1. Level of Service Analysis Joe Kern, SRF Consulting Group, Inc.

2. Process Flowchart Current Passenger Demand* Current Service Availability* Current Productivity Levels Future Passenger Demand** Future Levels of Service ** Service Hrs to Meet Future Demand** Service Hrs to Meet Idealized Service Levels** Cost to Meet Future Needs Population Characteristics Trip Rates by Markets Population Target Rates Level of Needs Currently Met Unit Costs Unit: passengers Unit: rev hrs Unit: passengers Unit: rev hrs Unit: $$ Unit: passengers/hr *By System **By County Process Flowchart

3. Level of Service Basis for analysis Basis for analysis – Land area and road miles per county unlikely to change in future – Population is the most reasonable basis to use as state demographer generates for each county

4. Level of Service Primary analysis variable is revenue hours per capita by system peer group Primary analysis variable is revenue hours per capita by system peer group – Large urbanized – Small urban – Rural

5. Gap in Unmet Demand Can be Filled by: 1.Increasing revenue hours of service with no change in productivity 2.Increasing productivity within same amount of service (revenue hours) 3.Combination of 1. and 2.

9. Recent Trends (2005 to 2008) Passengers per capita (increased 20-30%, more in rural) Passengers per capita (increased 20-30%, more in rural) Revenue hours per capita (increased 20%) Revenue hours per capita (increased 20%) Passengers per revenue hour (little change, except in rural) Passengers per revenue hour (little change, except in rural)

10. Recommendations Since passengers per revenue hour did not change significantly for major peer groups during 2005 to 2008, it is unlikely that we could expect to see significant increases in future years when trying to fill unmet needs gap Since passengers per revenue hour did not change significantly for major peer groups during 2005 to 2008, it is unlikely that we could expect to see significant increases in future years when trying to fill unmet needs gap It is recommended that increased service levels as measured by revenue hours per capita be used as the future year target variable for the LOS analysis It is recommended that increased service levels as measured by revenue hours per capita be used as the future year target variable for the LOS analysis

11. Recommendations Target rates (revenue hours per capita) to be developed for: Target rates (revenue hours per capita) to be developed for: 1.Large urban (Duluth, Rochester, St. Cloud) 2.Medium urban (Mankato, Moorhead) 3.Small urban (over 10,000 population) 4.Rural