HomeMy WebLinkAboutAgenda Report - July 19, 1989 (55)C 0 u N C I L C 0 M M U N I CAI .O�N
TO = THE CITY COUNCIL
FROM: THE CITY MANAGER'S OFFICE
SUBJECT: PERFORMANCE AUDIT OF THE LODI TRANSIT SYSTEM
PREPARED BY:
Assistant City Manager
COUNCIL MEETING DATE
JULY 19, 1989
RECOMMENDED ACTION: That the Council receive for filing the Performance
Audit of the Lodi Transit System for the years
1985-86 through 1987-88.
Respectfully submitted,
4erry L. Glenn
Assistant City Manager
JLG: br
Attachment
COUNC598
5 *89
JKaplan & Associates City Nlenag—er*s- Offic;z
Performance Audit of the t
Lod.' Trap. sit System
it
Prepared for the
San Joaquin County Council of Governments
Prepared in association with
JLNII Consulting
June 1989
I.INI -fRODUCTIO
A. BACKGROUND
JKaplan & Associates _
This report presents the findingsand recommendatior. , cf the 1989 perfarmar-ce audit cf
the City of Lodi Dial -a -Ride system. This system provides deman.l-responsive: service to the
eiderly and handicapped and to the general public in the City of Lodi, and also tc, Woodbridge
and the Arbor Mobile Home Park in the unincorporated area of , ,an Joagtz:.-, - County.
A TDA requirement that is in effect for this year reauires each transit operator to
participate in the California Highway Patrol "pull notice" program. A certification from the
CFP showing that the operator is in compliance with the requirement must be submitted with
the operator's TDA claim. The City of Lodi has obtained this certification. The City cf Lodi
is also prepared to meet the new regulations applicable to general public paratransit vehicles,
including having the vehicles inspected by the CHP and undertaking an intensive training
course for the drivers.
The.ystem is administeredby the City of Lodi with the service provided through a
contract v&h a private City cab company, which aperat:es the city -owned vehicles. The fleet
consists of 5 full-size station wagons and mo minivans. All vehicles are rtlaintained by the
city, and the contractor purchases fuel from the city. Fares an: $0.50 for elderly and
handicapped and$1.00 for the general public.
The dial -a -ride service operates on a scrip basis. The city sells rickets to users. The
contractor submits the used tickets to the city, which pays the contractor $2.75 for each fare
inside Lodi, and $3.25 for mps to Woodbri,ige and Acampo (unincorporated areas in the
County). The contractor bears all labor costs for the service but the city has beer, paying for
insurance since FY 1986/87. The County of San Joaquin prints 2nd sells tickets to county
area residents and reimburse: the City ofLodi for the cost of all mps outside the city limits
(to/from. Acampo and Woodbridge). Service is available Monday through Friday from 7
A.M. to 7 P.M., and Saturdays from 9 A.M. to 5 P.M.
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!Kaplan d Associates
B. THE AUDIT['
The audit was sponsored by the San Joaquin County Council of Governments
(SJCCOG), in accordance with its responsibilities under Section 6664.5 cf the California
Administrative Code. The methods employed in this analysis were in accordance with the
pre -audit guidelines definedin the Transit Performance Audit Guidebooprepared by the
k
California Department of Transportation.
The two major purposes of the performance audit are:
1. To conduct an independent, objective evaluation of the efficiency and
effectivenessof the public transit service provided by the City of Lodi.
2. To provide management and policy makers with constructive and
practical recommendations for transit service improvements.
The performance audit is designed b serve as a high level management letter that
addresses significant factors that impact the City of Lodi's ability to provide efficient and
effective transit service. The letter is designed to highlight areas of good performance and to
point out areasrequiring improvement.
The research effort for the audit focussed primarily on she five TDA -required
performance indicators and several additional ones, for the period covering Fiscal Years
198586 througY 1987/88. T"nese performance indicators were calculated and analyzed to
assess historical trends in service. As appropriate, ocher significant.areas of system
performance were analyzed during the course of the audit. Data on the Lodi Did -a -Ride
service were obtained from the City of Lodi and from the SJCCOG. During interviews with
City ofLcdi staff, significant issues relating to system performance were discussed.
Table I-1 presents a summary ofrecommendatiom for the Lodi Dial -a -Ride. Chapter Il
contains the performance indicator analysis. The five TDA -required indicators as wel' as a
number ofother performance -related indicators are shown for the three-year audit period,
Chapter III Presents the audit team's evaluation cf the City of Lodi's performance during the
three-year audit period, and provides specific recommendations to improve the productivity
of the service. In addition, it reviews the Cir: ofLodi's responses to recornmendabom from
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Jii.apian &, Assoc ares
- the last performance audit prepared by Deloitte. Haskins & Sells.
Table I-1
SUMMARY OF RECOMMENDATIONS
Recommendation Responsibility Implementation
Period
1. Report complaints by type and frequency,
quarterly or annually.
2. Report accidents and roadcalls on a
quarterly basis.
3. Institute wheelchair accessible service
using a lift -equipped van.
City of Lodi
City -)f Lodi
City of Lodi
1-3
Within 6 months
Within 6 months
t.s soon as practical
IKaplan ck Associates
II. PERFORMANCE INDICATOR ANALYSIS
A. TDA PERFORMANCE INDICATORS
TDA regulations quire that transit systems which are recipient of TDA funding report five
performance indicators foreach mode of operation (PL1C Code 99246). One function of the
triennial performance audit is to verifythe rive performance indicators. The indicators are
shown on Table 11-1, for the period coverirsg Fiscal Years 1985/86 through 1987188.
Table II -i
TRANSPORTATION DEVELOPMENT ACT
REQUIRED SYSTEMWIDE PERFORMANCE P1DICATORS
City of Lodi
FY 198 -M FY 1986-87 FY 1987-88
Total Operating Cost Per Passenger 53.26 .$3.46 $3.42
Total Operating Cost Per Vehicle ServiceHour 525.80 $22.90 521.77 f
Total Passengers Per Ythicle Service We 0.7 0.5 0.6
Total Passengers Per Vehicle Service Hour 7.9 0.6 6.4
Vehicle Service Hairs Per Employee 1292 1,412 1.488
Source: From State Controllers Report. Financial Audits, Operator Records, and SJCCOG Records
B. TRANSIT INDICATOR ANALYSIS
In addition to the required indicators, we have calculated some additional indicators that are
frequently used in the transit industry. 'Mese indicators measure trends in the efficiency and
effectiveness of the City ofLodi's transit opention.
Efficiency is the relationship between cost or resource usage and the level of service
provided. Major costs or resources include operator labor, maintenance labor, vehicle parts.
and fuel.
Effectiveness is concerned with consumed output of the system's operations, measvred
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JKahla,: & A ssociares_
in terms of:
o accessibility of area residents to the system
o degree to which the service is used, and
o degree w which the transit system meets cornmunity
transit needs and goals.
The base operating -and financial statistics for the City of Lckli's operations over the audit
period are provided in Tables 11-2 and II -3. These statistics outline the size and scope of the
transit system. Performance indicators that show the efficiency of the Oty of Lodi's operations
are shown in Table 11-4. Fffectiveness indicators are presented in Table II -5.
1. Efficiency Indicators
Table II -4 shows the efficiency indicators for the City of Lodi.
Both the gperatirgcdst per vehicle service hour and.per vehicle service mile decreased
(15.6% and 16.7%, respectively) Over the audit period, due to better utilization of labor and
dispatching. This is an excellent trend, the City of Lodi should be commended for keeping
operating costs reasonable. In other words, hours of service being supplier: increased at a
higher rate than the cost Po provide the service, due to increased productiv .,y.
Actual operating expenditures as a percentage of budgeted operating expenditures
show significant variations. In F Y 1986/87 actual operating expenditures exceeded the
budgeted expenses by 24.6%. However, this is explained by the substantial increase in
insurance costs experienced by the system between FY 1985/86 and FY 1986/87. Moreover,
actual expenditures for FY 1987/88 were below the budget figure by close to 8%. '11ds
indicates that the budgeting process is reasonable.
2. Effectiveness Indicators
Several effectiveness indicators are identified on Table Ii -5. The farebox recovery ratio
remained high throughout the audit period, with an average value greater than 18%.
As a result of increased insurance costs, operating expenses went up I 1 fir, between FY
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Mapiar_ & Associates ,
2985/86 and FY 1987/88, while ridership only increased by 6`io. Operatinb cost per
passenger for the three year period increased from $3.26 to $3.42, or only 4.9% over the
three year period, well below the comparable CPI (ConsumerPrice index) for the same
period.
Between F Y 1985/86 and FY 1987/88, the average fare per passenger held fairly steady
,
at about $0.60, pointing to the larger amount of elderly and handicapped residents using the
service. (It is estimated that 90% of the system users are seniors).
Service utilization, measured in passengers per vehicle service m i I e and per vehicle
service hour, decreased over the audit period. This reflects the increased use of the service
by residents living outside the city limits of Lodi. Travel times and distances are longer for
the Co mty residents, impacting overall system productivity.
C..
4 '
1
1
4-3
Y
Total Passengers:
Vehicles:
Revenue Vehicle Miles:
Revenue Vehicle hours:
IFulltime Employee Equivalents:
TABLE II -2
CITY OF LODI
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JKaplan & Associares
FY 1985-86 FY 1986-87 FY 1987-88
71,599
74,771
75,840
6
6
6
107,971
136,490'
144,175
9,042
11,299
11,905
varies
varies
varies
Maplan & Associates
TABLE 11-3
CITY OF LODI
Base Statistics - Financial
FY 1985-86 FY 1986-87 FY 1987-881
REVENUES
Operating Revenues
Passenger Fares
$44,405
$46,467
$48,250
Special Transit Fares
$0
$0
$0
Total Farebox Revenues
$449405
$46,467
$43,250
don -Operating Rev;,noes
iTMTA Section 9 and 1S
$0
$0
$0
TDA Funding
$40,000
$197,435
5202,129
State Transit Assistance
$161,909
$20,724
$566
Other Goc.sl funding, etc.)
$271
$220
$2,192
Total Nun -Operating Revenue
$2029180
$218,379
$204,887
TOTAL REVENUE
$246,585
$2649846
$253,137
EXPENSES
Operating Expenses $233,336 $258,723 $259,185
Depreciation • $0 - $0 - $0
Total Operating Expenses & Depreciation $233,336 •$258,723 $259,185
Budgeted Operating Expenses NIA $207,563 $280.371
Source: State Controllers Reports. SJCCOG Records, Operator Records
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Cost of Service Supplied
Total Operating Cost per Vehicle Service Hour
Total Operating Costper Vchicle Service Mile
Actual Expenditures as % of Budgeted Expenditures
tabor Productivity
Revenue Vehicle Hours per Full Time Employee
TABLE 11-4
CITY OF LODI
Performance Indicatcxs - L,ficiemy
Percent Annual Change
FY 85-86 FY 86-87 FY 8788 FY 86 FY 87 FY 86 Scrvicc
to FY 87 to FY 88 to FY 88* Starxi.'ird
$25.80
$22.90
$21.77 -1 1.2%
4.9% 5.6% None
$2.16
$1.90
$1.80 -12.0%
-5.3% 6.7`Yo None
N/A
124.6%
92.4%
- None
1,292 1,412 1,488
*2 year comparison
N
J
Cost Per Unit or Services Consumed
Farebox Recovery Ratio
Operating Cast per Passenger
Average Fare per Passenger
Service Utilization
Passengers per Vehicle Service Mile
Passengers per Vehicle Service Your
Service Retiabiiity
AccidcmLs per Mile
Roadcalls per Mile
Average Complaints per Passenger
TABLE B-5
CITY OF LODI
Performance Indicators - EffectiverCss
Percent Annual Change
FY 8--86 FY 86-87 FY 87-88FY 86 FY 87 FY 86 Service
in FY 87 to FY 88 to FY 88* ___Standard
19.0%
18.0%
18.6%
-5.3%
3.3%
-2.1%
10%
$3.26
$3.46
$3.42
6.1%
-1.2%
4.9%
None
$0.65
$p 64
$0.64
-1.5%
0.0%
-1.5%
None
0.7
0.5
0.6
-24.3%
13.2%
-143%
None
7.9
6.6
6.4
-16.5%
-3.0%
-19.0%
None
N/A
N/A
N/A -
- None
N/A
N/A
N/A -
- None
N/A
N/A
Fd/A -
- None
Notc: Total Operating expense does not include depreciation.
*2 Year eomvarison
JKaalan d Assoc ares
DRAFT 5/26/89
M. FINDINGS AND RECOMMENDATIONS/TDA COMPLIANCE
A. FINDINGS
The City of Lodi is providing effective dial -a -ride service to residents in the community of
Lodi and to Woodbridge and the Arbor Mobile Home Park It is maintaining and operating its
vehicles in avery efficient manner.
'Me farebox recovery ratio has remained steady throughout the audit period. Costs per
service mile and service hour have actually decreased sl.ghtiy, indicating an improvement in
system productivity during the audir period.
Regarding the system performance for response times, the City no longer maintains a
spreadsheet model, which was found to he too time-consuming. Instead, a full-day sampling of
response time reoords is performed once a month The contractor provides complete records
regarding response -time performance for every trip taken in the system.
It was found that the City currently does not operate lift equipped vehicles. This results in
substandard service towheelchair-boundpassengers, who have to be transferred from their
wheelchairs to a seat in the van or station wagon. The wheelchairs are stored in the back of the
vehicle. This exposes the users and the operators to potential safia y hazards. In addition,
handicapped users of larger non -collapsible wheelchairs are virtwl ly precluded from using the
service. The City is now in the process of acquiring a lift -equipped vehicle.
B. RECOMMENDATIONS
1. Report Complaints by Type and Frequency.
Currently, all complaints are handled directly over the telephone by City of Lodi staff, but
no records are kept. We recommendthat the City keep a log ofcomplaint" and produce a
quarterly or yearly tabulation of complaints by type (e.g., late pick-up, problem with driver,
problem with wheelchair. uncomfortable ride, etc.) and frequency. This will' help focus
management's efforts in improving the seMloe. Any complaints rcceived by the cab company
are informally provided to the City. These should be ,., w-porated into the recommended log.
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1Kap, Associates
DRAFT 5/26/89
2. Report Accidents and Roadcalls on a Quarterly Bask
Currently, information on accidents and roadcalls is kept as part of the maintenance
records but there is no reporting as to frequency of occurrences. A log should be kept in the
city maintenance department to record accidents and roadcalls as they happen. The city should
report accidents and roadcalls on a quarterly basis. Any negative trends in either indicator will
alert Zhe transit administration that potential problems exist. Remedial actions such as
increased driver training and/or more frequent preventive maintenance may be called for.
3. Institute Wheelchair -Accessible Service
As mentioned in Section B, the City ofLrA does not operate any wheelchair -accessible
transit vehicles. To meet the needs of wheelchair-bound users, the audit team recommends ?hat
the City acquire a lift -equipped vehicle as soon as practical. The vehicle and lift should be able
to accomnuxtate non -collapsible wheelchairs without danger to the users or operators.
C. TDA COMPLIANCE
State regulations require that transit systems respond to and/or implement the
recommendationsmade by prior performance audits.
As 3result of the recommendations of the previous performance audit, the City of Lodi has
adopted procedures for evaluating results of the Unmet Needs hearing, prior to implementing
service or policy changes. As evidenced by the documents provided to the auditors by the City
of Lodi and SJCCOG, the City should be commended for having made a concerted effort to
analyze and evaluate all potential unmet transit needs for the Lodi area.
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CITY COUNICIL
JOHN K. (Candy) SNIDER, Mayor
DAVID M. HINCHMAN
Mayor Pro Tempore
EVELYN M.OLSON
JAMES W. PINKERTON. Jr.
FRED M. REM
CITY
CITY HALL, 221 WEST PINE STREET
CALL BOX 3006
LODI, CALIFORNIA 95241-1910
(209)334-5634
TELECONER A209) 323-6795
July 26, 1989
1A Peter `derpoorn
Executive Director
San Joaquin Council of• Governlnen i.s
J860 E. Hazel ton
Stockton, CA 95201
Dear Mt-. Verpoorn:
THOMAS A. PETERSON
City nAanager
ALICE M REIMCHE
City Clerk
BOB McNATT
City Attorney
Please be advised that the Lodi City Council at its meeting of July 19,
1989 received for filing the Performance Audit of the Lodi Transit
System as prepared by J. Kaplan and Associates.
Should you have any questions regarding this matter, please do not
hesitate to call this office.
Very truly yours,
Alice M. Reimche
City Clerk
ASR/3mr