1. Bus Program Operating Costs TRANSPORTATION POLICY COMMITTEE July 2, 2003

2. Overview Handout #1 “Transit Operating Costs”  Operating environment  Bus/DAR operations funding components  Cost components/allocations  Capital Costs Handout #2 “Performance Management Analysis System”  Valley Metro system performance FY2002

3. Valley Metro Service (Handout #1)  Predominately “contracted” environment  Bus service is provided by 5 different entities under the umbrella of the Valley Metro identity  Bus service provides over 50 million trips and more than 30 million miles of service annually  DAR service is offered by 9 different entities  DAR services provides 1 million trips annually  Bus and DAR service cost components are similar

4. Valley Metro Service Funding ($Millions)(2002) Operations RARF: $ 5.4 City General Funds$29.3 Dedicated Sales Taxes$49.5 LTAF$13.9 Farebox$27.6 Other$ 7.6 Total $133.3

5. Service Costs ($Millions)(2002) Gross Op. Net Op.Farebox Rev. CostsCosts/ % Bus $106.2$ 81.8$24.4 / 23.0% Circ/Shut $3.6 /.3% DAR $ 21.5 $20.3 $ 1.3 / 6.0% Van Pool $ 2.0 $ 1.9 $.1 / 96.4%

6. Cost Components  Labor: Includes all driver, mechanic, supervisor, management (no city or agency staff is included)  Benefits: All insurance, worker’s comp, vacation, holidays, retirement, other benefits offered  Outside Services: subcontracted services, including some maintenance repair  Fuel/Parts/Supplies: All vehicle fuel for revenue/non-revenue vehicles, and vehicle repair parts and supplies.  Utilities: Electricity, water, gas, other misc. utility charges

7. Cost Components (Cont.)  Insurance: Liability, property damage, other insurance coverage  Licensing/Taxes: Licensing and fees for non- revenue vehicles supplied by the contractor, property and other taxes  Miscellaneous Expense: Travel, amortized startup expenses, other misc.  Equipment/Rentals/Leases: Facilities, equipment, and other related items  Allocations/Profit: Corporate allocations and profits, where appropriate (no city or agency allocations are included)

8. Operating Cost %’s Category % Labor: 50.6Labor: 50.6 Benefits: 22.5Benefits: 22.5 Outside Services: 2.1Outside Services: 2.1 Fuel/Parts/Supplies:15.1Fuel/Parts/Supplies:15.1 Utilities: 1.2Utilities: 1.2 Insurance: 2.5Insurance: 2.5 Licensing/Taxes: 0.3Licensing/Taxes: 0.3 Miscellaneous Expense: 1.1Miscellaneous Expense: 1.1 Equipment/Rentals/Leases: 2.0Equipment/Rentals/Leases: 2.0 Allocations/Profit: 2.5Allocations/Profit: 2.5

9. Capital Funds Formula funds (FTA Section 5307) -- 17% or 20% match. Rolling stock, associated capital maintenance, capital cost of contracting, maintenance of existing facilities, and other capital purchases. Discretionary funds (FTA Section 5309) - usually 50%-50% match. Competitive, requested at higher local matching levels, facilities construction, buses, LRT. Congestion Mitigation and Air Quality (CMAQ) and Surface Transportation Program (STP) flexible funds -- 5.7%, and/or 0%. Rolling stock, Park-n-Rides, and LRT design/ administration are typically funded in this program.

10. M/O-Capital Split M/O $ Capital $ Local/Regional Bus Ops74%26% BRT61%39% Dial-a-Ride74%26% LRT27%73%

11. Performance Management Analysis System (Handout #2) System Summary Fixed Route Shuttle/Circulator Dial-a-Ride Van Pool Operating and Capital Components Ratings Effectiveness Efficiency

12. For More Information: Jim Dickey, Deputy Executive Director Valley Metro/RPTA jdickey@valleymetro.org@valleymetro.org Phone: (602) 495 0585