review of significant origindestination patterns. Before Survey: A detailed survey should be conducted of existing ridership along the corridor to capture travel patterns, demographic profiles, and perceptions of existing service. Develop Brand Differentiation: Following the information gathering stage, a brand differentiation for the limited stop service should be created. Highlight Stops: Stops for the limited stop service may benefit from a specific marker that increases visibility and communicates the improved service levels to the customer, ideally visible from a distance.

7 6 Introductory Marketing: As limited stop service is set to begin an introductory marketing effort should occur on several levels including in-vehicle ads, outreach materials to employers, and digital information sharing. After Survey: Following implementation, the before survey should be administered again. Comparison of the results between the before and after surveys will aid in the evaluation of the pilot project, especially the changes in customer travel behavior and perceptions of the service. Continuing Marketing: During the pilot period, the marketing efforts should also be conducted with a pilot approach. The limited stop service does not represent a fully finished enhanced transit product. Therefore, marketing capacity should be reserved to allow for additional promotion of the eventual finished product. Future Investment Phase I: The initial phase includes vehicle and stop branding to differentiate the limited-stop service product. During the initial phase operation of the limited stop service can be fine tuned. Fine tune running times and schedules to capitalize on recently implemented corridor signal optimization. Phase II: After limited stop service has become more established stop infrastructure improvements could occur including investments to improve shelters, real time information, and off-vehicle fare payment. Also during this phase upgrades to specific stops may occur including sidewalk reconfiguration and improvement, selected repaving, and relocation of specific stops to optimize operational efficiency. Phase III: The final phase could include major street infrastructure improvements including possible bus bypass lanes, bus bulbs, and general street improvements to improve the flow of both transit and general traffic. As limited stop service begins to transition to BRT service bus signal priority should be implemented to further improve travel times for transit customers. Project Schedule Before customer survey in Fall 2012 June 2013 Start Date After customer survey in Spring 2014

8 7 Intercounty Express on SR-22 Purpose and Need State Route 22 (SR-22) provides east-west connectivity across Orange County between Long Beach and Orange, carrying traffic volumes of approximately 200,000 vehicles each day. While OCTA routes 50 and 60 provide local bus service parallel to SR-22, a transit-based alternative to private vehicle travel along the SR-22 corridor currently does not exist. Existing local bus service is not time competitive with private vehicle travel on SR-22 for longer distance trips. Implementation of express bus service on SR-22 would provide a more time competitive alternative travel option during peak periods. A SR-22 express with several intermediate stops at intersections with key arterial corridors will boost network effectiveness, providing better connectivity and faster travel times. The express service would provide an east-west network complement to the north-south role Metrolink provides. In addition, faster travel into Long Beach offers Orange County residents and employees better access to Los Angeles County via connections with other transit providers. A pilot express route would demonstrate the viability of further transit investment on the corridor and development of a fast, all day east-west network connection. Markets Served Reviewing existing customer travel patterns, including existing transfer activity at proposed express stops, will be key to identifying potential customers for the pilot service. Existing riders on Route 60 traveling to/from Long Beach or Santa Ana, or who may transfer to Routes 29,43,57, or 53. Existing riders on Route 60 with travel to/from Long Beach or Santa Ana and transfer from Routes 29, 43, 57, or 53. New riders traveling to/from Long Beach or Santa Ana New riders making an east-west connection between Route 29, 43, 57, or 53. Alternatives Considered Five distinct service level alternatives were evaluated on a common alignment. Service Level 1: 3 roundtrips in each peak period for a total of 6 daily roundtrips. Span: 6AM to 9AM, 3PM to 6PM. Service Level 2: 6 roundtrips in each peak period for a total of 12 daily roundtrips and approximately 30 minute peak frequency. Span: 6AM to 9AM, 3PM to 6PM. Service Level 3: Peak service at 30 minute frequency and midday service at 60 minute frequency for a total of 18 daily roundtrips. Span: 6AM to 6PM. Service Level 4: Peak and midday service at 30 minute frequency for a total of 24 daily roundtrips. Span: 6AM to 6PM.

9 8 Service Level 5: Peak service at 15 minute frequency and midday service at 30 minute frequency for a total of 36 daily roundtrips. Span: 6AM to 6PM. Recommended Alternative The route would connect the Depot at Santa Ana to the City of Long Beach (7 th Street and Channel Drive) via SR-22. There would be intermediate stops at Harbor Boulevard and Beach Boulevard. Bi-directional service would be provided weekdays every 30 minutes during the AM and PM peak periods.

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11 10 Cost & Revenue This pilot will have an Intercounty fare as it provides service to Los Angeles County. This route would bring in new Section 5307 Fixed-Guideway funding if high-occupancy vehicle lanes remain an eligible facility. Cost Intercounty Express on SR 22 YEAR 1 YEAR 2 YEAR 3 YEAR 4 Operating Cost $539,000 $548,000 $569,000 $584,000 Marketing & Survey Costs $50,000 $50,000 $0 $0 Capital Costs $5,000 $0 $0 $0 Total Cost $594,000 $598,000 $569,000 $584,000 Revenue Fare Revenue $155,000 $194,000 $194,000 $194,000 Capital Revenue (5307) $0 $0 $349,000 $349,000 Total Revenue $155,000 $194,000 $543,000 $543,000 Ridership Projection At the end of the first year of service ridership is projected to be 52,000 annual boardings. Resource Requirement Operation of this pilot project would require 4 peak vehicles. Marketing Plan The key role for marketing on the SR-22 express will be raising the awareness of the service product. As a result of budget constraints, the pilot project on SR-22 represents a scaled back version of the original TSS proposal and thus the marketing approach should reflect this adjustment so as not to oversell the product offered. Introductory Network Marketing: Given the importance of network connections to the operation of the express service on SR-22, network level marketing on connecting routes will be key. Interior bus cards promoting the service should be placed on at least Routes 60, 43, and 29. The advertisements should advise riders of the travel time advantage of the service compared to existing travel on Route 60. Additionally, printed marketing should be deployed at the proposed stops for the express service advising riders of the additional new travel option. Destination Outreach: Efforts should be made to build awareness of the express service among likely destinations in Long Beach and Santa Ana. Marketing staff can provide marketing materials to key employers and other destinations.

12 11 Project Schedule Defer implementation until after new HOV-to-HOV connection from SR-22 to I-405 is completed Confirm Fixed-Guideway Funding Projected January 2014 start date Intracounty Express on SR-73 Purpose and Need State Route 73 is a toll road that runs between Costa Mesa and San Juan Capistrano, interchanging with Interstate 405 in the north and Interstate 5 in the south. SR-73 provides additional connectivity from South Orange County s residential growth to jobs located in the central and northern parts of the county. The predominate development patterns in Laguna Niguel, Laguna Hills, Mission Viejo, and Aliso Viejo areas surrounding SR-73 are largely auto-centric, creating a travel market with expectations for direct, fast transportation. Despite strong travel patterns connecting origins along the corridor to the Irvine Business Complex, a direct, competitive transit service does not currently exist on the SR-73 corridor. A park-and-ride based express bus service would offer a competitive travel alternative along the corridor connecting residential areas in the south to concentrations of employment in the Irvine and Costa Mesa areas. A direct, focused express service would prove more competitive than the existing transit options which necessitate multiple trip segments and out of direction movements. Effective express bus service into Irvine will promote sustainable community initiatives currently planned in Orange County by providing employees and residents a viable transit option for their main commute, establishing the opportunity for further transit-based travel during the day. Additionally, the express service can provide a first/last mile connection to/from the Laguna Niguel/Mission Viejo Metrolink station. Markets Served Employees along the planned route including significant concentrations of employees in the IBC and South Coast Plaza employment areas. Alternatives Considered Two alignments alternatives were considered, both with common south portions of the route. Two difference service level alternatives were also considered with each alignment alternative. Alignment 1: IBC Only o Northbound approach IBC on SR-73 exit Macarthur Blvd, turn right on Jamboree Rd, left on Michelson Dr, and left on MacArthur Blvd to SR-73 to start deadhead trip. o PM Peak: Deadhead trip approach IBC on SR-73 exit MacArthur Blvd, right turn on Michelson Dr, right on Jamboree Rd, and left on MacArthur Blvd to SR-73 to start southbound trip. Alignment 2: IBC/South Coast Metro

13 12 o o AM Peak: Northbound peak direction exit Macarthur Blvd, turn right on Jamboree Rd, left on Michelson Dr, and right on MacArthur Blvd to northbound I-405. From I-405 exit Anton Blvd and make one stop before starting southbound. Southbound non-peak from Anton Blvd turn left on Bristol St and continue to SR-73 for deadhead trip. PM Peak: Northbound non-peak direction exit SR-73 at Bristol St and travel north to right turn on Sunflower Ave, right on Avenue of the Arts, and right onto Anton Blvd and make one stop before starting southbound. Southbound peak direction from Anton Blvd turn left on Bristol St, take southbound I-405, exit MacArthur Blvd, turn left on Michelson Dr, right on Jamboree Rd, left on MacArthur Blvd to SR-73. Alternative alignment to avoid traffic on I- 405 using Main St to Sunflower to Anton Blvd. Service Level 1: 2 peak period trips. Span: 6AM to 8AM, 3PM to 5PM. Service Level2: 6 peak period trips for an approximate 30 minute peak direction frequency. Span: 6AM to 9AM, 3PM to 6PM. Recommended Alternative This route would provide peak-direction service from the Laguna Niguel/Mission Metrolink Station to the Irvine Business Complex and South Coast Metro employment centers. There would also be an intermediate stop in the Aliso Viejo Town Center area. This service would have two peak-direction trips in the AM & PM.

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15 14 Cost & Revenue This service would use the local fare. Intracounty Express on SR 73 YEAR 1 YEAR 2 YEAR 3 YEAR 4 Cost Operating Cost $107,000 $109,000 $113,000 $116,000 Marketing & Survey Costs $25,000 $0 $0 $0 Capital Costs $5,000 $0 $0 $0 Total Cost $137,000 $109,000 $113,000 $116,000 Revenue Fare Revenue $22,000 $28,000 $28,000 $28,000 Capital Revenue (5307) $0 $0 $38,000 $38,000 Total Revenue $22,000 $28,000 $66,000 $66,000 Ridership Projection At the end of the first year of service ridership is projected to be approximately 20,000 annual boardings. Resource Requirement Operation of this pilot project would require 2 peak vehicles. Marketing Plan The express service on SR-73 will be heavily commute-oriented and the marketing approach should match. Building awareness of the service will largely be accomplished through direct outreach to destinations on the route. Marketing staff should directly contact employers along the route and offer marketing materials. The materials provided should include information the employer can pass directly onto employees including posters, new schedules/maps, and digital formats to post on company websites. Marketing efforts should capitalize on OCTA s existing website and other internet-based information sharing platforms. Additional marketing efforts can include outreach to existing riders of Route 490 and Metrolink riders traveling to the IBC area. In addition, conducting a survey will aid in the evaluation of the pilot project, especially in understanding customer travel behavior and perceptions of the service. Project Schedule Work with City to determine PNR location in Aliso Viejo October 2013 start date

16 15 Route 70/90 Service Connection Improvement Purpose and Need Route 70 operates from Sunset Beach to Tustin via Edinger Avenue, connecting the core transit market areas of Santa Ana, Fountain Valley, and Westminster with the emerging core areas of Tustin and Irvine. Route 90 connects Tustin to Dana Point via Irvine Center/Moulton/Golden Lantern, providing important connections with Tustin and Irvine. While routes 70 and 90 currently connect at Tustin station, stop-bystop ridership analysis suggests a relocation of the transfer point further south would improve the travel experience for a significant number of riders. Existing ridership patterns suggest many riders who transfer between the routes have either recently boarded heading north or will alight soon after transferring heading south. Shifting the transfer point south to Irvine station would provide more one seat trips for customers connecting to and from the core market area. Additionally, reorienting the transfer point recognizes the intention to expand the role of transit in the Tustin and Irvine areas and will provide better connectivity to the core network for both residents and employees traveling between the two areas. Markets Served Existing riders on Routes 70 and 90 who currently transfer between the two routes. Alternatives Considered Two alignment alternatives were considered for the adjusted transfer point, while service levels remained unchanged from existing. Alignment 1 Irvine Station: Shift transfer point from Tustin Station to Irvine Station. o Route 70: from Tustin Station operate on Irvine Center Dr to Alton Pkwy to Ada to Irvine Station. o Route 90: North on Irvine Center to Alton Pkwy to Ada to Irvine Station. o Option to deviate into Irvine Spectrum via Spectrum. Alignment 2 Irvine Center & Bunsen: Shift transfer point from Tustin Station to Irvine Center Dr & Research Dr/Bunsen. o Route 70: from Tustin Station operate on Irvine Center Dr to left on Research Dr to right on Bunsen, layover here. o Route 90: Operate on Irvine Center to right on Research Dr to right on Bunsen, layover here.

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18 17 Recommended Alternative The route was split into 70 and 90 with a connection at Tustin Station. Ridership analysis and customer comments have indicated that the Irvine Spectrum area would be a better location for this connection to occur. In this change, Route 70 will be extended to Irvine Station and Route 90 will also end there. This will provide a better connection to Irvine Valley College and to Metrolink service at Irvine Station. Cost & Revenue This change can be made within the existing resources and budget. This service will continue to use the local fare. Ridership Projection The ridership impact of the shift of the transfer point for Routes 70/90 is estimated to be neutral. Resource Requirement Operation of this pilot project would not require additional vehicles. Marketing Plan Marketing the improved service connections between Routes 70 and 90 should focus more on education efforts for existing riders. Deploying printed materials on both routes and at impact stop locations will assist in raising customer awareness. Additionally, just prior to and immediately after the service change having staff on hand at both the new and old transfer points may assist in alleviating any customer confusion. Project Schedule October 2012 Start Date

19 18 Station Van Connections and Same Day Taxi Areas Purpose and Need Purpose and Needs As identified in the TSS Market Assessment findings, communities with low population and employment densities and a lack of major activity centers hinder the potential for successful, cost-effective regular transit services. The challenge is compounded by auto-centric node based development patterns which encourages automobile use over transit and other sustainable modes. In these communities traditional fixed-route transit does not provide a competitive or efficient travel option. The TSS Service Evaluation identified several poor performing local routes operating in environments not conducive to regular transit. The TSS recommended two cost-effective alternative service options, station/transit center based vanpools and same day taxi zones. By demonstrating the effectiveness of substituting lower cost service for more expensive fixed-route service in low performance areas, while still providing network connectivity in areas lacking sufficient residential origins or employment destinations to justify fixed route service, OCTA can work to better match service intensity to the demand for transit services. Markets Served Taxi: Riders on existing local routes Station Van: Employees currently traveling from a station or transit center to a place of employment with in the proposed zones Alternative to Discontinued Service A key element of the TSS was the replacement of underperforming service with lower cost service options, balancing service accessibility with financial effectiveness considerations. In order to realize the operating cost savings from the service substitution the existing underperforming services must be eliminated concurrently with the implementation of the lower cost replacements. A group of routes in the Rancho Santa Margarita, Aliso Viejo, Laguna Niguel, and Mission Viejo areas were selected as pilots to demonstrate the service substitution concept. The pilots may be implemented separately on a route by route basis or in groups. Potential Implementation Areas The following routes were identified as candidates for complete or partial replacement. For each route a replacement zones was developed to indicate the operational boundaries of the proposed pilot replacement services. Route 82: Eliminate service south to Saddleback College, The Shops at Mission Viejo, and the Laguna Niguel/Mission Viejo Metrolink station. Route would now serve Foothill Ranch Towne Center to Santa Margarita/Plano Trabuco via Santa Margarita.

20 19 Route 85: Eliminate service south of Alicia Pkwy & Crown Valley Pkwy to Dana Point. Route would now serve Portola Plaza to Alicia Pkwy & Crown Valley Pkwy via Marguerite and Crown Valley Pkwy. Route 87: Eliminate Service Route 187: Eliminate Service Route 490: Eliminate Service Description of Station Van Program The station vanpools will provide a tailored connection from key hubs and selected Metrolink stations to destinations where fixed route service is not viable. The proposed station vanpool is similar to regular ridesharing vanpools where the vans are driven by volunteer program participants with two differences: a) the vanpool originates and/or ends at a transit center or Metrolink Station; and b) the vanpool may allow for on-demand or occasional use. Station vans provide a more efficient, direct, and competitive method of serving dispersed, low intensity activity centers. Description of Same-Day Taxi Program The subsidized taxi replacement service will provide a set level of OCTA-funded subsidy per trip for customers traveling via private taxi services within a defined zone. As part of the arrangement OCTA would subsidize a portion of the customer s taxi trip, up to $5.00 per trip. The same day taxi program initiated as a cost savings strategy for ACCESS service has proven very successful, this pilot project proposes the targeted expansion of the program to the general public. Recommended Programs As part of the pilot projects, OCTA is developing a program for station vans which would be offered to riders of existing OCTA StationLink bus routes. In order to meet the productivity measures of the Guiding Principles, these routes would need to be eliminated or restructured when the new station vans were implemented. Offering the same-day taxi service prior to eliminating bus service also does not meet the productivity requirements in the Guiding Principles. This concept will should be further developed should any bus service reductions be necessary in the future. OCTA should continue to analyze any operational or policy issues prior to implementing this replacement service.

21 20 Cost & Revenue In order to realize the operating cost savings from the service substitution the existing underperforming services must be eliminated concurrently with the implementation of the lower cost replacements. Cost Station Van YEAR 1 YEAR 2 YEAR 3 YEAR 4 Operating Cost $120,000 $122,000 $127,000 $130,000 Marketing & Survey Costs $25,000 $25,000 $25,000 $0 Capital Costs $0 $0 $0 $0 Total Cost $145,000 $147,000 $152,000 $130,000 Revenue Fare Revenue TBD TBD TBD TBD Capital Revenue (5307) $0 $0 $12,000 $12,000 Total Revenue TBD TBD TBD TBD Marketing Plan Marketing efforts for both the station vans and same day taxi areas should be conducted in a highly focused manner to tailor the message to a specific market. For station vans direct marketing to employers in the proposed zones will best target the audience, including providing posters and digital format data to post on company websites. Marketing in same day taxi areas should focus solely on informing existing riders of the alternative service option available, and not marketing the service to new riders.

22 21 Key Performance Measure and Sunset Provisions With a renewed focus on service performance stemming from the Transit System Study, performance monitoring for the pilot projects will be key to ensuring successful implementation and evaluation. Key performance indicator targets and milestone dates will provide OCTA staff critical evaluation metrics for the pilot projects, while the sunset date ensures that underperforming service does not continue operation past the pilot phase. To ensure a consistent approach, all pilot projects will be held to the same key performance indicator targets, performance target milestone dates, and target sunset dates. By the end of the pilot period all service should positively contribute to overall system performance. Key Performance Indicator Targets Throughout the pilot period, each service s performance should be evaluated based on key performance indicators. Close monitoring of performance will provide greater opportunity to fine tune services during the implementation phase, evaluate performance, and provide key lessons learned at the conclusion of the pilot period. The ultimate target for each key performance indicator is meeting or exceeding the systemwide average. New services, including the pilot projects, should positively contribute to overall systemwide performance. As a point of reference existing system averages, as of January 2012, are provided below. Key Performance Indicator Targets Performance Indicator Existing Fixed Route Averages Boardings per revenue vehicle hour (Local) 34.4 (Local) Boardings per trip (Intracounty Express) 21.5 (Express) Boardings per trip (Intercounty Express) 15.1 (Express) Farebox recovery ratio 22.3% Subsidy per boarding $ 2.94 Performance Indicator Targets Composite Score A composite of the performance indicators will be employed to evaluate the overall performance of each pilot project. For each performance indicator a score will be assigned based on the percentage of the systemwide average it achieves, a score above 100% is permissible given higher than average performance. Following the scoring of each performance indicator an average composite score of all key indicators will be calculated. This average then becomes the overall score on which to evaluate the pilot project. The limited-stop service will be evaluated using the net change along the Harbor Blvd corridor. Performance Target Milestone Dates Immediate obtainment of the performance targets by a new service is not expected, rather the expectation of meeting the standard targets will be phased over the pilot period. Performance target milestone dates allow for the pilot service to gradually achieve the specified performance targets.

23 22 Six months: 50% average composite score One year: 75% average composite score Two years: 100% average composite score Target Sunset Dates A two tier approach for sunset dates is proposed with an initial review at the end of the first year and a final review at the end of two years. At the end of the two year pilot period the service must meet the key performance indicator targets. Throughout the pilot period OCTA staff will review service performance at least once per quarter using the key performance indicators. Year One Review At the end of the first year of the pilot project, OCTA staff should prepare a report to the board of directors outlining the service s performance and adherence to the performance targets during the prior year. Depending on the results of the performance review and the Authority s discretion several actions can be taken: Continue trial for the remaining year of the pilot period Take corrective action to address deficient service performance: o Service changes including adjustments to alignment, trip times, frequency, and stops o Additional/modified marketing approach o Conduct survey to screen for unseen flaw Eliminate service if performance is substantially underperforming Year Two Review By the end of the second year of the pilot period the service should meet all of the key performance indicator targets. After a second annual performance review the following actions can be taken: End pilot period and continue service as a full member of the system End pilot period and eliminate service Limited extension of pilot period given specific reason or extenuating circumstances Year Three Following the decision point at the end of the second year to continue or discontinue the pilot service, the third year may be used as a wind-down period to transition a discontinued service out of operation.

24 23 Operation Plan Operating Cost Calculation Methodology The costing process uses round trip running times, plus 15% layover to generate a cycle time for each time period, which in conjunction with the proposed frequency calculates the vehicle requirements and in turn the revenue hours. Revenue miles are derived using the total number of one-way trips and the one-way trip distances. The operating resource requirements were converted into operating costs by applying unit costs of $77.60 per revenue hour and $6.52 per revenue mile. The total operating cost is calculated using a weighted approach with revenue hours accounting for 70% of total operating cost and revenue miles accounting for 30% of total operating cost. The operating cost for Years 2, 3, & 4 were increased based on the projected CPI. Estimated Vehicle Requirements Pilot project estimated vehicle requirements were calculated based on roundtrip cycle time and proposed service frequency. Ridership and Revenue Estimation Approach The projected ridership represents the anticipated initial ridership based on existing ridership on comparable routes or origin-destination patterns. For a pilot project to be successful the initial projected ridership must grow into the performance target ridership. Estimated revenue was derived by applying an average local fare of $0.89 per boarding 4 to the ridership estimates for all pilot projects except Intercounty Express on SR-22 which used $2.90 per boarding. The revenue was increased by 25% in Years 2, 3, & 4 based on the proposed fare increase. Other Capital Costs Minor capital costs are anticipated as part of the pilot projects including costs related to stops, minor street modifications, and other physical infrastructure. As specific candidate pilot project scenarios are identified further refinement to the capital costs will occur. 4 OCTA Average Fare Data

25 24 Operating Cost Service YEAR 1 YEAR 2 YEAR 3 YEAR 4 Limited Stop Service on Harbor Boulevard $1,848,000 $1,879,000 $1,952,000 $2,003,000 Intercounty Express on SR 22 $539,000 $548,000 $569,000 $584,000 Intracounty Express on SR 73 $107,000 $109,000 $113,000 $116,000 Route 70/90 Service Connection Improvement $0 $0 $0 $0 Station Van $120,000 $122,000 $127,000 $130,000 Additional Street Supervision $100,000 $102,000 $106,000 $0 Total $2,714,000 $2,760,000 $2,867,000 $2,833,000 Marketing & Survey Costs Service YEAR 1 YEAR 2 YEAR 3 YEAR 4 Limited Stop Service on Harbor Boulevard $100,000 $100,000 $0 $0 Intercounty Express on SR 22 $50,000 $50,000 $0 $0 Intracounty Express on SR 73 $25,000 $0 $0 $0 Route 70/90 Service Connection Improvement $0 $0 $0 $0 Station Van $25,000 $25,000 $25,000 $0 Total $200,000 $175,000 $25,000 $ 0 Capital Costs Service YEAR 1 YEAR 2 YEAR 3 YEAR 4 Limited Stop Service on Harbor Boulevard $200,000 $0 $0 $0 Intercounty Express on SR 22 $5,000 $0 $0 $0 Intracounty Express on SR 73 $5,000 $0 $0 $0 Route 70/90 Service Connection Improvement $0 $0 $0 $0 Station Van $0 $0 $0 $0 Same-Day Taxi $0 $0 $0 $0 Total $210,000 $0 $0 $0 Total Cost $3,124,000 $2,935,000 $2,892,000 $2,833,000

26 25 Fare Revenue Service YEAR 1 YEAR 2 YEAR 3 YEAR 4 Limited Stop Service on Harbor Boulevard $753,000 $941,000 $941,000 $941,000 Intercounty Express on SR 22 $155,000 $194,000 $194,000 $194,000 Intracounty Express on SR 73 $22,000 $28,000 $28,000 $28,000 Route 70/90 Service Connection Improvement $0 $0 $0 $0 Station Van $0 $0 $0 $0 Total $930,000 $1,163,000 $1,163,000 $1,163,000 Funding Plan YEAR 1 YEAR 2 YEAR 3 YEAR 4 Net Cost $2,194,000 $1,772,000 $1,729,000 $1,670,000 CMAQ Funded $2,194,000 $1,772,000 $1,729,000 $0 CURE Funded (Station Van) $0 $0 $0 $130,000 OCTD Funded $0 $0 $0 $1,540,000 Total CMAQ Eligible Expenses (3 Year) $5,695,000 Additional FTA Capital Revenue (5307) Service YEAR 1 YEAR 2 YEAR 3 YEAR 4 Limited Stop Service on Harbor Boulevard $0 $0 $150,000 $150,000 Intercounty Express on SR 22 $0 $0 $349,000 $349,000 Intracounty Express on SR 73 $0 $0 $38,000 $38,000 Route 70/90 Service Connection Improvement $0 $0 $0 $0 Station Van $0 $0 $12,000 $12,000 Total $0 $0 $549,000 $549,000

27 Implementation Schedule 26