Study J ANUARY 16 TH , 2017 C ITY OF S T . C ATHARINES Dennis Kar, - - PowerPoint PPT Presentation

NIAGARA REGION

Niagara Transit Service Delivery and Governance Study

JANUARY 16TH, 2017 CITY OF ST. CATHARINES

Dennis Kar, Dillon Consulting Limited Gary McNeil, McNeil Management Services

Study Purpose

Service Design Service Delivery Service Structure

Niagara Transit Service Delivery and Governance

• Next evolution of NRT

routes, including integration with post-secondary and local services

• Ability of governance

structure to support the guiding principles of the service design and delivery plan

• Customer service aspects of service delivery,

including fare structure and technology integration, trip planning, customer service

Updates Since the Interim Presentations

• Consulted with each municipal Council (St. Catharines, Niagara Falls,

Welland and Niagara Region)

• Presented preliminary plan to the public (four public open houses in St.

Catharines, Niagara Falls, Welland and Lincoln)

• Engaged the public through online consultation (received 771

responses from online and paper surveys)

• Input used to confirmed certain recommendations and modify others

Niagara Transit Service Delivery and Governance

New Service Delivery and Governance Model

Niagara Transit Service Delivery and Governance

Principle

Option 1 Status Quo Option 2 Consolidated Option 3 Regional

Customer Driven MEDIUM MEDIUM-HIGH HIGH Integrated LOW MEDIUM-HIGH HIGH Economically Responsible MEDIUM HIGH MEDIUM-HIGH Equitable HIGH HIGH MEDIUM Ease of Implementation MEDIUM HIGH MEDIUM TOTAL MEDIUM HIGH MEDIUM - HIGH

Adherence to Principles: LOW, MEDIUM, HIGH

Consolidated Transit Model

RECOMMENTATION Implement a Consolidated Transit Model that would see St. Catharines, Niagara Falls and Welland Transit systems combine their services into

• ne large Consolidated Transit

system

Niagara Transit Service Delivery and Governance

Benefits of Consolidation

• Structure can provide enhanced seamless inter-municipal transit (routes, fares,

communications, technology), which supports:

– access to places of work, school and health services within Niagara Region – GO service in Niagara (help build ridership and support future GO Rail to the Region) – youth retention and economic development (addressing unemployment issues and increasing investment in the Region) – a high quality of life (e.g. potential reduction of household income spent on the purchase and

• peration of automobiles)

– a growing population and employment base (15% growth by 2023) – sustainable community development (by providing a sustainable travel option for residents)

• Maintains more control with local municipalities than the Regional Model where 80% of

existing trips are made

Niagara Transit Service Delivery and Governance

Cost of Remaining with the Status Quo Model

• Status Quo Model annual net operating cost are expected to increase within the Region

(between 2015 and 2018)

• This is due to annual inflation (2% per year) as well as various planned and approved

local and inter-municipal service improvements, staffing increases and facility expansions:

– New mechanics to maintain reliability on bus fleet (Welland and St. Catharines) – Need to expand maintenance facilities in St. Catharines and Welland – Need for additional supervisors and service planning staff – Growth in service

• Move to 30 minute peak frequency on all routes in Niagara Falls
• Implementation of a new cross-town route in St. Catharines
• Implementation of Sunday service in Welland
• New service expansion in Fort Erie and new potential for new services in Grimsby, West Lincoln and Lincoln

Niagara Transit Service Delivery and Governance

Cost of Consolidation

• There is generally a higher operating cost associated with consolidation, primarily due to

the higher operating rate of a unified system

• Next Step will be to determine distribution of net operating cost increase between the

four participating municipalities

Niagara Transit Service Delivery and Governance

Municipality Net Operating Costs Status Quo Model (2018 rate) Consolidated Transit Model (2018 rate) Regional Transit Model (2018 rate) Niagara Region $3,076,300 $3,138,400 $3,143,600

• St. Catharines

$10,736,400 $10,783,800 $10,913,900 Niagara Falls $5,860,200 $5,861,500 $5,869,900 Welland $2,534,700 $2,678,600 $2,679,800 Outer Municipalities $2,214,300 $2,214,300 $2,536,600 Total $24,421,900 $24,676,600 $25,143,800 Increase from Status Quo

• $254,700

$721,900

Recommended Inter-municipal Service Plan

• Elimination of duplicate services servicing

post-secondary institutions and expansion of

• ff-peak services on key corridors
• Better integration with municipal transit
• New Niagara-West inter-municipal transit link

(integration with GO Transit)

• New dynamic transit services for low-demand

areas

• Improved connections to GO Train service (e.g.

new Express service between Welland and the

• St. Catharines GO Station)
• Integrated fares and payment technology

Niagara Transit Service Delivery and Governance

Proposed Transit Plan – Annual Revenue Service Hours

Service Existing (2016/2017)* 2019 2023 Core Urban Area of St. Catharines/Thorold, Niagara Falls and Welland Route 40/45 9,000 12,700 12,700 Route 50/55 9,300 12,700 12,700 Route 60/65 8,500 4,500 7,400 Route 70/75 8,500 12,700 12,700

Route 70/75 GO Express

1,700 Post-secondary services 14,000 8,400 8,400 Sub-Total 49,300 51,000 55,600 Inter-municipal Connections to Urban Niagara Port Colborne LINK 2,000 2,100 2,600 Fort Erie LINK 2,100 2,100 2,600 Grimsby / Beamsville LINK ** ** West-Lincoln LINK 2,900 3,200 Wainfleet Dynamic LINK *** *** Crystal Beach Dynamic LINK *** *** Sub-total 4,100 7,100 8,400 TOTAL

53,400 58,100 64,000

*Note: New services that were implemented in September 2016 have been annualized for comparative purposes. **Note: Service hours not indicted as the plan makes use

• f existing service provided by

GO Transit ***Note: No defined annual service hours as service provision is dynamic and based

• n demand

Niagara Transit Service Delivery and Governance

Net Operating Costs

Niagara Transit Service Delivery and Governance

Service Existing (2016/2017)* 2019 2023 Core Urban Area of St. Catharines/Thorold, Niagara Falls and Welland Route 40/45 $740,500 $1,013,300 $1,207,600 Route 50/55 $742,000 $952,200 $1,141,600 Route 60/65 $652,500 $253,300 $604,500 Route 70/75 $620,100 $978,900 $1,172,700 Route 70/75 GO Express $0 $0 $86,900 Post-secondary services** $0 $0 $0 Sub-Total $2,755,100 $3,197,700 $4,213,300 Inter-municipal Connections to Urban Niagara Port Colborne LINK $172,600 $185,500 $263,300 Fort Erie LINK $189,100 $199,300 $268,500 Grimsby / Beamsville LINK $0 $251,200 $449,500 West-Lincoln LINK $0 $174,400 $184,200 Wainfleet Dynamic LINK $0 $161,400 $175,600 Crystal Beach Dynamic LINK $0 $112,800 $122,600 Sub-total $361,700 $1,084,600 $1,463,700 TOTAL $3,116,800 $4,282,300 $5,677,000 *Note: New services that were implemented in September 2016 have been annualized for comparative purposes. **Note: Net operating costs for post-secondary services “$0.00” because they are implemented as a revenue neutral service

Proposed Distribution of Transit Costs

Region fund:

• 100% of inter-municipal transit capital fleet costs throughout the Region
• 100% of inter-municipal transit operating costs within the Consolidated Transit Service Area
• 60% of inter-municipal transit operating costs outside the Consolidated Transit Service Area

Local Municipalities within the Consolidated Transit Service Area fund:

• 100% Local Transit operating and capital costs

Local Municipalities outside of the Consolidated Transit Service Area fund:

• 100% Local Transit operating and capital costs
• 40% of inter-municipal transit operating costs connecting their municipality to an urban

centre

Niagara Transit Service Delivery and Governance

Distribution of Costs

Niagara Transit Service Delivery and Governance

*Note: Net Operating Cost based on service in place as of September 2016 (annualized over a one year period)

Municipality 2016/2017* 2019 2023 Niagara Region (Inter-municipal and share of rural link routes) $2,972,120 $3,848,460 $5,091,520 Port Colborne (share of Port Colborne Link and Crystal Beach Dynamic Link) $69,040 $96,760 $129,840 Fort Erie (share of Fort Erie Link and Crystal Beach Dynamic service) $75,640 $102,280 $131,920 Grimsby (share of Grimsby/Beamsville Link) $0 $50,240 $89,900 Lincoln (share of Grimsby/Beamsville Link) $0 $50,240 $89,900 West Lincoln (share of Smithville Link) $0 $69,760 $73,680 Wainfleet (share of Wainfleet Dynamic Link) $0 $64,560 $70,240 TOTAL $3,116,800 $4,282,300 $5,677,000

Capital Cost Requirements

Niagara Transit Service Delivery and Governance

Total Cost (phasing) ($millions) Cost Distribution by Municipality Expense Year 1-3 Year 4-7 Total Niagara Region St. Catharines Niagara Falls Welland Fleet Expansion (40 ft vehicles)* $1.8M - $3.6M $1.2M $3.0M - $4.8M $3.0M - $4.8M Fleet Expansion (cutaway) $0.3M $0.3M $0.3M Smart card system $3.2M - $7.0M $3.2M - $7.0M $0.4M - $1.0M $1.6M - $3.5M $0.7M – $1.6M $0.4M - $1.0M Dynamic Transit Mobile App $0.02M - $0.05M $0.02M - $0.05M $0.02M - $0.05M

• St. Catharines Transit

Maintenance Facility Expansion $2.5M $2.5M $2.5M Welland Transit Maintenance Facility Expansion $1.5M - $2.5M $1.5M - $2.5M $1.5M - $2.5M TOTAL $9.3M – $15.9M $1.2M - $1.3M $10.5M – $17.2M $3.8M - $6.1M $4.1M - $6.0M $0.7M - $1.6M $1.9M - $3.4M

Financial Performance

(all inter-municipal services)

• Ridership and service utilization continue to rise
• Declining R/C ratio due to:

– cost increase (due to inflation) without corresponding fare increases – Addition of more off-peak services and service in more rural areas

Niagara Transit Service Delivery and Governance

Financial Plan 2016/2017 2019 2023

Population 450,200 461,720 481,080 Ridership 752,000 947,900 1,082,800 Revenue Service Hours 53,400 58,100 64,000 Total Service Hours 58,200 63,500 69,900 Operating Cost $5,695,100 $7,246,700 $8,940,400 Total Revenue $2,578,300 $2,964,400 $3,263,400 Municipal Operating Contribution $3,116,800 $4,282,300 $5,677,000 R/C Ratio 45% 41% 37% Boardings per Revenue Vehicle Hour 14.08 16.31 16.92 Boardings per Capita 1.67 2.05 2.25

Next Steps

• 1. Approve Consolidated Transit Model

Agree to and adopt the recommendations in this report to work together to implement the Consolidated Transit Model

• 2. Reach Triple Majority for Region’s Involvement in Transit

Clearly define the Region’s role in the Consolidated Transit Model (planning and decision-making for inter- municipal services)

• 3. Work Through Implementation Details for Consolidation

Initiate further studies to assess cost distribution and revenue sharing, transfer of assets, role of specialized transit, organizational structure, etc.

• 4. Implement Inter-municipal Transit Service Strategy

Phase in aspects of the Consolidated Transit Model where applicable (e.g. common call centre). Implement inter-municipal transit service plan, decide on common smart card strategy, etc.

Niagara Transit Service Delivery and Governance

Timing and Phasing

(work through implementation details for consolidation)

• Phase 1: Confirm Legal Requirements, Financing and Decision-Making (month 1-3)

– Establish Joint Municipal Working Group (to head implementation) – Undertake legislative requirements to implement the new corporation – Investigate process to transfer assets and liabilities to the new corporation – Confirm cost distribution, revenue sharing and decision-making process – Conduct a study to determine the role of specialized transit services in the new structure

• Phase 2: Confirm Organizational Structure / Initiate Brand (month 4-9)

– Identify an organization chart for management and administrative staff and initiate recruitment of key management positions (begin within existing transit systems) – Define structure or governing body and Technical Advisory Committee representation – Initiate discussions with transit unions (work with human resources department) – Develop communications and marketing strategy (retain marketing firm)

Niagara Transit Service Delivery and Governance

Timing and Phasing

(work through implementation details for consolidation)

• Phase 3: Implementation Plan (month 9-12)

– Confirm long-term vision and goals of new organization and adopt service guidelines – Initiate Development Charges study (retain consulting firm) – Assess next steps to implement integrated telephone / computer systems – Conduct comprehensive fare strategy and begin to implement common smart card – Rebranding vehicles, bus stops and communications material – Implement the inter-municipal transit service plan

Niagara Transit Service Delivery and Governance

One-time Costs

Item Cost

Organization and Human Resources Consulting Support $100,000 - $150,000 Specialized Transit Study $50,000 - $75,000 Legal Fees $50,000 - $100,000 Branding, Marketing and Communications Strategy $60,000 -$100,000 Telephone and Computer Systems Integration Study $50,000 - $75,000 Five-year Business Plan $60,000 - $100,000 Fare Structure Plan $50,000 - $75,000 Development Charges Review $30,000 - $40,000 TOTAL $450,000 - $740,000

Niagara Transit Service Delivery and Governance

Item Total Cost

Bus Restriping $500,000 Bus Stop Replacement $144,000 Website Development $50,000 Map and Schedule Production $10,000 TOTAL $704,000

One-time Implementation Costs Estimated One-Time Costs to for Further Studies and Reviews

Summary

Implementation of the Consolidated Transit Model and Inter-municipal transit strategy will help continue to move towards a seamless network that is:

• Customer Driven
• Has the ability to Implement Unconventional Solutions
• Integrated
• Economically Responsible
• Fair

Niagara Transit Service Delivery and Governance

QUESTIONS?

Dennis Kar, Dillon Consulting Limited –

dkar@dillon.ca

Gary McNeil, McNeil Management Services -

mcneil.services@rogers.com