SB1140 Performance Based Operating Funding Allocation Phase 3 – 2016 and Beyond

Virginia Department of Rail and Public Transportation Transit Funding CTB Transit Formulas New capital and operating formulas adopted in December 2013 Performance metrics based on: Net cost per rider (50%) Customers per revenue hour (25%) Customers per revenue mile (25%) Systems are sized equally based on ridership and operating costs – sized relative to all transit operators eligible for state assistance Capital allocations based on set percentages for asset categories

3 | Overview Transit Service Delivery Advisory Committee (TSDAC), Phase III Implementation Plan Data Collection Practices Sizing Measures Exceptional Performance Measures Other Possible Performance Measures o Congestion Mitigation o Fulfillment of Transit Dependent Outcomes

4 | Data Process and Standards Needed Understanding Data DefinitionsCollecting DataProcessing and Tracking DataVerifying Data to be Reported Occurs Cyclically: Monthly for ridership, Annually for all measures Data Collection Set of uniform standards for all of the core measures will ensure accurate and consistent data are reported to DRPT for funding allocation

5 | Summary of Recommended Standards Data Collection Electronic Methods - ERF - AVL system - Scheduling software - Mobile data terminal - Accounting/pay roll systems Manual Methods - Cash fares (or fare boxes) - Manual count of riders - Scheduling software Calculated to create monthly ridership figures and annual figures for all measures Tracked and formatted using electronic database Data uploaded/ transcribed daily or weekly by route or driver Verified using 2 or more methods If applicable, variance identified, then corrected or explained; explanation mandatory if variance is: - 5% for op expense - 10% for others Contract document signed by agency senior staff Certified that agency has followed DRPT standards, data tied to funding Documented collection and verification methodologies Accountability Policy Certified & Reported to DRPT Processed Data Collected Data Data Verified

6 | Data Standards Matrix COLLECTION PROCESS Data Collection Large City/College TownSmall/Rural Data Definitions Existing DRPT data definitions; DRPT to clearly document and publish definitions Collection Methods Fixed Route: ERF, AVL system, scheduling software, accounting/payroll systems Demand Response: Mobile data terminals, scheduling software Fixed Route: Manual: cash fareboxes, manual ridership count including free fares, scheduling software Agencies to move to simple electronic systems in 3 years Demand Response: Mobile data terminals, scheduling software Processing Methods Electronic database (e.g., Microsoft Excel, Access) DRPT to create spreadsheet templates to institute uniform calculations Verification Methods Staff review for anomalies (variance with past year data); cross check 2 or more sources of data DRPT to incorporate automatic variance flags into OLGA

7 | Data Collection Accountability Policy Recommendations Annual certification with OLGA reporting formatted as a contract between transit agency and DRPT with documented list of collection and verification methodologies for all core measures in allocation formula o Certified by local agency senior staff Understanding that accuracy of reported data is tied to funding Understanding that agency senior staff have responsibility to assure that agency follows DRPT data standards o Penalties enforced if state reviews reveal consistently inaccurate data reporting, or if reports are consistently delayed Rescind partial awarded funding or penalties for future grants Data Collection

8 | Data Collection State Technical Assistance Recommendations Additional state assistance should complement data standards by providing resources for agencies to implement and maintain recommendations o Support development of a pilot program for agencies to acquire and assess the value of using more advanced technologies (equipment and/or software) o Host annual meeting for industry best practices/required policies, regional data summits, information exchanges Data Collection

9 | Sizing of Transit Systems Findings and Recommendation Finding: No other measure(s) were better indicators of system size than current measures (ridership and cost) The Working Group recommends to TSDAC that the current Size-Weight portion applied to allocate new operating formula funding remain unchanged o This shall not preclude DRPT from reconsidering sizing formula factors should future needs arise, particularly in response to changes in operating funding allocation goals o Formulas to be reconsidered every 3 years by law Sizing

10 | Exceptional Performance Findings and Recommendation Finding: The analysis required to determine exceptional performance would be either too high-level, requiring simplifying assumptions, rendering the results questionable, or too data-intensive, involving complex qualitative assumptions making it difficult to implement. The Working Group advised against implementing this measure at this time o DRPT may re-evaluate this or other measures in the future along with any potential updates to the operating assistance funding formula, or if new funding to support transit programs becomes available Exceptional Performance

11 | Congestion Mitigation Discretionary Pilot Program Key Features Recommendation: Pilot through existing Demonstration Project Assistance program o Provides a maximum State match of 80% to support transit enhancement over a 2-year period o Allows state to learn from pilot before attempting to integrate into primary operating funding formula o Applicants would be required to detail congested conditions and describe proposed solutions o Ranking would be based on extent of congestion relief, completeness and quality of proposal, CapEx and OpEX estimates, project readiness and local commitment to support after state funding expires o Selection based upon available funding for top ranked proposals Congestion Mitigation

12 | Congestion Mitigation Discretionary Pilot Program Key Features Pilot Program Monitoring o Annual documentation of ridership, other performance measures to gauge success of the program Apply applicable transit congestion measures to track performance o Extent of local funding support o Track for two years beyond completion of program Provides baseline for consideration of continuation of pilot Congestion Mitigation

13 | Transit Dependent Outcomes Definition of Transit Dependent Persons Transit dependent persons are reliant on transit for their mobility and may identify with the following characteristics: o Zero-vehicle household o Disability o Below 50 percent of median family income level o Elderly (over 65 years of age) and youth (below driving age) Consider impacts on Title VI protected classes, which prohibits discrimination on the basis of o Race o Color o National Origin Transit Dependent Outcomes

14 | Funding Options Demonstration Project Assistance Program Recommendation: Use Demonstration Program to administer Congestion Mitigation and Transit Dependent Objectives pilot discretionary grant programs Flexible program that invests in projects to: o Improve the efficiency of public transportation providers in all functional areas o Offer creative approaches to identify and access public transportation markets o Increase private sector involvement in all areas of public transportation o Raise the utilization and productivity of existing public transportation services o Supports safety and security investments Funding Options

15 | Transit and TDM Planning Transit Planning Review of FY15 Tiered Capital Allocation Develop a Transit Capital and Operating Resource Allocation Plan Implementation of the Data Collection Pilot Program Vtrans 2040 Statewide Multimodal Plan Continue implementation of the DRPT Multimodal System Design Guidelines TDM Planning Continue development of TDM performance measures Conducting State of Travel Survey Continue advancing recommendations for a new statewide ride matching system

Virginia Department of Rail and Public Transportation Capital and Operating Assistance Planning and Programming DRPT Statewide Transit Capital and Operating Resource Allocation Plan Tie 2014 Transit and TDM Plan Needs Assessment for transit and TDM service, SGR and major capital projects with available resources Conduct a financial analysis to determine the Commonwealth’s level of capital and operating assistance Make recommendations on levels of resources required to maintain the Commonwealth’s historic share of capital and operating assistance Statewide Transit and TDM Plan TDPs are reflected in the first six years of the Statewide Transit and TDM Plan Provides high-level information on existing public transportation and provides a blueprint for addressing the needs for the future in the Commonwealth of Virginia Provides guidelines for future transit and TDM levels of service, which allow clearer definition of transit and TDM needs and associated long-term public investment Provides Long Range Needs Assessment for Transit Service, State of Good Repair (SGR), Transportation Demand Management (TDM) and Major Capital Projects Transit Development Plan (TDP) Basis for DRPT Capital Assistance Grant Application TDPs are the basis for the first six years of the 2040 Statewide Transit Plan Major Capital Projects (i.e. fixed guideway projects and facilities) must be identified in the fiscally constrained or unconstrained portion of the TDP TDP Annual Update Must be Fiscally Constrained and Reflect Actual Capital Assistance Grant Application

Virginia Department of Rail and Public Transportation Transit Development Plan (TDP) Annual TDP update due December 1, 2014 Must be fiscally constrained and reflect agency Capital Improvement Program Major TDP six-year update cycle will begin next fiscal year TDP requirement document will be updated to focus on performance based planning, incorporate operating costs, and greater emphasis on technology