PURPOSE:    

The Transit Services Task Force was formed by the City Council to review existing transit services within the City, and to develop recommendations for expanding those services where appropriate.  The Task Force is comprised of two City Council Members, one Member of the Park, Recreation, and Community Services Board, two Members of the Transportation Commission, one representative of the Senior Advisory Committee, and one representative of the Disabled Advisory Committee.  This report discusses the specific services that are being recommended by the Task Force, as well as the budgetary requirements of the overall transit program.    

BACKGROUND:

The City currently operates three local transit programs:  Burbank Transportation Service (BTS), Got Wheels!, and Burbank Local Transit (BLT).  BTS is a paratransit service that provides �door-to-door� transport to local destinations for senior and disabled residents.  While riders are not required to pay a fee for the service, some choose to make a voluntary donation based on the stated 50 cents/ride �fare.�  The annual program costs are paid for by a portion of the City�s annual Proposition A revenues (Fund 104).  As shown below, this year the BTS program is expected to cost approximately $897,800, less $76,000 in revenues, for a total of $821,800. 

Expenditures:            Salaries & Benefits (10.5 FTE PR&CS employees)      $548,600

                                    Materials, Supplies & Services                                           349,200

                                    Total                                                                                      $897,800

Revenues:                  Reimbursement for MTA Bus Passes                          ($  52,000)

                                    Fare Donations                                                                (    24,000)

                                    Total                                                                                   (    76,000)

BTS Total Annual Cost:        ($897,800 Less $76,000)                                 $821,800

There are 10.5 full-time equivalent (FTE) Park, Recreation, and Community Service (PR&CS) employees that work in this program.  The Salaries and Benefits costs of those employees are allocated according to their program responsibilities.  Approximately $136,000 of the Materials, Supplies, and Services (MS&S) costs are budgeted for the purchase of Metropolitan Transportation Authority (MTA) transit passes, which are then re-sold at discounted price to Seniors and Disabled residents.  The actual amount spent on this discount program varies annually.  The $52,000 revenue figure is the estimated annual return from those sales this year.      

The balance of the MS&S costs are comprised of $185,900 in annual payments to the Vehicle Replacement Fund (Fund 532) for seven (7) BTS vehicles, and approximately $27,300 in miscellaneous costs (.  Fund 532 payments go toward the ultimate purchase of replacement vehicles when the current ones are fully depreciated, and annual maintenance costs for the current seven (7) BTS vehicles.           

Got Wheels! Transportation Service

The Got Wheels! youth transit program is also operated by PR&CS employees using City-owned vehicles.  During non-summer months, Got Wheels! vehicles operate on a fixed route for four-hour periods on weekday afternoons, transporting teenagers between school, libraries, recreational facilities, and other nodes within the city.  In the summer months, the service is provided weekdays during both morning and afternoons. 

The Got Wheels! program costs approximately $238,000 annually to operate, and is also funded with Proposition A revenues.  There are 4.5 FTE PR&CS employees that work on this program, which costs $125,500 annually.  Annual MS&S costs are approximately $113,000, $106,200 of which is set aside for vehicle replacements and maintenance for the four (4) Got Wheels! vehicles.  The balance of the MS&S costs are for miscellaneous program expenses.  There is no transit fare charged, nor are any other revenues received for the service.  

Expenditures:            Salaries & Benefits   (4.5 FTE PR&CS employees)      $125,500

                                    Materials, Supplies & Services                                           113,000

                                    Total                                                                                      $238,500

            Got Wheels! Total Annual Cost                                                             $238,500

Burbank Local Transit

The Burbank Local Transit program is a commuter shuttle system that transports Media District, Downtown, and Airport/Empire area employees between their places of employment and the Downtown Metrolink Station.  Connecting service to Metrolink trains is provided weekdays, during the two 4-hour commute periods.  Unlike the BTS and Got Wheels! programs, the BLT program contracts with two private transit service companies that provide the drivers, and vehicles when needed.           

The Media District service operates on one fixed route, primarily along Olive Avenue, with limited Express service on Alameda Avenue, into the Media District.  Shuttles operate at capacity during the busiest parts of the commute periods, and at well below capacity on the early and late runs of each of the two 4-hour spans of service.  Under the City�s current contract with Southland Transit for this service, the City pays $30.35/hour when a Southland driver operates a City-owned transit vehicle, and $46.40/hour when a Southland driver operates a Southland vehicle.  Due to delays in the deliveries of the City�s seven new compressed natural gas (CNG) shuttle vehicles, and unexpected mechanical problems with some of those new vehicles once they were put into operation, the City has needed to utilize vehicles owned by the contractor and pay the higher operational rate.  The $446,000 approximate annual cost of the Media District service contract is funded by Proposition C revenues.        

BLT services Downtown and Golden State/Empire employees utilizing Supper Shuttle vans that operate �on-demand.�  Commuters wishing to be delivered to their places of employment within these two service areas, and picked up and brought back to the Downtown Metrolink Station in the evening, must make a reservation at least 24 hours in advance.  Typically, riders have standing reservations to be picked up at the same time every day.  The contract with Arcadia Transit for Supper Shuttle vans and drivers to serve these two areas costs approximately $326,000 per year, which is also funded with Proposition C revenues.  

Expenditures:                Salaries and Benefits (2 PR&CS shared-time

                                                employees)                                            $    86,000

                                                Materials, Supplies and Services:

                                                    Media District Service                        $446,000

                                                    Downtown and GS/Empire Service     326,000

                                                    Marketing Services Contract                  40,000

                                                    Fund 532                                                 215,000

                                                    Miscellaneous                                           32,000      

                                                                                                                $1,059,000

                                                Total                                                        $1,145,000

            Revenues:                   Metrolink Reimbursement (estimated)($  95,000)

            BLT Total Annual Cost                                                           $1,050,000

The vehicle replacement and maintenance cost for the seven (7) new CNG vehicles is approximately $215,000 annually for the expected 10-year life of the vehicles. 

TRANSIT SERVICES TASK FORCE RECOMMENDATIONS:

The Transit Services Task Force was formed in June 2004 to review existing local transit services and to develop recommendations on how the services can best be expanded to better serve Burbank residents and employees.  The Task Force has met eight times, initially looking at the existing operations, ridership and costs of each of the three transit programs.  The results of two current public-opinion surveys on the Got Wheels! and BLT programs were considered, as were the comments of Burbank TMO Director Judith Johnston-Weston and those of local transit riders that have contacted the City�s transit marketing and information service.  The Task Force also reviewed service routes and schedules of the MTA�s Bus and Metro Rail services, as well as the Metrolink commuter rail service. 

The Task Force recommends that three phases of service expansions be made to the Burbank Local Transit program:

Phase I � Media District-Red Line Connector

This new shuttle service would provide a connection between the Media District and Magnolia Park areas, and the Metro Rail Red Line station in North Hollywood.  The North Hollywood station was selected over the Universal City station as the Red Line connection point for three reasons: (1) traffic congestion during commute periods is worse around the Universal station and on the principal route to it, Riverside Drive; (2) Magnolia Park is more serviceable from the North Hollywood station; and (3) the North Hollywood station will also be the terminus of the San Fernando Valley Bus Rapid Transit Orange Line, which will transport commuters from as far west as Warner Center beginning in Fall of 2005. 

As shown on the proposed route map (following page), the shuttles would enter the City on Magnolia Blvd. coming from the North Hollywood station, continue eastbound making stops on Magnolia Blvd. before turning south on Hollywood Way, circle through the Media District on Olive Avenue and Alameda Avenue, turn north onto Buena Vista Street, before turning back onto westbound Magnolia and continuing on it to the North Hollywood station.  As proposed, two buses would be dedicated to this service and would operate during the two daily commute periods of 6 a.m. to 10 a.m. and 3 p.m and 7 p.m. During each of these periods, approximately 23 trains would arrive and depart at the Red Line station.      

In addition to providing a connection to the Metro Red Line for Media District and Magnolia Park employees, the shuttle route is designed to also serve area residents.  Stops will be at intervals that maximize accessibility from the nearby residential neighborhoods, and the addition of transit service on Buena Vista will address a long-standing service deficiency on that street. 

Utilizing two shuttles on this route provides a reasonable frequency for commute periods.  The route is 7.5 miles in length and will take approximately 21 minutes to complete the entire circuit, 10-15 minutes of travel to Media District locations.  Factoring in rest time for the drivers, and waiting time at the Red Line station, the headways (frequency between successive buses) will be approximately 20 minutes.  This service level compares favorably to the 30-40 minute headways of the two MTA bus lines that operate, on more circuitous routes, between the North Hollywood station and the Media District. 

Cost of Phase I Service Expansion

The major cost components of the proposed Red Line connector service are the operating and the capital costs.  Under the current contract with Southland Transit for the existing Downtown-Media District service, the City pays $30.75/hour when a contract driver operates a City-owned vehicle.  The proposed service would entail approximately 4,000 hours of operation annually, at a total operating cost of $123,000 using City-owned CNG vehicles.  When all seven vehicles are operational, five will be needed to continue the existing Media District fixed route service at the current level, and two will be available for the proposed Media District-Red Line service.  The projected annual operating cost for Southland drivers using City-owned vehicles or this service is $123,000.  The cost would increase if contractor-supplied vehicles were periodically needed to replace City-owned vehicles. 

That cost can be partially offset by reducing vehicle service hours on the existing Media District Shuttle.  Based on recent survey data, 93.5 percent of the morning patrons board the BLT shuttle between 6:30 a.m. and 9:00 a.m., and 89.6 percent of the evening patrons board between 4:00 p.m. and 6:30 p.m.  Based upon the low ridership volumes of two morning runs (6:08 a.m. and 9:09 a.m.) and one afternoon run (3:19 p.m.), staff recommends that these runs be eliminated and that the resources be allocated to the Media District-Red Line service. 

Additionally, staff proposes to modify the existing Media District Shuttle route by eliminating the Olive Avenue segment southwest of Kenwood Street.  Survey data indicates low ridership in the area, and the turnaround area at the end (Lakeside) is not large enough to accommodate the City�s larger transit vehicles.  This proposed route realignment would save six (6) minutes per run in the morning and five (5) minutes per run in the afternoon/evening.  Implementing both the service and route changes would result in a net reduction of 4.45 vehicle service hours daily, or approximately 1,100 hours annually.  Using the current contract rate of $30.75/hour (using a City vehicle), these changes would reduce the amount paid to the contractor for Downtown-Media District shuttle operations by approximately $34,000 annually.

The cost of serving the additional riders would be also be partially offset by the revenues received from Metrolink based on the $.50/trip rate (assuming a continuation of the $1.00 stated fare for BLT service).  The $95,000 that the City expects to receive this year for the estimated 190,000 trips on the Downtown-Media District shuttle may decrease somewhat as commuters coming from the south, with a choice between riding Metrolink or the less expensive Metro Red Line, may switch to the latter.  In that case, the City would still receive the reimbursement for those trips, but it would not be in addition to what is already estimated.  The new connection to the Red Line, and Orange Line later this year, would provide a transit alternative for those commuters that do not have convenient access to a Metrolink line, or to MTA bus service, and that currently commute to work in Burbank by car.  A conservative estimate of the net new trips that would occur on the proposed North Hollywood service is 80,000 annually, which would generate an additional $40,000 in revenues from the Metrolink reimbursement program. 

Summary of Phase I Media District-Red Line Connector Costs

Expenditures:            Contractor (Operations)                       $123,000

                                    Miscellaneous M,S&S                              10,000

                                                                                                   $ 133,000

Revenues:                 Metrolink Reimbursement (new)         ($  40,000)

Estimated Recurring Annual Cost of Phase I Service   $  93,000

Non-recurring, Start-up Costs (fareboxes, marketing, and signage)    $  15,000

This cost does not include the $34,000 in savings that would be realized from implementing the proposed service modifications to the Media District Shuttle. 

Staff recommends that the Phase I expansion to the BLT service, and the proposed modifications to the current Downtown-Media District service, be implemented by late February 2005.  Overall budget implications of this and the other subsequent service expansions are discussed later in this report.    

Phase II-Conversion of On-Demand Service to Fixed Route

As originally recommended in the 2000 Short Range Transit Study, and more recently by the Arroyo Verdugo Transportation Audit Study, the Transit Services Task Force and staff recommend that the on-demand Downtown and Airport BLT service be converted to two separate fixed routes.  The Downtown shuttle would operate with one (1) vehicle from 6:00 a.m. to 10:00 a.m. and in the afternoon/evening 3:00 p.m. to 7:00 p.m.  As shown on the route map below, the shuttle would pick up and deliver passengers to the Downtown Metrolink Station following a loop through the Downtown area.  This route would result in a 15 minute headway, or service frequency.

The second fixed route connecting the Downtown Metrolink Station and the Airport/Empire area (shown on the following page) would necessarily be much longer than the Downtown circulator.  Three (3) vehicles would be needed to provide 20-minute headways during the 6:00 a.m. to 10 a.m. and 3:00 p.m. to 7:00 p.m. service periods. 

Cost of Phase II Service Conversion to Fixed Routes

As previously noted, the City currently contracts with Arcadia Transit to operate Super Shuttle vans within the two service areas.  This year�s budget for that service is $326,000.  The cost of operating the fixed route services would be approximately $371,000 annually, $35,000 more than the current cost for the on-demand services. 

The $371,000 estimate includes the costs of contract drivers operating vehicles owned by the contracting company.  Since the City�s seven CNG vehicles will be fully utilized by the Media District shuttle routes, the higher contractor-owned vehicle rate of $46.40/hour would be assessed for these services.  At 2,000 operating hours per year, the annual cost of the Downtown circulator service would be approximately $93,000; at 6,000 operating hours per year for the Airport/Empire fixed route, the annual contract cost for that service would be approximately $278,000.  The cost of paying the higher operating rate would be $125,200 annually ($46.40 - $30.75 = $15.65; $15.65 X 8,000 = $125,200).

The two alternatives to paying the higher operational rate of $46.40/hour for a contractor-provided vehicle are to lease vehicles independently of the contractor, or to buy new or used buses.  Having the contractor operate City leased or owned vehicles would reduce the operational rate to $30.75/hour, which would decrease the annual operating costs to $246,000.  That $125,000 potential savings needs to be weighed against the cost of buying or leasing vehicles.  Mid-size transit vehicles would cost approximately $2,000 per vehicle, per month under a six-month lease agreement.  The vehicles would be diesel-powered (CNG-fuel vehicles are not typically available for lease), and would be delivered freshly painted and ready for graphics at the City�s cost.  The City would be responsible for maintaining the vehicles and all associated costs.  However, if any engine or transmission repairs were required, the lessor would provide the required parts (not labor) at no cost.  The basic cost of leasing the four (4) vehicles needed for the two fixed routes would be approximately $96,000 per year.           

A similar lease arrangement could be structured for acquiring used vehicles under a �lease-to-buy� arrangement.  The purpose of this approach would be to eventually take ownership of the vehicles after operating them under a lease agreement structured similarly to the above lease-only terms.  This arrangement would necessarily tie the City into a long-term commitment for acquiring and operating diesel-powered vehicles. 

Purchasing new CNG-powered transit vehicles requires an initial expenditure, and continuing payments to the vehicle rental fund (Fund 532) for annual maintenance and eventual replacement.  Mid-size CNG vehicles, around 30 feet in length, sell for $120,000 to $200,000, or more.  The initial purchase of four vehicles at a mid-range cost of $160,000 would total $640,000.  

Finance assumes a 10-year life for transit vehicles in calculating the required contribution to Fund 532 for vehicle replacement and ongoing maintenance.  For transit vehicles purchased at a cost of $160,000 each, the annual Fund 532 contribution for each vehicle would be approximately $34,000 each, or $136,000 for the four.  This compares to the $125,200 cost of paying the higher operational rate of $46.40 for contractor-supplied vehicles, and the $96,000 annual cost of leasing used vehicles from an independent dealer.  The fact that the leased and contractor supplied vehicles would be diesel-powered, as opposed to CNG-powered purchased vehicles, and that some residual value would remain on the purchased vehicles after the ten-year depreciation period, are relevant factors to consider.    

Summary of Phase II Fixed Route Costs

Expenditures:           Contractor (Operations)                       $371,000

                                   Miscellaneous M,S&S                              15,000

                                                                                                  $ 386,000

Revenues:                 Metrolink Reimbursement (current)  ($  30,000)

Estimated Recurring Annual Cost of Phase II Service$ 356,000

Non-recurring, Start-up Costs (fareboxes, marketing, and signage)    $  20,000

Because this is merely a change in the type of transit service, on-demand to fixed route, no assumption is made that the City will receive additional revenues from Metrolink under the fare reimbursement program (50% of the stated fare = $.50/rider).  However, as development and building occupancies continue in these areas, ridership is anticipated to grow.   

Southland and Arcadia Transit contracts were extended on September 17, 2004 to run through August 30, 2005.  Staff recommends extending the current contract with Southland transit for an additional year, and bid out all BLT routes to gain the best price to operate the program.  The Arcadia Transit contract requires a 30-day notice prior to the implementation of the conversion of the demand responsive service to fixed route.  Staff recommends that this conversion be implemented in May 2005. 

Phase III - Airport/Empire-Red Line Connector

While this new service is proposed to be the last of the service changes to be implemented as part of this short-term program, the demand for this connection is anticipated to grow very quickly with the increasing employee population in this area.  Additionally, this connection would facilitate the use of the Metro Red and Orange Lines by Airport passengers, potentially reducing traffic on Hollywood Way, Magnolia Blvd., and Victory Blvd.  Like the Media District-Red Line Connector, this service would have numerous stops along the route within the City to maximize accessibility for residents along corridors that are either underserved by MTA buses with high headways, or not served by public transit at all.   

As with the Phase II services, this loop would connect with the North Hollywood transit station, and would operate during the two daily commute periods of 6 a.m. to 10 a.m. and 3 p.m and 7 p.m.  Two vehicles would be needed to maintain 20-25 minute headways.  Again taking the conservative approach in determining operational costs, the higher rate of $46.40/hour for contract drivers operating a lessor-owned vehicles is used to project a cost of $186,000 for 4,000 annual service hours. 

Summary of Phase III Airport/Empire-Red Line Connector Costs

Expenditures:            Contractor (Operations)                       $186,000

                                    Miscellaneous M,S&S                              10,000

                                                                                                   $ 196,000

Revenues:                  Metrolink Reimbursement (new)       ($  40,000)

Estimated Recurring Annual Cost of Phase III Service $ 156,000

Non-recurring, Start-up Costs (fareboxes, marketing, and signage)    $  15,000

The Phase III service expansion is proposed to begin in August 2005.

The anticipated costs of the program expansions and service conversions that constitute the three phases of the proposed BLT short range expansion plan are analyzed in the following section, which looks at existing budgets and funding.   The projected roll-out date for each of the service phases assumes that the necessary funding and equipment is available at that time.  As with all new programs, funding and scheduling of resources can delay proposed start dates.

FUNDING THE PROPOSED BLT SERVICE EXPANSIONS AND CONVERSIONS: 

This section of the report will compare existing transit expenditures with the costs of the proposed services, contrast the continued use of contractor-supplied transit vehicles with the purchase of new or used equipment, and determine the availability of resources needed to fund the proposed services. 

Existing BLT Transit Expenditures

As noted earlier in this report, the FY 04-05 budgeted amounts for the current BLT program are itemized below.

Existing Expenditures (rounded to the nearest 1000^th)

Downtown-Media District Operations (Southland)                                $446,000

Airport/Empire and Downtown Operations (Arcadia)                             326,000

Marketing and Information (Moore & Associates)                                     40,000

Salaries and Benefits (2 PR&CS employees)                                           86,000

Vehicle Equipment Replacement Fund Charges (7 vehicles)                215,000

Miscellaneous Materials, Supplies and Services (MS&S)                        32,000

                                                                                    Total                      $1,145,000

Existing Revenues

Metrolink Fare Reimbursement (50% of state fare)                               ($95,000)

Total FY 04-05 Budget for Current BLT Program                         $1,050,000

The phasing in of the new City-owned CNG vehicles is expected to reduce the cost of the existing Media District Shuttle operations from the original budgeted amount of $446,000, down to a projected FY cost of $380,000.  If this projected reduction in operational costs is realized, the adjusted cost of the BLT program would be $984,000.  Implementing the service modifications outlined in Phase I would reduce the operational cost by an additional $34,000, reducing the overall service cost to $950,000.

Budgeted Cost                                                                         $1,050,000        

               Less: Project Operation Savings                              (  100,000)

Adjusted Annual Cost of Existing BLT Program           $   950,000

Combined Cost of Existing and Proposed BLT Transit Services

The following adds the costs of each of the proposed transit expansions and service conversions to the existing costs, to identify the amount of funding needed to implement the proposed service recommendations described in this report.  An additional $50,000 in recurring administrative costs are added to cover the anticipated need for increased program supervision and support by City employees.   

                                                                                    Recurring Cost           Start-up Cost  

Phase I - Media District-Red Line Connector         $   93,000                     $  15,000

Phase II - Conversions to Fixed Routes                      356,000                         20,000

Phase III - Airport/Empire-Red Line Connector          156,000                         15,000

                                                                                      $ 605,000                     $  50,000

Less Cost of Existing On-Demand Service            ($ 326,000)

                                                                                      $  279,000

Added Administration Cost                                              50,000

                                                                                      $  329,000

Projected Recurring Annual Cost of Proposed Service

Changes:                                                                                                           $ 329,000

Recurring Annual Funding Needed for Proposed BLT Program:

                                    Existing Downtown-Media District Service

                                                ($950,000, less $326,000 cost of On-Demand

                                                  service)                                                               $ 624,000

                                    Cost of Phase I, II, and III Service Changes

                                                   (including added administration)                        655,000

                                    Total Projected Cost for All Services                       $1,279,000     

                        Cost Above Existing ($1,279,000 - $1,050,000)                   $   229,000

There are essentially two alternatives for reducing the program cost:  reducing service, shortening the morning and afternoon service periods or reducing the service frequencies; or by using City-owned transit vehicles to reduce the operating rate charged by the contractor.  There may be some opportunity for shortening the service period after the service has been in operation for a few months and ridership volumes can be analyzed to determine if early or late period trips can be eliminated.  Reducing service frequencies (increasing headways) on commuter services beyond those that are recommended in this report for the respective services can negatively impact support, and are not recommended at this time. 

The operating costs for the Phase II and III services were conservatively estimated using the higher contractor rate of $46.40/hour for a contract driver operating a contractor-owned vehicle.  The combined estimated operating costs of the two phases are $557,000 ($371,000 for Phase II and $186,000 for Phase III).  If the City-owned or leased vehicles were to be used the operating rate would be $30.75/hour, which would reduce the annual operating cost by $188,000, to $369,000.  

The cost of leasing seven (the Phase II and III services require six vehicles, and at least one in reserve) mid-size transit vehicles from an independent dealer under a six-month lease agreement would be approximately $ 168,000 annually.  This estimate is based on a lease cost of $2,000/month per vehicle (a better rate may be attained through negotiation with the dealer).  These would be used, diesel-powered shuttle vehicles, on which City graphics could be applied.       

The cost of purchasing seven (7) new CNG-powered vehicles at an approximate cost of $160,000 per vehicle is $1,120,000.  The required payments to the Vehicle Equipment Replacement Fund (Fund 532) for those vehicles would total approximately $240,000 annually for the expected 10-year life of the vehicles.  This cost is $72,000 more than the estimated cost of leasing the vehicles from an independent dealer, and $52,000 more than the savings that would be realized from the contractor charging the lower operational rate. 

Opportunities for securing Federal funding for the purchase of new transit vehicles are available through several sources.  Federal awards secured by elected representatives are a particularly common way in which cities and transit agencies have secured new equipment.  The City�s recent purchase of the seven new shuttle vehicles was funded with a Federal funding earmark and a 20% local match.  Similarly, the City of Glendale received a sizeable earmark last year for the purchase of several new transit buses.  The Air Quality Management District has a funding program to assist cities in purchasing transit vehicles, and the MTA expects to resume the Call For Projects grant program in 2007.  While funding sources are available, there is no assurance that funding requests would be approved, and if they were to be approved, there is typically a multi-year lag time between an award and receiving the funding.   

Another option to buying or leasing vehicles in order to receive the lower operating rate is to utilize vehicles that are already owned by the City.  The only other transit vehicles that could potentially be used are the four (4) Got Wheels! shuttles.  They are not as large or as well equipped as the new CNG vehicles, but they could feasibly be used on any of the routes for runs that do not require a larger-capacity vehicle.  The main problem with using these vehicles on the BLT services is that they would only be available for the morning service.  Other than during the summer months, the Got Wheels! vans operate weekdays between 3:30 and 6:30 on the youth transit service.  During the summer, the Got Wheels! service operates in both the morning and afternoon periods. 

Funding the Proposed Transit Program

The BTS ($821,800) and Got Wheels! ($238,000) programs are currently funded from Proposition A revenues, and the BLT service ($1,050,000) is funded from Proposition C revenues.  The BLT expansions proposed in this report would add $229,000 in annual recurring costs to the program, totaling $1,279,000 for all proposed services.  This cost is based on operational costs being charged at the higher rate, with no assumption of the City purchasing or independently leasing transit vehicles. 

The FY 04-05 Proposition A (Fund 104) adopted budget appropriated $1,980,000 for public transit related uses and projected receiving $1,688,000 in revenue, for a deficit of $292,000.  This year is the first that this fund has operated at a deficit, and it is primarily due to the Got Wheels! program being transferred from the General Fund last year.  The deficit has reduced the Fund 104 Unappropriated Cash Reserves to $2,473,000 (an additional $500,000 is set aside and is not available for appropriations).  Annual Prop A and Prop C revenues are each projected to increase by approximately 1.5 percent per year through 2009. 

The FY 04-05 Proposition C (Fund 105) adopted budget appropriated $1,479,000 for public transit related uses and capital expenditures that support transit and alternative forms of transportation.  Projected FY 04-05 Prop C revenues are $1,359,000, for current budgetary deficit of $120,000.  This deficit has reduced the Fund 105 Unappropriated Cash Reserves to $1,512,000 (with an additional $376,000 set aside).          

Seven (7) non-recurring expenditures, totaling $644,000, are included in this year�s Prop C budget.  These include transit-related portions of two capital improvement projects, the remaining cost of the Chandler Accessway, and a portion of the CNG vehicles acquisition.  Assuming that other Prop C costs and revenues remain constant next year, eliminating the $644,000 in costs from next year�s Prop C budget would result in a $524,000 balance.  Funding the entire $229,000 cost of the BLT expansion would reduce next year�s Prop C surplus to $295,000.

Balancing next year�s Prop A budget can be done by shifting some of the costs that are included in the FY 04-05 Prop A budget, to next year�s Prop C budget, in order to utilize the projected $295,000 surplus.  Some of the current Prop A expenses, like the $200,000 budgeted for Downtown Metrolink Station maintenance and other transit-related expenses, are eligible to be transferred to the Prop C program.  Additionally, staff has identified two Prop A recurring expenses that can be reduced in next year�s Prop A budget to achieve the $292,000 reduction needed to balance the FY 04-05 budget. 

Implementing the proposed Phase I and II BLT services would incur approximately $78,500 in additional expenses during the current fiscal year. 

Five (5) months of Media District-Red Line service

            (less MTA fare reimbursement)                                    $39,450

Media District-Red Line service start-up                                   15,000

One (1) month of Downtown and Airport/Empire service

            (less MTA fare reimbursement                                          4,050*

Airport/Empire service start-up                                                   20,000

 Estimated Cost for Balance of Fiscal Year                       $78,500 

* Includes 1/12^th of the estimated $35,000 difference in annual cost between the existing on-demand service and the proposed fixed routes. 

The additional $78,500 cost for this FY would need to be funded from either the Fund 104 or Fund 105 Unappropriated Cash Reserves. 

As previously noted, there is a trade-off between paying the higher operational rate for contractor supplied vehicles, leasing or buying used vehicles from an independent dealer, or the City purchasing new vehicles.  Applying the lower operational rate of $30.75 for the contractor operating City �owned vehicles to the 12,000 annual hours of operation for the Phase II and III services (City CNG vehicles are available for the Phase I service), results in a cost of $369,000.  At the higher rate of $46.40 for contractor-supplied vehicles, the cost would be $556,800, a difference of $189,000.  At a lease rate of $2,000/month per vehicle, the cost of leasing seven (7) used, diesel-powered vehicles (including one reserve vehicle) would be $168,000.

The cost of purchasing seven new CNG-powered vehicles at an approximate cost of $160,000 per vehicle is $1,120,000.  This annual recurring Vehicle Equipment Replacement Fund cost to the BLT program for the seven vehicles would be approximately $240,000, or slightly over $34,000 per vehicle.  The $240,000 annual cost exceeds the $189,000 operational savings by $51.000.  The primary benefits of incurring the higher cost are that the vehicles would be new and CNG-powered.  An alternative of using four leased vehicles and three newly acquired CNG vehicles may be the most viable approach in the short term.  Additionally, Got Wheels! vans can be used to supplement when they are not in service.     

TRANSIT PROGRAM OVERSIGHT:

The Transit Services Task Force requests that the City Council authorize it to continue to meet quarterly to oversee the proposed service implementations, and to monitor program costs, service, and ridership.  Periodic reports would be produced by the Task Force with staff support to keep the Council aware of the program indicators.     

FISCAL IMPACT:

The service expansions and conversions recommended in this report are projected to cost an additional $229,000 annually.  The FY 05-06 budgets for Fund 104 and Fund 105 can absorb this cost and be balanced with the changes outlined.  The additional cost that would be incurred this year with the implementations of Phase I and II services would cost an additional $78,500.  This cost would need to be funded from the Fund 104 or Fund 105 Unappropriated Cash Reserves.  A budget amendment would need to be brought to the City Council for approval in order to begin the proposed services.  With Council approval at this time, staff will begin expending budgeted staff resources preparing for the Phase I implementation.  The project costs include all forecasted MS&S costs. 

RECOMMENDATION:

The Transit Services Task Force and staff recommend that the City Council approve the proposed transit expansions and conversions, and authorize staff to start the process of implementing the Phase I services, pending subsequent approval of a budget amendment to fund the additional FY 04-05 BLT costs.   

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