1. Greater Minnesota Transit Investment Plan TAC November 17, 2010

2. Technical Analysis Review Passenger Demand Projections Passenger Demand Projections Service Hour Projections Service Hour Projections Operating Cost Estimates Operating Cost Estimates

3. County Population Distribution Future Service Hours Service Level Rates County Population Characteristics Future Passenger Demand User Trip Rates Future Service Hours Future Service Costs Cost Per Hour by Service Area Passenger Needs Service Needs Operating Costs Methodology

4. Passenger Demand Model Results Annual Passenger Demand: 2010: 18.1 million 2015: 18.8 million 2025: 20.9 million 2009 actual rides delivered: 11.0 million Current services meet about 60% of projected demand – Higher (near 70%) in large urban areas

5. Service Hours Model Results Annual Service Hour Needs: 2010: 1.8 million 2015: 2.0 million 2025: 2.1 million 2009 actual: 1.03 million Current services meet about 57% of projected need

6. Operating Cost to Meet 100% of Service Needs Annual Cost Projections*: 2010: $103 million 2015: $122 million 2025: $165 million 2009 actual costs: $55 million *Capital costs not included in these figures. Future year costs adjusted for 2.0-2.5% inflation.

7. Operating Costs to Meet Future Needs 2015 Target level* of 80% of total needs =$98 million 2025 Target level* of 90% of total needs = $148 million 2009 actual costs= $55 million *Capital costs not included in these figures. Future year costs adjusted for 2.0-2.5% inflation.

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

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

10. Expansion of Services (proposed) Highest priorities for investment of new funds: Establish service in unserved counties to fill in gaps (legislative priority) Provide longer hours (morning and night) to serve more trips Expand multi-county services to link more communities

11. Secondary Expansion (proposed) 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

12. Contraction of Services (proposed) If funding decreases, the following guidelines will determine contraction priorities: Expansion will not be considered Redesign under-performing services according to performance measures Reduce state and federal funding to under-performing services according to performance measures

13. 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

14. Draft Transit Investment Priorities Future Federal and State Funding Preservation Mn/DOT will first maintain the viability of existing public transit systems that are funded by federal and state dollars through the annual allocation of financial assistance. Systems that demonstrate local financial commitment 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/DOT’s 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/DOT’s 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. 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 services 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. 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 services in small urban, large urban, and rural areas according to performance measures.

15. System - Level Performance Measure Example Transit System A Transit System A – Doesn’ t Comply with reporting – Cost per passenger (Above Average) – Pass Per Hour (Below Average) – Cost Per Hour (Above Average) – Farebox Recovery (Below Average) **Within 20% of Average Must take remedial steps: These steps may include but are not limited to: Engage in more intensive community outreach and marketing. Engage in more intensive community outreach and marketing. Conduct market research activities in order to realign routes or service hours to more effectively meet customer needs. Conduct market research activities in order to realign routes or service hours to more effectively meet customer needs. Reassign service hours to another unmet need. Reassign service hours to another unmet need.