TABLE OF CONTENTS. Section I Introduction... 1 Overview of the Transit System Section II Operator Compliance Requirements...

Transcription

1 April 2014

2 TABLE OF CONTENTS Section I... 1 Introduction... 1 Overview of the Transit System... 1 Section II... 6 Operator Compliance Requirements... 6 Section III Prior Triennial Performance Recommendations Section IV TDA Performance Indicators Section V Review of Operator Functions Operations Maintenance Planning Marketing General Administration and Management Section VI Findings Recommendations... 33

3 Section I Introduction California s Transportation Development Act (TDA) requires that a triennial performance audit be conducted of public transit entities that receive TDA revenues. The performance audit serves to ensure accountability in the use of public transportation revenue. The San Joaquin Council of Governments (SJCOG) engaged PMC to conduct the Transportation Development Act (TDA) triennial performance audit of the public transit operators under its jurisdiction in San Joaquin County. This performance audit is conducted for the City of Tracy transit services covering the most recent triennial period, fiscal years through The purpose of the performance audit is to evaluate the City s effectiveness and efficiency in its use of TDA funds to provide public transportation in its service area. This evaluation is required as a condition for continued receipt of these funds for public transportation purposes. In addition, the audit evaluates the City s compliance with the conditions specified in the California Public Utilities Code (PUC). This task involves ascertaining whether the City is meeting the PUC s reporting requirements. Moreover, the audit includes calculations of transit service performance indicators and a detailed review of the transit administrative functions. From the analysis that has been undertaken, a set of recommendations has been made which is intended to improve the performance of transit operations. In summary, this TDA audit affords the opportunity for an independent, constructive and objective evaluation of the organization and its operations that otherwise might not be available. The methodology for the audit included in-person interviews with management, collection and review of agency documents, data analysis, and on-site observations. The Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities published by the California Department of Transportation (Caltrans) was used to guide in the development and conduct of the audit. Overview of the Transit System The City of Tracy completed the City Transit Analysis and Action Plan in At that time, it was recommended by the consultant that the City change from the previous dial-a-ride (Tracy Transit) to a combined fixed-route and paratransit service. The City initiated a fixed-route service in December 2001 and a demand response service was introduced in January 2002 with reduced service hours. The former Tracy Transit services were discontinued. A phased implementation plan for the Tracer Paratransit taxi program started in September 2002 with a certification process, and in July 2003 the user portion of the taxi fare increased from 25 percent to 50 percent. Commuter routes were added in Since the 1998 report, the population of Tracy has grown substantially and the city limits have expanded. The 2000 U.S. Census found that the City of Tracy and environs surpassed the 50,000 mark in PMC - 1

4 population to become an urbanized area. As a result, Tracy became eligible for approximately $1 million in annual Federal Transit Administration (FTA) Section 5307 grant funding for transit in FY The transit service is administered by the City s Parks and Community Services and is operated by a private contractor. Located in southwestern San Joaquin County near the border with Alameda County, Tracy is the second largest city in the county. Based on the 2010 U.S. Census, Tracy s population was 82,922, which grew 45.7 percent since the 2000 U.S. Census. The senior citizen population, comprised of residents aged 65 and over is 6.9 percent. The 2013 population for Tracy is estimated to be 84,060 as reported by the State Department of Finance. The city covers a 22 square mile area. Historically, the city s development was derived from agriculture and transportation. In 1869, the Central Pacific Railroad completed a rail line through what would become Tracy. The railroad became a catalyst for growth and development. The city s proximity to the Bay Area and major highway corridors spurred major exurban residential growth during the 1980s and 1990s as well as attracted major distribution facilities. Major highways serving Tracy include Interstate 205 (I-205) and Business Route 205 (formerly U.S. Highway 50). I-205 is the main east-west highway connecting Tracy with Interstate 5 to the east and Interstate 580 (I-580) to the west. I-205 serves as an important conduit connecting the San Joaquin Valley with the Bay Area. The alignment of I-580 traverses Tracy to the southwest. Major arterial streets traversing Tracy include 11 th Street (Business Route 205), Grant Line Road, and Tracy Boulevard. System Characteristics The City s transit system comprises a fixed-route and demand response paratransit service branded under the name Tracer. In addition, the City subsidizes taxi service to supplement the paratransit service during after-hours. The service area encompasses the Tracy city limits as well as adjacent unincorporated areas such as Mountain House. The Tracer is supplemented by regional bus services provided by the San Joaquin Regional Transit District (SJRTD) intercity Route 797 and Hopper Route 90, which connect Tracy to Stockton. The Tracy Transit Station located on 6 th Street in Downtown Tracy serves as the main transit hub and base of operations. The West Valley Mall also serves as a key transfer point. The service does not operate on Sundays and the following observed holidays: New Year s Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Tracer Fixed-Route Service Tracer currently operates three fixed and two commuter routes. Three fixed routes operate Monday through Friday from approximately 7:00 a.m. to 7:00 p.m. and Saturday from 9:00 a.m. to 5:00 p.m. Fixed-route service runs on 60-minute frequencies. Route A and Route B buses are interlined at West Valley Mall, which allows for seamless transfers. The three commuter routes PMC - 2

5 operate as a tripper service for commuters and students with several weekday morning and afternoon trips. Table I-1 provides a summary of Tracer s routes and operations. Table I-1 Tracer Route System Route Number Frequency/Operation Destinations/Timepoints A Every minutes (Monday through Friday from 7:00 a.m. to 6:58 p.m.) Every 60 minutes (Saturday from 9:00 a.m. to 4:58 p.m.) Tracy Transit Station City Hall East Street at Grant Line Tracy Outlets Clover at Tracy Blvd West Valley Mall Wal-Mart B C D (Commuter) E (Commuter) F (Commuter) Every minutes (Monday through Friday from 6:00 a.m. to 6:58 p.m.) Every 60 minutes (Saturday from 9:00 a.m. to 4:58 p.m.) Every minutes (Monday through Friday from 6:30 a.m. to 6:58 p.m.) Every 60 minutes (Saturday from 9:00 a.m. to 4:58 p.m.) One Morning Trip/Three Afternoon Trips (Monday through Friday from 6:45 a.m. to 5:40 p.m.) One Morning Trip/Three Afternoon Trips (Monday through Friday from 7:00 a.m. to 4:40 p.m.) One Morning Trip/Three Afternoon Trips Tracy Transit Station Holly at 12 th Street Sutter Hospital Lowell & Corral Hollow Wal-Mart West Valley Mall Winco Tracy Transit Station City Hall & Senior Center 11 th Safeway Tracy Schulte Mac Arthur/Rite Aid Tracy Blvd. Raleys Schulte/Morris Phelps 11 McDonalds F Street Tracy Transit Station S. Central Ave at Schulte ACE Station Whispering Wind Sycamore Pkwy & Valpico Sutter Hospital Dr. Powers Park Tracy Transit Station City Hall & East Street Kavanagh High School Lowell Orchard Pkwy Dr. Powers Park Sutter Hospital Tracy Transit Station Schulte/Amoretto PMC - 3

6 Route Number Frequency/Operation Destinations/Timepoints (Monday through Friday from 6:50 a.m. to 5:05 p.m.) Hidden Lake Reids & Brookview Tracy Raley s City Hall & East Street City Senior Center Source: City of Tracy Dial-a-Ride Tracer provides curb-to-curb demand responsive paratransit service to seniors age 65 and older and persons who, because of a disability or health-related condition, cannot access the fixedroute service. All riders must be certified as eligible by the City of Tracy in accordance with the Americans with Disabilities Act (ADA) of Paratransit operates the same hours as the Tracer fixed-route service: Monday through Friday from approximately 7:00 a.m. to 7:00 p.m. and Saturday from 9:00 a.m. to 5:00 p.m. The service is available to the general public if trips originate from the unincorporated areas into the city. Same-day reservations are subject to a $0.75 surcharge. Trips can be scheduled up to one week in advance. Tracer Paratransit Taxi Service Tracer provides a subsidized paratransit taxi service to registered paratransit users during the non-operating hours for the Tracer paratransit service: Monday through Friday prior to 7:00 a.m. and after 7:00 p.m., Saturday prior to 9:00 a.m. and after 5:00 p.m., and all day on Sunday and certain holidays. Taxi scrip is available for purchase from the City s Finance Department at City Hall at a discounted rate of $10.00 for a ticket valued at $ Fares Tracy s transit fares are structured according to service type, passenger category, and fare media. The age requirement for the senior fare was increased from 60 to 65 effective February In addition, a fare increase was adopted in July Passes available for purchase are for daily, weekly, and 10-ride trips. Tracer does not offer a monthly pass program. Table I-2 provides a summary of Tracer s fares and payment media. Table I-2 Tracer Fare Schedule Fares (Prior to July 2010) Fares (Effective July 2010) Fixed Route Adult $1.00 $1.25 Student $0.75 $1.00 Senior (Age 65 and older), Disabled, ADA, Medicare $0.50 $0.50 ADA Attendant Free Free PMC - 4

7 Fares (Prior to July 2010) Fares (Effective July 2010) Fixed Route Child (Age 6 and under with adult) Free Free Demand Response Senior (Age 65 and older) $1.25 $1.50 Disabled/ADA/Medicare $1.25 $1.50 ADA Attendant with an ADA Certified Passenger Free Free General Public and Unincorporated Areas, Guests $1.25 $1.75 Same Day Appointment Surcharge $0.50 $0.75 Passes Fixed Route Day Pass Adult $2.50 $3.00 Day Pass Student $2.00 $2.50 Day Pass Senior (Age 65 and older), Disabled, ADA, Medicare $1.25 $ ride Ticket or Weekly Pass Adult $10.00 $ ride Ticket or Weekly Pass Student $7.50 $ ride Ticket or Weekly Pass Senior (Age 60+), Disabled, ADA, Medicare $5.00 $5.00 Source: City of Tracy *Note: Fares for seniors effective February 2010, must be age 65+. Fleet Tracer has 15 active vehicles in its total revenue fleet. Eight vehicles are used for demand response service, while seven vehicles are used for fixed-route service. All vehicles in the fleet are lift-equipped and conform to the requirements of the ADA. In addition, ten vehicles are powered by compressed natural gas (CNG). Table I-3 summarizes the vehicle fleet for all revenue services. Table I-3 Tracy Transit Fleet Inventory Year Make/Model Quantity Fuel Type Service Mode Seating Capacity 2002 Ford E450 Cutaway 2 CNG Demand Response 15 (2 W/C) 2002 Ford E450 Cutaway 1 CNG Fixed-Route 15 (2 W/C) 2004 Freightliner MST II 4 CNG Fixed-Route 33 (2 W/C) 2004 Ford E450 Cutaway 1 CNG Demand Response 15 (2 W/C) 2006 Freightliner MST II 2 CNG Fixed-Route 33 (2 W/C) 2010 Chevy Arboc Cutaway 3 Hybrid/Gas Demand Response 17 (3 W/C) 2010 Dodge Entervan 2 Gas Demand Response 4 (2 W/C) Total 15 Source: City of Tracy PMC - 5

8 Section II Operator Compliance Requirements This section of the audit report contains the analysis of Tracy s ability to comply with state requirements for continued receipt of TDA funds. The evaluation uses the guidebook, Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Agencies, September 2008 (third edition), which was developed by the Department of Transportation (Caltrans) to assess transit operators. The guidebook contains a checklist of eleven measures taken from relevant sections of the Public Utilities Code and the California Code of Regulations. Each of these requirements is discussed in the table below, including a description of the system s efforts to comply with the requirements. In addition, the findings from the compliance review are described in the text following the table. Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts The transit operator submitted annual reports to the RTPA based upon the Uniform System of Accounts and Records established by the State Controller. Report is due 90 days after end of fiscal year (Sept. 28/29), or 110 days (Oct. 19/20) if filed electronically (Internet). Public Utilities Code, Section Completion/submittal dates: FY 2010: October 12, 2010 FY 2011: October 13, 2011 FY 2012: December 3, 2012 The FY 2012 Transit Operator Financial Transactions Reports were submitted to the State Controller beyond the 90/110 days after the end of the fiscal year. Reports were filed electronically Conclusion: Partial Compliance. The operator has submitted annual fiscal and compliance audits to the RTPA and to the State Controller within 180 days following the end of the fiscal year (Dec. 27), or has received the appropriate 90- Public Utilities Code, Section Completion/submittal dates: FY 2010: March 31, 2011 FY 2011: July 27, 2012 FY 2012: March 25, 2013 The FY 2011 fiscal & compliance PMC - 6

9 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts day extension by the RTPA allowed by law. audit was submitted after 180 days following the end of the fiscal year and beyond the 90- day extension period. Conclusion: Partial Compliance. 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. The operator s claim for TDA funds is submitted in compliance with rules and regulations adopted by the RTPA for such claims. Public Utilities Code, Section B Public Utilities Code, Section The City of Tracy, through its contract operator, participates in the CHP Transit Operator Compliance Program in which the CHP has conducted inspections within the 13 months prior to each TDA claim. Inspections were conducted at the City Corporation Yard located at 520 Tracy Boulevard: Inspection dates applicable to the audit period were August 3, 2009; May 20, 2010; August 25, 2010; December 7 & 8, 2010; and September 14, Inspections were found to be satisfactory. Conclusion: Complied. As a condition of approval, the City of Tracy s annual claims for Local Transportation Funds and State Transit Assistance are submitted in compliance with the rules and regulations adopted by SJCOG. PMC - 7

10 Operator Compliance Requirements Table II-1 Operator Compliance Requirements Matrix Reference Compliance Efforts Conclusion: Complied. If an operator serves urbanized and non-urbanized areas, it has maintained a ratio of fare revenues to operating costs at least equal to the ratio determined by the rules and regulations adopted by the RTPA. Public Utilities Code, Section As a contracted transit service provider under Article 8, the City of Tracy is subject to a twostep process adopted by SJCOG [permitted under PUC 99405(c)]. The first is that TDA funds make up no more than 90 percent of total operating funds minus depreciation. The second is to maintain certain performance measure objectives. The FY 2010 objective was to maintain an operating cost per passenger at or below a standard calculated by SJCOG. The objectives for subsequent fiscal years is to maintain a cost per revenue hour and subsidy per passenger at or below a standard calculated by SJCOG as well as maintain the number of passengers per revenue hour at or above a standard calculated by SJCOG. 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 Public Utilities Code, Section Conclusion: Not Applicable. Percentage increase in Tracy s transit operating budget: FY 2010: +8.9% FY 2011: -4.8% FY 2012: +1.3% Source: City of Tracy Transit PMC - 8

11 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts facilities unless the operator has reasonably supported and Operations Budget for FYs substantiated the change(s). Conclusion: Complied. The operator s definitions of performance measures are consistent with Public Utilities Code Section 99247, including (a) operating cost, (b) operating cost per passenger, (c) operating cost per vehicle service hour, (d) passengers per vehicle service hour, (e) passengers per vehicle service mile, (f) total passengers, (g) transit vehicle, (h) vehicle service hours, (i) vehicle service miles, and (j) vehicle service hours per employee. If the operator serves an urbanized area, it has maintained a ratio of fare revenues to operating costs at least equal to one-fifth (20 percent), unless it is in a county with a population of less than 500,000, in which case it must maintain a ratio of fare revenues to operating costs of at least equal to Public Utilities Code, Section Public Utilities Code, Sections , , , The City of Tracy s definition of performance is consistent with Public Utilities Code Section A review of monthly reports from the contract operator during the audit period indicates that correct performance data are being collected. Full Time Equivalents (FTEs) are shown in the State Controller Reports as headcount, rather than the FTE definition of 2,000 hours per employee. FTEs are generally lower than headcount with the presence of part time employees and/or city staff who contribute partially to transit. Conclusion: Partial Compliance. As Tracy s transit system is not subject to the farebox recovery ratio, this requirement is not applicable. However, as a test of the system s farebox ratios as an urban transit service, the following calculations are made using audited data: FY 2010: 6.71% FY 2011: 6.25% PMC - 9

12 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts three-twentieths (15 percent), FY 2012: 5.33% if so determined by the RTPA. The farebox ratios shown were extrapolated by dividing fare revenues by operating expense minus depreciation and exemptions. The annual fiscal audits do not contain a confirmation of actual farebox ratios. As described earlier in this matrix, the City of Tracy is subject to a two-step process adopted by SJCOG [permitted under PUC 99405(c)]. The performance measure objectives do not include the farebox recovery ratio. A separate table is provided after this matrix that shows the performance objectives. Conclusion: Not applicable. If the operator serves a rural area, or provides exclusive services to elderly and disabled persons, it has maintained a ratio of fare revenues to operating costs at least equal to one-tenth (10 percent). The current cost of the operator s retirement system is fully funded with respect to Public Utilities Code, Sections , , Public Utilities Code, Section As described earlier in this matrix, the City of Tracy is subject to a two-step process adopted by SJCOG [permitted under PUC 99405(c)]. The performance measure objectives do not include the farebox recovery ratio. Conclusion: Not Applicable. To be eligible for TDA funds, the annual TDA claims form requires a sign-off from the PMC - 10

13 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Requirements the officers and employees of its public transportation system, or the operator is implementing a plan approved by the RTPA which will fully fund the retirement system within 40 years. Compliance Efforts transit claimant to comply with standard assurances, one of which is that the City of Tracy s retirement system is funded. The City contracts with a private operator, MV Transportation, while the City staff s retirement is funded through the California Public Employees Retirement System (CalPERS). Conclusion: Complied. If the operator receives state transit assistance funds, the operator makes full use of funds available to it under the Urban Mass Transportation Act of 1964 before TDA claims are granted. California Code of Regulations, Section 6754(a)(3) As a recipient of State Transit Assistance Funds, the City of Tracy is making full use of federal funds available under the Urban Mass Transportation Act of 1964 as amended. FY 2010: $ 811,112 FY 2011: $1,364,950 FY 2012: $ 956,364 Source: State Controller Reports Conclusion: Complied. PMC - 11

14 Performance Objectives Table II-2 provides the performance objectives for Article 8 claimants in lieu of the farebox recovery ratio. The performance objective for FY 2010 is based on operating cost per passenger. For the subsequent years, performance objectives are cost per revenue hour, passengers per revenue hour, and subsidy per passenger. Tracy must meet at least 2 out 3 objectives. The performance standards for each year are compared against the calculation of actual standards attained in the annual financial audit. Certain cost exclusions and exemptions are included in the calculations. Table II-2 Tracy Performance Objectives FY 2010 FY 2011 FY 2012 Total Operating Costs $1,561,695 $2,291,171 $2,435,632 Less TDA Eligible Exclusions Depreciation $263,048 $839,037 $917,471 Net TDA Operating Costs $1,298,647 $1,452,134 $1,518,161 Revenue Hours n/a 19,801 20,191 Passengers 115,801 94, ,645 Fare Revenue n/a $90,703 $80,893 Federal Operating Revenue n/a $778,096 $741,554 Local Operating Revenue (Measure K etal) n/a $50,256 $0 Total Revenues n/a $919,055 $822,447 Performance Measures: Objective Objective Objective Cost per Revenue Hour n/a $73.34 $48.63 $75.19 $52.68 Met Objective? No No Passenger per Revenue Hour n/a Met Objective? No No Subsidy per Passenger n/a $5.64 $1.28 $6.35 $1.35 Met Objective? No No Operating Cost per Passenger $11.21 $10.65 n/a n/a Met Objective? Source: City of Tracy TDA Audited Financial Statements No PMC - 12

15 Findings and Observations from Operator Compliance Requirements Matrix 1. Of the compliance requirements pertaining to Tracy, the operator fully complied with five of the eight requirements. The City was in partial compliance with the timely submittal of its Transit Operator Financial Transactions Reports to the State Controller, annual fiscal and compliance audits and the accurate calculation of FTEs. Three additional compliance requirements did not apply to Tracy (e.g. farebox recovery ratios). 2. As a contracted transit service provider, the City of Tracy is required to meet a two-step process adopted by SJCOG. The first is that TDA funds make up no more than 90 percent of total operating funds minus depreciation. This is verified in the annual financial audits. The second is to maintain a series of performance objectives in lieu of meeting the minimum farebox ratio requirement. The Tracy transit system did not meet the cost per passenger objective in FY 2010 as determined by the financial audit. During FY 2011 and FY 2012, Tracy did not meet any of the three performance objectives, which were cost per revenue hour, passengers per revenue hour, and subsidy per passenger. 3. The City of Tracy participates in the CHP Transit Operator Compliance Program and received vehicle inspections within the 13 months prior to each TDA claim. Satisfactory ratings were made for all inspections conducted during the audit period. 4. The operating budget exhibited modest fluctuations during the audit period. The budget increased 8.9 percent in FY 2010 and 1.3 percent in FY In contrast, the FY 2011 budget decreased 4.8 percent. PMC - 13

16 Section III Prior Triennial Performance Recommendations The City of Tracy s efforts to implement the recommendations made in the prior triennial audit are examined in this section of the report. For this purpose, each prior recommendation for the agency is described, followed by a discussion of Tracy s efforts to implement the recommendation. Conclusions concerning the extent to which the recommendations have been adopted by the agency are then presented. Prior Recommendation 1 Include year-to-date roadcalls in the monthly management report. Actions taken by the City of Tracy The prior audit found that the contractor s monthly management report did not provide yearto-date roadcall data. Roadcalls were reported by the contractor on a month by month basis. This recommendation suggested that roadcalls be added to the monthly management report that summarizes key performance for the current month, current quarter, and year-to-date. Although the contractor does track such data, year-to-date roadcalls are reported separately in the manual updates spreadsheet of the monthly report. It is suggested that this data be reported in the monthly management report summary page. Conclusion This recommendation has been partially implemented and is carried forward for full implementation. Prior Recommendation 2 Develop a no-show and cancellation policy. Actions taken by the City of Tracy It was suggested that the City develop a no-show and cancellation policy that will serve to clarify and inform the paratransit riders about the rules for cancelling a scheduled trip and the potential consequences for repeated no-shows. The City has since developed and adopted such a policy. The policy stipulates that if a rider is a No-Show for three times over the course of a year, that rider would be subject to suspension for 30 days. Letters are sent out to violators. Riders who have not cancelled their trip at least 2 hours in advance are considered No-Shows. In addition, if a rider is not ready within the 5 minute window of their scheduled pick-up time PMC - 14

17 would also be considered a No-Show. The No-Show policy is printed on the Tracer Paratransit brochure. The RouteMatch dispatching and scheduling software tracks and identifies No-Shows. Conclusion This recommendation has been implemented. Prior Recommendation 3 Improve reporting of financial operations data in the State Controller Report. Actions taken by the City of Tracy In a review between the State Controller Report and TDA fiscal audit, the prior audit found that there were significant differences in operating costs. The operating costs by mode (fixed route and specialized service) in the State Controller Report did not add up to the systemwide totals shown in the fiscal audits. It was suggested that the City employ greater financial controls over the reporting of costs and fare revenues including properly reporting fares between modes and working with the TDA fiscal auditor to ensure consistent application of operating costs. Data reported in the Transit Operators Financial Transactions Report submitted to the State Controller is cross-checked with the data reported in the annual fiscal and compliance audits. Conclusion This recommendation has been implemented. PMC - 15

18 Section IV TDA Performance Indicators This section reviews Tracy s performance in providing transit service to the community in an efficient and effective manner. TDA requires that at least five specific performance indicators be reported, which are contained in the following tables. Farebox is not one of the five specific indicators, but provides another important gauge of performance. Therefore, farebox calculation is also included although it is not used as a compliance measure for TDA funding per SJCOG s evaluation criteria for Article 8 transit claimants. Two additional performance indicators, operating cost per mile and average fare per passenger, are included as well. Findings from the analysis are contained in the section following the tables. Tables IV-1 through IV-3 provide the performance indicators for Tracy systemwide, fixed route and Dial-a-Ride. Charts are also provided to depict the trends in the indicators. It is noted that the systemwide operating costs and fare revenues are based on audited figures, while fixed route and dial-a-ride costs and fare revenues are unaudited. The annual fiscal audits do not provide a modal breakdown. PMC - 16

19 Table IV-1 Tracy TDA Performance Indicators Systemwide Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $876,897 $1,298,647 $1,452,134 $1,518, % Total Passengers 122, ,801 94, , % Vehicle Service Hours 18,981 19,004 19,801 20, % Vehicle Service Miles 234, , , , % Employee FTE's % Passenger Fares $93,962 $87,086 $90,703 $80, % Operating Cost per Passenger $7.13 $11.21 $15.35 $ % Operating Cost per Vehicle Service Hour $46.20 $68.34 $73.34 $ % Operating Cost per Vehicle Service Mile $3.74 $5.44 $6.38 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, % Average Fare per Passenger $0.76 $0.75 $0.96 $ % Fare Recovery Ratio 10.72% 6.71% 6.25% 5.33% -50.3% Source: Annual Fiscal & Compliance Audits; State Controller's Reports PMC - 17

20 Table IV-2 Tracy TDA Performance Indicators Fixed Route Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $1,171,538 $1,242,463 $1,373,403 $1,451, % Total Passengers 97,424 92,536 74,006 91, % Vehicle Service Hours 12,043 11,974 12,909 12, % Vehicle Service Miles 154, , , , % Employee FTE's % Passenger Fares $53,634 $49,515 $55,983 $48, % Operating Cost per Passenger $12.03 $13.43 $18.56 $ % Operating Cost per Vehicle Service Hour $97.28 $ $ $ % Operating Cost per Vehicle Service Mile $7.56 $7.85 $9.02 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, % Average Fare per Passenger $0.55 $0.54 $0.76 $ % Fare Recovery Ratio 4.58% 3.99% 4.08% 3.34% -27.0% Source: State Controller's Reports PMC - 18

21 Table IV-3 Tracy TDA Performance Indicators Dial-a-Ride Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $207,951 $219,258 $242,365 $257, % Total Passengers 25,514 23,265 20,593 17, % Vehicle Service Hours 6,938 7,030 6,892 7, % Vehicle Service Miles 79,551 80,699 75,459 77, % Employee FTE's % Passenger Fares $40,328 $37,572 $34,720 $32, % Operating Cost per Passenger $8.15 $9.42 $11.77 $ % Operating Cost per Vehicle Service Hour $29.97 $31.19 $35.17 $ % Operating Cost per Vehicle Service Mile $2.61 $2.72 $3.21 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, % Average Fare per Passenger $1.58 $1.61 $1.69 $ % Fare Recovery Ratio 19.39% 17.14% 14.33% 12.61% -35.0% Source: State Controller's Reports PMC - 19

22 Graph IV-1 Operating Costs Systemwide, Fixed Route & Dial-a-Ride Note: Systemwide costs are audited cost, while modal costs are unaudited. Graph IV-2 Ridership Systemwide, Fixed Route & Dial-a-Ride PMC - 20

23 Graph IV-3 Operating Cost Per Passenger Systemwide, Fixed Route & Dial-a-Ride Note: Systemwide costs are audited cost, while modal costs are unaudited. Graph IV-4 Operating Cost Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride PMC - 21

24 Graph IV-5 Passengers Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride Graph IV-6 Fare Recovery Ratio Systemwide, Fixed Route & Dial-a-Ride Note: Systemwide costs are audited cost, while modal costs are unaudited. PMC - 22

25 Findings from Verification of TDA Performance Indicators 1. Operating costs systemwide increased 73.1 percent over the past three years based on audited data from the FY 2009 base year through FY Fixed route operating costs increased 29.3 percent during the audit period while Dial-a-Ride operating costs increased by 23.6 percent based on unaudited data. 2. Ridership decreased 10.8 percent systemwide during the audit period. Fixed route ridership decreased 5.9 percent whereas Dial-a-Ride ridership decreased 29.7 percent. From FY 2010 to FY 2011, systemwide ridership decreased 18.3 percent before rebounding 15.9 percent in FY The decline in ridership was attributed to the fare increase implemented in July The provision of revenue hours and miles exhibited mixed trends systemwide as well as at the modal level. Fixed route revenue hours increased 7.0 percent whereas revenue service miles decreased 3.8 percent. Likewise, Dial-a-Ride revenue hours increased 5.3 percent whereas revenue miles decreased 2.3 percent. Systemwide, vehicle service hours increased 6.4 percent and vehicle service miles decreased 3.3 percent. 4. Operating cost per passenger, an indicator of cost effectiveness, increased 94.1 percent systemwide. Cost per passenger increased 31.6 percent on fixed route and increased 75.8 percent on Dial-a-Ride. The trend for this indicator reflects the increase in operating costs when compared to the decrease in passenger trips. 5. Operating cost per hour, an indicator of cost efficiency, increased 62.8 percent systemwide. The indicator exhibited a smaller increase on the fixed route of 15.8 percent as well as Dial-a-Ride, which saw its cost per hour increase 17.4 percent. The trends in this indicator reflect the higher increases in operating costs compared to the increases in service hours over the audit period. 6. Passengers per vehicle service hour, which measures the effectiveness of the service delivered, exhibited a decrease of 16.2 percent systemwide. The number of passengers per hour on the fixed route decreased by 12.0 percent. In contrast, passengers per hour on Dial-a-Ride exhibited a 33.2 percent decrease. Systemwide, the number of passengers per service hour decreased from 6.5 passengers in FY 2009 to 5.4 passengers in FY The fare recovery ratio over the past three years decreased systemwide due to the notable decline in passenger trips. The systemwide farebox ratio decreased 50.3 percent. On the modal level, farebox for fixed route decreased 27.0 percent while the Dial-a-Ride farebox recovery decreased 35.0 percent. For fixed-route, passenger fare revenues declined 9.6 percent and for Dial-a-Ride fare revenue declined 19.6 percent. Systemwide, passenger fare revenues decreased 13.9 percent based on audited data. PMC - 23

26 Section V Review of Operator Functions This section provides an in-depth review of various functions within the City of Tracy. The review highlights accomplishments, issues and/or challenges that were determined during the audit period. The following functions were reviewed at the Tracy Transit Station: Operations Maintenance Planning Marketing General Administration and Management Within some departments are sub-functions that require review as well, such as Grants Administration that falls under General Administration. Operations The City of Tracy administers public fixed-route and paratransit as well as subsidized taxi service to supplement the paratransit service during after-hours. Tracy s transit system underwent a series of adjustments in response to the local economic climate and increased demand. Ridership on the Tracer dropped significantly after the implementation of a fare increase in July The adult base fare was increased from $1.00 per trip to $1.25 per trip. There was also a $0.25 per trip increase in the student fare category. The fixed-route service, operating under the name Tracer, consists of three regular routes and three commuter routes. Commuter routes run primarily during the morning and afternoon peak hours and serve area schools and the Altamont Corridor Express (ACE) station. The City amended its taxi voucher program ordinance in 2011 to require taxi carriers participation in the voucher program and be ADA-compliant. During the audit period, the City realigned its route system in order to capture increased ridership after the fare increase. The realignment was implemented in August 2012 and included added peak hour frequencies and service to Kimball High School that opened in Commuter Route D serves the campus, which is located near the intersection of Lammers and 11 th Street toward the western edge of Tracy. The morning commuter routes operate as early as 6:45 a.m. New development has also been a factor on system realignment. The Cordes Ranch Business Park is a 1,600 acre mixed commercial and industrial planned development located at the intersection of Mountain House Road and 11 th Street. The new Amazon Fulfillment and Distribution Center, which recently opened in Tracy, also provides increased ridership potential. PMC - 24

27 MV Transportation has served as the contractor operator for the Tracer since The operator contract is for a five-year term with 2 one-year options for extension. The most recent contract was executed in July 2011 and is in effect through June On-time performance on the fixed-route is measured with the TimePoint tracking software, developed by MV Transportation. TimePoint software is a client web-based application that is used to track Automatic Vehicle Locator (AVL) and Geographic Positioning System (GPS) location data as service is running, compare it to scheduled time points, determine when service is on time, and alert individuals when it is not. This system provides on-time data reports for each stop that are geo-coded. The system was implemented under the current contract with MV Transportation. The parameters for an on-time departure are within five minutes of the scheduled timepoint. In conjunction with TimePoint, NextBus technology has also been implemented, which delivers real-time bus arrival information by text message based on the number assigned to each bus stop. On the paratransit mode, on-time performance is tracked manually by the drivers. At the end of the run, the data are entered by dispatch into the RouteMatch software program. Drivers call into dispatch 15 minutes before each scheduled arrival on the manifest. Tracy s RouteMatch database contains 488 names as of December The communication equipment utilized by the drivers in service is Nextel two-way radios. In addition, all transit vehicles are equipped with four cameras each with digital video recording (DVR) capabilities. One camera is directed outward toward the road. Various performance data are tracked on the monthly management report compiled by the contract operator. The report includes data for both fixed route and paratransit service modes. One measure of service provision is customer service. Complaints are tracked on a monthly and year-to-date basis and are summarized in Table V-1 below. Table V-1 Complaints FY 2009 FY 2010 FY 2011 FY 2012 Fixed-Route Dial-a-Ride Total Source: City of Tracy, MV Transportation The number of complaints has shown steady increases over the triennial period. This may be attributed to the increased ridership on the Tracer, especially by students, as well from the fare increase. Complaints are received by the transit staff at the Transit Center as well as through the contact form on the City s website. Video footage from the security cameras installed on the buses is also reviewed by City staff to determine a finding. PMC - 25

28 Another metric that is reported involves preventable accidents. A preventable accident is focused on the actions of the driver. It is the commonly used definition in evaluating driver performance. The number of preventable accidents is presented by mode in Table V-2: Table V-2 Preventable Accidents FY 2009 FY 2010 FY 2011 FY 2012 Fixed-Route Dial-a-Ride Total Source: City of Tracy, MV Transportation During the triennial period, the number of accidents remained low systemwide with only one accident reported during FY 2010 and FY 2011, respectively. Paratransit saw the most preventable accidents (a total of five) during the period, peaking at four during FY Fixed route had two accidents over the same timeframe. The monthly management report also gauges specific paratransit performance trends that affect ridership and on-time performance. These three metrics include cancellations, denials and noshows. Table V-3 provides a summary of these performance trends: Table V-3 Paratransit Performance Trends FY 2009 FY 2010 FY 2011 FY 2012 Cancellations 5,617 5,658 5,663 4,768 Denials No-Shows Source: City of Tracy, MV Transportation The number of cancellations remained fairly constant from the FY 2009 base through FY 2011 yet saw a significant decrease during FY The number of denials was negligible during the period with only two reported in FY 2010 and none reported during subsequent years. The number of no-shows has also declined after peaking in FY 2010 due in part to the city s enforcement of the no show policy. Tracy utilizes standard Diamond fareboxes for fare collection on its transit vehicles. The City has decided to hold off on acquiring electronic fareboxes. Fare collection procedures involve having the drivers ensure that the proper fare is being placed into the farebox. At the end of each run, the closing dispatcher and supervisor drop the vaults at the City Corporation Yard. Fares are collected in designated pouches assigned to each bus and locked in a safe. On the following day, fares are counted at the Transit Center by the dispatcher and reservationist, who reconcile the count with the passenger manifest. After the count is conducted, the supervisor reviews and signs off on the reconciliation, which is observed by the Transit Coordinator. The supervisor prepares an accounting sheet/deposit slip and takes the proceeds to the bank. There are no surveillance cameras installed in the space where the fare count and reconciliation take place. PMC - 26

29 Personnel MV Transportation employs 25 staff in Tracy. Personnel consist of the General Manager, 6 fulltime drivers, 12 part-time drivers, 3 reservationists, 1 road supervisor and 2 dispatchers. The contract operator reports limited turnover during the audit period. During FY 2012, additional drivers were hired in order to meet the rising service demand. Driver candidates undergo a background check involving Federal Bureau of Investigation (FBI) and Department of Justice (DOJ) verifications. Once candidates pass the background check, they undergo 2 weeks of classroom and 3 weeks of behind-the-wheel training. MV Transportation utilizes the Avatar training program. New drivers also undergo Class B licensing preparation with air brake and passenger endorsement. The licensure is subject to DMV Restriction 64, which is limited to vehicles with automatic transmissions. Demand response drivers are required to have General Public Paratransit Vehicle (GPPV) certification. There are monthly safety meetings and 8 hours of supplemental Verification Transit Training (VTT) annually. Maintenance Vehicle maintenance is performed by the contractor in Stockton at the MV Transportation regional center located at 1250 South Wilson Way. The center has two service bays and one outside bay, which are two buses deep and able to accommodate up to seven vehicles (outside bay can hold up to three vehicles). Vehicle maintenance follows the industry standard of 45 days or 3,000 miles (up to 5,000 miles) which conform to the State s GPPV regulations. Preventive maintenance inspections, measured quarterly, are completed within 500 miles of scheduled mileage. Parts are charged to the transit system as utilized. Vehicles are fueled and stored at the City s Corporation Yard located at 520 North Tracy Boulevard. The CNG fueling pumps are both fast-fill and slow-fill. Pre-inspections are conducted by the drivers on a daily basis. One measure of vehicle maintenance is the number of roadcalls. Roadcalls pertain to mechanical and other operational failures while the transit vehicles are in service. The contract operator recorded roadcalls in its summary of operational problems contained in its monthly report to the City. Table V-4 summarizes road calls recorded systemwide during the audit period. Table V-4 System Road calls FY 2009 FY 2010 FY 2011 FY 2012 Road calls Miles between Road calls 79, ,895 19, ,823 Source: City of Tracy, MV Transportation The number of road calls has varied during the period. Tracy experienced the most number of road calls during FY 2011 with other years being relatively negligible. The California Highway Patrol (CHP) is responsible for certifying the transit system s maintenance facilities and for PMC - 27

30 inspecting vehicles on an annual basis. Tracy s transit vehicles have received satisfactory terminal inspections from the CHP. The last CHP inspection was conducted in September Planning The City of Tracy Parks and Community Services Short-Range Transit Plan (SRTP) was adopted in December 2009 and has a 10-year planning horizon. The SRTP sections comprise an introduction; transit needs assessment, fixed route and paratransit operations summary, regional transit overview, marketing plan update, and financial plan. The Planning Department has copies of the City s transit plans. The Unmet Transit Needs hearing process is also used towards route and schedule planning. The fare increase and service realignments were implemented based on a series of annual recommendations contained in the SRTP. For paratransit and subsidized taxi service, Tracy implemented recommendations pertaining to raising the age of eligibility from 60 to 65 years and the purchase of an integrated AVL/GPS system. In addition, the transit system works in concert with the City s Planning Department to ensure that new development is transit-accessible with the installation of bus stops and turnouts. Online book and retail seller, Amazon, has recently opened a one million square foot distribution and fulfillment center in Tracy projected to create up to 1,000 jobs. The Amazon facility is located in the ProLogis Park at 1605 North Chrisman Road. Marketing The City of Tracy utilizes electronic and print media to market its transit services. One the principal marketing tools is the City s Web site ( The website features an overview of the fixed-route, paratransit and subsidized taxi services. Users are able to access the Tracer paratransit eligibility application. In the upper right-hand corner of the website are links to the fixed route map and schedules, paratransit brochure and first time rider s guide. The links are available in English and Spanish. There is also a link to the SJRTD at the bottom of the page. The City has not ventured into the social media arena to market the transit service in spite of having a Facebook page. Brochures are updated once every year. Schedule changes are made in concert with the start of the fiscal year and school term. During the month of August, the City offers free rides to students in order to familiarize them with using the Tracer. Utility bill inserts are another medium used to market the service. Press releases are sent out to area newspapers promoting free rides. Unmet transit needs hearings are publicized in the Tracer brochures. Hearings are held in the afternoon and at the City Council meeting in the evening. Unmet transit needs findings include s and letters received from the public. Other forms of community outreach have included PMC - 28

31 the Tracy Dry Bean Festival held in September, local transportation fairs and visits to senior centers. General Administration and Management The City of Tracy was incorporated 1910 as a General Law City with a Council-Manager form of government. The City Council serves as the principal legislative body and is comprised of four council members and a directly elected mayor. Council members serve for staggered terms of four years and the mayor serves for a term of two years. Elected officials are subject to a twoterm limit. The City Council meets on the first and third Tuesdays of the month at 7:00 p.m. in the City Council Chambers located at 333 Civic Center Plaza. The City Manager is responsible for administrative and budgetary oversight of city departments. Public transit administration falls under the direction of the Parks and Community Services Department and overseen by a Management Analyst II, who spends an estimated 70 percent of time on transit and 30 percent on airport issues. Supporting the Management Analyst is a Transportation Coordinator. The Management Analyst has overseen the transit program since March 2008 and is involved with several SJCOG committees such as the Interagency Transit Committee (ITC) and the Technical Advisory Committee (TAC). The City s most recent FTA Triennial Review occurred in June Tracy was found deficient in 4 areas: Procurement, DBE, Title VI, and Charter Bus. Advisory comments were made regarding Safety and Security. In response, the City addressed the deficiency in the charter bus review area regarding quarterly reporting requirements. All the remaining deficiencies have been corrected. Grants Management The City of Tracy relies on a variety of grants and other funding mechanisms to support its transit system. These grant sources are derived from local, state and federal programs and measures. Pursuant to TDA, the City receives Local Transportation Fund (LTF) proceeds under Article 8, Section 99400(c) and the State Transit Assistance (STA) fund. Local county Measure K, the one-half cent sales tax, also provides support toward transit services. In November 2006, voters in San Joaquin County approved the renewal of the one-half cent sales tax, extending the life of the sales tax program to the year Thirty percent of the revenue from Measure K is allocated to passenger rail, bus transport and bicycle infrastructure. However, the majority of Measure K funding received by Tracy has gone towards smart growth initiatives and street and road improvements. Under the State bond measure, Proposition 1B-Transit Security Grant Program, Tracy was awarded $50,000 in FY The City maintains an Excel spreadsheet that tracks grants awarded by the Federal Transit Administration (FTA). Each grant listed includes the assigned grant number, fiscal year, date of execution, funding source, total grant amount, federal allocation amount, local match, and the date that the grant was closed out. Grant draw downs and milestones are also tracked. Based on PMC - 29