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

Transcription

1 JUNE 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... 32

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 Tulare County Association of Governments (TCAG) engaged PMC to conduct the Transportation Development Act (TDA) triennial performance audit of the public transit operators under its jurisdiction in Tulare County. This performance audit is conducted for the Porterville Transit System 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 Porterville 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 Porterville has been operating transit services since March The initial transit system consisted of demand responsive services, which later expanded to include a fixed route system in July The City Manager oversees the operations of City departments and services. Transit services are administered and operated by a local independent contractor, Sierra Management. Based on the 2010 U.S. Census, Porterville s population is 54,165 which grew 18.3 percent since the 2000 U.S. Census. The senior citizen population, comprised of residents aged 65 and over, is 9.4 percent. The 2014 population for Porterville is estimated to be 55,697 as reported by the State Department of Finance. The city covers a square mile area. PMC - 1

4 Main highways serving Porterville include State Routes (SR)-65 and 190. SR-65 runs in a northsouth direction and connects Porterville with Bakersfield to the south and Lindsay, Exeter and SR-198 to the north. SR-190 runs in an east-west direction and connects Porterville with Tipton and SR-99 to the west and Lake Success and Springville to the east. Major arterial streets traversing Porterville include Henderson Avenue, Main Street, Morton Avenue, Olive Avenue, Plano Street, Poplar Avenue, Prospect Street, and Westfield Avenue. System Characteristics During the audit period, Porterville s transit system comprised eight fixed routes and a Dial-A- Ride service branded under the Dial-a-COLT. The system operates within the city and adjacent unincorporated areas contiguous to the city limits. Service hours during the audit period were Monday through Friday between 7:00 a.m. and 7:00 p.m. and Saturday between 9:00 a.m. to 5:00 p.m. Porterville Transit does not operate on Sunday and the following major holidays: New Year s Day, Independence Day, Thanksgiving and Christmas. Service provided on other holidays operates on the Saturday Schedule. Porterville Transit s fixed route service utilizes the Downtown Transit Center located at 61 West Oak Avenue as its hub. Routes 1 through 6 currently operate at 40 minute headways and Routes 7 and 8 operate at 1 hour and 20 minute headways. A summary of the eight routes and key timepoints during the audit period is listed in Table I-1 below: Table I-1 Porterville Transit Fixed Route Services Route Number Description Frequency/Operation Destinations/Timepoints 1 Sierra View District Hospital Porterville High School 2 Monache High School Henderson Avenue 3 East Porterville Granite Hills High School Every 40 minutes (Monday through Friday from 7:00 a.m. to 6:50 p.m.) Every 40 minutes (Saturday from 9:00 a.m. to 4:50 p.m.) Every 40 minutes (Monday through Friday from 7:00 a.m. to 6:52 p.m.) Every 40 minutes (Saturday from 9:00 a.m. to 4:52 p.m.) Every 40 minutes (Monday through Friday from 7:00 a.m. to 6:50 Porterville Transit Center South County Justice Center Olive & Salisbury Olive & Mathew Westwood & Putnam Mission Mobile Homes Sierra View Hospital Porterville Transit Center Main Street & North Henderson & Indiana Henderson & Newcomb Westwood & Luisa Westfield & Newcomb Monte Vista School Porterville Transit Center South Plano & Olive PMC - 2

5 Route Number Description Frequency/Operation Destinations/Timepoints p.m.) East Date & South Every 40 minutes Plano (Saturday from 9:00 a.m. to 4:50 p.m.) East Springville & South Conner Granite Hills High School East Putnam & Esther 4 Developmental Center Porterville College 5 Veterans Park Henderson Avenue Every 40 minutes (Monday through Friday from 7:00 a.m. to 6:50 p.m.) Every 40 minutes (Saturday from 9:00 a.m. to 4:50 p.m.) Every 40 minutes (Monday through Friday from 7:00 a.m. to 6:50 p.m.) Every 40 minutes (Saturday from 9:00 a.m. to 4:50 p.m.) Porterville Transit Center Orange & B Street South Plano & Chase East Worth & South Plano PDC-Foster Golden Hills Estates Porterville College Porterville Transit Center Morton & El Granito Social Security Morton & Newcomb Morton & Westwood Henderson & Kensington Target Shopping Center Galaxy 9 Theaters 6 Family HealthCare Clinic Loop 7 Porterville Adult School Prospect Street 8 Northeast Porterville Granite Hills High School Every 40 minutes (Monday through Friday from 7:00 a.m. to 6:52 p.m.) Every 40 minutes (Saturday from 9:00 a.m. to 4:52 p.m.) Every 1 hour & 20 minutes (Monday through Friday from 7:40 a.m. to 6:53 p.m.) Every 1 hour & 20 minutes (Saturday from 9:00 a.m. to 4:13 p.m.) Every 1 hour & 20 minutes (Monday through Friday from 7:00 Porterville Transit Center Sierra View Hospital Jaye Street & Springville Lowes Shopping Center Jaye Street & Poplar Orange & G Street Porterville Transit Center Monte Vista School Porterville Adult School Sequoia Middle School Target Shopping Center Indiana & Phillips Porterville Transit Center Morton & Larson PMC - 3

6 Route Number Description Frequency/Operation Destinations/Timepoints a.m. to 6:10 p.m.) John J. Doyle School Every 1 hour & 20 Conner & East Olive minutes (Saturday from 9:40 a.m. to 4:50 p.m.) Foster Farms Citrus High School Main & Danner Source: City of Porterville Commencing in FY 2013, Porterville COLT extended service hours to 10:00 p.m. on weekdays and introduced Sunday service. In addition, the City approved an inter-governmental agreement with the Tule River Indian Reservation. Route 9 was added to provide service between the Porterville Transit Center and the Tule River Indian Reservation on hourly headways. Dial-a-Ride service was also extended to the Reservation. Dial-a-Ride Dial-a-COLT provides curb-to-curb service (origin to destination, when needed) to the general public with priority given to senior citizens aged 62 and older, disabled persons and Medicare card holders. Dial-a-COLT operates within the city limits of Porterville and extends to some unincorporated areas contiguous to the city limits with a ¾ mile of the fixed-route. The discounted fare for seniors, disabled and Medicare recipients require proper identification such as a driver s license, ADA ID or Medicare card. ADA reservations are accepted up to two weeks in advance and all general public and non-ada passengers are limited to same day trips. Fares Porterville Transit s fares are structured according to service type and media. The City increased one-way fares effective February 2010 on its fixed route services for the general public, seniors/disabled/medicare card holders and additional children. An additional fare increase became effective July 2013 (after the audit review period). The fare structure is shown in Table I-2: Table I-2 Porterville Transit Fare Schedule Fixed Route Fares Effective February 6, 2010 Fares Effective July 1, 2013 General $1.25 $1.50 Seniors (Age 62 & older)/disabled/medicare card holders $1.25 $0.75 Seniors/Disabled/Medicare card holders (Hours 9:00 a.m. to 1:00 p.m.) $0.50 n/a Children (Age 5 & younger first two) Free Free Each Additional Child $1.25 $1.50 PMC - 4

7 Monthly Pass $36.00 $40.00 Regional T-Pass $45.00 $50.00 Dial-a-Ride Fares Effective February 6, 2010 Fares Effective July 1, 2013 General $3.00 $5.00 Seniors/Disabled/Medicare card holders $2.00 $2.50 Source: City of Porterville In concert with the July 2013 fare increase, COLT eliminated transfers and introduced day and monthly passes. In addition, COLT discontinued the half-rate fare for seniors, disabled persons and Medicare card holders during non-peak hours. Fleet There were 19 vehicles in the total fleet during the audit period. All COLT vehicles are wheelchair accessible in compliance with the Americans with Disabilities Act of Table I-3 shows the vehicle fleet information. Table I-3 Porterville Transit Fleet Inventory Year Make/Model Quantity Seating Capacity Service Mode 2003 El Dorado MST Freightliner 4 30 (2 W/C) Fixed-Route 2006 Chevrolet Uplander 1 5 (1 W/C) Dial-a-COLT 2006 Ford F (1 W/C) Fixed-Route 2007 Chevrolet Uplander 2 5 (1 W/C) Dial-a-COLT 2007 El Dorado EZ-Rider (2 W/C) Fixed-Route 2008 Chevrolet Uplander 2 5 (1 W/C) Dial-a-COLT 2010 El Dorado EZ-Rider (2 W/C) Fixed-Route Total 19 Source: City of Porterville PMC - 5

8 Section II Operator Compliance Requirements This section of the audit report contains the analysis of the City of Porterville 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 11, 2010 FY 2011: October 5, 2011 FY 2012: October 8, 2012 Conclusion: Complied. 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- day extension by the RTPA allowed by law. The CHP has, within the 13 months prior to each TDA claim submitted by an operator, certified the Public Utilities Code, Section Public Utilities Code, Section B Completion/submittal dates: FY 2010: January 14, 2011 FY 2011: February 7, 2012 FY 2012: February 28, 2013 Conclusion: Complied. The City of Porterville, through its contract operator, participates in the CHP Transit Operator Compliance Program PMC - 6

9 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts operator s compliance with Vehicle Code Section following a CHP inspection of the operator s terminal. in which the CHP has conducted inspections within the 13 months prior to each TDA claim. Inspections were conducted at the City s Public Works facility located at 555 North Prospect Street, Porterville. Transit Operator Compliance Certificates and inspections applicable to the audit period were September 2, 2009; September 3, 2010; September 16, 2011; and October 11, Inspections were found to be satisfactory. Conclusion: Complied. The operator s claim for TDA funds is submitted in compliance with rules and regulations adopted by the RTPA for such claims. 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 Public Utilities Code, Section As a condition of approval, the City of Porterville s annual claims for Local Transportation Funds and State Transit Assistance are submitted in compliance with the rules and regulations adopted by TCAG. Conclusion: Complied. The City of Porterville s transit system only serves urbanized areas and is not subject to this requirement. Conclusion: Not Applicable. PMC - 7

10 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Requirements The operator s operating Public Utilities Code, Section budget has not increased by more than 15% over the preceding year, nor is there a substantial increase or decrease in the scope of operations or capital budget provisions for major new fixed facilities unless the operator has reasonably supported and substantiated the change(s). Compliance Efforts Percentage increase in the City of Porterville s transit operating budget: FY 2010: +0.7% FY 2011: -2.3% FY 2012: +1.1% Source: City of Porterville Transit Budgets for FY 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 Public Utilities Code, Section Public Utilities Code, Sections , , , The City of Porterville s definition of performance is consistent with Public Utilities Code, Section Conclusion: Complied The system s farebox recovery ratios based on audited data are as follows: FY 2010: 24.59% FY 2011: 25.14% FY 2012: 26.04% Source: Annual Fiscal and PMC - 8

11 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts of fare revenues to operating Compliance Audits costs of at least equal to three-twentieths (15 percent), Conclusion: Complied. if so determined by the RTPA. 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 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. 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. Public Utilities Code, Sections , , Public Utilities Code, Section California Code of Regulations, Section 6754(a)(3) This requirement is not applicable, as Porterville Transit is subject to the urbanized farebox ratio requirement. Conclusion: Not Applicable The City contracts with a private provider for operations, while the City contributes to its staff s retirement through the California Public Employees Retirement System (CalPERS). Conclusion: Complied. As a recipient of State Transit Assistance Funds, the City of Porterville is making full use of funds available to it under the Urban Mass Transportation Act of FY 2010: Operations ($761,618) FY 2011: Operations ($340,000) Capital ($1,347,202) FY 2012: Operations ($384,725) Source: Annual Single Audits for PMC - 9

12 Operator Compliance Requirements Table II-1 Operator Compliance Requirements Matrix Reference Compliance Efforts FYs 2010 & 2012; FY 2011 National Transit Database Conclusion: Complied. Findings and Observations from Operator Compliance Requirements Matrix 1. Of the nine compliance requirements pertaining to Porterville, the operator fully complied with all nine requirements. Two additional compliance requirements did not apply to the City (e.g., rural and blended farebox recovery ratios). 2. Porterville s farebox recovery ratio remained above the required 20 percent standard for an urbanized area operator. The farebox recovery ratio was percent in FY 2010, percent in FY 2011; and percent in FY 2012 based on audited data, which include local Measure R support of $105,000 annually. The average systemwide farebox recovery ratio was percent during the triennial review period. 3. Porterville Transit, through its contract operator, 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 period. The budget increased 0.7 percent in FY 2010 and 1.1 percent in FY For FY 2011, the budget exhibited a decrease of 2.3 percent. PMC - 10

13 Section III Prior Triennial Performance Recommendations The City of Porterville 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 the City 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 Monitor System Performance against the Performance Standards adopted in the Short-Range Transit Plan (SRTP). Actions taken by the City of Porterville The City s SRTP provides a series of performance and service quality/reliability standards, which were documented in the prior performance audit. Given the adjustments made to the routes and service provision to emerging growth areas within the city, it was stressed that performance standards be maintained in light of the service changes. The service quality and reliability standards contained within the SRTP provide a useful measurement tool to gauge the effectiveness and success of the transit service. It was suggested that a regular comparison of actual data against these benchmarks be conducted and trends formed over time. In response, the City has taken steps to ensure that the transit system is meeting the performance and service quality benchmarks outlined in the SRTP. The system adopted 40 minute headways in order that recovery time could be included. In addition, the City revamped its ADA application process to encourage increased fixed-route patronage. Conclusion This recommendation has been implemented. Prior Recommendation 2 Closely monitor On-Time Performance. Actions taken by the City of Porterville On-time performance for the fixed route is measured through annual surveys. While the goal contained in the SRTP is 90 percent on-time, the on-time performance for the fixed route was quite lower using available annual data. However, transit staff pointed out that the system runs PMC - 11

14 on a timed schedule, so if one route leaves late, they would all leave late which tends to inflate the "late" percentages. With survey data that indicate on-time performance has consistently fallen below the standard, it was suggested that the City closely monitor this particular performance indicator given its relevance to customer service and direct passenger impacts. Porterville has taken several steps to improve overall on-time performance. As was mentioned in the prior recommendation summary, Porterville Transit implemented 40 minute headways that include sufficient recovery time for each bus run. Every bus stop is a designated time stop. In addition, Porterville introduced Route Match dispatching and routing software, which works in concert with the new automated vehicle locator (AVL) system that updates the bus location every 15 seconds. Moreover, best management practices that monitor the on-time performance of each driver for comparison purposes were implemented. Conclusion This recommendation has been implemented. Prior Recommendation 3 Assure compliance with State Controller Report & Certified Financial Audit submittal dates. Actions taken by the City of Porterville Pursuant to the Public Utilities Code, Section 99245, the City is required to submit annual fiscal and compliance audits to the TCAG and to the State Controller within 180 days following the end of the fiscal year or request a 90 day extension by TCAG as allowed by law. Even though the fiscal audits are commissioned by TCAG, it was suggested that the City s finance staff work closely with TCAG as part of enhanced oversight procedures to ensure that the annual fiscal audit of the City s transit service is submitted within the 180 day timeframe. A review of the City s annual fiscal and compliance audit submittals during the triennial period showed compliance with the requirement. During the audit period, the FY 2010, 2011 and 2012 audits were submitted within the 90-day extension period pursuant to TDA. Conclusion This recommendation has been implemented. PMC - 12

15 Section IV TDA Performance Indicators This section reviews Porterville Transit s performance in providing transit service to the community in an efficient and effective manner. TDA requires that at least five specific performance indicators be reported, which are contained in the following tables. Farebox recovery ratio is not one of the five specific indicators but is a requirement for continued TDA funding. Therefore, farebox calculation is also included. Two additional performance indicators, operating cost per mile and average fare per passenger, are included as well. Findings from the analysis are contained in the section following the tables. Tables IV-1 through IV-3 provide the performance indicators for Porterville Transit systemwide, fixed route and Dial-a-Ride. Charts are also provided to depict the trends in the indicators. It is noted that the systemwide operating costs and fare revenues are based on audited figures, while fixed route and dial-a-ride costs and fare revenues are unaudited. The annual fiscal audits do not provide a modal breakdown. PMC - 13

16 Table IV-1 Porterville Transit TDA Performance Indicators Systemwide Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $1,769,345 $1,739,165 $1,765,828 $1,789, % Total Passengers 575, , , , % Vehicle Service Hours 29,803 28,632 28,467 28, % Vehicle Service Miles 457, , , , % Employee FTE's % Passenger Fares $366,540 $322,746 $338,908 $361, % Local Measure R Support $64,464 $105,000 $105,000 $105, % Total Fare Revenue & Measure R Support $431,004 $427,746 $443,908 $466, % Operating Cost per Passenger $3.07 $3.39 $3.91 $ % Operating Cost per Vehicle Service Hour $59.37 $60.74 $62.03 $ % Operating Cost per Vehicle Service Mile $3.87 $4.28 $4.83 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, , % Average Fare per Passenger $0.64 $0.63 $0.75 $ % Fare Recovery Ratio With Measure R Support 24.36% 24.59% 25.14% 26.04% 6.9% Source: Annual Fiscal & Compliance Audit; National Transit Database; State Controller's Reports PMC - 14

17 Table IV-2 Porterville Transit TDA Performance Indicators Fixed Route Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $1,167,013 $1,176,851 $1,279,934 $1,294, % Total Passengers 555, , , , % Vehicle Service Hours 23,983 24,337 24,430 24, % Vehicle Service Miles 366, , , , % Employee FTE's % Passenger Fares $326,332 $299,829 $405,110 $437, % Operating Cost per Passenger $2.10 $2.36 $2.93 $ % Operating Cost per Vehicle Service Hour $48.66 $48.36 $52.39 $ % Operating Cost per Vehicle Service Mile $3.19 $3.47 $4.24 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, , % Average Fare per Passenger $0.59 $0.60 $0.93 $ % Fare Recovery Ratio 27.96% 25.48% 31.65% 33.79% 20.8% Source: National Transit Database; State Controller's Reports PMC - 15

18 Table IV-3 COLT TDA Performance Indicators Dial-a-Ride Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $569,439 $494,633 $492,893 $482, % Total Passengers 20,283 15,202 14,078 13, % Vehicle Service Hours 5,820 4,295 4,037 3, % Vehicle Service Miles 91,135 67,379 64,040 59, % Employee FTE's % Passenger Fares $28,280 $22,917 $38,798 $39, % Operating Cost per Passenger $28.07 $32.54 $35.01 $ % Operating Cost per Vehicle Service Hour $97.84 $ $ $ % Operating Cost per Vehicle Service Mile $6.25 $7.34 $7.70 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, , % Average Fare per Passenger $1.39 $1.51 $2.76 $ % Fare Recovery Ratio 4.97% 4.63% 7.87% 8.17% 64.6% Source: National Transit Database; State Controller's Reports PMC - 16

19 Graph IV-1 Operating Costs Systemwide, Fixed Route & Dial-a-Ride Graph IV-2 Ridership Systemwide, Fixed Route & Dial-a-Ride PMC - 17

20 Graph IV-3 Operating Cost Per Passenger Systemwide, Fixed Route & Dial-a-Ride Graph IV-4 Operating Cost Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride PMC - 18

21 Graph IV-5 Passengers Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride Graph IV-6 Fare Recovery Ratio Systemwide, Fixed Route & Dial-a-Ride PMC - 19

22 Findings from Verification of TDA Performance Indicators 1. Operating cost per vehicle service hour, an indicator of cost efficiency, increased 6.9 percent systemwide from $59.37 in FY 2009 to $63.47 in FY This trend is also similar to the fixed route operation with an increase of 8.2 percent during the period. In contrast, Dial-a-Ride operations exhibited an increase of 36.3 percent from $97.84 to $ Operating costs increased 1.1 percent systemwide over the same period with operating hours experiencing a decrease of 5.4 percent. 2. Operating cost per passenger, an indicator of cost effectiveness, increased 15.1 percent systemwide from $3.07 in FY 2009 to $3.54 in FY Fixed route services exhibited an increase of 25.1 percent from $2.10 in FY 2009 to $2.63 in FY Demand response services increased during the period 30.4 percent from $28.07 in FY 2009 to $36.61 in FY Ridership systemwide declined by 12.2 percent during the period from 575,913 passengers in FY 2009 to 505,882 passengers in FY Passengers per vehicle service hour, which measures the effectiveness of the service delivered, decreased 7.2 percent between FY 2009 and FY 2012 systemwide from 19.3 passengers per hour to 17.9 passengers per hour. Fixed route operations reflected a greater rate of decrease of 13.5 percent over the same period from 23.2 to 20.0 passengers per hour. Demand response operations exhibited a slight increase of 4.5 percent from 3.5 to 3.6 passengers per hour. The trend in this indicator reflects decreased ridership and increased hours on fixed-route services. 4. Passengers per vehicle service mile, another indicator of service effectiveness, increased 10.2 percent between FY 2009 and FY 2012 from 1.26 in FY 2009 to 1.39 in FY For fixed route operations, the number of passengers per service mile increased 6.6 percent from 1.52 to Demand response services maintained passengers per service mile at 0.22 during the triennial period. From the FY 2009 base year to FY 2012, total vehicle service miles decreased 16.8 percent systemwide. 5. Vehicle service hours per employee declined 39.8 percent systemwide between FY 2009 and FY This decline was more pronounced in the demand response operation, which declined 48.3 percent from 1,164.0 hours in FY 2009 to hours in FY For fixed route operations, within the reporting period vehicle hours per employee decreased from 1,521.1 in FY 2010 to in FY 2011 as vehicle service hours held fairly steady and fixed-route employees increased from 16 in FY 2010 to 25 in FY This measure is based on the number of employee Full-Time Equivalents (FTE) using employee pay hours from the State Controller s Report and dividing by 2,000 hours per employee. PMC - 20

23 6. Farebox recovery exhibited an overall annual increase of 6.9 percent systemwide between FY 2009 and With the implementation of a fare increase in February 2010, farebox recovery increased by 24.2 percent on fixed-route service between FY 2010 and FY 2011, and by 69.9 percent on demand-response service between FY 2010 and FY Systemwide, passenger fares were supplemented by local Measure R funding which increased in contribution by 62.9 percent from $64,464 in FY 2009 to $105,000 in FY Conclusion from the Verification of TDA Performance Indicators The City of Porterville s performance indicators reflect a systemwide decrease in ridership while fixed-route operating costs increased. Systemwide operating costs grew modestly during the triennial period exhibiting an average annual increase of about 1.5 percent. Demand response operating costs decreased by 15.3 percent in response to a decline in ridership during the period of 35.1 percent. Passenger fare revenues reflected the impacts of a fare increase in FY 2010 which maintained a steady rate of passenger fares even as ridership decreased. PMC - 21

24 Section V Review of Operator Functions This section provides an in-depth review of various functions within the Porterville Transit System. The review highlights accomplishments, issues and/or challenges that were determined during the audit period. The following functions were reviewed at the City of Porterville: 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 mission of Porterville Transit is to provide safe, affordable, reliable and efficient transit service that effectively meets the needs of Porterville residents who have limited mobility options or those who choose transit for some or all of their local travel needs. Fixed-route service, operating since 1997 with two east-west routes, has continued to expand. In concert with this expansion, there have been some service adjustments in an effort to control costs, increase revenue and improve on-time performance. All routes converge at the Transit Center located at 61 West Oak Avenue, which operate on a pulse or timed-transfer system. Most routes, except for Routes 7, 8 and 9, operate on 40 minute headways. As part of the fare increase in July 2013, which is after the audit review period, transfer passes were eliminated. In addition to the fare increase, fixed route services were revamped and realigned for better ontime performance. Such measures included extending service frequencies from 30 to 40 minutes on most routes and from one hour to one hour and twenty minutes on Routes 7 and 8. Routes 2, 3, 5 and 9 have the highest ridership on the system. Signal pre-emption technology is planned for 11 intersections in the city that would enhance the on-time performance of Routes 1, 2 and 5. Commencing in FY 2013, Porterville Transit extended service hours and introduced Sunday service. Service hours were extended to 10:00 p.m. on weekdays. In December 2012, the City Council approved an inter-governmental agreement with the Tule River Indian Reservation for Porterville Transit to provide service between the city and the PMC - 22

25 Reservation. One of the city council members is known as a strong advocate for the tribe. The Tule River Reservation is characterized as having a very transit dependent population and is working to become a recognized Federal Tribal Transit operator. The City received funding through the Job Access and Reverse Commute (JARC) program under FTA Section 5316 for operations. In addition, the Tule River tribe covers more than one-third of the operating costs (17 percent from the Eagle Mountain Casino and 17 percent from the tribal administration). Route 9 was created to provide service between the Porterville Transit Center and the Tule River Indian Reservation on hourly headways and is free to the riding public. The Dial-a-COLT also expanded service to the Tule River Indian Reservation. Porterville Transit introduced the Route Match dispatching and routing software program, which works in concert with the new automated vehicle locator (AVL) system that updates the bus location every 15 seconds. Route Match also contains a module that tracks complaints. Complaints are also received and tracked through the myporterville app, by telephone and written report. The complaint is submitted to the appropriate authority for review and investigation. The transit operator upgraded its farebox system that has expanded the types of fare media used on the system. In September 2011, the City Council awarded the Automatic Fare Collection Project to GFI Genfare of Elk Grove Village, Illinois in the amount of $337, The Council also authorized progress payments up to 90 percent of the contract amount and for the Public Works Director, with the assistance of the Transit Manager, to evaluate the technical data on an alternate computer hardware system, audit unit, and other related equipment, and initiate a formal change order to reduce project costs. Since the introduction of the electronic fareboxes, the City has reported a 10 percent increase in farebox revenue capture. Farebox collection and reconciliation are conducted at the Transit Center. There is a dedicated vault room at the Transit Center equipped with cameras. Each vault is numbered and matched with the bus it is dropped from. The GFI report also identifies the driver. Vaults are probed, pulled and placed into a safe and replaced with an empty vault. The following morning, a blind count is performed by two staff members. A revenue collection sheet is completed, signed and forwarded to the Operations Manager for review. The fare revenues are deposited into contractor s account and the City receives a check toward the end of the month. Personnel Porterville Transit s operations and administrative personnel are contracted through Sierra Management. The company, formed in 1994, has the distinction of being the only locally owned transit management firm in Tulare County. It has been the contract operator of the Porterville Transit system for 20 years. The contractor has 42 employees comprised of the Transit Manager, Operations Manager, Operations Supervisor, two road supervisors, two dispatchers, one service technology specialist PMC - 23

26 and 34 drivers (30 full-time and 4 part-time). The contractor reported a higher than average turnover rate of 10 percent in past years due to the relatively low starting wage of $10.25 an hour. This is attributed to the higher starting wage offered by the Eagle Mountain Casino on the Tule River Reservation. Sierra Management currently reports a lower turnover rate of between five and six percent attributed to an increased pay structure, added service hours and enhanced benefits. The contract operator offers a 401K retirement plan with a four percent match and health benefits plan that has the first $100 of the premium paid by the employer. Employment opportunities are advertised on the City of Porterville Web site s transit page. Drivers are required to have a Class B license with passenger endorsement, medical card and air brakes certification. Moreover, for Dial-a-Ride and school pick-ups, a General Public Paratransit Vehicle (GPPV) certificate is required. Many hired drivers have experience as school bus drivers. Driver candidates are subject to pre-employment drug and alcohol screening, H-6 DMV record review, and criminal background checks. There are 30 hours of initial training, including eight hours of computer-based FTA and National Transit Institute (NTI) training. There is also behindthe-wheel, wheelchair securement, four hour defensive driving and VTT certification training. In addition, there are monthly tailgate meetings that address a variety of subjects. Porterville Transit utilizes the SambaSafety reporting system as a driver risk management and safety monitoring tool. The reporting system tracks driver history, licensing, CHP pull notices as well as rates driver s performance. SambaSafety was introduced through the California Transit Indemnity Pool (CalTIP), which is a joint powers authority organized under California law in 1987 in response to the lack of liability insurance coverage from the commercial insurance market. Drivers also undergo in-service training on accident reporting, defensive driving and wheelchair securement procedures. There is also annual secret rider program that gauges driver performance. Maintenance Porterville Transit vehicles are serviced by City mechanics at the Corporation Yard located at 555 North Prospect Street. There are five service bays and four lifts in total with one service bay available to service transit vehicles. The dedicated bay was expanded to accommodate up to a 40-foot bus. CNG buses are required to be serviced outside of the bays or when the bay doors are open for safety reasons. In addition to the service bays, the facility contains two covered canopies and an automated bus wash. The City has set aside $500,000 toward the design of a dedicated transit maintenance facility. The preventive maintenance inspection (PMI) protocol is based on every 3,000 miles or 45 days. Drivers perform pre and post-trip inspections recorded onto a checklist. Copies are submitted to the City as part of a vehicle status report. The City s maintenance plan was amended to include wheelchair lifts. The service department at the City Corporation Yard is staff by four mechanics including one mechanic dedicated to service the transit vehicles. The Corporation Yard provides Sierra Management with a monthly calendar showing which vehicles are due for routine maintenance. More extensive maintenance and warranty repairs such as engine overhauls and PMC - 24

27 transmission work are bidded out. Vehicles are sent to the Cummins facility in Fresno for warranty repairs. Parts inventory control is managed with Ron Turley Associates (RTA) Fleet Management Software. The Corporation Yard maintains a limited parts inventory and relies on local vendors for parts procurement. Parts are stored according to function and include brake seals, coolants, door motors, farebox and wheelchair lift parts. Maintenance staff performs periodic spot checks of inventory, which includes a weekly parts count. When work orders are generated, the fleet management software will trigger a flag when a particular part falls below a certain quantity. Porterville Transit s fleet is compliant with clean air mandates. The active fleet utilizes CNG fuel including the cutaway vehicles operated by the COLT demand response service. Reserve vehicles are diesel-powered equipped with particulate filters. Planning Transit service planning and analysis have been a coordinated effort between the City and TCAG. The City, in conjunction with TCAG, commissioned the 2012 City of Porterville Short-Range Transit Plan (SRTP) during the audit period. The Porterville SRTP has a five-year planning horizon and addresses key issues and offers service improvements. The key issues cited in the SRTP include future service expansion, maintenance of farebox ratios, enhanced passenger amenities and growth constraints at the Transit Center and bus maintenance facility. The service recommendations included minor annual route changes to adjust to ridership demand, new service to emerging growth areas within the City, increasing senior/ada fares and introduction of Sunday service. Table V-1 summarizes the transit system s performance and service quality standards presented in the 2012 SRTP: Table V-1 City of Porterville Short-Range Transit Plan (SRTP) Performance & Service Quality/Reliability Standards Performance Standard/Goal Performance Indicator Fixed Route Dial-a-COLT Operating Cost per Passenger $2.20 $24.50 Operating Cost per Revenue Hour $51.00 $98.00 Passengers per Revenue Hour Farebox Recovery Ratio 28 percent 6 percent On-Time Performance 90 percent departure within 5 minutes of schedule Passenger Complaints/Passengers Carried Preventable Accidents/Revenue Miles Operated 1 complaint per 1,000 boardings 90 percent of all pick-ups within the policy pick up window; 90 percent off all drop offs no earlier than 20 minute before or 5 minutes after requested time 3 complaints per 1,000 boardings 1 preventable accident per 200,000 revenue miles PMC - 25

28 Performance Standard/Goal Performance Indicator Fixed Route Dial-a-COLT Roadcalls/Revenue Miles Operated 1 roadcall per 10,000 revenue miles Trip Cancellations/Denials Zero tolerance 2012 City of Porterville Short-Range Transit Plan, TPG Consulting, Inc. On the fixed route, operating cost per passenger did not meet the standard of $2.20 despite improved efficiencies (from $2.36 in FY 2010 to $2.63 in FY 2012.). On Dial-a-Ride, it also did not meet standard of $24.50 (from $32.54 in FY 2010 to $36.61 in FY 2012). On the fixed route, operating cost per revenue hour met the standard in FY 2010, but not in FY 2011 or FY On Dial-a-Ride, cost per hour failed to meet standard for each of the three years of the audit period. With regard to ridership, the number of passengers per revenue hour on fixed route fell below standard from 23.2 passengers per hour to 20 passengers per hour. On Dial-a-Ride, passengers per hour also fell just below standard averaging around 3.5 passengers per hour during the period. Porterville was able to exceed the minimum farebox recovery standard of 15 percent on the fixed route and as well as the minimum farebox recovery standard on Dial-a-Ride. The following objectives were developed in consideration of providing more efficient service and greater responsiveness to the local travel market: Maximize service reliability and convenience. Maximize operating efficiency without negatively impacting service quality. Operate a productive service that remains affordable to the recognized primary transit markets. Promote the coordination of service with other regional transit services. Promote public/private partnerships to market or operate transit services in support of City of Porterville economic and land use development goals. Ensure ongoing service monitoring, evaluation and planning. The SRTP provides a set of service design standards that are more passenger-focused. The standards pertain to bus stop spacing, bus stop location and design, passenger loads, service headways, maximum walking distance to a bus stop, pick up windows and trip booking options. Marketing The City utilizes a variety of media approaches to market the transit services. Porterville Transit has a dedicated Web domain ( in addition to the City s main Web portal ( Information on the Web page is accessed from a menu on the left margin and includes accessible services, fares, electronic farebox tips, rider etiquette, route maps, employment and bid opportunities and the Title VI policy. Other features include a Facebook page link, Google trip planner and Title VI statement. PMC - 26

29 The Title VI statement is also posted on all transit vehicles. The Porterville Transit Facebook page was initially created for the 2012 SRTP Update in an effort to increase public participation. Transit information is available in the Tulare County Transit Guide as well as the City s own transit guide. The Green Line ( GO GREEN) is a toll-free transit help line available for questions regarding route schedules, transfers and answers to other transit-related questions for Porterville Transit and other public transportation services in Tulare County. Porterville also implemented an automated call system that provides real time bus schedules and Smartphone access. Information about bus arrival status can be received by text and through a mobile app. Prior to the automated system, Porterville Transit would receive 5,000 live calls monthly with inquiries about bus arrival status. Since the implementation of the new technology, there has been an 85 percent drop in calls for bus arrival times. Public hearings involving transit service changes are publicized in the local Porterville Recorder newspaper and at the Transit Center. External and interior advertising is featured on the buses and 14 bus shelters have advertising panels. Porterville Transit has an exclusive advertising agreement with Sierra View District Hospital worth $60,000. The City switched advertising contractors during the audit period citing low revenues averaging $15,000 annually. The City has engaged in other types of marketing outreach in the community. Porterville Transit has a booth at the annual Earth Day festival and was a sponsor in the Step Up gang prevention conference. Speaker bureau events have included presentations before local service organizations such as the Lions and Optimists. General Administration and Management The City of Porterville was incorporated on May 7, 1902 and functions as Charter City with a Council-Manager form of government. An elected five member City Council serves as the principal legislative body. Council members serve for staggered terms of four years at-large. The Council selects one member to serve as mayor and one to serve as vice-mayor for a two-year term. The Council provides policy direction to the City Manager, who is responsible for administering City operations. The City Council meets on the first and third Tuesday of the month at 6:30 p.m. in the City Council Chambers at the Porterville City Hall located at 291 North Main Street. Transit system oversight had been the responsibility of an Administrative Analyst from the City Manager s office and a clerk in the Finance Department. As part of such oversight, staff would compile data and provide an analysis of the public transportation system on a regular basis, which is reported to the City Council. The analysis enables the City to identify strengths and challenges. The City s General Fund is not used to support transit. The Administrative Analyst retired in 2010 and the City Council discussed having the Transit Manager from Sierra Management administer the transit system in the interim. The City Council executed an amendment of the existing contract in January 2011 to encompass both PMC - 27

30 administrative and operational functions through June The administrative and management portion of the contract was $86,476. The City subsequently released a Request for Proposals (RFP) for a permanent operations and administrative contractor and Sierra Management was selected in October 2012 for a five-year term based on a fixed revenue hour cost. The contract includes liquidated damages and incentive clauses. The City s most recent FTA Triennial Review took place on April 9-10, Porterville was found deficient in only one category: Planning/Program of Projects. Under the Planning/Program of Projects category, two findings were made with regard to missing FTA citations included in the TCAG public participation plan procedures and public noticing. The Title VI deficiency pertained to limited English proficiency (LEP) provisions. The City was given until August 2012 to address these two deficiencies cited by the FTA. Grants Management The City of Porterville 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 and the State Transit Assistance (STA) funding. TDA funding is used for both operating and capital expenses. LTF revenues received during the audit period were $318,247 in FY 2010; $598,684 in FY 2011; and $328,759 in FY The STA funds received were $443,091 in FY 2010; $322,222 in FY 2011 and $654,815 in FY Local county Measure R, the one-half cent sales tax, has been in effect since April Measure R allows for each jurisdiction within the county to develop a priority list of projects based on community needs. In addition, 14 percent of the transportation measure funds are directed to transit, bike and environmental projects. Measure R support received toward Porterville s farebox recovery is $105,000 annually. However, the City s annual fiscal and compliance audits report higher allocations for FY 2010 ($277,777) and FY 2011 ($185,000) in the Statement of Revenues, Expenditures and Changes in Net Assets section. Porterville received $813,878 in funding through the State Proposition 1B Public Transportation Modernization, Improvement & Service Enhancement Account (PTMISEA) program. The City expended $242,751 toward the procurement of four CNG buses. Unexpended PTMISEA proceeds at the end of FY 2012 were $486,675. Grants awarded by the Federal Transit Administration (FTA) have been derived from the FTA Section 5307 program for operations and some capital expenditures. Porterville received $666,958 for FY 2010; $443,977 for FY 2011 and $321,678 for FY 2012 in FTA Section 5307 funds. In addition, the City received $1.3 million in funding under the American Recovery and Reinvestment Act of 2009 (ARRA) toward the rehabilitation of the City s vehicle maintenance facility and the procurement of three buses. PMC - 28