1. Greater Minnesota Transit Investment Plan PAC December 14, 2010

2. From the Legislation The commissioner shall develop a greater Minnesota transit investment plan that contains a goal of meeting at least 80 percent of total transit service needs in greater Minnesota by July 1, 2015, and meeting at least 90 percent of total transit service needs in greater Minnesota by July 1, 2025. The plan must include, but is not limited to, the following: – an analysis of ridership and total transit service needs throughout greater Minnesota – a calculation of the level and type of service required to meet total transit needs – an analysis of costs and revenue options – a plan to reduce total transit service needs S.F. No. 2540, 6th Engrossment

3. Plan Goals To reduce total transit service needs by: Developing a profile of current riders, measuring satisfaction levels, identifying ridership trends Developing a profile of current riders, measuring satisfaction levels, identifying ridership trends Determining total transit needs at a county level Determining total transit needs at a county level Building support for investment priorities Building support for investment priorities

4. Plan Elements Market Research – Focus Groups – Non-users of public transit – 12 statewide (1 per RDC region) – Demographic Profile – Regional maps depicting population characteristics and public transit service – On-board Surveys – Public transit riders – Every system statewide – Over 10,000 surveys completed – Structured Interviews – 24 key community leaders – Discuss investment priorities

5. Plan Elements Public Outreach Technical Advisory Committee (TAC) Plan Advisory Committee (PAC) 50+ Stakeholder presentations Project website 12 Public open houses Public hearing (Jan 19)

6. Plan Elements Technical Analysis Review Passenger Demand Projections Passenger Demand Projections Service Hour Projections Service Hour Projections Operating Cost Estimates Operating Cost Estimates

7. Passenger Demand Model Results Annual Passenger Demand: 2010: 18.1 million 2015: 18.8 million 2025: 20.9 million 11.0 million rides were delivered in 2009: current services meet about 60% of projected demand County Population Characteristics Future Passenger Demand User Trip Rates Passenger Demand

8. Service Hours Model Results Annual Service Hour Needs: 2010: 1.8 million 2015: 2.0 million 2025: 2.1 million 1.03 million service hours were delivered in 2009: current services meet about 57% of projected need County Population Distribution Future Service Hours Service Level Rates Service Needs

9. Operating Cost to Meet 100% of Service Needs Annual Cost Projections*: 2010: $103.7 million 2015: $128.1 million 2025: $183.4 million 2009 actual costs: $55 million *Capital costs not included in these figures. Future year costs adjusted for 2.85% inflation. Future Service Hours Future Service Costs Cost Per Hour by Service Area Operating Costs

10. Capital Cost to Meet 100% of Service Needs Annual Cost Projections*: 2010: $33.5 million 2015: $57.1 million 2025: $71.3 million *Future year costs adjusted for 2.85% inflation.

11. Operating Costs to Meet Legislative Targets 2015 Target level* of 80% of total needs =$102 million 2025 Target level* of 90% of total needs = $165 million 2009 actual costs= $55 million *Capital costs not included in these figures. Future year costs adjusted for 2.85% inflation.

12. Investment Plan Priorities Preservation Expansion Contraction Priorities will be re-evaluated every four years by Mn/DOT and adjusted as needed.

13. Preservation of Services Mn/DOT will continue to fund systems that: 1.Demonstrate local fiscal capacity 2.Meet system-level performance measures set by peer group averages – Cost/passenger – Cost/service hour – Passengers/service hour – System revenue to cost ratio – Compliance with administrative and reporting procedures

14. Expansion of Services Highest priorities for investment of new funds: Establish service in unserved counties with potential to meet performance measures within three years (legislative priority) Provide longer hours to serve more trips Expand multi-county services to link more communities

15. Secondary Expansion Provide service on more days of the week in areas with limited schedules Expand service frequencies and coverage Expand services to provide consistent levels of service statewide

16. Contraction of Services If funding decreases, the following guidelines will determine contraction priorities: Expansion will not be considered Work with systems to redesign under-performing services Reduce state and federal funding to under-performing services

17. Identified Program Management Tools Increase use of technology to gain efficiencies Refine services using service-level performance measures Coordinate with other transit providers including volunteers, 5310 programs, and taxis Increase marketing to reach more customers Provide free rides to disabled veterans on fixed route services

18. Draft Transit Investment Priorities Future Federal and State Funding Preservation Mn/DOT will first preserve existing public transit systems that are funded by federal and state dollars through the annual allocation of financial assistance. Systems that demonstrate local fiscal capacity and meet system-level performance measure tests* will receive preference for state and federal funding to provide service hours. *Demonstration will be determined on a pass/fail basis. Mn/DOT will provide resources to start new services in geographic areas without public transit service before expanding existing services. Expansion Mn/DOTs top priorities for additions to existing service are: Expand multi-county services to link more communities. Provide longer hours (morning and night) to serve more trips. Expansion Mn/DOTs top priorities for additions to existing service are: Expand multi-county services to link more communities. Provide longer hours (morning and night) to serve more trips. Contraction Should contraction become necessary, Mn/DOT will take the following steps: Funding for system expansion will not be considered. Work with systems to redesign under-performing services in small urban, large urban, and rural areas according to service-level performance measures. Reduce state and federal funding to under-performing systems in small urban, large urban, and rural areas according to performance measures. Contraction Should contraction become necessary, Mn/DOT will take the following steps: Funding for system expansion will not be considered. Work with systems to redesign under-performing services in small urban, large urban, and rural areas according to service-level performance measures. Reduce state and federal funding to under-performing systems in small urban, large urban, and rural areas according to performance measures.

19. Plan Completion Comments: Please provide any additional comments by December 17 to Fay Cleaveland, fay.cleaveland@state.mn.us Final Draft release: expected January 5 www.dot.state.mn.us/transit/transitplan/ Public Hearing: January 19 th, 4-6pm