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Strategies for Providing Cost Effective Community Transportation Service

Strategies for Providing Cost Effective Community Transportation Service. Dan Dalton, KFH Group Florida Commission for the Transportation Disadvantaged 22 nd Annual Best Practices and Training Workshop July, 2014. Session Overview.

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Strategies for Providing Cost Effective Community Transportation Service

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  1. Strategies for Providing Cost Effective Community Transportation Service Dan Dalton, KFH Group Florida Commission for the Transportation Disadvantaged 22nd Annual Best Practices and Training Workshop July, 2014

  2. Session Overview • The case for change -- why community transportation providers must be responsive and adapt to new ways of doing business • Potential strategies to reduce costs or improve productivity at your community transportation system • Applying this to your system or community

  3. Key Areas for Discussion • Evaluating and Implementing Management Practices and Procedures • Assessing Service Design and Providing the Right Service for the Need • Working with the Private Sector

  4. Proactive Innovators The Case for Change

  5. Some Realities • Demand for community transportation services will continue to increase, i.e. as residents “age in place” • Expenses to operate services will continue to go up • Funding levels will probably not keep pace

  6. How can a community transportation provider respond? • Embrace change • Manage the system like a business • Lower costs through productivity improvements • Maximize the use of scheduled services • Implement appropriate technology improvements

  7. Organizational Culture of Innovation • Systems with successful programs/practices: • Serve as community agents of change • Optimize rural resources • Embrace technology • Act as entrepreneurs • Provide effective, quality service • Maintain fiscal diversity

  8. Evaluating and Implementing Management Practices and Procedures

  9. Some Management Practices to Consider • Implementing employment practices to maintain veteran drivers and to reduce turnover • Implementing policies to reduce no-shows and late cancellations, especially through non-punishment policies • Implementing marketing activities and branding efforts to raise visibility of services, invoke local “ownership” of system, and increase opportunities for local funding support

  10. Maintaining Veteran Drivers and Reducing Turnover • Increased productivity, reduced costs, and a safer system as compared to “rookie” drivers • Where to recruit drivers with “veteran” potential • Fostering a positive work environment

  11. Assessing No-Show Policies • Ability to effectively track no-shows • Staff input • Community consultation and buy-in • Community education and communications • Well-timed process • Meaningful, but not overly punitive action: • Program through which customers that are chronic no-shows must call prior to each trip • Customers pay fare for no show with next completed trip

  12. Branding and Marketing to Raise Visibility • Community branding to facilitate local ownership • Tailoring service to meet local need • Specially painted vehicles • Entry point for new partnerships and additional revenue sources

  13. Thinking Outside the Bus Marketing • “Meeting on the Bus” • Brings public meetings and outreach events to individual communities • Increases participation from the public • Provides opportunity to initiate new partnerships with private industry

  14. Resources The Transit Cooperative Research Program (TCRP) funds many studies that can provide rural and small urban transit managers with a wealth of valuable information on a wide range of topics. See the notebook for a list and obtain free copies of these reports at www.tcrponline.org

  15. Assessing Service Design: The Right Service for the Need

  16. The overarching goal: Provide more service, ridership and mobility for all residents and visitors in a safe, efficient and effective manner

  17. Time to re-focus on this goal? • The right service design for the need(s) Poor service design is like placing staff in handcuffs and expecting better job performance • Shift our planning energies to actual service planning Sometimes the best way to coordinate service is to provide excellent community transportation services that most people can use

  18. But why? • Paratransit/demand response/dial-a-ride is the most expensive form of transit to operate on a per trip basis • It is also the most difficult form of transit to operate • There are other service designs that can often accommodate the needs

  19. Maybe Time for a Change • The objective is to provide the most appropriate service design for each situation/need • Paratransit/demand-response/dial-a-ride should always be a last resort because of its cost • There are other service designs that can provide door to door service when needed. • The key is to follow a schedule.

  20. The Philosophy of Productivity • Productivity and costs • Critical to non-scheduled services • Factors that affect productivity

  21. Cost Control and Improved Productivity • In reality, the best way to lower costs is through productivity improvements • Measuring productivity as one-way trips per service hour: • Going from 2 trips per hour to 2.2 trips per hour will yield a ten percent system savings • Better yet, implement a scheduled service and see productivity jump to 6 or more one way trips per hour • Cost per trip will drop dramatically

  22. Improved Productivity • Achieved through: • Demand Management/Service Design • Effective Dispatch Techniques and Tools • Affected by: • Uncontrollable factors • Controllable factors

  23. Uncontrollable Factors • Service area size • Population density • Traffic flow, congestion, and speed limits • Mobility status of passengers as it affects dwell time • Political decisions • Weather, terrain, and natural barriers

  24. Controllable Factors • Service design • Percentage of group trips • Mix of subscription and call-in trips • Experience, training, and competence of scheduling and dispatch staff • Experience, training and competence of vehicle operators • Expectations/past history • Vehicle condition/maintenance

  25. Taking Advantage of Your Opportunities • Consider the transit attributes (product lines) of your service area: -- College -- K through 12 student transportation -- Military or other government installation -- Human service (Medicaid and Job Access) -- Local town with retail centers -- Large corporations/employment - commuters -- Special events -- Proximity to large cities - commuters -- Tourism -- Shopper shuttles -- Intercity -- Solution to parking problem

  26. Tailor Service to Fit Your Service Area Needs • Take advantage of the service area attributes • Keep your eye on the prize – ridership!

  27. Some Service Design Guidelines • Understand service area attributes • Understand needs • Maximize use of fixed-route and other fixed schedule services – follow a schedule! • Avoid one way loop routes – they will inhibit ridership • Paratransit/demand-response/dial-a-ride should be the exception

  28. More Service Design Guidelines • Keep it simple • DO NOT COMPETE WITH YOURSELF! Do not allow demand-response or dial-a-ride to compete with fixed route services • Use existing vehicles for new service. Implementing fixed route when demand-response operates should include a one to one change • Market the service, then market some more

  29. “But My Clients Won’t Be Able To Follow A Scheduled Service” • People around the world that want to use a bus -- they follow a schedule • Flying somewhere? You need to follow a schedule • Going out to a movie? Need to check the scheduled times • It is really not that hard, and always remember they are customers -- not clients

  30. Additional Considerations Bus Stop Inventory and Assessment Before… After…

  31. The Bus Stop: Transit’s Front Door • Why inventory your bus stops? • Asset management – signage & facilities maintenance • ADA: Know which stops aren’t accessible (paratransit eligibility) or unsafe • Ridership records – “on/off” counts • Planning for service changes 30

  32. Why Inventory Your Bus Stops? Foundation for a bus stop program – to improve the accessibility, safety, comfort, and convenience of your system: • Reduce costs: • Enable use of existing fixed route services • Reduce demand for more expensive paratransit services • Provide a basis for budgeting/planning improvements • Identify problem stops • Prioritize and track improvements

  33. Criteria for Improving Bus Stops • Ridership • Safety • Pedestrian incidents and fatalities • Accessibility • Type of trip generator served • Senior communities, hospitals, schools • Public input/complaints • Financial support

  34. Another Consideration • Travel Training • Supports community inclusion for people with disabilities • Promotes a transit system as one that values the needs of older adults and people with disabilities • Reduces number of people who need paratransit • Increases fixed route ridership

  35. Resources for Implementing Travel Training Program • Easter Seals Project ACTION: • Introduction to Travel Training Course • Fundamentals of Travel Training Administration • Online Travel Training Community • Variety of Publications

  36. Travel Training: Determining Cost Savings • Cost to provide travel training services • Increased economic impact of job opportunities • Cost avoidance through use of fixed route services as opposed to paratransit • Cost/benefit analysis

  37. Additional Resources The Transit Cooperative Research Program (TCRP) funds many studies that can provide transit managers with a wealth of valuable information on a wide range of topics. See the notebook for a list and obtain free copies of these reports at www.tcrponline.org

  38. Working with the Private Sector

  39. Some Realities • For a variety of reasons, private transportation operators may not be as involved in efforts to provide mobility as they could be: • Process may seem convoluted and difficult for private operators to determine where they fit in • Going to more meetings may not be high on their list – unless they know there are potential business opportunities • Outreach to private operators may be lacking • Need for stronger relationships between public providers and private operators • Lack of forum for private transportation providers to form partnerships with transit providers • Old stereotypes may affect the way they are perceived

  40. Is this your image of a private transportation operator?

  41. Some Recent Efforts FTA and the Taxicab, Limousine & Paratransit Association (TLPA) issued a guidebook for private transportation to assist with their participation in the transportation planning process FTA/TLPA also produced a companion piece with information on engaging private operators in the process and working with them to improve mobility

  42. “Eighty percent of success is showing up” -- Woody Allen

  43. Guidebook for Private Transportation Operators • Provides information on the transportation planning process • Review key funding programs, including the New Freedom and JARC Programs • Companion brochure to assist planners and others working with private operators • Available through the TLPA website: www.tlpa.org

  44. Engaging Private Transportation Operators Revisit Current Outreach Efforts to Private Transportation Operators Highlight Opportunities for Private Transportation Operators Identify Possible Opportunities for Partnerships through JARC and New Freedom Programs Funds

  45. Engaging Private Transportation Operators Examine Stereotypes Value the Input from Private Transportation Operators Educate Private Transportation Operators on the Federal Compliance Requirements Associated with Participating in Federally-funded Projects

  46. Opportunities for Partnerships • Premium Taxi Services • ADA Paratransit • Specialized Services • After Hours Service • Overflow Trips • Bus Services

  47. Contact Information • Dan Dalton, 301-951-8660, ddalton@kfhgroup.com

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