TABLE OF CONTENTS. Section I...1. Introduction...1 Overview of the Transit System...1. Section II...6. Operator Compliance Requirements...

Transcription

1 May 2013

2 TABLE OF CONTENTS Section I...1 Introduction...1 Overview of the Transit System...1 Section II...6 Operator Compliance Requirements...6 Section III...11 Prior Triennial Performance Recommendations...11 Section IV...13 TDA Performance Indicators...13 Section V...22 Review of Operator Functions...22 Operations...22 Maintenance...26 Planning...27 Marketing...27 General Administration and Management...28 Section VI...30 Findings...30 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 Stanislaus Council of Governments (StanCOG) engaged PMC to conduct the Transportation Development Act (TDA) triennial performance audit of the public transit operators under its jurisdiction in Stanislaus County. This performance audit is conducted for the City of Ceres 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 Ceres administers fixed-route and demand-response transit services within the city limits and its environs. Transit service was first established in July 1977 with the implementation of a general public Dial-a-Ride service. As the city s population and transit demand grew, a fixedroute service was introduced in July 2003 in concert with the Dial-a-Ride service. The fixed route service is branded under the name of CAT, which stands for Ceres Area Transit. The demandresponse service is branded under the name of CDAR, which stands for Ceres Dial-a-Ride. Both CAT and CDAR are operated under contract by Storer Transit Systems and overseen by an Administrative Analyst with the City. PMC - 1

4 Located directly south of the Tuolumne River and Modesto, Ceres is the third largest city in the county. Based on the 2010 U.S. Census, Ceres population was 45,417, which grew 31.2 percent since the 2000 U.S. Census. The senior citizen population, comprised of residents aged 65 and over is 7.7 percent. The 2012 population for Ceres is estimated to be 45,854 as reported by the State Department of Finance. The city covers an 8 square mile area. Ceres was established in 1867 by the Service, Warner and Whitmore families and the first home was built in Ceres incorporated on February 25, 1918 as a General Law City. The City has a Council-Manager form of government with five council members. The City derives its name from the Roman goddess of agriculture. The major highway serving Ceres is State Route (SR)-99. SR-99 is the main north-south highway connecting Ceres with other major cities and towns in the San Joaquin Valley including the cities of Modesto and Turlock. Major arterial streets traversing Ceres include Crows Landing Road, Hatch Road, Herndon Road, Mitchell Road, Service Road and Whitmore Avenue. System Characteristics During the audit period, the CAT fixed route operated service along three fixed routes within Ceres. A fourth route was added in August 2012, which operates as a tripper service two times per day during the week. All routes originate and terminate at CAT s transfer hub located at the intersection of Hatch Road and Herndon Road adjacent to the K-Mart shopping center. This transfer point provides interline connections with Modesto Area Express (MAX) Routes 29 and 42 and Stanislaus Regional Transit (StaRT) Routes 15 and 40. A second transfer hub is located on Magnolia Avenue in front of the Ceres Community Center. The routes are structured in a uni-directional orientation on most corridors providing coverage throughout most areas of the city including school campuses and major shopping centers. Service days and hours for CAT vary according to route, but service operates daily. CAT and CDAR do not operate on the following holidays: New Year s Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. CAT s fixed route services during the audit period are described in detail in Table I-1. Table I-1 CAT Fixed Route Services Route Description Frequency/Operation Key Time points A Hatch-Mitchell-Whitmore-Magnolia Every 60 minutes Herndon Rd. & Hatch Rd. (Monday through Richland & Evans Friday from 6:00 a.m. to 6:50 p.m.) Food-4-Less Mitchell Rd. & Whitmore Tenth St. & Don Pedro Ceres Community Center Wal Mart Central Ave. & Glasgow PMC - 2

5 Route Description Frequency/Operation Key Time points Dr. B C D Source: City of Ceres Herndon-Service-Hackett-Crows Landing Road Hatch-Mitchell-Whitmore-Magnolia- Hackett-Service Magnolia-Fowler-Eastgate-Blaker- Service-Herndon Every 60 minutes (Monday through Friday from 8:15 a.m. to 6:10 p.m. Not in service between 2:15 p.m. to 3:10 p.m.) Every 60 minutes (Saturday from 10:00 a.m. to 5:50 p.m. & Sunday from 10:00 a.m. to 3:50 p.m.) Two trips per day (Monday through Friday: 7:15 a.m. & 2:15 p.m.) Herndon Rd. & Hatch Rd. Magnolia & Third St. Blaker Kinser Jr. High School Service Rd. & Farm Supply Rd. Community Service Agency Malick Dr. & Hackett Rd. Central Valley High Richland Stanislaus Recovery Resources Herndon Rd. & Hatch Rd. Caswell & Central Ave. Food-4-Less Mitchell Rd. & Roeding Service Rd. & Central Ave. Blaker Rd. & Kinser Rd. Ceres Community Center Wal Mart Herndon Rd. & Hatch Rd. Ceres Community Center Cesar Chavez Jr. High Magnolia & Third St. Blaker Kinser Jr. High School Central Valley High Richland Stanislaus Recovery Resources Route C operates only on weekends and serves many of the destinations of Routes A and B. Route D, implemented in August 2012, operates primarily as a tripper service for local middle and senior high school students on weekdays. Dial-a-Ride In addition to the fixed route services described above, CDAR provides general public, curb to curb demand response service within the CAT service area as well as to unincorporated areas PMC - 3

6 adjacent to Ceres. CDAR operates Monday through Friday from 6:00 a.m. to 8:00 p.m., Saturday from 10:00 a.m. to 6:00 p.m., and Sunday from 8:00 a.m. to 4:00 p.m. Reservations are required at least 90 minutes in advance. Regularly scheduled trips can be reserved up to 14 days in advance. Fares Ceres transit services accept a variety of fare media such as cash, passes and transfers. Transfers and 10-Ride Cruising Passes are only available for purchase from the driver. Passes are available for purchase from the driver, at Ceres City Hall or through the mail. Drivers do not make change and exact change is expected. The City implemented a fare increase effective July 2010 on both the fixed route and dial-a-ride. The fare structure for CAT during the audit period is shown in Table I-2. Table I-2 CAT Fare Schedule Fare Category Fare Prior to 7/2010 Fare Effective 7/2010 General Public $1.25 $2.00 Up to Two Children Ages 5 or Younger Free Free Seniors - 65 Years of Age or Older $1.00 $1.50 Persons with Disabilities/Medicare Card Holders $1.00 $ Ride Cruising Pass General Public $12.50 $ Ride Cruising Pass Seniors/Disabled/Medicare $10.00 $15.00 Source: City of Ceres Transfers between CAT routes are free at transfer points. In addition, transfers to MAX, Modesto Area Dial-a-Ride (MADAR) and StaRT cost 25 cents. Riders summoned to jury duty can ride free on Ceres transit, and transfer to Modesto or Turlock to a courthouse. One personal care attendant (PCA) can ride free with a person who requires assistance and has a Ceres Transit discount card. The fare structure for CDAR is similar to that of CAT. Passes and transfers are also available on CDAR. CDAR riders can also transfer to MAX, MADAR and StaRT for 25 cents. Arrangements must be made in advance for dial-a-ride transfers. The fare structure for CDAR during the audit period is shown in Table I-3. Table I-3 CDAR Fare Schedule Fare Media Fare Prior to 7/2010 Fare Effective 7/2010 General Public $1.75 $2.15 One child Age 5 or Younger Free Free Seniors - 65 Years of Age or Older $1.25 $1.50 Persons with Disabilities/Medicare Card Holders $1.25 $ Ride Cruising Pass General Public $17.50 $21.50 PMC - 4

7 Fare Media Fare Prior to 7/2010 Fare Effective 7/ Ride Cruising Pass Seniors/Disabled/Medicare $12.50 $15.00 Source: City of Ceres Fleet There were 10 vehicles in the total fleet during the audit period including three CNG vehicles. Six of the vehicles are owned by Storer Transit Systems. All vehicles are wheelchair accessible with tie-downs in compliance with the Americans with Disabilities Act of 1990 (ADA). Table I-4 shows the vehicle fleet information. Table I-4 Ceres Transit Fleet Year Make/Model Quantity Seating Capacity Engine Type Service Mode 1998 Ford E (1 W/C) Diesel N/A 2002 Ford El Dorado E (2 W/C) CNG CDAR 2004 Ford El Dorado E (2 W/C) CNG CAT 2008 Ford El Dorado E (2 W/C) Gas CAT & CDAR 2008 Ford El Dorado E (2 W/C) Gas CAT 2009 Chevy C (2 W/C) CNG CAT Total 10 Source: City of Ceres, November 2012 PMC - 5

8 Section II Operator Compliance Requirements This section of the audit report contains the analysis of Ceres 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 Public Utilities Code, Section Completion/submittal dates: submitted annual reports to the RTPA based upon the Uniform System of Accounts and Records established by FY 2010: October 13, 2010 FY 2011: October 18, 2011 FY 2012: October 11, 2012 the State Controller. Report is due 90 days after end of fiscal Reports were filed electronically year (Sept. 28/29), or 110 days (Oct. 19/20) if filed Conclusion: Complied. electronically (Internet). 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 operator s compliance with Public Utilities Code, Section Public Utilities Code, Section B Completion/submittal dates: FY 2010: March 24, 2011 FY 2011: December 9, 2011 FY 2012: November 1, 2012 Conclusion: Complied. The City of Ceres, through its contract operator, participates in the CHP Transit Operator Compliance Program in which the CHP has conducted PMC - 6

9 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Requirements Vehicle Code Section following a CHP inspection of the operator s terminal. Compliance Efforts inspections within the 13 months prior to each TDA claim. Inspections were conducted at the contract operator s facility in Modesto: Inspection dates applicable to the audit period were June 5, 18 & 29, 2009; September 30, 2009; October 2 & 8, 2009; March 4, 2010; May 24 & 27, 2010; June 3 & 24, 2010; September 29, 2010; October 6 & 21, 2010; June 16, 2011; July 11, 2011; September 21, 27 & 29, 2011; June 6 & 7, 2012; and September 5 & 6, 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 Public Utilities Code, Section Public Utilities Code, Section As a condition of approval, the City of Ceres annual claims for Local Transportation Funds and State Transit Assistance are submitted in compliance with the rules and regulations adopted by StanCOG. Conclusion: Complied. This requirement is not applicable, as Ceres Area Transit is within the Modesto Urbanized Area. Conclusion: Not Applicable. PMC - 7

10 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Requirements regulations adopted by the RTPA. Compliance Efforts The operator s operating budget has not increased by more than 15% over the preceding year, nor is there a substantial increase or decrease in the scope of operations or capital budget provisions for major new fixed facilities unless the operator has reasonably supported and substantiated the change(s). 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 Public Utilities Code, Section Public Utilities Code, Section Public Utilities Code, Sections , , , Percentage increase in Ceres transit operating budget: FY 2010: -8.1% FY 2011: -9.2% FY 2012: +6.3% Source: City of Ceres TDA Claims/Budget for FYs Conclusion: Complied. The City of Ceres definition of performance is consistent with Public Utilities Code Section A review of trip sheets updated during the audit period indicates that correct performance data are being collected. Conclusion: Complied. Operating ratios for Ceres Area Transit were as follows: FY 2010: 10.05% FY 2011: 14.12% FY 2012: 11.34% PMC - 8

11 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts less than 500,000, in which case it must maintain a ratio of fare revenues to operating costs of at least equal to three-twentieths (15 percent), if so determined by the RTPA. The farebox ratio requirement in FY 2010 was 10 percent which Ceres met. Upon becoming an Article 4 claimant in an urbanized area, the fixed route minimum farebox recovery ratio was increased by StanCOG at 15 percent, up from the prior 10 percent ratio for CAT. Source: Annual Summary Reports and TDA Claims Conclusion: Partial Compliance. 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. Public Utilities Code, Sections , , Public Utilities Code, Section Operating ratios for Ceres Dial- A-Ride were as follows: FY 2010: 10.08% FY 2011: 12.79% FY 2012: 10.68% Source: Annual Summary Reports and TDA Claims Conclusion: Complied. The City contracts with a private provider for operations, while the cost of City staff s retirement is fully funded under the Stanislaus County Employees Retirement Association (StanCERA). Conclusion: Complied. If the operator receives state California Code of Regulations, The City of Ceres receives its PMC - 9

12 Table II-1 Operator Compliance Requirements Matrix Operator Compliance Requirements Reference Compliance Efforts 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. Section 6754(a)(3) operator revenue share of State Transit Assistance Funds under the Transit Cost Sharing Agreement. As an eligible recipient, Modesto claims all federal urban transit grants for the Modesto-Ceres urbanized area. Conclusion: Not Applicable Findings and Observations from Operator Compliance Requirements Matrix 1. Of the compliance requirements pertaining to Ceres, the operator fully complied with eight out of the nine applicable requirements. The operator was in partial compliance with meeting its fixed route urban farebox ratio. The fixed route farebox ratio requirement in FY 2010 was 10 percent which Ceres met. The farebox ratio requirement was increased by StanCOG to 15 percent for CAT for FYs 2011 and 2012, up from the prior 10 percent ratio. As a result, CAT did not meet the new farebox requirement. Two additional compliance requirements are not applicable to Ceres (e.g., intermediate farebox recovery ratio under PUC , and use of federal funds). 2. Ceres transit modes are subject to separate farebox recovery standards set by StanCOG: 15 percent for fixed-route and 10 percent for Dial-a-Ride. As an Article 8 claimant up until FY 2009, the City was allowed to achieve a 10 percent farebox recovery ratio. While CAT was able to meet the 10 percent farebox ratio in the past, the service has yet to attain the new farebox recovery standard. During the audit period, the farebox recovery ratio for CAT was 10 percent in FY 2010, 14 percent in FY 2011 and 11 percent is FY The farebox ratios for CDAR remained at or above 10 percent. 3. Through its contract operator, the City 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. There were decreases in FY 2010 and FY 2011 of 8.1 and 9.2 percent respectively due to service cutbacks. The budget then increased 6.3 percent in FY PMC - 10

13 Section III Prior Triennial Performance Recommendations The City of Ceres 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 Ceres 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 At the Transit Operator Meetings held at StanCOG, the Administrative Analyst should provide the StanCOG Transit Planner with performance indicators included in this report on a quarterly basis. Actions taken by the City of Ceres The City s Administrative Analyst compiles and provides a report of performance indicators on a monthly basis for both service modes. A hard copy of performance data is received on a regular basis from the contract operator. StanCOG receives an electronic copy of the monthly transit reports, which shows all the pertinent data and indicators such as ridership, vehicle service hours, vehicles service miles, and revenues. Conclusion This recommendation has been implemented. Prior Recommendation 2 Because the City may be missing out on interest income that could be earned by the fare revenues (due to the contract with Storer where monthly fares are deducted from the City of Ceres bill on each monthly invoice), the City should informally examine the following options and determine which option, if any, can reduce operational costs or enhance revenues: a. Review the operating contract with Storer and assess the possibility of amending the contract to direct Storer to deposit cash fares into a City-owned, interest bearing account and on a monthly basis, and pay Storer from that account. b. Review the line item costs within the Storer contract associated with staff counting farebox revenues and compare that to an estimate of costs associated with existing City of Ceres staff performing those same functions. PMC - 11

14 Actions taken by the City of Ceres With regard to the first option, the City currently has the contract operator count the fare revenue. The City receives funds from StanCOG and deposits the funds in an interest-bearing account. On a monthly basis, the City pays Storer Transit Systems the net amount of the transit expense, minus the farebox revenue. Accordingly, the amount equal to the farebox remains in the City s accounts and collects interest. The second option would have the City consider the feasibility of having its staff count the fare revenues at Ceres City Hall as opposed to Storer counting the fares. Prior to 1995, drivers would bring the fare revenues into the Finance Department at City Hall, with the Finance staff counting the fares in front of the drivers. This proved to be awkward and time consuming since the counting was not performed in a secured area. Since Storer has already been tasked with counting the revenues as per its contract with the City, fareboxes are taken to a highly secured and monitored area where they are counted by two Storer staff members. In addition, the City examines the monthly reports received from Storer and compares the actual revenues received with the ridership data. Furthermore, the City is seeking Proposition 1B funds to procure electronic fareboxes that would provide a more accurate accounting of fare revenues from all media utilized. Conclusion This recommendation has been implemented. PMC - 12

15 Section IV TDA Performance Indicators This section reviews Ceres 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 Ceres 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 Ceres TDA Performance Indicators Systemwide Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $1,267,296 $1,175,452 $1,015,628 $1,025, % Total Passengers 114,169 92,295 69,220 75, % Vehicle Service Hours 18,119 16,675 14,383 13, % Vehicle Service Miles 253, , , , % Employee FTE's % Passenger Fares $103,752 $107,096 $128,330 $104, % Operating Cost per Passenger $11.10 $12.74 $14.67 $ % Operating Cost per Vehicle Service Hour $69.94 $70.49 $70.61 $ % Operating Cost per Vehicle Service Mile $5.01 $5.40 $5.34 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, , , , % Average Fare per Passenger $0.91 $1.16 $1.85 $ % Fare Recovery Ratio 8.19% 9.11% 12.64% 10.16% 24.1% Note: Systemwide operating costs and fare revenues are based on audited figures, while separate fixed route and dial-a-ride costs and fare revenues are unaudited. The annual fiscal audits do not provide a modal breakdown. Source: Annual Fiscal & Compliance Audits, TDA Transit Claims, State Controller's Reports PMC - 14

17 Table IV-2 Ceres TDA Performance Indicators Fixed Route Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $530,956 $534,596 $475,009 $460, % Total Passengers 70,067 56,276 38,490 42, % Vehicle Service Hours 8,097 8,124 7,109 6, % Vehicle Service Miles 131, , ,983 96, % Employee FTE's % Passenger Fares $51,980 $53,713 $67,075 $52, % Operating Cost per Passenger $7.58 $9.50 $12.34 $ % Operating Cost per Vehicle Service Hour $65.57 $65.80 $66.82 $ % Operating Cost per Vehicle Service Mile $4.03 $4.46 $4.66 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, , , , % Average Fare per Passenger $0.74 $0.95 $1.74 $ % Fare Recovery Ratio 9.79% 10.05% 14.12% 11.34% 15.8% Note: Fixed route and dial-a-ride costs and fare revenues are unaudited. The annual fiscal audits do not provide a modal breakdown. Source: CAT Annual Summaries, TDA Transit Claims, State Controller's Reports PMC - 15

18 Table IV-3 Ceres TDA Performance Indicators Dial-a-Ride Audit Period Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 % Change FY Operating Cost $629,470 $529,813 $481,658 $472, % Total Passengers 44,102 36,019 30,730 33, % Vehicle Service Hours 10,022 8,551 7,274 7, % Vehicle Service Miles 121,547 97,919 88,090 87, % Employee FTE's % Passenger Fares $51,772 $53,383 $61,613 $50, % Operating Cost per Passenger $14.27 $14.71 $15.67 $ % Operating Cost per Vehicle Service Hour $62.81 $61.96 $66.22 $ % Operating Cost per Vehicle Service Mile $5.18 $5.41 $5.47 $ % Passengers per Vehicle Service Hour % Passengers per Vehicle Service Mile % Vehicle Service Hours per Employee 1, % Average Fare per Passenger $1.17 $1.48 $2.00 $ % Fare Recovery Ratio 8.22% 10.08% 12.79% 10.68% 29.9% Note: Fixed route and dial-a-ride costs and fare revenues are unaudited. The annual fiscal audits do not provide a modal breakdown. Source: CDAR Annual Summaries, TDA Transit Claims, State Controller's Reports PMC - 16

19 Graph IV-1 Operating Costs Systemwide, Fixed Route & Dial-a-Ride $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- FY 2010 FY 2011 FY 2012 Systemwide $1,175,452 $1,015,628 $1,025,294 Fixed Route $534,596 $475,009 $460,526 Dial-a-Ride $529,813 $481,658 $472, ,000 Graph IV-2 Ridership Systemwide, Fixed Route & Dial-a-Ride 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - FY 2010 FY 2011 FY 2012 Systemwide 92,295 69,220 75,669 Fixed Route 56,276 38,490 42,487 Dial-a-Ride 36,019 30,730 33,182 PMC - 17

20 $18.00 Graph IV-3 Operating Cost Per Passenger Systemwide, Fixed Route & Dial-a-Ride $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $- FY 2010 FY 2011 FY 2012 Systemwide $12.74 $14.67 $13.55 Fixed Route $9.50 $12.34 $10.84 Dial-a-Ride $14.71 $15.67 $14.23 $76.00 Graph IV-4 Operating Cost Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride $74.00 $72.00 $70.00 $68.00 $66.00 $64.00 $62.00 $60.00 $58.00 $56.00 FY 2010 FY 2011 FY 2012 Systemwide $70.49 $70.61 $73.26 Fixed Route $65.80 $66.82 $67.00 Dial-a-Ride $61.96 $66.22 $66.29 PMC - 18

21 8.0 Graph IV-5 Passengers Per Vehicle Service Hour Systemwide, Fixed Route & Dial-a-Ride FY 2010 FY 2011 FY 2012 Systemwide Fixed Route Dial-a-Ride % Graph IV-6 Fare Recovery Ratio Systemwide, Fixed Route & Dial-a-Ride 14% 12% 10% 8% 6% 4% 2% 0% FY 2010 FY 2011 FY 2012 Systemwide 9.11% 12.64% 10.16% Fixed Route 10.05% 14.12% 11.34% Dial-a-Ride 10.08% 12.79% 10.68% PMC - 19

22 Findings from Verification of TDA Performance Indicators 1. Operating costs systemwide decreased 19.1 percent over the past three years based on audited data from the FY 2009 base year through FY Fixed route operating costs decreased by 13.3 percent during the audit period. In contrast, Dial-a-Ride operating costs decreased 25 percent, nearly double the decrease for fixed-route. The decline in operating costs reflect the cut in service hours on the fixed-route to meet budget constraints and decreased ridership. 2. Ridership decreased 33.7 percent systemwide during the audit period. Fixed route ridership decreased 39.4 percent and Dial-a-Ride ridership decreased 24.8 percent. Ridership experienced the greatest decline in FY 2011 due primarily to the fare increase adopted in July Systemwide ridership fell from 92,295 FY 2010 to 69,220 in FY 2011, a 25 percent decline. Other factors affecting declining ridership include sluggish economic conditions that prompted less travel. 3. The provision of revenue hours and miles exhibited decreases systemwide during the audit period as well as for all modes. Fixed route revenue hours and miles decreased 15.1 and 26.8 percent, respectively while DAR revenue hours and miles decreased 28.9 and 27.8 percent, respectively. Systemwide, vehicle service hours decreased 22.8 percent and vehicle service miles decreased 27.3 percent. 4. Operating cost per passenger increased 22.1 percent systemwide. Cost per passenger increased 43 percent on fixed route, yet declined slightly on Dial-a-Ride by 0.3 percent. The trends for this indicator reflect a much greater rate of decline in ridership than in the decline in operating costs. 5. Operating cost per hour increased 4.7 percent systemwide. The performance indicator exhibited a smaller increase on the fixed route of 2.2 percent whereas Dial-a-Ride saw its cost per hour increase 5.5 percent over the period. The trends in this indicator demonstrate that service hours have declined at a slightly greater rate than operating costs over the audit period. 6. Passengers per vehicle service hour systemwide exhibited a decrease of 14.2 percent. The rate of decline in this indicator was double for fixed route, which saw passengers per hour decrease by 28.6 percent. In contrast, passengers per hour on Dial-a-Ride increased nearly 6 percent. Systemwide the number of passengers per service hour fell from 6.3 passengers to 5.4 passengers during the audit period. The decline in ridership exceeded the decline in revenue hours except on Dial-a-Ride. 7. The fare recovery ratio over the past three years increased systemwide as well as for both service modes from the base year of FY Farebox for fixed route increased 15.8 percent while Dial-a-Ride increased by nearly 30 percent. The overall increase systemwide was 24.1 percent although there was year-over-year drop between FYs 2011 PMC - 20

23 and This is attributed to the fare increase implemented at the beginning of FY The fare increase resulted in slight increases in fare revenue of 0.4 percent systemwide. For fixed-route, the increase was 0.5 percent. Fare revenues decreased by a modest 2.6 percent for Dial-a-Ride. PMC - 21

24 Section V Review of Operator Functions This section provides an in-depth review of various functions within the City of Ceres 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 and the contract operator s facility in Modesto: 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 Ceres administers two modes of transit services on a contracted basis. The fixed route service, branded as Ceres Area Transit (CAT), was comprised of three routes (Routes A, B & C). A fourth route, Route D, was implemented in August 2012 as a tripper service to meet the demand of the City s student population. CDAR provides demand responsive service to the general public. CAT Routes A and B run during the week and Route C runs on the weekend as a hybrid of the two weekday routes. Route B serves many of the social service agencies such as Stanislaus County Community Services Agency. Both routes also provide tripper service in the morning and afternoon hours to meet the needs of students. After a period of rising patronage and service expansion, the economic downturn began to adversely impact ridership and farebox recovery during the audit period. City staff proposed a series of measures to control costs and raise farebox recovery. In April 2010, a staff report was presented to the Ceres City Council recommending a reduction in service hours and an increase in fares. In addition to the reduction of service hours and fare increases, a series of route realignments and service efficiencies were proposed. The City proposed the elimination of bus stops with low numbers of boardings and alightings. The service hours for CDAR would remain unchanged and allow for the City to provide service beyond CAT service hours. PMC - 22

25 The City was also informed by StanCOG that it would have to file for TDA under Article 4 instead of Article 8 for its LTF allocation. Under Article 4, the City would be required to meet a 15 percent farebox recovery ratio as opposed to a 10 percent farebox for CAT. The City assessed that such a change in the farebox standard would involve an increase in revenues of 50 percent. The 10 percent farebox standard on CDAR would remain unchanged. A public hearing was held on May 24, 2010 and the changes were adopted. The fare increases and service changes became effective in July The fare increases implemented were slightly different than what was originally proposed. For instance, the general public fare on CAT was raised $0.75 instead of $0.65. However, the fare for disabled persons, seniors and Medicare card holders was only raised $0.50 instead of $0.60. As for CDAR, the general public fare was raised $0.40 instead of $0.25 and for CAT, the fare for disabled persons, seniors and Medicare card holders was raised $0.25 instead of $0.60. Prices for the 10-Ride Cruising Passes were doubled. As a result of these fare increases, there were declines in ridership as expected. Nevertheless, fare revenues have begun to show recent improvement. Service on Route A was reduced by one hour with the elimination of the 7:00 p.m. to 8:00 p.m. run. The route was also realigned on Roeding to go northward on 9 th Street and west on Park Street. Four bus stops were eliminated and two bus stops were relocated. Service on Route B was reduced by two hours in the evening with the last run occurring between 5:00 p.m. and 6:00 p.m. Four bus stops were eliminated and one bus stop was relocated. A tripper run that started at 2:30 p.m. at Herndon and Hatch was eliminated during the school session. For Route C, service hours were reduced on Sunday mornings by two hours with the first run starting at 10:00 a.m. instead of 8:00 a.m. Two bus stops were eliminated and two bus stops were relocated. The transit services continued to provide connectivity to other Stanislaus County transit services such as MAX and StaRT. CAT and CDAR connect with these services at the intersection of Hatch and Herndon Roads where the K-Mart is located. Most of the transfers involve trips to Modesto Junior College and Cal State University, Stanislaus in Turlock. The City s current contract with Storer Transit Systems of Modesto has been in effect since 2008 and will run through June The Ceres City council recently extended the contract with Storer Transit Systems through June 30, The contract has a liquidated damages clause. Fare revenues are taken to a highly secured and monitored area where they are counted by two Storer staff members. In addition, the City examines the monthly reports received from Storer and compares the actual revenues received with the ridership data. Storer provides an extensive monthly management report to the City detailing CAT and CDAR operations. The monthly contractor report contains the billing invoice along with an hourly and daily ridership summary, an employee roster, hours, mileage, preventative maintenance summary, fare revenue breakdown, and customer complaints. The ridership analysis section of the report provides a breakdown of fares sold by category, service interruptions, accidents, PMC - 23

26 complaints as well as performance indicators. Table V-1 below provides annual summary of preventable accidents and complaints on the CAT system: Table V-1 CAT Preventable Accidents & Complaints Year Preventable Accidents Complaints Source: City of Ceres/ Storer Transit Systems There were no preventable accidents reported on the CAT system during the audit period. Complaints have remained negligible during the period, peaking at eight in FY 2010 and decreasing to two in FY Complaints are received directly by the contract operator and noted on the monthly management report transmitted to the City. StanCOG also receives a copy. Dial-a-Ride Program & Policies CDAR is a general public curb-to-curb demand response service. The service area encompasses the Ceres city limits as well as adjacent unincorporated areas. The CDAR s ridership is comprised of a more diverse clientele such as mothers with young children traveling to Head Start programs or Recovery Resources. The City changed its policy with regard to the number of children riding free on CDAR, as the percentage of non-paying passengers was increasing as a proportion of all riders. The revised policy only allows one child ages 5 and under to ride free with one paying adult, as opposed to free rides for children ages 7 and under with no limit for the number of children. Reservations can be scheduled as far as 14 days in advance. Same-day reservations are accepted at least 90 minutes in advance, which was extended from 60 minutes during the audit period. Cancellations are accepted 30 minutes prior to the scheduled pick up time, which was extended from 15 minutes. The contract operator tracks and monitors no-shows and on-time performance, which are summarized in Table V-2: Table V-2 CDAR No-Shows & On-Time Performance Year No-Shows On-Time Performance % % % % Source: City of Ceres/ Storer Transit Systems The number of no-shows has exhibited a downward trend. This may be attributed to the change in the reservation and cancellation policy. For habitual no-shows, Storer will send a 30-day PMC - 24

27 warning letter. On the other hand, on-time performance has suffered over the period. The contract operator informs the City when buses run behind schedule. Other performance measures that are tracked by the contract operator are preventable accidents and complaints, which are summarized in Table V-3: Table V-3 CDAR Preventable Accidents & Complaints Year Preventable Accidents Complaints Source: City of Ceres/ Storer Transit Systems Preventable accidents recorded during the period have been negligible. Complaints received have fluctuated between 6 and 12 annually. Most of the complaints pertain to no-shows and late running buses. Personnel The contract operator employs a thorough hiring and training process for its pool of drivers. Storer employs a staff of 125 employees, out of which 80 to 90 are full-time drivers. The operator also maintains a pool of part-time drivers who work on average between 16 and 20 hours weekly. The utilization of part-time staff helps to limit overtime. The number of employees assigned to CAT and CDAR toward June 2012 is shown in Table V-4 below: Table V-4 Ceres Transit Contract Staffing Employee Classification CAT CDAR Dispatchers Drivers Receptionists Source: Storer Transit Systems, June 2012 A review of the monthly management report for June 2012 showed overlap between CAT and CDAR with regard to how employees are assigned. There are more contract employees dedicated to CDAR than to CAT. Qualified candidates are required to have a good work history and a clean H-6 printout from the Department of Motor Vehicles (DMV). A General Public Paratransit Vehicle (GPPV) certificate is required for Dial-a-Ride. A Verification of Transit Training (VTT) certificate issued by the DMV is required for fixed-route operations. Candidates are interviewed by both the president and vice president of Storer Transit Systems. PMC - 25

28 Once hired, new drivers undergo 86 hours of training that includes classroom, behind-the-wheel and ADA/mobility sensitivity instruction. Drivers are also trained behind a computer simulated drive cam for defensive driving skills. Storer utilizes a staff of state-certified trainers. In addition to the basic training curriculum, GPPV-certified drivers attend 20 hours and VTT-certified drivers attend 26 hours in a class that addresses driving in foggy and adverse weather conditions. On the weekends, there is a five hour transit workshop offered to employees. Driver assignments are scheduled based on seniority and on-the-job performance. The driver turnover rate averages 7 percent annually. Storer has a point-based employee incentive program. Points can be earned for exemplary attendance, customer service and safety. Employees with five or more years of service can receive a $500 bonus based on an accumulation of six points. An Employee of the Month recipient can be awarded a $50 bonus. In addition, there is an Employee of the Year recognition based on the fiscal year. Storer utilizes StraGen dispatching software, which is configured to accept same-day reservation and allows for open return reservations for passengers with medical appointments. The software eliminated the need for drivers to have a daily manifest. Dispatchers are also trained as drivers to serve as back-up when needed. Dispatchers are assigned specifically to specific service modes. Maintenance Ceres transit vehicles are stored and maintained at the Storer Transit System facilities in Modesto. Paratransit and smaller transit vehicles are serviced at Storer s facility located at 1216 Doker Drive. Larger transit vehicles are serviced at the Storer facility located at 3519 McDonald Avenue. Storer also maintains a third facility located at 318 Beard Avenue. The Doker facility has two service bays and one lift. Vehicles undergo a preventative maintenance inspection every 30 days or 2,500 miles that includes brakes, steering and suspension. Storer utilizes ManagerPlus software to track and monitor maintenance activities. Fueling is conducted at the Stanislaus County Public Works facility located at 1716 Morgan Road in Modesto. The City pays for CNG fuel directly, which averages $0.71 to $0.90 per gallon. Roadcalls are tracked and detailed in the contractor s monthly management report as well as internal data spreadsheet. Roadcalls and non-major vehicle failures are presented for each mode in Table V-5 below. Table V-5 Ceres Transit System Roadcalls Year CAT Fixed Route CDAR Total Major Other Major Other Source: City of Ceres PMC - 26

29 The number of roadcalls reported has shown an upward trend. There were fewer non-major incidents as compared to major roadcalls. Dial-a-Ride operations incurred the most roadcalls and non-major vehicle failures, which peaked at 21 in FYs 2010 and CAT experienced fewer roadcalls and non-major failures ranging from 3 in FY 2011 to 14 in FY The contract operator has been recognized by the CHP for its outstanding safety record. In 2010, Storer was one of three bus operators that received the State Transportation Achievement Recognition or STAR Award. Storer was singled out for its nearly 60 years in business and for passing its 84 consecutive inspections in tour bus, school bus and GPPV operations. The City s Street Division is tasked with empting trash receptacles located at the bus stop. Bus shelter maintenance is performed under contract through the County. Planning The current Ceres Short-Range Transit Plan (SRTP) was completed and adopted in April The SRTP was developed with a two-year horizon covering FYs through The only performance benchmarks contained in the SRTP pertain to meeting farebox recovery. There were 14 recommendations for service expansion and improvement. Ceres is planning to have a new Short-Range Transit Plan conducted during Fiscal Year One of the recommendations contained within the SRTP involves converting CDAR from a general public service to an ADA paratransit service for disabled persons and senior citizens comparable to Modesto Area Dial-a-Ride (MADAR). Such a measure would induce ambulatory and general public riders to utilize the CAT fixed-route service. Other significant transit planning initiatives undertaken by the City have included the reduction in service hours in July 2010 and the implementation of Route D in August The City anticipates service expansion to the proposed Super Wal-Mart to open near the Service Road and SR-99 interchange as well as to proposed residential and commercial development just west of Crows Landing Road. The transit staff takes an active role in advocating for bus turnouts as part of any new development planning. With the recent service challenges, change and potential development opportunities, it is suggested that the City consider updating its SRTP. Marketing The City of Ceres utilizes a variety of methods and collateral to market its transit services within the community and region at large. The most prominent marketing tool is a multi-fold glossy rider s guide that contains a system route map, schedules, fares and general information about both CAT and CDAR. The rider s guide is printed in both English and Spanish and is distributed to the local community center, Ceres Unified School District and social service agencies. The riders guide underwent an update in August 2011 and Bus stops are outfitted with map/schedule holders at each bus shelter containing the route map and schedules for CAT as well as for PMC - 27

30 interline services such as MAX and StaRT. Also, each CAT bus stop sign has a label showing the time the bus stops at the location. Transit information is also accessed online through the City s Website ( The Website s main page provides system updates and information under the caption What s New as well as links to CAT schedules, fares, CDAR information and a discount application for disabled and senior passengers. There is also a link to the Easy Rider trip planning tool powered by Google Transit which has both local and regional applications. Transit services are also marketed through ads in the local weekly newspaper, the Ceres Courier. In addition, Ceres employed the use of radio ads aired on two Clear Channel stations serving the greater Modesto media market. In effort to increase farebox revenue, the City is looking at allowing advertising space on the interior and exterior of its vehicles as well as on bus benches and shelters. General Administration and Management The City of Ceres operates under a Council-Manager form of governance. Council members are directly elected for four-year overlapping terms. The five-member City Council serves as the City s principal policy making body, including Ceres Transit. The Council sets fares, service levels and service policies for the transit services. The City Manager, who is appointed by the City Council, oversees the operations of City departments including the Engineering Division, which is responsible for the provision of public transit services. The transit system is administered by an Administrative Analyst in the City s Engineering Division, who devotes 57 percent of her staff time to transit. The Administrative Analyst manages the City s transit services contract with Storer Transit Systems, coordinates the annual Unmet Transit Needs hearing, attends StanCOG Social Service Transportation Council (SSTAC) meetings and reviews monthly operations reports. The Administrative Analyst is assisted by an Account Clerk, who prepares the State Controller Transit Operators Financial Transactions Report and is engaged in the annual fiscal and compliance audits. The Account Clerk devotes approximately 5 percent of staff time to the transit program. The SRTP recommended the hiring a Transit Coordinator position that would report to the Administrative Analyst and dedicate time to further monitoring the City s transit operations. Grants Management Grant funding allocated towards supporting transit services are derived from local and state sources. Ceres does not receive federal formula grants for transit, as Modesto claims all federal urban transit grants (FTA 5307) under the Transit Cost Sharing Agreement. The primary source of transit funding support is derived from the Local Transportation Fund (LTF). Based on the claims PMC - 28