Public Transit Services Summary of Submitted 2015 Budget From Rates

Transcription

1 Public Transit Services Summary of Submitted 2015 From Rates Service Expense Revised Draft Non Tax Revenue Net Tax Supported Expense Non Tax Revenue Net Tax Supported Increase / (Decrease) Over Previous Year Expense Non Tax Revenue Net Tax Supported Tax Supported (%) London Transit Commission Conventional Transit Service London Transit Commission Specialized Transit Service Total to Maintain Existing Service Level 60,519,600 (38,285,600) 22,234,000 62,245,800 (39,492,900) 22,752,900 1,726,200 (1,207,300) 518, % 5,419,500 (1,557,500) 3,862,000 5,695,100 (1,591,500) 4,103, ,600 (34,000) 241, % 65,939,100 (39,843,100) 26,096,000 67,940,900 (41,084,400) 26,856,500 2,001,800 (1,241,300) 760, % Service Adjustments Submitted % 2015 PUBLIC TRANSIT SERVICES AS SUBMITTED 26,856, , % Note: All figures are subject to rounding Highlights: Expenditure Revenue Net % Maintaining Existing Service: Net impact in unit prices (inflation) re: personnel, service contracts, fares and reserves 1,310,500 (403,700) 906, % Net impact flow through 2014 service plan hour growth of 14,550 hours 860,000 (593,100) 266, % Net impact base program (168,700) (244,500) (413,200) (1.6%) Notes: The above excludes consideration of the 8,980 revenue service hours to be added in September 2015 (26,700 annual basis). Investment implications for the new growth hours is set out in the Business Case-Assessment Growth Costs. The annual hours address, on a priority basis significant service deficit on conventional and specialized transit. The new 2015 hours support a ridership increase of 105,800. Increase/ (Decrease) over prior year budget 2,001,800 (1,241,300) 760, % 2015 Draft for the City of London - December 8, 2014 Page 563

2 Business Plan: Transit - Conventional How does this service contribute to the results identified in the City of London Strategic Plan? A Strong Economy A Vibrant and Diverse Community A Green and Growing City Investment in public transit in London provides for 550 local jobs, $680,000 in municipal taxes and $25 million in the procurement of local goods and services and 24 million trips to work, school and personal reasons Transit mobilizes the urban generation. An efficient mobility network helps promote more pedestrian friendly land use patterns and allows for greater access to employment, education, community centres, local businesses and special events, all contributing to the vitality of the city. Effective transit reduces the need to expand the road and parking infrastructure, resulting in the ability to maintain important green space within the city. Public transit vehicles create less than 1% of the GHG emissions generated in a urban area Name the main activities done to provide this service: Name The Activities Done To Provide This Service 1. Provision of accessible conventional public transit service to Londoners How Much Did We Do? (optional) In 2013, 567,200 revenue service hours and 23.7 million trips Is The City Mandated To Provide This Service? No Can The Level Of Service Be Changed? Yes What is the current state of this service? Outgrown the system the current system, in terms of design and capacity cannot effectively and efficiently respond to ridership growth and service expectations. The service has an estimated 200,000 service hour deficit. The service has reached and exceeded the City of London s 2020 transit mode share target of 10%, set in By 2010 the transit mode share was 12.5%. Mode share increased from 7% to 12.5% over the period 2004 to Draft for the City of London - December 8, 2014 Page 564

3 3 to 1 ridership to service hour growth ratio over past 3 to 4 years (6 to 1 since 1996) has led to significant service quality issues evidenced by; Less than 10% of service requests, expectations and issues being addressed. Service requests, expectations and service performance issues require the investment of an estimated 200,000 hours. Less than 18,000 hours are being provided, noting effectively dealing with the service challenges is the focus of the Bus Rapid Transit Strategy as set out in the 2030 Transportation Master Plan. A 41% increase in service quality complaints and a 27% increase in the number of times full loads have been reported (unable to board any waiting riders) in 2013 versus The complaints focus on scheduled adherence, overcrowding, missed passengers (no room on bus). Increase of 10% in the number of people registering complaints. What has been done to manage the budget? The service area has been actively managing its budget by implementing management lead initiatives aimed at creating efficiencies, avoiding costs and generating revenue. These include the following: Efficiencies / Costs Avoided Previous 3 Years Inflationary budget increases have been limited to those governed by contract, all other material accounts have been flat lined for the past 4 years Process Review Management (PRM) assessments conducted on various areas of the operation to ensure the right people are doing the right things in the most effective and efficient way possible Participated in a Pwc review on payroll process/systems. Systems found to be operating effectively and efficiently with no major recommendations for change. Implemented an updated time tracker system which will ultimately result in the repurpose of existing resources to address critical communication needs (versus hiring additional staff) 2015 Draft for the City of London - December 8, 2014 Page 565

4 Development and implementation of Smart Card System, which supports: Greater flexibility in terms of fare options and pricing Reduces/contains fare administration costs Provides more accurate and timely revenue and ridership data Improves boarding time and reduces dwell time at stops Mitigates fare disputes Vacancy management, where appropriate Revenue Generation / User Fee Increases Previous 3 Years Tuition pass programs with both Western University and Fanshawe College are under contract which includes an annual price escalation clause Renegotiated contracts for advertising on buses, bus shelters and benches, which provide for approximately $570,000 annually Redefined financial strategy relating to reserve and reserve fund management primarily relating to use of the Provincial Gas Tax Fund, noting the Provincial Government made the program permanent in What is the future direction of this service? Effective ridership and service demand (needs/expectations) will and are best addressed with the migration to London s Bus Rapid Transit Strategy as provided for in the approved 2030 Transportation Master Plan, for which the environmental assessment is currently underway. The direction is also inextricably linked to the draft London Plan the City s new Official Plan. Until such time as the BRT initiative is underway, development of the service plans associated with the 81,000 annualized revenue service hours ( ) will take their direction from a review of the current route system that excludes consideration of the BRT Strategy for the short to medium term and recognizes current service performance issues, demand and expectations. The review of the current route system, which is expected to be completed first quarter of 2015, has three distinct objectives, namely: 1) review and recommend on the restructuring of the current route system in support of the BRT Strategy (two corridors); 2015 Draft for the City of London - December 8, 2014 Page 566

5 2) review and recommend on the restructuring of the current route system in the short to medium term, excluding consideration of the BRT Strategy, recognizing current service performance issues, demand and expectations; and 3) assess and recommend of service standards/guidelines associated with the review of the current route structure as set out in 1) and 2) above. What future initiatives can be contained within the maintain existing service level budget? 2015 The addition of 5,980 new service hours, effective September 2015 (17,700 annually) is intended to address, in priority the ongoing service quality issues relating to overcrowding, scheduled adherence, missed passengers and transfer connections. The service quality issues serve to define in part the estimated 200,000 service hour deficit. The added hours provide a ridership return of 98,500 in 2015 (294,000 annually). The 17,700 annualized revenue service hours (5,980 in 2015 given fall implementation) represents approximately 40% of the outstanding prioritized service hours identified in the 2014 service plan report. The specific allocation is subject to the development of the 2015 service plan which is scheduled to be presented to the Commission for approval in the first quarter of The allocation and impact of the further 63,300 annualized revenue service hours for the period will be subject to the status of the BRT implementation, noting certain elements (semi-express and/or express routes, traffic signal priority, etc.) can be implemented in advance of BRT to build and maintain ridership. What service adjustments do you plan to make? 2015 None at this time During the 2015 budget process, the following initiative has been identified for Council s direction in the multi-year budget process: London Transit Fare Processing Draft for the City of London - December 8, 2014 Page 567

6 Progress toward implementation of the Bus Rapid Transit Plan will play a critical role in the City s key strategic plans, including the 2030 Transportation Master Plan, the Downtown Plan and the London Plan. Key Performance Indicators How Much? Description of measure Ridership (millions) Percent increase (decrease) 0.5% 1.5% 2.1% 1.9% 1.7% 2. Revenue service hours (millions) Percent increase (decrease) 1.2% 3.2% 3.3% 2.8% 3.1% 3. Total expenditure investment (millions) $ $ $ $ $ $ Percent increase (decrease) 3.0% 3.5% 4.8% 4.5% 4.5% 4. City of London investment (millions) $ $ $ $ $ $ Percent increase (decrease) 1.7% 2.9% 4.1% 4.6% 5.0% How Well? Description of measure Rides per service hour Percent increase (decrease) (0.7)% (1.7)% (1.1)% (0.9)% (1.3)% 6. Rides per capita Percent increase (decrease) (0.6)% 0.5% 1.1% 0.9% 0.7% 7. Service complaints per 100,000 passengers Investment Share Riders, operations, reserves 58% 57% 56% 56% 55% 54% Province (gas tax) 5% 6% 7% 8% 9% 9% City of London 37% 37% 37% 36% 36% 37% 2015 Draft for the City of London - December 8, 2014 Page 568

7 London Transit Commission - Conventional Transit Service 2015 As Submitted From Rates Explanation of Adjustments 2015 Maintain Revised Service Requested Actual Existing Adjustments Service Object Expenditures $ % Personnel Costs 39,514,000 40,074,000 1,403,500 41,477,500 1,403, % Fuel 7,581,000 7,883, ,100 8,351, , % Direct Bus Maint & Servicing 3,941,000 4,074, ,000 4,207, , % Facility Costs 2,380,000 2,536,200 7,800 2,544,000 7, % Insurance 1,793,000 1,680,900 15,400 1,696,300 15, % Contracted Costs % Contribution to Reserves 1,419,000 1,780,300 (349,900) 1,430,400 (349,900) (19.7%) Other Costs 2,333,000 2,490,900 48,300 2,539,200 48, % Total Expenditures 58,961,000 60,519,600 1,726, ,245,800 1,726, % Revenue Transportation and Operating (32,955,000) (33,788,400) (463,100) (34,251,500) (463,100) 1.4% Reserve Funding (836,000) (770,000) - - (770,000) - 0.0% Provincial Gas Tax (3,306,000) (3,727,200) (744,200) (4,471,400) (744,200) 20.0% Sub-total - Non Property Tax Revenue (37,097,000) (38,285,600) (1,207,300) - (39,492,900) (1,207,300) 3.2% Net 21,864,000 22,234, , ,752, , % Additional Information / Commentary With Respect To The 2015 Draft Change Unit price change (inflation) re: personnel, insurance, fuel and major contracts Increase/ (Decrease) Over 2014 Expenditure Change Revenue Change Amount Percent Amount Percent 1,182, % (377,900) 1.0% 732, % (522,800) 1.4% Flow through 2014 service plan hour growth of 11,550 hours Net impact base program changes (189,600) (0.3%) (306,600) 0.8% 1,726, % (1,207,300) 3.2% Net change in City investment $ 518, % Notes: Change in net budget reflective of change in expenditure and revenues as noted which represents a 2.3% increase in City investment. The above excludes consideration of the 5,980 revenue service hours to be added in September 2015, (17,700 annual basis). Investment implications for the new growth hours is set out in the Business Case - Assessment Growth Costs Draft for the City of London - December 8, 2014 Page 569

8 Net Property Tax Supported London Transit Commission - Conventional Transit Service 2015 and From Rates 2014 Revised 2015 ed Prior Year 22,234,000 22,881,400 23,814,400 24,909,400 Maintain Existing Service Levels Increase / (Decrease) 518, , , ,500 2,096,000 Maintain Existing Service Levels 22,234,000 22,752,900 23,429,500 24,516,800 25,754,900 2,096,000 Increase / (Decrease) Over Prior Year % 2.3% 2.4% 2.9% 3.4% 9.2% Total in year new growth service hours 128, , , ,500 1,178,000 / 22,234,000 22,881,400 23,814,400 24,909,400 26,155,400 1,178,000 Total Increase / (Decrease) Over Prior Year 647, ,000 1,095,000 1,246,000 3,274,000 Total Increase / (Decrease) Over Prior Year % 2.9% 4.1% 4.6% 5.0% 14.3% Increase / (Decrease) Over Prior Year % - maintaining existing 2.3% 2.4% 2.9% 3.4% 9.2% Increase / (Decrease) Over Prior Year % - new growth hours 0.6% 1.7% 1.6% 1.6% 5.1% Annual Average Increase 2016 to % Additional Information / Commentary With Respect To The : s for s do not include implementation of the Bus Rapid Transit Strategy as set out in the approved 2030 Transportation Master Plan, or any implementation of the initiatives outlined in the Downtown Master Plan to 2018 Projected Increase Summary of revenue service hour changes Total Increase Total annual revenue service hours - noting Sept change 567, , , , ,800 73,600 Total annualized revenue service hours 578, , , , ,590 73,600 Fleet expansion Total 4yrs Existing service areas (infill growth) New growth areas Total Draft for the City of London - December 8, 2014 Page 570

9 London Transit Commission - Conventional Transit Service Staffing 2014 Revised 2015 Requested Maintain Existing Service Levels Full-Time Equivalents # Full-Time Employees # Service Adjustments Full-Time Equivalents # Full-Time Employees # Total Staffing Full-Time Equivalents # Increase / (Decrease) Over Previous Year Full-Time Employees # Increase / (Decrease) Over Previous Year Additional Staffing Information / Commentary: Additional staffing is required in the areas of operations (bus operators) and fleet and facility (mechanics and general service), noting the additional service hours will require operators to provide the service, and the growing fleet will require additional manpower to service and maintain the buses. Annual FTE cost - wages only $ 567,840 $ 702,125 $ 719,597 $ 676,333 Annual FTE cost - wages plus benefits $ 751,252 $ 928,911 $ 952,027 $ 894,788 *Note: the 10 new full time equivalents are included in the assessment growth costs business case 2015 Draft for the City of London - December 8, 2014 Page 571

10 Business Plan: Transit - Specialized How does this service contribute to the results identified in the City of London Strategic Plan? A Vibrant and Diverse Community A Caring Community Transit mobilizes the urban generation. An efficient specialized transit system allows for greater access to employment, education, community centres, local businesses and special events, all contributing to the vitality of the city. The provision of specialized transit services ensures that all Londoners, regardless of ability, are able to access the community via public transportation. Name the main activities done to provide this service: Name The Activities Done To Provide This Service 1. Provision of specialized public transit service to eligible registrants and companions How Much Did We Do? (optional) Is The City Mandated To Provide This Service? Yes, if conventional is provided Can The Level Of Service Be Changed? Yes What is the current state of this service? The service has and is continuing to face significant growth pressures and faces system capacity issues to effectively and efficiently address the pressures. The growth pressures are evidenced by the following: Growth in eligible registrants for the service averaging between 8% and 10% per year, the growth in registrants is reflective of a changing demographic. Eligible passenger ridership growing at approximately 8% per year. Non-accommodated trips (i.e. do not have the capacity to provide trips) projected between 5,000 and 10,000 trip requests for 2014 or approximately 3% total bookings. Trips provided per registrant declining by approximately 5% Draft for the City of London - December 8, 2014 Page 572

11 What has been done to manage the budget? The service area has been actively managing its budget by implementing management lead initiatives aimed at creating efficiencies, avoiding costs and generating revenue. These include the following: Efficiencies / Costs Avoided Previous 3 Years Contracting for larger vehicles which will result in increased capacity for the same number of service hours Inflationary budget increases have been limited to contracted services only, all other material accounts have been flat lined for the past 4 years What is the future direction of this service? What future initiatives can be contained within the maintain existing service level budget? 2015 Continued progress toward compliance with AODA Regulations, including the requirement to expand eligibility criteria to include temporary disabilities by January The addition of 3,000 hours of service is intended to address in part the continued high level of non-accommodated trips as well as the increased trip demand associated with new registrants, which are being added at a rate of approximately 50 per month The specialized service is intended to provide access to public transit for those customers who cannot, as the result of their disability, access LTC s conventional service. The move to a conventional service fleet made up of 100% low-floor accessible buses has resulted in the opportunity for some specialized customers, depending on their trip origin and destination, to utilize the accessible conventional service to complete some of their trips versus relying on specialized Draft for the City of London - December 8, 2014 Page 573

12 Service integration is a priority industry-wide, and as such, LTC Administration will participate in any industry working groups on the initiative. As well, the options and approaches to service integration will be discussed with the Accessible Public Transit Service Advisory Committee and the community at large. Given the significant growth pressures facing the specialized service, coupled with the significant per-trip cost of the service when compared to conventional, it will be imperative to ensure that customers are utilizing the conventional service whenever possible. The transportation standards set out in the AODA Integrated Accessibility Standards Regulation (IASR) will place significant growth pressure on the specialized service, most notably, the requirement to expand the eligibility criteria for the service to include temporary disabilities. It is anticipated that the end result of this change in criteria will result in the registrant base increasing by up to 33% (or 1,500 registrants). While the compliance date for the expanded criteria is not until January 2017, an expansion of this magnitude will need to be phased-in over a period of time in advance of the 2017 compliance date. In addition, a further growth pressure lies in the requirement to ensure that hours of service on the specialized service are consistent with those provided on the conventional service. Key Performance Indicators How Much? Description of measure Ridership (millions) Percent increase (decrease) 4.7% 6.2% 13.0% 5.3% 4.4% 2. Revenue service hours (millions) Percent increase (decrease) 5.8% 4.6% 12.9% 5.3% 4.3% 3. Total Registrants 5,150 5,900 6,300 7,100 7,400 7, Total expenditure investment (millions) $4.742 $5,419 $5.823 $6.549 $7.002 $7.427 Percent increase (decrease) 14.2% 7.4% 12.5% 6.9% 6.1% 5. City of London investment (millions) $3.631 $3,861 $4.161 $4.566 $4.883 $5.182 Percent increase (decrease) 6.3% 7.7% 9.7% 6.9% 6.1% 2015 Draft for the City of London - December 8, 2014 Page 574

13 How Well? Description of measure Rides per service hour Percent increase (decrease) 0.0% 1.0% 0.0% 0.0% 0.0% 7. Rides per capita Percent increase (decrease) 0.0% 0.0% 5.2% 11.8% 4.3% 3.3% 8. Non-accommodated trips per registrant Customer complaints per 10,000 trips Investment Share Riders, operations, reserves 9% 9% 9% 9% 9% 9% Province (gas tax) 14% 20% 20% 21% 21% 21% City of London 77% 71% 71% 70% 70% 70% 2015 Draft for the City of London - December 8, 2014 Page 575

14 London Transit Commission - Specialized Transit Service 2015 As Submitted From Rates Explanation of Adjustments 2015 Maintain Revised Service Requested Actual Existing Adjustments Service Object Expenditures $ % Personnel Costs 753, ,100 20, ,300 20, % Contracted Costs 3,929,000 4,511, ,700 4,764, , % Other Costs 115, ,300 1, ,000 1, % Total Expenditures 4,797,000 5,419, , ,695, , % Revenue Transportation and Operating (497,000) (481,800) (16,900) (498,700) (16,900) 3.5% Provincial Gas Tax (669,000) (1,075,700) (17,100) (1,092,800) (17,100) 1.6% Sub-total - Non Property Tax Revenue (1,166,000) (1,557,500) (34,000) - (1,591,500) (34,000) 2.2% Net 3,631,000 3,862, , ,103, , % Additional Information / Commentary With Respect To The 2015 Draft Change Unit price change (inflation) re: personnel, insurance, fuel and major contracts Expenditure Change Increase/ (Decrease) Over 2014 Revenue Change Amount Percent Amount Percent 127, % (25,800) 1.7% 127, % (70,300) 4.5% Flow through 2014 service plan hour growth of 3,000 hours Net impact base program changes 20, % 62,100 (4.0%) 275, % (34,000) 2.2% Net change in City investment $ 241, % Notes: Change in net budget reflective of change in expenditure and revenues as noted which represents a 6.3% increase in City investment. The above excludes consideration of the 3,000 revenue service hours to be added in September 2015, (9,000 annual basis). Investment implications for the new growth hours is set out in the Business Case - Assessment Growth Costs Draft for the City of London - December 8, 2014 Page 576

15 Net Property Tax Supported London Transit Commission - Specialized Transit Service 2015 and From Rates 2014 Revised 2015 ed Prior Year 3,862,000 4,160,800 4,566,800 4,883, to 2018 Projected Increase Maintain Existing Service Levels Increase / (Decrease) 241, , , , ,400 Maintain Existing Service Levels 3,862,000 4,103,600 4,391,800 4,705,300 5,000, ,400 Increase / (Decrease) Over Prior Year % 6.3% 5.6% 3.0% 2.4% 11.7% Total in year new growth service hours 57, , , , ,600 / 3,862,000 4,160,800 4,566,800 4,883,800 5,182,800 1,022,000 Total Increase / (Decrease) Over Prior Year 298, , , ,000 1,022,000 Total Increase / (Decrease) Over Prior Year % 7.7% 9.8% 6.9% 6.1% 24.6% Increase / (Decrease) Over Prior Year % - maintaining existing 6.3% 5.6% 3.0% 2.4% 11.7% Increase / (Decrease) Over Prior Year % - new growth hours 1.5% 4.2% 3.9% 3.7% 12.9% Annual Average Increase 2016 to % 0 0 Additional Information / Commentary With Respect To The : s for Requests for 2015 include both base and service hour growth costs. Similarily forecasts for 2016 through 2018 include base plus growth hours. Summary of revenue service hour changes Total Increase Total annual revenue service hours - noting Sept change 110, , , , ,100 34,100 Total annualized revenue service hours 116, , , , ,100 34,100 * Note 2016 includes hours to accommodate expanded eligibility criteria (temporary disabilities) as required by the AODA 2015 Draft for the City of London - December 8, 2014 Page 577

16 London Transit Commission - Specialized Transit Service Staffing 2014 Revised 2015 Requested Maintain Existing Service Levels Full-Time Equivalents # Full-Time Employees # Service Adjustments Full-Time Equivalents # Full-Time Employees # Total Staffing Full-Time Equivalents # Increase / (Decrease) Over Previous Year Full-Time Employees # Increase / (Decrease) Over Previous Year Additional Staffing Information / Commentary: 2015 Draft for the City of London - December 8, 2014 Page 578