1 DEMAND RESPONSE OVERVIEW

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1 1 DEMAND RESPONSE OVERVIEW Forty-nine transit agencies in Ohio operate demand response service, not including demand response services operated as part of the transit service provided in conjunction with their Americans for Disabilities Act (ADA) program. This represents roughly 80% of the 62 transit agencies in Ohio 1. For purposes of the Ohio Statewide Transit Needs Study, the study team categorized the transit agencies operating demand response service first according to if 1) the agency operated demand response only; or 2) the agency operated both demand response and fixed route service. Within these groupings, systems were categorized by service area size (city only or countywide) and then by population density. In total there are five groupings (see also Figure 1-1): 1. City Oriented: Transit agencies that only operate demand response service and only primarily provide service within city limits. Six agencies are in this group. 2. Countywide Demand Response Only Small: Transit agencies that only operate demand response and operate service countywide. Small systems had service areas with relatively lower population density. There are 15 agencies in this category. 3. Countywide Demand Response Only Large: Transit agencies that only operate demand response and operate service countywide. Large systems had service areas with relatively higher population density. There are 10 systems in this group. 4. Demand Response with Fixed Route Services Small: Transit agencies that operate both fixed route and demand response. Small systems had service areas with relatively lower population density. Ten agencies are in this group. 5. Demand Response with Fixed Route Services Large: Transit agencies that operate both fixed route and demand response. Small systems had service areas with relatively lower population density. There are 8 systems in this group. As part of understanding how each agency provides demand response service, the study team considered several service characteristics including: Service and Ridership Trends Level and Type of Service Service and Cost Effectiveness and Efficiency Capital Resources/Fleet Management Funding Sources, including Fares A summary of the findings from this analysis is provided in the following section. More information is also available in the analyses of each of the system groups. 1 As of 2012 Nelson\Nygaard Consulting Associates Inc. 1-1

2 Figure 1-1: Transit Agencies Operating (non-ada) Demand Response Service by Category Agencies Operating Demand Response Services ONLY Agencies Operating Demand Response in addition to Fixed Route (includes Deviated Fixed Route) City Oriented (6) Countywide Small (15) Countywide Large (10) Small (10) Large (8) Ashland Public Transit Bowling Green Transit Greenville Transit System Logan Public Transit Marion Area Transit Wilmington Transit System Carroll County Transit Champaign Transit System Crawford County Council on Aging Public Transit Fayette County Transportation Harrison County Rural Transit Huron County Transit Transportation for Logan County Miami County Transit Monroe County Public Transportation Morgan County Public Transit Perry County Transit Pickaway Area Rural Transit Community Action Transit Systems (Pike County) Seneca County Area Transit Shelby Public Transit Community Action Rural Transit Systems (Columbiana County) Geauga County Transit Hancock Area Public Transit Services Lancaster Public Transit Systems Licking County Transit Ottawa County Transportation Agency Transportation Resources for Independent People of Sandusky County Access Scioto County Niles-Trumbull Transit Systems Warren County Transit Service Ashtabula County Transportation System Clermont Transportation Connection Delaware Area Transit Agency GreeneCATS Public Transit (Greene County) Knox Area Transit Tristate Transit Authority/ Ironton-Lawrence County Community Action Organization (Lawrence County) Lorain County Transit Medina County Public Transit Portage Area Regional Transit Authority Southeast Area Transit (Muskingum and Guernsey Counties) METRO Regional Transit Authority (Akron) Butler County Regional Transit Authority Chillicothe Transit System Laketran (Lake County) Lima/Allen County Regional Transit Authority Sandusky Transit Systems Toledo Area Regional Transit Authority Western Reserve Transit Authority (Mahoning County) Nelson\Nygaard Consulting Associates Inc. 1-2

3 TRENDS AND FINDINGS Service and Ridership Trends The data show that most transit agencies operating demand response service provided one hour or less of service per year (see Figure 1-2). The trend data show that the amount of service and the number of riders carried both grew and contracted over the five-year period between 2008 and In general, the group of larger systems added services, while the groups of smaller agencies decreased the amount of service provided. In general, agencies that added service also carried more riders. Figure 1-2: Service and Ridership Trends: Averages by Category (Demand Response Only) Annual Service Hours per Capita (2012) Change in Revenue Vehicle Hours ( ) Change in Ridership ( ) Agencies Operating Demand Response Services ONLY City Oriented (6) Countywide Small (15) Countywide Large (10) Agencies Operating Demand Response in addition to Fixed Route (includes Deviated Fixed Route) Small (10) Large (8) n/a n/a -6.0% -17% +28% -9%* +2% n/a +6% +10% -8%* +22% Source: Nelson\Nygaard adapted by data provided by ODOT *Note: Shows change for only. Level and Type of Service Most transit agencies operating demand response service make the service available to members of the general public. This was true for 48 of the 49 systems; one agency limited access to adults aged 62 or more and people with disabilities. All systems operate on weekdays during normal business hours. The amount of service available on weekday evenings and on weekend days is much more limited. In addition, only a handful of system all riders to make reservations on the same day they want to travel (same day reservations) and most of these systems are in the city oriented category. The majority of agencies offering demand response service have some sort of scheduling software. The average rates of trip denials by category range between.10% and 2.2%, which means on average only a very small handful of trips are being denied (see Figure 1-3). On average, most systems are also carrying members of the general public. On systems providing service within city limits, an average of 90% of all trips was made by members of the general public. On small systems where fixed route service is also available, the proportion is 50%. Nelson\Nygaard Consulting Associates Inc. 1-3

4 Figure 1-3: Average Rates of Trip Denials and General Public Ridership by Category Agencies Operating Demand Response Services ONLY City Oriented (6) Countywide Small (15) Countywide Large (10) Agencies Operating Demand Response in addition to Fixed Route (includes Deviated Fixed Route) Small (10) Large (8) Rate of Trip Denials.10% 0.4% 1.9% 2.2%* n/a Percentage of Service Provided to Members of the General Public 90% 70% 65% 50% 70% Source: Nelson\Nygaard adapted by data provided by ODOT * Represents partial data as not all systems in this category reported values Service and Cost Effectiveness and Efficiency Based on averages by agency category, demand response services in Ohio generally cost between $37.00 and $78.00 per hour. Systems that operate demand response service in addition to fixed route service have higher hourly costs as compared with systems that only operate demand response service. Systems operating in smaller and less dense service areas also, on average, have lower hourly costs. The average operating cost per passenger by category ranges between $13.00 and $30.00, with systems operating both demand response and fixed route service, reporting higher per passenger costs. In terms of riders carried per hour, the range for each category average is between 2.2 and 4.5. Demand response services operated within city boundaries on average carry the highest number of riders with 4.5, followed by large systems operating both fixed route and demand response service. Figure 1-4: Average Service and Cost Effectiveness and Efficiency by Category (rounded) 2012 Operating Cost per Revenue Vehicle Hour Operating Cost per Passenger Passengers per Vehicle Hour Agencies Operating Demand Response Services ONLY City Oriented (6) Source: Nelson\Nygaard adapted by data provided by ODOT Countywide Small (15) Countywide Large (10) Agencies Operating Demand Response in addition to Fixed Route (includes Deviated Fixed Route) Small (10) Large (8) $46.00 $37.00 $49.00 $62.00 $78.00 $13.00 $16.00 $23.00 $30.00 $ Nelson\Nygaard Consulting Associates Inc. 1-4

5 Capital Resources/Fleet Management Transit agencies operating demand response services have, on average by category, between 22% and 38% of their fleet beyond its useful life. The average number of road calls by agency varies between 0.6 and 4.3 (see Figure 1-5). Figure 1-5: Percentage of Fleet beyond Useful Life and Rate of Road calls per 100,000 miles Averages by Category Percent of Fleet Beyond Useful Life Road calls per 100,000 miles Agencies Operating Demand Response Services ONLY City Oriented (6) Source: Nelson\Nygaard adapted by data provided by ODOT Funding Sources, including Fares Countywide Small (15) Countywide Large (10) Agencies Operating Demand Response in addition to Fixed Route (includes Deviated Fixed Route) Small (10) Large (8) 38% 36% 25% 30% 22% Most transit services are funded through a combination of federal, local and state funds, plus fares, contracts, and other resources. Within this general formula, however, there is a lot of variation in how individual transit agencies use their resources. Within the variations, however, the data show: - Capital revenues are provided by federal and state resources. State funds do not support capital purchases. - Operating revenues are largely provided through a combination of federal and state revenues. - Operating revenues are also provided through local, farebox, and contract revenues. The amount each agency relies on these sources varies considerably. Some transit agencies rely heavily on contract revenue and others rely heavily on local revenues. - All agencies charge a fare to passengers using demand response service. Generally speaking, fares range between $1.00 and $6.00. Most agencies charge more for longer distance trips and most also offer discounts to older adults and persons with disabilities. - Averages by category show an average fare per rider between $1.60 and $4.90. Four of the five groupings reported averages between $1.60 and $2.24. This compares with the range of average cost per passenger by agency between $13.00 and $ Thus, generally speaking, fares account for between 5% and 10% of the cost of providing service. Nelson\Nygaard Consulting Associates Inc. 1-5

6 Figure 1-6: Average Fare per Rider by Category Agencies Operating Demand Response Services ONLY City Oriented (6) Countywide Small (15) Countywide Large (10) Agencies Operating Demand Response in addition to Fixed Route (includes Deviated Fixed Route) Small (10) Large (8) Average Fare Per Rider $1.66 $1.60 $1.76 $4.90 $2.25 Source: Nelson\Nygaard adapted by data provided by ODOT Nelson\Nygaard Consulting Associates Inc. 1-6

7 2 CITY ORIENTED DEMAND RESPONSE SYSTEMS Six of Ohio s transit agencies operate demand response within city limits (as opposed to countywide) with no other fixed route or deviated fixed route service. As part of an effort to understand the relative strengths and weaknesses of these types of service areas, the study team categorized the services by type and by size and analyzed the service characteristics of the subgroup. The analysis of service characteristics included several indicators, including quantitative and qualitative metrics, which are broadly grouped as: 1. Service and Ridership Trends 2. Level and Type of Service 3. Service and Cost Effectiveness and Efficiency 4. Fleet Management 5. Funding Sources In nearly every case, each group of metrics includes more than one measure that is designed to provide broad insights into how service could be improved and where investment may be warranted. Categorization of In City Systems Among the transit agencies operating only demand response service, most agencies operate service county-wide. There are only a handful of agencies (six) that limit service to travel within city limits; these six agencies were grouped together due to their smaller geographical service (see Figure 2-1). It is important to note that this categorization is a relative grouping, and thus is only a peer group within the context of Ohio s agencies. For the purpose of this analysis each transit system will be referred to in charts and tables by the name of the city in which it operates. The six systems include: Ashland Public Transit Ashland Bowling Green Transit Bowling Green Greenville Transit System Greenville Logan Public Transit Logan Marion Area Transit (MAT) - Marion Wilmington Transit System - Wilmington Although operating within a service area defined by city boundaries is the defining characteristic of this group, there are a lot of differences between agencies, including some that influence transit service and operations (see Figure 2-1). Logan and Marion stand out due to having relatively large Nelson\Nygaard Consulting Associates Inc. 2-1

8 service areas and lower densities. Marion and Wilmington both carry significantly more passengers annually than other systems in the group. Figure 2-1: Operating and Contextual Characteristics Defining Demand Response Only Operating in City Agency Annual Passenger Trips Annual Revenue Hours Annual Operating Budget Service Area Size (miles) Service Area Population Service Area Density (persons per square mile) Ashland 26,902 13,822 $564, ,249 2,388 Bowling Green 32,465 6,754 $570, ,028 2,381 Greenville 49,170 11,903 $444, ,187 2,198 Logan 14,822 4,814 $226, , Marion 193,312 21,296 $777, , Wilmington 131,513 35,404 $1,116, ,999 1,714 Service and Ridership Trends The study team reviewed the amount of service provided and the amount of service consumed (ridership). The analysis considers how service levels and ridership have changed over the past five years (2008 through 2012) and considers both change in service levels and ridership for the entire system. Total Revenue Vehicle Hours per Capita Total revenue vehicle hours per capita measure the amount of service available to the service area population or the amount of service available per person each year. The data reflect revenue vehicle hours for each system s total annual vehicle hours and population numbers are sourced from data reported by each system to ODOT in On average, the demand response services operating within city limits provided just less than one hour of service per person. This average is skewed by Wilmington, which provided 2.8 hours per capita in The remaining five agencies provided less than one hour per capita. Bowling Green provided the least amount of service per capita in 2012, 0.2 hours. Nelson\Nygaard Consulting Associates Inc. 2-2

9 Figure 2-2: Annual Revenue Vehicle Hours per Capita (Service Area Population) Annual Revenue Vehicle Hours per Capita Average Wilmington Greenville Ashland Marion Logan Bowling Green Revenue Vehicle Hours Five Year Trends Between 2008 and 2012 half of in city demand response systems added service and half decreased service. Greenville reduced service by the greatest degree, 35% over the five year period, largely due to a large service cut that occurred between 2008 and Logan increased service by almost 50%, after a small reduction between 2008 and 2009 was followed by steady increases in each year thereafter. Between 2008 and 2012 service provision by all agencies in this group combined decreased by 6%. Figure 2-3: Systemwide Revenue Vehicle Hours ( ) Annual Revenue Vehicle Hours 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Wilmington Marion Greenville Ashland Bowling Green Logan Nelson\Nygaard Consulting Associates Inc. 2-3

10 Ridership Five Year Trend All agencies except Greenville and Bowling Green increased ridership between 2008 and Ashland saw the largest percentage increase in ridership, 8%. Logan increase ridership by 4%, a much smaller change than the accompanying increase in service provision mentioned above. Despite a slight decrease in service provision Wilmington increased ridership. Figure 2-4: Five Year ( ) Trend in Systemwide Total Ridership Annual Passenger Boardings 250, , , ,000 50,000 Marion Wilmington Greenville Bowling Green Ashland Logan Level and Type of Service Demand response services can be provided in a number of ways. Agencies make strategic decisions about how to provide the service balancing the available resources with decisions about service area size, eligibility, hours of operation, and investment in technology. The following section describes how each agency in the group balances these service investments. Service Levels: Area Served, Eligibility, and Weekday Evening and Weekend Service All of the agencies in this group serve the general public. Service areas are focused on the city limits but some provide the flexibility to travel to destinations outside. None of the systems provide the full combination of evening, Saturday, and Sunday service, though several provide two of the three. Marion and Logan do not provide any evening or weekend service. All systems except Ashland and Greenville allow same day reservations, minimizing the degree to which trips need to be planned in advance. Nelson\Nygaard Consulting Associates Inc. 2-4

11 Figure 2-5: Demand Response Service Characteristics Agency Service Area Eligibility Ashland Bowling Green Greenville Logan Marion Wilmington Ashland city limits; some out of town Bowling Greene corporation limits Up to 5 miles outside Greenville city limits Logan city limits Up to 5 miles outside of Marion city limits Wilmington city limits; outside upon request General Public General Public General Public General Public General Public General Public Source: Nelson\Nygaard based on data collected from individual agency websites, January 2014 Percent of Trips Denials Weekday Evenings Saturday Sunday Same Day Reservation X X X X -- X -- X X X X -- X X X Trips denials are defined as a trip that cannot be scheduled within one hour of when it was requested (even if the trip happens at another time outside of the one hour window). This allows agencies to track their ability to provide service and also the degree to which there is a gap between the demand for service and amount of service available. Overall the city wide systems have a very low rate of trip denials; the average rate is 0.10% (one trip is denied for every 100 trips requested), with all but one agency falling below 0.05%. Bowling Green has a higher rate compared to other agencies in the group, at 0.35% (about 3.5 trips denied for every 100 requested). Figure 2-6: Percent of Trips Categorized as Trip Denials Percent of Trip Denials Average 0.40% 0.35% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 0.03% 0.02% 0.01% 0.01% 0.00% Bowling Green Logan Marion Greenville Wilmington Ashland Nelson\Nygaard Consulting Associates Inc. 2-5

12 Percent of Trips Made by General Public On average, 90% of the trips provided by city demand response systems are to the general public (see Figure 2-7). All systems except Bowling Greene provide some trips for agency clients, but the majority of the trips are made by members of general public. Greenville has the lowest percentage of general public riders, 79%. Figure 2-7: Percent of Demand Response Trips Made by General Public (Non-Contract) Riders Percent of Demand Response Trips Made by General Public Average 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100% 97% 93% 87% 85% 79% Bowling Green Wilmington Marion Ashland Logan Greenville Availability of Specific Technologies Nelson\Nygaard inventoried the availability of specific transit Intelligent Transportation Systems (ITS) technologies because the types and amounts of technology available impacts passenger service and system management. Automatic Vehicle Location Systems (AVL) and scheduling software were included in the evaluation (see Figure 2-8). Neither Bowling Green nor Greenville has scheduling software or AVL systems. Marion is the only system in the group with AVL. Figure 2-8: Availability of Specific ITS Technologies by System Agency Ashland Bowling Green Greenville Logan Automatic Vehicle Location Systems (GPS/AVL) Scheduling Software Marion X X Wilmington Source: Nelson\Nygaard based on interviews with transit agencies. X X Planned Nelson\Nygaard Consulting Associates Inc. 2-6

13 Service and Cost Effectiveness and Efficiency Service and cost effectiveness and efficiency compare service inputs, outputs and consumption in various ways. The performance data are then expressed in terms of three performance indicators commonly used in the transit industry, which can be categorized as follows: Cost efficiency. These indicators are the ratios of service inputs to service outputs and measure the efficiency of resource allocation within the agency. For demand response systems, cost efficiency is typically measured in terms of operating cost per revenue hour. Cost effectiveness. These indicators are the ratio of service inputs to service consumption and measure how well the service is utilized by the community. Cost effectiveness is measured in terms of operating cost per passenger. Service effectiveness. These indicators are the ratio of service consumption to service outputs and measure how well the capacity of service is being utilized by the consumer. Service effectiveness is measured in terms of passengers per revenue hour. The following section examines the relative performance for each variable of Ohio s systems operating demand response service as part of a larger system that includes fixed route service. This group of agencies was also identified as operating in relatively dense service areas. Cost Efficiency Operating Cost per Hour Demand response systems the typically measure cost efficiency in terms of the cost per revenue hour of service. The average cost per hour is $46.29, but costs vary between $31.53 (Wilmington) and $84.41 (Bowling Green). Bowling Green is considerably higher than all other systems, the next highest being Logan ($47.10). Figure 2-9: Operating Cost per Revenue Vehicle Hour Operating Cost per Vehicle Hour Average $90 $84.41 $80 $70 $60 $50 $47.10 $40.86 $40 $37.32 $36.51 $31.53 $30 $20 $10 $0 Bowling Green Logan Ashland Greenville Marion Wilmington Nelson\Nygaard Consulting Associates Inc. 2-7

14 Cost Effectiveness - Operating Cost per Passenger The average operating cost per passenger on demand response for this group of transit agencies is $ Three agencies (Ashland, Bowling Green, and Logan) fall above average, while costs estimated for Greenville and Wilmington is below the group average. Marion is the lowest by a wide margin with a cost per passenger of $4.02, which is less than one third of the average cost. Figure 2-10: Operating Cost per Passenger Operating Cost per Passenger Average $25 $20 $15 $20.99 $17.56 $15.30 $10 $9.03 $8.49 $5 $4.02 $0 Ashland Bowling Green Logan Greenville Wilmington Marion Service Effectiveness - Riders per Revenue Vehicle Hour For purposes of this analysis service effectiveness is measured as the number of riders carried per revenue vehicle hour. The average for the city wide demand response service is 4.5. Marion carries considerably more passengers per hour than the group average with 9.1 passengers per hour. Of the five remaining systems, four (Bowling Green, Greenville, Wilmington, and Logan) are close to the average. Ashland carries fewer (1.9) passengers per hour. Nelson\Nygaard Consulting Associates Inc. 2-8

15 Figure 2-11: Riders per Revenue Vehicle Hour Passengers per Vehicle Hour Average Fleet Management Marion Bowling Green Greenville Wilmington Logan Ashland A transit agency s fleet of vehicles or buses is a critical part of a transit system s ability to provide cost efficient and effective services. Fleet management is examined in terms of: Vehicles Beyond their Useful Life. The proportion of the fleet that is beyond what is considered its useful life, is measured by both the age of the vehicle and total miles driven. Useful life is a transit industry term defined by the Federal Transit Administration (FTA) and ODOT that reflects a combination of age and mileage. Road Calls. This measure reflects how often vehicles are having major maintenance issues while in service (e.g., breaking down while in service) and thus reflects both service reliability and overall fleet management. Percent of Bus Fleet beyond Useful Life Most demand response services operate with small vehicles, such as Light Transit Vehicles (LTVs) or cutaways, minivans and in some cases, sedans. These vehicles are significantly less expensive to purchase as compared with full sized buses, but also have much shorter useful lives and need to be replaced more frequently. This creates different challenges when compared with fixed route operators. In addition, most transit agencies have some portion of their fleet that would be defined as beyond their useful life. These vehicles may be used as spares; in many cases, agencies are waiting for capital funding to replace vehicles. On average, agencies have slightly more than a third (38%) of their fleet beyond their useful life. Two agencies (Ashland and Logan) reported more of their fleet is beyond its useful life. In contrast, Marion has a very new fleet with no vehicles beyond useful life. Nelson\Nygaard Consulting Associates Inc. 2-9

16 Figure 2-12: Percent of Bus Fleet Beyond Useful Life Percent of Bus Fleet Beyond Useful Life Average 60% 50% 56% 50% 40% 30% 38% 33% 29% 20% 10% 0% Ashland Logan Wilmington Greenville Bowling Green Marion Road Calls/Mechanical Failures per 100,000 Vehicle Miles Road calls or mechanical failures are typically measured in terms of miles driven, or in this case, the number of major mechanical failures per 100,000 vehicle revenue miles operated in The average rate of road calls for this group of agencies is 2.3 per 100,000 miles. Logan has the highest rate of road calls, with 7.2 per 100,000 miles followed by Marion with 4.8. All other agencies have less than one road call per 100,000 miles. Figure 2-13: Road Calls per 100K Miles 0% Road Calls per 100k Miles Average Logan Marion Wilmington Bowling Green Ashland Greenville Nelson\Nygaard Consulting Associates Inc. 2-10

17 Funding Sources As part of the comparative analysis, Nelson\Nygaard also considered funding sources, including both capital and the operating revenues. Also considered were the relative proportions of local, state, federal revenues as well as locally generated revenues including fares, contract revenue, and other sources, such as advertising. Each metric reflects systemwide revenues, inclusive of funding available for all modes. In addition, the evaluation also examined average fare per rider as an indicator of the how much riders pay to use the system. The data reflect information supplied by individual agencies to ODOT and describes the funding sources. Capital Revenue by Funding Source Each of the systems in this category reported the capital revenue sources from federal programs (80%) and local sources (20%) in The only exception was Wilmington, which had 18% local and 82% federal. State funding did not play a role in capital funding for these systems. Figure 2-14: Capital Revenue by Funding Source 100% 80% 60% 40% Federal State Local 20% 0% Ashland Bowling Green Greenville Logan Marion Wilmington Nelson\Nygaard Consulting Associates Inc. 2-11

18 Operating Revenue by Funding Source Sources of operating revenue varied considerably among the agencies in this subgroup. For all of them, however, federal funds represented the largest share of revenue, accounting for between 40% and 44% of all revenues. State funding was the next largest source, providing between 18% and 30% operating revenues. The remaining revenues were earned through a combination of contract revenue (most important for Logan) and farebox revenues, plus relatively small contributions from other sources. Figure 2-15: Operating Revenue by Funding Source 100% 80% 60% 40% 20% 0% Ashland Bowling Green Greenville Logan Marion Wilmington Federal State Other Contract Farebox Local Passenger Fares Demand response services are significantly more expensive to operate as compared with fixed route services. Accordingly, some agencies charge higher fares for the service. All fares in this group are between $1.25 and $3.50, and they all offer discounts for older adults and people with disabilities (except for Marion, which charges additional fare for trips that go beyond the city limits and also for door to door service). Figure 2-16: Adult One-Way (Base) Cash Fares by System (2012) Agency Elderly/Disabled Demand Response Ashland $1.50 $3.00 Bowling Green $1.75 $3.50 Greenville $1.50 $3.00 Logan $1.00 $2.00 Marion $ $2.50* $1.25 Wilmington $1.00 $2.00 Source: ODOT Status of Transit Database and individual agency websites, January 2014 Note: * Depends on service level Nelson\Nygaard Consulting Associates Inc. 2-12

19 Average Fare per Rider The average fare revenue per rider is $1.66. The lower revenue per rider reflects different discounts available to riders, including elderly/disabled fares, discounts for bulk purchases, such as monthly passes, among other discounts. Ashland has the highest fare revenue per rider, followed by Bowling Green. Marion earns the least amount of revenue per rider, at $0.51. Figure 2-17: Average Fare Revenue per Rider Fare Revenue per Passenger Average $3.00 $2.74 $2.50 $2.00 $1.86 $1.75 $1.72 $1.50 $1.35 $1.00 $0.50 $0.51 $0.00 Ashland Bowling Green Wilmington Greenville Logan Marion Nelson\Nygaard Consulting Associates Inc. 2-13

20 3 COUNTYWIDE DEMAND RESPONSE SERVICES SMALL SYSTEMS Twenty-five of Ohio s transit agencies operate demand response service countywide (as opposed to within city limits) with no other fixed route or deviated fixed route service. As part of an effort to understand the relative strengths and weaknesses of the individual services and agencies, the study team categorized all transit services in Ohio by type and by size and then considered the characteristics and productivity of each system within the context of system categories. This technical memo reports on systems that only operate demand response services and operate them countywide. This group focuses on systems identified as small systems. The analysis of service characteristics included several indicators, including quantitative and qualitative metrics, which are broadly grouped as: 1. Service and Ridership Trends 2. Level and Type of Service 3. Service and Cost Effectiveness and Efficiency 4. Fleet Management 5. Funding Sources In nearly every case, each group of metrics includes more than one measure. The analysis overall, is design to provide broad insights into how systems vary by category, consider how service may be improved, and where investment may be warranted. Categorization of Small Systems Based on the population density of each agency s service area, 15 of the 25 agencies operating only demand response service in Ohio were classified as small. It is important to note that this categorization is a relative grouping, and thus is only a peer group within the context of Ohio s agencies. The fifteen small systems include: Carroll County Carroll County Transit (CCT) Champaign County Champaign Transit System (CTS) Crawford County Crawford County Council on Aging Public Transit Fayette County Fayette County Transportation Harrison County Harrison County Rural Transit Huron County Huron County Transit Logan County Transportation for Logan County (TLC) Nelson\Nygaard Consulting Associates Inc. 3-1

21 Miami County Miami County Transit Monroe County Monroe County Public Transportation Morgan County Morgan County Public Transit Perry County Perry County Transit (PCT) Pickaway County Pickaway Area Rural Transit (PART) Pike County Community Action Transit System (CATS) Seneca County Seneca County Area Transit (SCAT) Shelby County Shelby Public Transit (SPT) Population density in these counties ranges between 33 and 120 persons per square mile (see Figure 3-1), which represents a more rural operating environment as compared with the demand response only systems classified as large. Most agencies operate in a geographical area of between 400 and 600 square miles, though Carroll County falls slightly below that range, and Miami County serves a much larger area (818 square miles). Annual passenger trips, revenue hours, and operating budgets also generally cluster with one or two outliers; however, in nearly every case the outliers for each variable are different (i.e. an agency with the largest service area population is not the same agency with the largest agency budget). Figure 3-1: Operating Characteristics of Small Demand Response Only Systems Operating Countywide Service Agency Annual Passenger Trips Annual Revenue Hours Annual Operating Budget Service Area Size (miles) Service Area Population Service Area Density (persons per square mile) Carroll County 34,700 10,890 $427, , Champaign County 27,246 14,263 $343, , Crawford County 29,167 12,936 $428, , Fayette County 30,586 12,893 $537, , Harrison County 23,480 18,458 $583, , Huron County 19,229 9,152 $342, , Logan County 19,579 12,011 $501, , Miami County 41,525 22,102 $984, , Monroe County 41,825 14,997 $306, , Morgan County 46,821 17,952 $707, , Perry County 53,530 32,851 $1,118, , Pickaway County 50,108 15,085 $609, , Pike County 30,021 10,471 $450, , Seneca County 74,533 28,296 $767, , Shelby County 41,543 12,020 $663, , Nelson\Nygaard Consulting Associates Inc. 3-2

22 Service and Ridership Trends The study team reviewed the amount of service provided (revenue hours) and the amount of service consumed (ridership). The analysis shows how service levels and ridership have changed over the past five years (2008 through 2012) and considers both change in service levels and ridership for the entire system. Total Revenue Vehicle Hours per Capita Total revenue vehicle hours per capita measure the amount of available relative to the service area population, or the underlying population (i.e. an average amount of service per person) (see Figure 3-2). The data shown reflect revenue vehicle hours for each system s total annual vehicle hours. Population numbers are sourced from data reported by each system to ODOT in On average, the small demand response only transit agencies provided about 0.5 service hours per person. Some systems, such as Morgan, Harrison, Perry, and Fayette County provide considerably more service, while six agencies offer 0.30 hours per person or less each year. Figure 3-2: Annual Revenue Vehicle Hours per Capita (Service Area Population) Annual Revenue Vehicle Hours per Capita Average Revenue Vehicle Hours Five Year Trend The total amount of demand response service hours provided across all 15 agencies between 2008 and 2012 decreased by 17% (see Figure 3-3). The overall loss in service hours is despite the fact that two-thirds of the agencies increased service levels over the same time period; seven agencies increasing service hours by 30% or more. The overall loss in service hours, however, reflects the fact that the three counties providing less service - Miami, Pickaway and Huron are among the largest agencies in terms of the amount of service provided. Each these agencies reduced their service hours by 18% or more. Nelson\Nygaard Consulting Associates Inc. 3-3

23 Figure 3-3: Systemwide Revenue Vehicle Hours ( ) Agency % Change ( 08-12) Morgan County 8,230 8,544 12,000 14,191 17, % Perry County 16,127 32,252 23,267 27,970 32, % Carroll County 7,373 7,507 8,380 8,446 10,890 48% Pike County 7,567 8,666 9,473 10,143 10,471 38% Monroe County 10,984 10,284 11,031 11,548 14,997 37% Harrison County 13,894 14,893 14,486 14,739 18,458 33% Seneca County 21,363 22,936 23,058 25,410 28,296 32% Logan County 11,232 11,917 10,795 10,984 12,011 7% Fayette County 12,574 9,596 8,735 11,549 12,893 3% Champaign County 13,926 14,534 15,031 13,864 14,263 2% Shelby County 12,254 12,594 11,657 11,168 12,020-2% Crawford County 13,392 13,835 13,744 13,990 12,936-3% Miami County 26,803 25,094 23,130 22,604 22,102-18% Pickaway County 19,743 19,329 19,375 16,760 15,085-24% Huron County 14,192 12,516 11,021 10,354 9,152-36% Small Demand Response Only Systems Operating Countywide Combined Change over 5 Year Period * -17% Ridership Five Year Trend Ridership on the small demand response only services increased between 2008 and 2012 by 6% (see Figure 3-4). This reflects seven agencies that increased their ridership and Morgan County, which more than tripled its ridership over the five year period. Seven agencies lost ridership between 2008 and Four agencies - Huron, Miami and Pickaway, Logan counties saw a decrease in ridership by 25%; three of these agencies (Miami, Pickaway and Huron) also provided significantly fewer service hours. Nelson\Nygaard Consulting Associates Inc. 3-4

24 Figure 3-4: Five Year ( ) Trend in Systemwide Total Ridership Agency % Change ( 08-12) Morgan County 15,098 20,992 36,935 39,100 46, % Perry County 30,592 39,644 52,797 47,624 53,530 75% Harrison County 13,970 13,492 14,097 17,873 23,480 68% Carroll County 26,648 32,845 35,236 29,357 34,700 30% Seneca County 62,027 64,960 73,066 60,993 74,533 20% Pike County 27,469 26,908 32,029 39,953 30,021 9% Monroe County 39,038 26,886 25,922 40,100 41,825 7% Crawford County 29,823 32,989 34,096 32,749 29,167-2% Fayette County 33,355 20,951 20,491 24,394 30,586-8% Shelby County 45,400 43,375 38,636 37,912 41,543-8% Champaign County 33,739 32,160 30,161 27,106 27,246-19% Huron County 25,523 24,101 22,293 19,760 19,229-25% Pickaway County 66,714 69,222 73,325 71,731 50,108-25% Miami County 55,603 45,891 59,302 52,438 41,525-25% Logan County 26,259 23,751 21,616 20,087 19,579-25% Small Demand Response Only Systems Operating Countywide Combined Change over 5 Year Period * 6% Level and Type of Service Demand response services can be provided in a number of ways and oriented towards different population groups or markets. As part of designing service, therefore, agencies make strategic decisions about how to operate service while balancing the available resources in terms of service area size, eligibility, hours of operation, and investment in technology. The following section describes how each agency in the group balances these service investments. Service Levels: Area Served, Eligibility, and Weekday Evening and Weekend Service One of the characteristics that define this group is the service area; all agencies in the category operate service countywide. Nearly all of the agencies also provide demand response service beyond the county boundaries. In most cases, the regional service is limited, either by trip purpose (medical only), geography (to certain communities), or by time (provided as scheduled shuttles) (see Figure 3-5). All of the services operated by agencies in this grouping offer service to the general public. Only one agency (Perry County) offers service on weekday evenings and four (Crawford, Miami, Perry, and Pike) offer Saturday service. None of the 15 agencies provide service on Sundays. In addition, only one agency (Carroll County) allows same day reservations; passengers using all other systems must schedule trips at least 24 hours in advance. Nelson\Nygaard Consulting Associates Inc. 3-5

25 Figure 3-5: Demand Response Service Characteristics Agency Carroll County Champaign County Crawford County Fayette County Harrison County Huron County Logan County Miami County Monroe County Morgan County Service Area (Beyond Countywide) Eligibility Weekday Evenings Saturday Sunday Same Day Reservation -- General Public X -- General Public General Public -- X General Public General Public To medical facilities only General Public Available on a limited basis General Public miles beyond countywide in Vandalia or Huber Heights General Public -- X General Public Marietta, Zanesville, New Lexington, Athens, and Columbus General Public Perry County -- General Public X X Pickaway County Pike County Seneca County Shelby County Shuttle to Columbus once per day, other out of county upon request Portsmouth, Chillicothe, and Columbus Metro Fostoria and other upon request General Public General Public -- X General Public Available upon request General Public Source: Nelson\Nygaard based on individual agency websites, January 2014 Percent of Trips Denials Trip denials refer to the percentage of requested trips that cannot be made because of capacity or other reasons. On average, the small demand response only agencies deny approximately 0.4% of all trips (i.e. if 1000 trips are requested, 4 will be denied). Several agencies have much lower denial rates, with four agencies (Pickaway, Perry, Monroe and Pike) not reporting any denials. Crawford County has the highest denial rate at 1.5%. Nelson\Nygaard Consulting Associates Inc. 3-6

26 Figure 3-6: Percent of Trips Categorized as Trip Denials Percent of Trip Denials Average 2.0% 1.5% 1.5% 1.0% 0.9% 0.8% 0.5% 0.5% 0.4% 0.4% 0.2% 0.2% 0.2% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% *Note: Data for Miami County was not available regarding trip denials because urban classified systems do not report this metric. Percent of Trips Made by General Public All of the agencies in this group provide service for the general public (i.e. the service is available to anyone). On average, roughly 68% of the trips are made by members of the general public. The proportion of general public riders is greater than the average at eight of the 15 agencies and significantly less at four agencies (Champaign, Logan, Morgan and Carroll). Trips not made by members of the public are typically associated with contracted service, usually provided for human or medical service programs. Figure 3-7: Percent of Demand Response Trips Made by General Public (Non-Contract) Riders 100% Percent of Demand Response Trips Made by General Public 94% 87% 84% 83% 82% 81% 81% 79% Average 80% 60% 73% 63% 59% 40% 43% 43% 37% 33% 20% 0% Nelson\Nygaard Consulting Associates Inc. 3-7

27 Availability of Specific Technologies Nelson\Nygaard inventoried the availability of specific transit Intelligent Transportation Systems (ITS) technologies because the types and amounts of technology available impacts passenger service and system management. For demand response only systems, the two most relevant technologies are assumed to be Automatic Vehicle Location (AVL) systems and scheduling software (see Figure 3-8). Scheduling software is widely used by the small demand response agencies; only Carroll, Crawford, Harrison, and Monroe counties do not have it. AVL systems, however, are less common with only three agencies (Huron, Morgan and Pickaway) reporting having AVL systems. Figure 3-8: Availability of Specific ITS Technologies by System Agency Automatic Vehicle Location Systems (GPS/AVL) Scheduling Software Carroll County Champaign County Crawford County Fayette County Harrison County Huron County X X Logan County Miami County Monroe County Morgan County X X Perry County Pickaway County X X Pike County Seneca County Shelby County Source: Nelson\Nygaard based on interviews with transit agencies. Service and Cost Effectiveness and Efficiency Service and cost effectiveness and efficiency compare service inputs, outputs, and consumption in various ways. The data are expressed in terms of three performance indicators commonly used in the transit industry, which can be categorized as follows: Cost efficiency. These indicators are the ratios of service inputs to service outputs, and measure the efficiency of resource allocation within the agency. For demand response systems, cost efficiency is typically measured in terms of operating cost per revenue hour. Cost effectiveness. These indicators are the ratio of service inputs to service consumption and measure how well the service is utilized by the community. Cost effectiveness is measured in terms of operating cost per passenger. X X X X X X X X Nelson\Nygaard Consulting Associates Inc. 3-8

28 Service effectiveness. These indicators are the ratio of service consumption to service outputs and measure how well the capacity of service is being utilized by the consumer. Service effectiveness is measured in terms of passengers per revenue hour. Cost Efficiency Operating Cost per Hour Demand response systems typically measure cost efficiency in terms of the cost per revenue hour of service. The average cost per revenue vehicle hour of service is roughly $37. Most of the hourly service costs as reported by the 15 agencies cluster around this average. The exceptions are Shelby County, which has a higher than average hourly operating cost ($55), and Monroe County, which has a lower than average hourly operating cost ($20). Figure 3-9: Operating Cost per Revenue Vehicle Hour $60 $50 $55 Operating Cost per Vehicle Hour $45 $43 $42 $42 $40 $39 $39 $37 Average $40 $30 $20 $10 $0 $34 $33 $32 $27 $24 $20 Cost Effectiveness - Operating Cost per Passenger The average operating cost per passenger as reported by small countywide demand response only systems is $ The majority of the systems reported costs per passengers within this range, with nine systems having a cost per passenger between $18 and $12. Four counties (Logan, Harrison, Miami and Perry) had higher operating costs per passenger and two (Seneca and Monroe) had lower operating costs per passenger. Nelson\Nygaard Consulting Associates Inc. 3-9

29 Figure 3-10: Operating Cost per Passenger Operating Cost per Passenger Average $30 $25 $26 $25 $24 $21 $20 $18 $18 $16 $15 $15 $15 $15 $13 $12 $12 $10 $10 $7 $5 $0 Service Effectiveness - Riders per Revenue Vehicle Hour On average, the small countywide demand response only systems carried just under 2.5 passengers per hour. Three systems (Shelby, Pickaway and Carroll County) carried more than three passengers per hour and three systems (Logan, Perry and Harrison) carried less than 1.9 passengers per hour (see Figure 3-11). Figure 3-11: Riders per Revenue Vehicle Hour Passengers per Vehicle Hour Average Nelson\Nygaard Consulting Associates Inc. 3-10

30 Fleet Management A transit agency s fleet of vehicles or buses is a critical part of a transit system s ability to provide cost efficient and effective services. Fleet management is examined in terms of: Vehicles Beyond their Useful Life. The proportion of the fleet that is beyond what is considered its useful life, is measured by both the age of the vehicle and total miles driven. Useful life is a transit industry term defined by the Federal Transit Administration (FTA) and ODOT that reflects a combination of age and mileage. Road Calls. This measure reflects how often vehicles are having major maintenance issues while in service (i.e., breaking down while in service), and thus reflects both service reliability and overall fleet management. Percent of Bus Fleet beyond Useful Life Most demand response services operate with small vehicles, such as Light Transit Vehicles (LTVs) or cutaways, minivans and in some cases, sedans. These vehicles are significantly less expensive to purchase as compared with full sized buses, but also have much shorter useful lives and need to be replaced more frequently. Most transit agencies have some portion of their fleet that would be defined as beyond their useful life. These vehicles may be used as spares; or may represent cases where agencies are waiting for capital funding to replace vehicles. The agencies in this classification, on average, reported about 36% of their fleet as being beyond their useful life and the majority of the systems clustered around this average. One agency (Champaign County) reported having a significantly greater portion of the fleet beyond its useful life (73%), while two agencies (Shelby and Morgan counties) reported having considerably lower than the average with 20% or less of their fleet beyond their useful life. Figure 3-12: Percent of Bus Fleet beyond Useful Life % Vehicles Beyond Useful Life Average 80% 70% 60% 50% 40% 30% 20% 10% 0% 73% 45% 43% 40% 39% 38% 36% 36% 35% 33% 33% 27% 27% 18% 13% Nelson\Nygaard Consulting Associates Inc. 3-11

31 Road Calls/Mechanical Failures per 100,000 Vehicle Miles Road calls or mechanical failures are typically measured in terms of miles driven, or in this case, the number of major mechanical failures per 100,000 vehicle revenue miles operated in While the average number of road calls per 100,000 vehicle revenue miles is about 0.6, the data show only four agencies (Perry, Miami, Seneca and Monroe) are close to the average. Seven agencies reported no road calls or mechanical failures and four (Pickaway, Logan, Morgan, and Harrison) reported significantly more road calls than the average. Pickaway County reported the highest number of road calls per 100,000 miles with 2.4. Figure 3-13: Road Calls per 100K Miles Road Calls per 100k Miles Average Funding Sources As part of the comparative analysis, Nelson\Nygaard considered funding sources, including both capital and the operating revenues and the relative proportions of local, state, federal revenues as well as locally generated revenues including fares, contract revenue and other sources, such as advertising. Each metric reflects systemwide revenues, inclusive of funding available for all modes. In addition, the evaluation also examined average fare per rider as an indicator of the how much riders pay to use the system. The data are based on information supplied by individual agencies to ODOT. Capital Revenue by Funding Source Generally speaking, the small, countywide demand response only systems have a capital funding formula where local sources account for approximately 20% of capital funding and federal sources contribute roughly 80%. Huron County and Perry County deviate from this with slightly higher proportions of local funding. State funding does not play a role funding capital expenditures for small demand response systems. Nelson\Nygaard Consulting Associates Inc. 3-12

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