AC Transit Cost Reductions Presentation to Board of Directors (September 1, 2010)
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Transcript of AC Transit Cost Reductions Presentation to Board of Directors (September 1, 2010)
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Further Cost Reductions ScenariosFurther Cost Reductions Scenarios
Board of Directors Workshop
September 1 2010September 1, 2010
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Workshop PurposeWorkshop Purpose
• Provide Updated Financial Information
• Receive Board Direction on Short Term (Immediate) Strategies(Immediate) Strategies
• Receive Board Direction on Longer Term StrategiesStrategies
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Current ConditionsCurrent Conditions
• Financial Realities: – $56 Million Deficit for FY 2009/10 and 2010/11
• $9 Million – Administrative Reductions
• $15 Million – Anticipated Savings from ATU Agreement
• $22 Million – Anticipated Savings from 2 Service Cuts
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Current ConditionsCurrent Conditions
• Financial Realities: – FY 2010/11 Budget Deficit Prior to August 8, 2010: Balanced Budget
– $17.6 Million Deficit through June 2011• $15.7 Million – Delayed Savings from Labor Agreement
• $1.9 Million – Delayed Savings from August 2010 Service Reductions Implementation
FY 2011/12 F t B d t D fi it $11 Milli– FY 2011/12 Forecast Budget Deficit: $11 Million
– Continued Revenue Pressures and Uncertainties
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FY 2010/11 Cost Reductions ScenariosFY 2010/11 Cost Reductions Scenarios
• Short Term: Need to Act Immediately– Service Reductions
• Represents the maximum that can be done at this point
• Based on previously‐conducted public hearing
• Longer Term: 6 Months to 2 Yearsg– Range of Alternatives – Will require additional study/review
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FY 2010/11 Cost Reductions Scenarios h– Short Term
• Service Reductions– Weekend Trunk and Major Corridor Only Network
• Basic Level of Service to the DistrictLi 1 18 20 22 40 51A 51B 57 60 72 72M 73 88 97– Lines 1, 18, 20, 22, 40, 51A, 51B, 57, 60, 72, 72M, 73, 88, 97, 99, 210 and 217 to operate
• Ridership Impacts – ~1/3 of Weekend Ridership• Preliminary Title VI Review Shows Potential Impact Areas:
– North Richmond: Solution, retain Line 76– West Oakland: Solution, retain Line 26– East Oakland: Solution, retain Line 45
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FY 2010/11 Cost Reductions Scenarios h– Short Term
• Service Reductions– All Nighter Core Service Only
• Operate 800 and 801 only – RM 2 FundedDi i 802 805 840 d 851 Di i F d d• Discontinue 802, 805, 840, and 851 – District Funded
• Minimal actual ridership impact, but major to users
• Closure of Division 8 (Paratransit)• Closure of Division 8 (Paratransit)• AC Transit/BART Operate Consortium (69%/31%)• Redistribute hours to existing providersg p• No Patron Service Provision Impacts
• What do these reductions translate to…
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FY 2010/11 Cost Reductions Scenarios h– Short Term
Total Platform Hours Historical TrendIncludes "Short Term" Service Reductions for December 2010
2320000
2252000
21100002073000 2088000 2124514
21987022230777
2080004 20735672100000
2200000
2300000
2400000Includes Short Term Service Reductions for December 2010
1947000
2011000
1979000
1965016
1920855
17553061782902
18083291968614 1956120 1974266
1981456
2043995
1927219
1790410
16294101700000
1800000
1900000
2000000
1629410
1500000
1600000
1700000
86‐87
87‐88
88‐89
89‐90
90‐91
91‐92
92‐93
93‐94
94‐95
95‐96
96‐97
97‐98
98‐99
99‐00
00‐01
01‐02
02‐03
03‐04
04‐05
05‐06
06‐07
07‐08
08‐09
09‐10*
1* Fall
Winter
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10‐11
10‐11*
W
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FY 2010/11 Cost Reductions Scenarios h– Short Term
• Implementation Schedule– 9/22: Board Consideration of Final Plan
• To Include Preliminary Title VI Review
/ /– 10/27 or 11/10: Final Title VI Compliance Review– 12/19: Implementation
• Board Questions or Comments?
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FY 2010/11 Cost Reductions Scenarios – Longer Term
• Some Depend on Arbitration ResultsSome Depend on Arbitration Results
• Scenarios include:S i C t ti O t iti 12 M th– Service Contracting Opportunities – 12 Months
– Further Overhead Reductions – 6 to 12 Months
– Operations Efficiencies – 12 Months
– Further Service Cuts – 6 to 9 Months
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FY 2010/11 Cost Reductions Scenarios – Longer Term
• Fixed Route Service Contracting Opportunities– Transbay and Supplementary
• Peak Only Services – relative higher cost than basicD di Di i d d ld l i• Depending on District costs reduced, could result in anywhere from $5 to $15 Million in savings
• Retains the service, no ridership impacts
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FY 2010/11 Cost Reductions Scenarios – Longer Term
• Further Overhead Reductions– Close Division 3
• Lowest service levels in 25 years1985 AM P k P ll 701– 1985 AM Peak Pull = 701
– October 2010 Service AM Peak Pull = 471
• Facility closure is separate from service reductions• Estimated annual operating savings ‐ $2.8 Million • Estimated annual costs due to route re‐alignment ‐ TBD• Estimated one time revenues for property sale TBD• Estimated one‐time revenues for property sale ‐ TBD• Estimated one‐time costs for route re‐alignment ‐ TBD
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FY 2010/11 Cost Reductions Scenarios – Longer Term
• Further Overhead Reductions– Contracting‐Out Strategies
• As Mentioned in the GM Memo
• Operations Department Efficiencies• As Mentioned in GM Memo
F I• Fare Increase– Completed in connection with Fare Study
j d i /– Projected Fare Increase in FY 2012/13
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FY 2010/11 Cost Reductions Scenarios – Longer Term
• Additional Fixed Route Service Reductions– Reduced Hours of Operations on Weekends
• Represents an extension of short term 50% reduction of serviceof service
• Reduce Trunk and Major Corridor lines based on demonstrated ridership demand
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FY 2010/11 Cost Reductions Scenarios – Longer Term
• Additional Fixed Route Service Reductions– Complete Elimination of Weekend Service
• Remaining lines under Short TermM j Rid hi I• Major Ridership Impacts
• Not in keeping with an urban area• Offers flexibility in planning for reductionsOffers flexibility in planning for reductions
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FY 2010/11 Cost Reductions Scenarios – Longer Term
• Additional Fixed Route Service Reductions– Proportionate Reduction of Lines by Productivity
• As Mentioned in the GM Memo
f f– Elimination of Weekday Service Before 6am and After 8pm
• As Mentioned in the GMMemoAs Mentioned in the GM Memo
– Elimination of Transbay and Supplementary Svc• As Mentioned in the GM Memo• Contracting Service is a viable alternative to canceling
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FY 2010/11 Cost Reductions ScenariosFY 2010/11 Cost Reductions Scenarios
• Questions or Comments on Longer Term
• Next Steps• Next Steps– Board Direction on Implementation of Short Term StrategyStrategy
– Board Direction on Development of Longer Term StrategiesStrategies
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