HomeMy WebLinkAbout11/20/1990, 6 - EVALUATION OF THE PILOT TROLLEY PROGRAM. MEETING DATE:
��N�� iil�lil!!!jIIPp1IIIIIII city Of san IDIS OBISPO //.Xc- 0
COUNCIL AGENDA REPORT ITEM NUMBER:
46
FROM: Ken Hampian, Assistant City Administrative Office
Prepared By: Harry Watson, Transit Manager and Deb Hossli,d
Administrative Analyst
SUBJECT: Evaluation of the Pilot Trolley Program.
CAO RECOMMENDATION: Review the information presented in this
report and provide staff with direction on the future of the
Trolley.
REPORT IN BRIEF:
Staff has reviewed and evaluated the Trolley's performance over the
pilot program's first four months of operation (July through
October) . The evaluation has shown that the Trolley has met the
goals established by the Council with respectable degrees of
success and is operating efficiently and cost effectively.
Ridership has been extremely high, with the Trolley being used by.
tourists and.residents alike for recreation and practical purposes.
As part of this report, three alternatives have been presented to
address the Trolley's future operation. The first alternative
proposes a permanent Trolley Program that would continue, on an
uninterrupted basis, after the trial program concluded on December
31, 1990. This alternative would be fully funded by the City. The
second alternative offers a permanent Trolley Program that would
be funded jointly with the private sector and in place by next
summer. The final alternative offers an option for terminating the
Trolley Program at the conclusion of the pilot program (December
31, 1990) . The Council is requested to consider the alternatives
and provide staff with direction on the future operation of the
Trolley program. '
DISCUSSION:
Background
In April of this year, the City Council authorized the start up of
a pilot Trolley service in downtown San Luis Obispo. The Council
chose to offer the service, on a trial basis, to determine if a
Trolley could help to reduce congestion and traffic in the
downtown, expand available parking in the downtown, and increase
the downtown's appeal to tourists. The Trolley currently operates
seven days a week and provides a shuttle service on Thursday
evenings for the Monterey Street hotel/motel area to the downtown.
Its current daytime route covers the downtown core and is bordered
on the north. by Osos Street, on the south by Nipomo Street, on the
east by Marsh Street, and on the west by Palm Street (see
attachment 1) . The Thursday evening route is similar, and includes
shuttle service to the Monterey Street hotel/motel area. Trolley
rides are offered free of charge.
����i�ibiiihillllflllPi' °9�IIIII MY of san tuts OBISPO
WanGs COUNCIL AGENDA REPORT
Page Two
The pilot program was initially scheduled to begin in July and
conclude in October of this year. However, because the Trolley has
met with such success during its first few months of operation, the
Council recently opted to extend the service through December. The
extension will allow staff to measure the Trolley's utility as we
enter the Christmas shopping season. Ideally, staff would have
preferred to prepare this report after the trial period had i
concluded. However, should the Council elect to continue the
Trolley on a permanent basis without any interruption in service,
staff needs to begin making arrangements for acquiring trolley
equipment immediately.
Purpose of Report
The purpose of this report is twofold: to provide the Council with
a report summarizing the Trolley's performance during its first
four months of operation and to determine whether the Council is
interested in pursuing a long=term Trolley operation. With respect
to the performance report, the Transit Manager has collected
detailed information on ridership and the costs of the Trolley
system using industry accepted standards for transit programs. In
addition, surveys were circulated to Trolley users to measure who
.is using the Trolley, for what purpose, and whether it has affected
parking patterns.
With regard to long-term operation of the Trolley, staff is only
seeking direction from the Council on whether, based on the
performance report, a desire exists to move forward with purchasing
trolleys for a permanent operation. Decisions relating to changes
in routes, fares, operating hours, etc. , of the Trolley would not
besought until staff has had an opportunity to fully review the
Short Range Transit Plan that is expected to be completed by spring
of next year. It should be noted that, as part of the November 7,
1990 Meeting, the Council awarded a contract for the Short Range
Transit Plan. This plan will measure the performance of the City's
existing transit system (including the Trolley) and provide
recommendations for improving routes, equipment, facilities, and
services.
Performance Report
During the months of July through October, the Transit Manager
collected statistics on ridership, usage patterns, and costs of
operation for the Trolley. These statistics, combined with two
Trolley passenger surveys, have been used to evaluate the
performance of the Trolley. With respect to the passenger surveys,
the first was conducted to determine who was riding the Trolley,
why they were riding it and would they be willing to pay a fare.
This survey was circulated twice, once in July at the height of the
city of san Luis oBispo
COUNCIL AGENDA DEPORT
Page Three
"tourist season" and again in October during the non-tourist months
(to more accurately reflect local residents usage patterns) . A
third survey was conducted to evaluate the Trolley's relationship
to parking patterns in the downtown. Survey results have been
graphically illustrated on attachments 2, 3, 4, and 5.
The ridership statistics and survey results revealed the following
information:
Ridership Trends - Who is Riding the Trolley and Why?
From a ridership perspective, the Trolley has been extremely
successful. Between July and October of this year, the Trolley
carried over 59, 000 passengers. During the summer months (July
and August) the Trolley consistently carried approximately 600
passengers a day or 18,500 passengers per month. Ridership for
September and October dropped to 11,000 per month, with an average
daily passenger count of over 300 (see attachment 2) . While the
drop in ridership between August and September was significant,
11, 000 passengers per month still represents a high ridership level
by nationwide standards.
During the summer months (July and August) , tourists comprised 40%
of the Trolley's ridership, followed by City residents at 38%, with
County residents comprising the final 22%. In contrast, City
residents were the greatest users of the Trolley during September
and October (48%) , followed by County residents at 34% and tourists
at 18%.
With respect to why the Trolley is being ridden, the results varied
between the survey conducted in July versus October. The July
survey revealed that the vast majority were using .the Trolley for
purely recreational purposes. Only one in four passengers were
using the Trolley for transportation in the downtown (to get to
their job or travel from business . to business, etc. , ) . These
results were not surprising. . Staff anticipated that recreation
would rate high given the Trolley's novelty status to local.
residents and the fact that July and August represent the City's
busiest tourist months (see attachment 3) .
When this survey was conducted again in October, staff found that
the majority of the respondents (52%) were using the Trolley for
transportation around downtown. Less than half of the respondents
(48%) during this period were using the Trolley for recreation.
In addition, 32% of the respondents indicated that they -would use
the Trolley eleven or more times per month, further confirming that
the Trolley is being used by some as a regular form of
transportation in the downtown. These results,. again, were not
city of San Luis OBispo
1WNGA COUNCIL AGENDA REPORT
Page Four
surprising. With fewer tourists in the community, more local
residents were using the Trolley on a regular basis for downtown
transportation to and from jobs and restaurants, etc.
Fare Collection
In evaluating whether a fare should be charged for the Trolley,
again, the results varied between the survey conducted in July
versus October. The July survey revealed that 85% of the
respondents were willing to pay a fare to ride the Trolley. Of
those willing to pay, the largest percentage (418) preferred a 25
cent fare. 158 felt the Trolley should be free. The October
survey showed that 718 of the respondents were willing to pay a
fare. Again, of those willing to pay, the largest percentage (33%)
preferred a 25 cent fare. 298 felt the Trolley should be free (see
attachment 4) .
The results of this survey are less clear. It is apparent that a
large majority of the respondents are willing to pay for the
Trolley and 25 cents represents the favored fare. However, the
results also suggest that tourists are more willing to pay for the -►
Trolley than the local residents. This issue will be explored in
greater detail as part of the Short Range Transit Plan consultant's
review of the Trolley program.
Parking Survey
The results of the third survey, which examined the Trolley's
relationship to parking, found that 418 or 230 of the respondents
had been assisted by the Trolley with their parking for the day.
Examples of how the Trolley had aided their parking was split
nearly equally between being able to park in one place and not
having to move and being able to park out of the downtown "crowded"
core (see attachment 5) .
The City's Parking Manager has found these results very
encouraging. Since the inception of the Trolley, the Parking
Enforcement staff has not noticed any significant changes in
downtown parking patterns. However, if the Trolley can assist 230
respondents on a given day with parking downtown, it can only be
viewed as an asset, especially as the City enters the Christmas
shopping season. It is both the Parking Manager and Transit
Manager's opinion that more can be done to promote the Trolley as
a component of our downtown parking program. Current efforts
include joint development of a program to encourage Trolley usage
in conjunction with the opening of the Marsh Street Parking
Structure.
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=VVAMa COUNCIL AGENDA REPORT
Page Five
Financial Indicators
In order to measure the Trolley's performance from a financial
perspective, statistics were collected in the following areas: cost
per passenger, cost per hour, and passengers per service hour.
These performance indicators represent industry accepted standards
for measuring transit systems. I
Below, the Trolley's performance indicators have been shown for
the period of July through October of this year. For comparison
purposes, performance indicators for the City's Bus System have
also been shown. The City's Bus System cannot provide an exact
comparison for the Trolley. However, because the City's Bus System
is considered to be run efficiently, it can serve as a benchmark
for evaluating the Trolley's operation.
Trolley Performance
* Cost per passenger $ .23 (1)
* Cost per hour $13.86 (1)
* Passengers per hour 61
City Bus System Performance
* Cost per passenger $ .49 (1) (2)
* Cost per hour $24.55 (1) (2)
* Passengers per hour 58
(1) Excludes capital or lease costs.
(2) In order to provide a more accurate comparison, fare box
revenues have not been included in the City Bus System
performance statistics. If fare box revenues were included,
the cost per passenger would drop to 33 cents, and cost per
hour would drop to $14.52.
Based on cost and performance statistics, it is the Transit
Manager's opinion that the Trolley is performing very cost
efficiently. The Trolley's cost per passenger and cost per hour
is considerably lower than the City's Bus System. In addition, the
Trolley carries more passengers per hour than the City's Bus
System. In summary, these statistics show that, in comparison to
City's Bus System, the Trolley's ridership is high and labor and
maintenance costs are in line with state-wide averages.
l.fG�
city of San Luis OBlspo
NffinMs COUNCIL AGENDA REPORT
Page Six
Conclusions
It is apparent that the Trolley has been a success on many fronts
as demonstrated by the performance statistics discussed throughout
this report. The goals established by the Council for the Trolley,
reducing downtown traffic, expanding parking, and encouraging
tourism, have all been met with respectable degrees of success.
Ridership has been extremely high, with the Trolley appealing to
the, recreational interests of residents and tourists alike during
the summer months. Many anticipated that interest in the Trolley
would drop off almost entirely after tourist season ended. To
date, this has not proven true.
Local resident support of the Trolley has also been very high.
The passenger surveys conducted during the trial program show that
a significant number of residents are using the Trolley to get
around downtown and expand the areas of available parking. With
the Christmas shopping season approaching, it's anticipated that
this trend will continue, further achieving two of the primary
goals of the Trolley program. Finally, analysis of the financial
indicators confirm that the Trolley is operating efficiently and
cost effectively.
ALTERNATIVES:
Staff has prepared three alternatives for the Council's
consideration that address the future of the Trolley:
Number One: Approve a permanent Trolley Program to begin January
1. 1991 with the City providing full funding.
Under this alternative, the Trolley would become a permanent
program in the downtown and continue, on an uninterrupted basis,
after the pilot program concluded on December 31, 1990.
Implementation of this alternative would require staff to
immediately begin a search for a used Trolley. Concurrently, with
the assistance of the Short Range Transit Plan consultants,
specifications would be developed for acquisition of a new Trolley.
once the new Trolley was acquired, the used Trolley would become
a back up and overflow unit (a need currently exists for two
Trolleys on Thursday nights and Saturday) .
If this alternative is selected, staff is requesting some
flexibility with respect to securing the used Trolley. The City
can purchase one of the Trolley's currently being leased for the
pilot program to serve as the back up Trolley. However, it is the
Transit Manager's opinion that our leased.Trolleys are reaching the
min���►li(VIIIII�IIII�p1�°9�UII1 city of San WIS OBISpo
jVMG@ COUNCIL AGENDA► REPORT
Page Seven
end of their useful life. Therefore, with authorization from the
Council, staff would like to conduct another nationwide search to
determine if there are any used Trolley's available that are in
better condition. If no other suitable Trolley's can be located,
it would be staff's recommendation to purchase one of the leased
Trolleys.
Should the search extend beyond December 31, 1990, a short-term
extension of the existing Trolley lease would be secured to insure
continuous operation. Purchase of a used Trolley that is in better
condition may initially be more expensive. In the long-term,
however, the City would benefit through lower maintenance costs and
greater system integrity. Given the tight timeframe and limited
number of trolleys available, staff is also requesting the City
Administrative Officer be authorized to negotiate for and purchase
a used trolley not to exceed the cost of $75,000.
Option 1 Fiscal Impact
Cost estimates to implement this recommendation, including purchase
of the Trolley equipment and operational costs to run the program
through the end of this fiscal year, would be:
* New Trolley $140,000 (1)
* Used Trolley $ 75,000 (1)
* Operation Costs $ 22,000 (2)
Total $237, 000
(1) Estimates for the capital costs represent the high end range.
(2) Annualized operational costs would run approximately $44,000.
This can be offset somewhat if a fare is charged.
Staff is recommending that the City purchase as opposed to lease
Trolley equipment. If it is our intention to provide a permanent
program, purchasing equipment over the. long-term would be
significantly more cost effective. It would also be staff's
recommendation to continue to contract with Laidlaw for the
operation of the Trolley.
It is important to note that the Transit Manager recently applied
for an Urban Mass Transportation Grant in the amount of $33 ,600 to
fund a portion of the Trolley's capital costs. Staff should
receive notification by the end of December advising the City of
the grant's outcome. If approved, the City's costs for the Trolley
Program would be reduced to $203,400.
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COUNCIL AGENDA REPORT %
Page Eight
Staff is recommending that the costs of the Trolley Program be
financed with Transportation Development Act (TDA) funds.
Approximately $153,800, of the $237,000 needed for the Trolley
Program would be financed with fund balance available in the.
Transit Fund (which represent TDA monies) . The remaining monies
needed, $83,200 would be taken from the General Fund's 1990-91
allocation of TDA monies for Street Maintenance.
i
The:-. City has been notified that it will receive approximately
$819,600 in TDA funds for 1990-91. 1989-91 Financial Plan
disbursement of this funding would have resulted in the Transit
Fund receiving approximately $324,600, the Regional Transit System
receiving $135,000 and the General Fund receiving the balance of
$360,000 for the Street Maintenance program. Under this
alternative, the General Fund's allocation of TDA monies would be
reduced to $276,800 and the Transit Fund's allocation increased to
$407,800 to finance the balance of the costs of the Trolley. It
would be staff's recommendation that the loss of funding to the
City's Street Maintenance program be made up through General Fund
Balance or through reprogramming lower priority capital projects
or operating programs. Options to fund the shortfall would be _I
brought back for Council consideration during the bid award process
for the Trolley. A summary of the. Transit Fund's projected
financial condition and revenue needs through 1990-91 under Option
1 has been provided as attachment 6.
Funding of the Trolley beyond 1990-91 and long-term decisions
regarding the use of the TDA monies would be discussed more
thoroughly during the 1991-93 financial planning process.
Option 1 Advantages and Disadvantages
The advantage to this alternative is that the Trolley Program would
continue without an interruption in service. The Trolley has
helped to create a positive image for the City. It is apparent
that support for -the Trolley has been very high from residents as
well as merchants in the downtown. Continuing the Trolley without
a break in service would only add to this positive image. In
addition, many residents are using the Trolley on a regular basis
for transportation around the downtown. Staff has every reason to
expect this trend to .continue, especially with the Christmas season
upon us. By continuing the Trolley service, the City would be
encouraging changes to parking and transportation habits.
The disadvantages of this alternative relate to timing and cost.
In order to provide Trolley service without interruption, the
Council must take action prior to the conclusion of the pilot
program and the completion of the Short Range Transit Plan. While
city Of San lues OBI SPO
COUNCIL AGENDA REPORT
Page Nine
not crucial, it would be advantageous to review the information
gained during this period prior to making a long-term decision.
In addition, Trolley funding would be assumed as a total City
responsibility.
Number Two: Approve a permanent. Trolley Program to begin next
summer contingent on private sector contributions.
I
This alternative is offered in recognition of the success the
Trolley has achieved not only relative to pragmatic goals, but as
a significant tourist oriented amenity in the downtown. Based on
survey results and less formal evidence (e.g. , the use of the
trolley logo by some restaurants) , it is apparent that the downtown
business community has benefitted from the Trolley to a greater
degree than other sectors of the community. Therefore, under this
alternative, the Downtown San Luis Obispo Business Improvement
Association (BIA) and perhaps others ("others" could include
Monterey Street hotels, motels and even the City's own Parking
Program) who have benefitted from the Trolley would be requested
to contribute annually to the long-term operation of the program.
Specific estimates have yet to be developed for how much the
contribution should be or how the monies should be collected.
However, it would be staff's intention to work with the BIA and
others in an attempt to develop a Trolley cost sharing proposal for
the Council's consideration by early 1991. After review of the
proposal, the Council would determine whether a permanent program
should be pursued.
Assuming that a mutually beneficial cost sharing proposal could be
agreed upon early in 1991, staff would begin preparations to
purchase a used and new trolley for a permanent program. It would
be staff's goal to have the program in place by next summer.
Because Trolley service would conclude December 31, 1990 at the
end of the pilot program, there will be a break in service under
this option (and perhaps no further service, if a cost sharing
arrangement is not developed) .
ORtion 2 Fiscal Impact
Capital costs for this alternative would be the same as Option 1
(up to $215, 000) , however, $22,000 could be saved in operational
costs as the Trolley would not be operating between January and
June of next year. Annualized operating costs for this alternative
are estimated to be $44, 000, less any fare revenue, should a fare
eventually be charged. It is not possible to calculate the total
costs to the City for this alternative until a cost sharing
1111(IiIP° I10I11 city of san tins oBispo
NOMMOCOUNCIL AGENOA REPORT -
Page Ten
proposal is developed and, if possible, agreed upon. However,
staff would recommend, as in the first alternative, that TDA monies
be used to fund the City's share of the Trolley Program. In
addition, any impacts to the General Fund would be financed through
the General Fund Balance or by reprogramming lower priority capital
projects or operating programs.
option 2 Advantages and Disadvantages
An advantage to this alternative is that the City could share the.
expenses of the Trolley with others that derive a benefit, thus
reducing our costs. In addition, staff would have an opportunity
to work with the Short Range Transit Plan consultants to evaluate.
the Trolley's operating program prior to putting the permanent
program in place. Staff would also have more time to search out
and evaluate the availability of used Trolleys. The obvious
disadvantage to this alternative is that there would be an
interruption in Trolley service between January and June of next
year. In addition, any financial partnership is likely to reduce
to some degree the City's control over the service.
Number Three: Terminate the Trolley Program.
Under this alternative, Trolley service would conclude on December
31, 1990 at the end of the pilot program. The major advantage to
this alternative relates to the cost savings associated with no
longer providing the service. Significant disadvantages include:
an extremely popular service for residents and tourists would be
discontinued and any gains in altering transportation or parking
habits would be lost.
CONCURRENCES:
Copies of this staff report have been circulated to the Mass
Transportation Committee, the Chamber of Commerce, the BIA, and the
Parking Management Committee. Each group has indicated their
support for the Trolley and the endorsed the pursuit of a permanent
program. (The BIA has yet to be formally approached regarding the
concept of sharing the costs of continuing the Trolley Program;
however, informally the. BIA has indicated that while they are very
supportive of the Trolley, they are not in the financial position
to . provide annual contributions to its operation. ) Downtown
merchants have been extremely supportive of the Trolley; letters
expressing praise for the system have been received, the Trolley's
logo has been incorporated into many of the downtown merchants
advertisements, etc. Written comments most often included on the
passenger surveys included: "it's good for traffic and parking",
"great service, keep it up", etc.
'��h���Hi�011111111° ��IIU city of San lues OBISpo
COUNCIL AGENDA REPORT
Page Eleven j
ATTACHMENTS:
1 - Trolley Route
2 - Trolley Ridership Statistics
3 - Trolley Usage Pattern Statistics j
4 - Trolley Fare Statistics
5 - Trolley Parking Statistics
6 - Transit Fund Financial Summary
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TROLLEY USAGE PATTERNS
Who Is Using the Trolley
Thousands
26 -
20 ............ .....................................................
County Res.
y16 ...22%.... ... ....................................................
ro City Res.
a
w ...........01...... .....
10 :......... ..... ............
Tourist
18%
z County Res
34%
6 ..................... .................. .. ........
Tourist City Res.
40% 48%
0
July/August 1990 Sept/Oct 1990
Average Ridership Per Month
ATTACHMENT 2
TROLLEY USAGE PATTERNS
What is the trolley being used for?
Transportation
25.0%
W",
Recreation
75.0%
July/Aug 1990
Transportation
52,0%
ORecreation
48.d% /
Sept/Oct 1990 ATTACHMENT 3 ' w
i 'ROLLEY Mkt .
�J
Are you willing tD pay a fare?
No
.No
15.0%
Yes
85.0%
Yes
Juty/Aug 1990 71.0% Sept/Oct 1990
What fare are you willing to pay?
50 Percent -----
40 ......................................... ...........................................
30 .......................................... ..........................................
r
20 ......................................... ....................................... '.
'4
t
o
0 .10 26 36 .60 .25 .35 50
Fare Fare
Juty/August.1990 Sept/October 1990 /,
ATTACHMENT 4 U
PARKING
Did the Trolley assist you
with parking today?
Yes
41.0%
4
,
No
59.0'x,
How did the Trolley assist you?
60.0% Were able to park outside the
Pill Downtown Core.
a
Were able to park in one
place and not have to nova
car.
50.0% ATTACHMENT 5
CHANGES IN FINAN ^ XL CONDITION
TRANSIT FUND, FISCAL YEARS 1989-90 AND 1990-91
1990-91
1989-90 ORIGINAL PROPOSED
ACTUAL BUDGET BUDGET
Revenues
Investment and Property Revenues 21,100 8,000 8,000
Subventions and Grants
Operating 324,600 324,600 407,800
Capital 251,000
Service Charges 168,800 139,900 170,000
General Fund Contribution 90,000
Total Revenues 604,500 472,500 836,800
Expenditures
Operating Programs
Per Budget/Financial Statements 518,600 529,600 529,600
Carryover
1989-90 Trolley Program 90,000
Bus Stop Improvements 20,000
Extended Trolley Program - Six Months 22,000
Total Operating Programs 518,600 529,600 661,600
Capital Projects
Two(2) Replacement Buses 339,400
Trolley Purchase 215,000
Total Capital Projects 554,400
Total Expenditures 518,600 529,600 1,216,000
Revenues and Other Sources Over(Under)
Expenditures and Other Uses 85,900 (57,100) (379,200)
Fund Balance, Beginning of Year 293,300 259,000 379,200
Fund Balance, End of Year $379,200 __ 5201,900 _ $0
i
ATTACHMENT 6
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