Submitted by - bcag.org Triennial Performance Audits/… · 2010 P AGE 7 E XECUTIVE S UMMARY This...

Submitted by

Final Report

SUBMITTED TOBUTTE COUNTYASSOCIATION OFGOVERNMENTS (BCAG)

A u g u s t 2 0 1 0

BUTT E COUN TY ASSO CI ATI ON OF GOVERN MEN TS TRI EN N I AL PERFORMA N CE AUDI T

FINAL REPORT AUGUST 2010 PAGE 1

TA B L E O F C O N T E N T S

TABLE OF TABLES _______________________________________________ 3

TABLE OF FIGURES ______________________________________________ 4

EXECUTIVE SUMMARY ____________________________________________ 7

OVERVIEW _______________________________________________________________________________ 7

Compliance ________________________________________________________________________ 8

Prior Audit Recommendations _________________________________________________________ 8

Performance Measures & Trends ______________________________________________________ 9

Functional Review ___________________________________________________________________ 11 RECOMMENDATIONS _____________________________________________________________________ 16

Recommendation 1 __________________________________________________________________ 16

Recommendation 2 __________________________________________________________________ 17

Recommendation 3 __________________________________________________________________ 17

INTRODUCTION _________________________________________________ 19

AUDIT SCOPE & METHODOLOGY ___________________________________________________________ 19

DESCRIPTION OF BUTTE REGIONAL TRANSIT (B-LINE) _________________________________________ 20

Transit Center ______________________________________________________________________ 21

Transit Modes _____________________________________________________________________ 22

Fare Structure _____________________________________________________________________ 25

COMPLIANCE REPORT ____________________________________________ 27

PRIOR AUDIT RECOMMENDATIONS _________________________________ 31

Prior Recommendation 1 _____________________________________________________________ 31

Prior Recommendation 2 ____________________________________________________________ 32






FINAL REPORT PAGE 2 AUGUST2010

PERFORMANCE MEASURES & TRENDS _______________________________________________________ 39

TDA Required Indicators ____________________________________________________________ 39

Tables & Graphs ____________________________________________________________________ 41

FUNCTIONAL REVIEW ____________________________________________ 98

GENERAL MANAGEMENT & ORGANIZATION __________________________________________________ 98

Service Planning ___________________________________________________________________ 104

Scheduling, Dispatching & Operations _________________________________________________ 114

Personnel Management & Training ___________________________________________________ 114

Administration _____________________________________________________________________ 115

Marketing & Public Information ______________________________________________________ 119

Contract Management ______________________________________________________________ 124

Maintenance ______________________________________________________________________ 125

FINDINGS & RECOMMENDATIONS _________________________________ 130

SUMMARY OF FINDINGS __________________________________________________________________ 130

Compliance _______________________________________________________________________ 131

Prior Audit Recommendations ________________________________________________________ 131

Performance Measures & Trends _____________________________________________________ 131

Functional Review __________________________________________________________________ 134 RECOMMENDATIONS ____________________________________________________________________ 141

Recommendation 1 _________________________________________________________________ 141

Recommendation 2 _________________________________________________________________ 143

Recommendation 3 _________________________________________________________________ 144



TA B L E O F TA B L E S

Table 1: B-Line Recommendations.........................................................................................................................18

Table 2: Change in B-Line fixed route fares ..........................................................................................................26

Table 3: TDA Compliance Chart ............................................................................................................................28

Table 4: Performance Measures & TDA Performance Indicators, Fixed Route Services .............................43

Table 5: Performance Measures & TDA Performance Indicators, Paratransit Services ................................44

Table 6: Performance Measures & TDA Performance Indicators, All Services .............................................45

Table 7:10-Year Performance Trend Analysis, Urban Fixed Route ..................................................................46

Table 8: 10-Year Performance Trend Analysis, Rural Fixed Route...................................................................47

Table 9: 10-Year Performance Trend Analysis, All Fixed Route Services .......................................................48

Table 10: 10-Year Performance Trend Analysis, Urban Paratransit .................................................................49

Table 11: 10-Year Performance Trend Analysis, Rural Paratransit ...................................................................50

Table 12: 10-Year Performance Trend Analysis, All Paratransit Services ........................................................51

Table 13: 10-Year Performance Trend Analysis, All Services Combined ........................................................52

Table 14: Operations Contractor Turnover Rates ............................................................................................. 115

Table 15: B-Line Grants ........................................................................................................................................ 117

Table 16: Marketing as a Percent of Budget and Operating Expenditures ................................................... 121

Table 17: Complaints by Service Type ................................................................................................................ 123

Table 18: B-Line Complaints and Compliments by Issue ................................................................................ 123

Table 19: CHP Inspection Results. ...................................................................................................................... 128

Table 20: Table 20: B-Line Recommendations .................................................................................................. 145


FINAL REPORT PAGE 4 AUGUST 2010

TA B L E O F F I G U R E S

Figure 1 Butte Regional Transit is also known as B-Line ..................................................................................... 7

Figure 2: B-Line began operation in 2005. .............................................................................................................. 8

Figure 3: B-Line's Rural Fixed Route experienced the greatest amount of ridership growth. ......................10

Figure 4: B-Line began operation July 5, 2005. .....................................................................................................19

Figure 5: This new transit center opened on February 20th, 2008. ...................................................................21

Figure 6: The Urban Fixed Route and Urban Paratransit services serve the City of Chico .........................22

Figure 7: B-Line bus shelters and transit station shield riders from the elements. .........................................23

Figure 8: B-Line Paratransit is a shared ride service. ............................................................................................24

Figure 9: Operating Costs, All Services, 10-Year Trend (Constant $) ..............................................................53

Figure 10: Fare Revenue, All Services, 10-Year Trend (Actual $) ......................................................................55

Figure 11: Passengers, All Services, 10-Year Trend .............................................................................................57

Figure 12: Vehicle Service Hours (VSH), All Services, 10-Year Trend ............................................................58

Figure 13: Vehicle Service Miles (VSM), All Services, 10-Year Trend ..............................................................59

Figure 14: Full-Time Equivalent (FTE) Employees, All Services, 10-Year Trend..........................................60

Figure 15: Passengers, Urban Fixed Route, 10-Year Trend ................................................................................62

Figure 16: Operating Cost per VSH, Urban Fixed Route, 10-Year Trend .......................................................63

Figure 17: Operating Cost per VSM, Urban Fixed Route, 10-Year Trend ......................................................64

Figure 18: Operating Cost per Passenger, Urban Fixed Route, 10-Year Trend ..............................................65

Figure 19: Passengers per VSH, Urban Fixed Route, 10-Year Trend ...............................................................66

Figure 20: Passengers per VSH, Urban Fixed Route, 10-Year Trend ...............................................................67

Figure 21: VSH per FTE, Urban Fixed Route, 10-Year Trend ..........................................................................68

Figure 22: Farebox Recovery Ratio, Urban Fixed Route, 10-Year Trend ........................................................69

Figure 23: Fare Revenue per Passenger (Actual $), Urban Fixed Route, 10-Year Trend ..............................70

Figure 24: Passengers, Rural Fixed Route, 10-Year Trend..................................................................................71



Figure 25: Operating Cost per VSH, Rural Fixed Route, 10-Year Trend ........................................................72

Figure 26: Operating Cost per VSM, Rural Fixed Route, 10-Year Trend ........................................................73

Figure 27: Operating Cost per Passenger, Rural Fixed Route, 10-Year Trend ................................................74

Figure 28: Passengers per VSH, Rural Fixed Route, 10-Year Trend .................................................................75

Figure 29: Passengers per VSM, Rural Fixed Route, 10-Year Trend ................................................................76


Figure 31: Farebox Recovery Ratio, Rural Fixed Route, 10-Year Trend ..........................................................78

Figure 32: Fare Revenue per Passenger (Actual $), Rural Fixed Route, 10-Year Trend ................................79

Figure 33: Passengers, Urban Paratransit, 10-Year Trend ...................................................................................80

Figure 34: Operating Cost per VSH, Urban Paratransit, 10-Year Trend..........................................................81

Figure 35: Operating Cost per VSM, Urban Paratransit, 10-Year Trend .........................................................82

Figure 36: Operating Cost per Passenger, Urban Paratransit, 10-Year Trend .................................................83

Figure 37: Passengers per VSH, Urban Paratransit, 10-Year Trend ..................................................................84

Figure 38: Passengers per VSM, Urban Paratransit, 10-Year Trend .................................................................85


Figure 40: Farebox Recovery Ratio, Urban Paratransit, 10-Year Trend ...........................................................87

Figure 41: Fare per Passenger (Actual $), Urban Paratransit, 10-Year Trend ..................................................88

Figure 42: Passengers, Rural Paratransit, 10-Year Trend ....................................................................................89

Figure 43: Operating Cost per VSH, Rural Paratransit, 10-Year Trend ...........................................................90

Figure 44: Operating Cost per VSM, Rural Paratransit, 10-Year Trend ...........................................................91

Figure 45: Operating Cost per Passenger, Rural Paratransit, 10-Year Trend...................................................92

Figure 46: Passengers per VSH, Rural Paratransit, 10-Year Trend....................................................................93

Figure 47: Passengers per VSM, Rural Paratransit, 10-Year Trend ...................................................................94


Figure 49: Farebox Recovery Ratio, Rural Paratransit, 9-Year Trend ...............................................................96



Figure 50: Fare Revenue per Passenger (Actual $), Rural Paratransit, 10-Year Trend ...................................97

Figure 51: BCAG/B-Line Organization Chart .................................................................................................. 101

Figure 52: Figure 52 BCAG's revised website .................................................................................................... 102

Figure 53: The new Transit Center is powered by solar energy ...................................................................... 102

Figure 54 B-Line's current bus facility ................................................................................................................. 106

Figure 55: Flow Chart for the Development of the Market Based Transit Study ........................................ 107

Figure 56: BCAG provides general administration and support. .................................................................... 116

Figure 57: An agreement with Stott enabled B-Line to build 50 new bus shelters. ..................................... 118

Figure 58: Example of B-Line advertising. ......................................................................................................... 120

Figure 59: B-Line marketing material carries the green and gold branding................................................... 121

Figure 60: BCAG's website informs the public of any upcoming meetings or schedule changes. ............ 122

Figure 61: At the time of the Audit, BCAG was negotiating a new contract with CSUC .......................... 125

Figure 62: Mechanic assignments for bus maintenance. .................................................................................. 126

Figure 63: Separating cash may aid in reporting. ............................................................................................... 132

Figure 65: It is B-Line personnel who make the service efficient and effective. .......................................... 138



E X E C U T I V E S U M M A RY

This chapter summarizes key findings and

recommendations developed during the Triennial

Performance Audit (TPA) of the Butte County

Association of Governments (BCAG), as the

operator for Butte Regional Transit (B-Line). This

report covers a three-year period ending June 30,

2009. The California Public Utilities Code requires

all public transit agencies to conduct a Triennial

Performance Audit (also herein referred to as a

TPA) in order to be eligible for Transportation

Development Act (TDA) funding.

The Performance Audit was conducted in

accordance with the processes established by the

California Department of Transportation, as

outlined in the Performance Audit Guidebook

for Transit Operators and Regional

Transportation Planning Entities (3rd edition,

September 2008) issued by the California

Department of Transportation (Caltrans), and the

Standards for Audit of Governmental

Organizations, Programs, Activities, and

Functions (2007 Revision), published by the

United States General Accounting Office and the

U.S. Comptroller General.

The Performance Audit has four elements:

1. Evaluation of compliance with relevant statutes and

regulations;

2. Follow-up to determine status of prior Performance Audit

report recommendations;

3. Verification and analysis of performance indicators;

4. Identification and review of functions and activities;

5. Delineation of key findings and recommendations for

improvement.

Figure 1 Butte Regional Transit is also known as B-Line

OVERVIEW B-Line (Butte Regional Transit) provides fixed

route and paratransit services to Butte County and

its Cities and Town.

B-Line, which began operation July 5, 2005,

was formed from the consolidation of six transit

services in Butte County: Butte County Transit

(BCT), Chico Area Transit (CATS), Chico



Figure 2: B-Line began operation in 2005.

Clipper, Oroville Area Transit (OATS),

Oroville Express, and Paradise Express.

B-Line is operated by Butte County

Association of Governments (BCAG), a JPA

between the County and its Cities and Town.

BCAG is also the County’s RTPA and MPO. The

BCAG Board of Directors is the policy-making

authority for B-Line.

BCAG contracts with a private operator,

Veolia Transportation, for B-Line’s operation.

B-Line service is divided into four modes:

Urban Fixed Route;

Rural Fixed Route;

Urban Paratransit;

Rural Paratransit.

During FY 2006/07, adjustments were made

to multiple local and regional routes, including

time changes, interlining, route/stop changes and

service additions. Fares for all paratransit services

were raised to $2 one way in July of 2006.

In FY 2007/08, fixed route vehicles were

equipped with GFI Odyssey fareboxes that use

magnetic stripe tickets and passes.

Based on a presentation at the April 2009

BCAG Board meeting, new higher fixed route

fares went into effect August 1, 2009. These will

be analyzed in the following Audit period.

COMPLIANCE

BCAG, as the transit operator, administers

Transportation Development Act (TDA) laws and

regulations in an efficient and effective manner,

and is in full compliance with TDA rules and

regulations, with three exceptions:

1. The Farebox Recovery Ratio for Urban and Rural Paratransit services were each below the

10% TDA requirement for transportation

services for the elderly and disabled in the last

two of three years of the Audit period;

2. The State Controller’s Report was submitted beyond the specified timeframe in FY

2008/09 (PUC 99243);

3. The Fiscal and Compliance Audits were completed and submitted beyond the

specified timeframe in FY 2007/08.

PRIOR AUDIT RECOMMENDATIONS

BCAG, as operator of B-Line, has

demonstrated exceptional progress in improving

the efficiency and effectiveness of transit

operations by fully or partially implementing all six



of the recommendations from the prior Triennial

Performance Audit of B-Line.

Of the six, two are fully implemented, one is

in progress to be completed within the next Audit

period, and three were partially implemented;

these will be carried forward in whole or in part in

this Audit’s recommendations:

1. Develop a Short-Range Transit Plan to guide B-Line growth. (In Progress; due

for completion by July, 2010.)

2. Provide the Board and the public with an annual report on B-Line performance,

with quarterly updates. (Fully

Implemented.)

3. Develop an Annual Marketing Plan and regularly assess progress toward achieving

marketing goals. (Partially

Implemented. This recommendation

will be carried forward.)

4. Continue to monitor system performance on a monthly basis to determine

productivity improvements. (Fully

Implemented.)

5. Work with contractor to ensure that all performance measures are correctly

reported. (Partially Implemented.)

6. Ensure definitive separation of BCAG as the RTPA from BCAG as the transit

operator. (Partially Implemented. This

is a valid recommendation and will be

carried forward with modification.)

PERFORMANCE MEASURES & TRENDS

Performance measures are accurately collected

and reported, with one minor exception:

inconsistent calculation of Full-Time Equivalents

(FTEs); some concern may also exist regarding

whether all fares and/or passengers have been

correctly captured during the Audit period.

Operating Costs, which were obtained

from fiscal audit reports and not

independently validated, increased

approximately one percent per year in

constant dollars.

Fare Revenue collection and cash

management appears to be consistent

with industry guidelines for a transit

operation of B-Line’s size and scope. The

new GFI fareboxes appear to correct the

issues with the previous fare collection

system.

Vehicle Service Hours and Miles (VSH

and VSM) are correctly reported and held

relatively steady over the Audit period.

Full Time Equivalents (FTEs) reported

on the State Controller’s Reports (SCRs)

were not consistent with internal reports

from the contractor. Supporting

documentation was not available to

determine the source of the SCR-reported

numbers, and BCAG internal staff



allocated to B-Line management and

administration may have been omitted.

Based on internal reports, FTEs for the

system increased 12.4% over the Audit

period.

Ridership grew each year of the Audit,

to 1,390,881 in FY 08/09. Fixed Route

services gained riders in each year,

while Paratransit services lost

ridership.

Figure 3: B-Line's Rural Fixed Route experienced the greatest amount of ridership growth.

Performance measures provide insight as to the

efficiency and effectiveness of B-Line’s

operations. TDA has five required performance

indicators:

Cost efficiency, as measured by increases in

Operating Cost per VSH and VSM1,

declined for the system and each

service mode over the Audit period.

1 Operating Cost per VSM, while a measure of

cost efficiency, is not a TDA-required performance

indicator.

Cost effectiveness, as measured by Operating

Cost per Passenger, improved for the

system and the Fixed Route services

over the Audit period, while cost

effectiveness for Paratransit service

weakened.

Service effectiveness or productivity, as

measured by Passengers per VSM and

Passengers per VSH, improved

significantly for both fixed route services,

but declined for both paratransit services

over the Audit period.

System productivity, as defined as VSH

per FTE, declined for the system and for

each service over the Audit period.

FAREBOX RECOVERY

While not a TDA-required indicator, a

Farebox Recovery Ratio of 20 percent is required

for transit systems serving urban areas. A ratio of

10 percent is required for systems serving rural

areas and systems for exclusive use of the elderly

and persons with disabilities.

Both Fixed Routes services increased during

the Audit Period. In FY 2008/09 Urban Fixed

Route achieved a Farebox Recovery Ratio of

22.8%, and Rural Fixed Route achieved a ratio of

18.9%.

The Farebox Recovery Ratios for both Urban

and Rural Paratransit fell below the mandated 10

percent in both FY 2007/08 and FY 2009/09.



FUNCTIONAL REVIEW

GENERAL MANAGEMENT & ORGANIZATION

The JPA for BCAG was most recently signed

in July 2005 for the continuation of BCAG for a

ten-year period, and to assign responsibility for B-

Line (Butte Regional Transit)—then newly created

by consolidating six previous transit operations in

Butte County into BCAG.

This is the first Triennial Performance Audit

in which B-Line has been in existence for each of

the three years of the Audit period.

B-Line policy guidance is provided by the

BCAG Board of Directors, which is advised by

the Transit Administrative Oversight Committee

(TAOC). The TAOC includes administrative and

other staff representatives from the County,

Cities, Town and BCAG.

Overall, Board members were satisfied with

B-Line’s operations and management. Board

members expressed a desire for increased

frequencies and more inter-county connections,

but were cognizant of funding and revenue

limitations. The poor economy and the high rate

of unemployment in Butte County were major

concerns; environmental issues were also

considered important.

B-Line is administered by BCAG staff,

headed by an Executive Director (who also serves

as BCAG’s Chief Operating Officer) selected by

and reporting to the Board. B-Line’s operations

are managed by two Senior Planners, Transit

Administration and Transit Operations, with the

support of an Assistant Planner, a new position in

FY 2007/08. These three positions report to the

Executive Director.

Other BCAG staff members provide

administrative and financial management support

to B-Line.

CHANGES & ACCOMPLISHMENTS

Major accomplishments and program changes

were made during the Audit period:

FY 2006/07

Contract to provide Americans with

Disabilities Act (ADA) eligibility

determinations.

FY 2007/08

Addition of Assistant Planner position;

Bus Stop Improvement Plan completion;

Opening of the Chico Transit Center;

Improvement of webpage;

Installation of GFI electronic fareboxes.

FY 2008/09

Completion of On-Board Survey;

Initiation of the Market-Based Transit

Study;

Publication of a new Paratransit Rider’s

Guide;



Update of Fixed Route collateral;

Approval of interior advertising;

Negotiations based on an RFP for

installation and maintenance of shelters;

Replacement of older vehicles;

Public outreach for the 2009 fare increase;

Implementation of Phase I Homeland

Security Grant to install cameras;

Instillation of Phase I for Automatic

Vehicle Locator/Geographic Positioning

System (AVL/GPS) for Fixed Route

dispatching.

After the Audit period, in FY 09/10, other

improvements were achieved or begun—including

installation of stop-specific schedule holders and

maps; wrap-up of the design phase for the Oroville

Transit Center; a fare increase of approximately

40%; and approval to obtain appraisals for a new

administration and maintenance building, with

three locations under review.

SERVICE PLANNING

BCAG has not developed a formal strategic

or long-range plan for public transportation. The

agency has moved forward in realizing a strategic

vision for B-Line in both integrating advanced

technology and improving facilities.

Long-range transportation projects over the

next 20-plus years are outlined in the Regional

Transportation Plan (RTP), which is also the

basis for the Federal Transportation Improvement

Program (FTIP) and Regional Transportation

Improvement Program (RTIP).

The RTP’s goal for transit is:

“…to provide an efficient, effective, coordinated

regional transit system that increases mobility for

urban and rural populations, including

transportationally disadvantaged persons.”

It includes four objectives:

1. Meet all transit needs that are “reasonable to meet”;

2. Increase transit ridership that exceeds annual population growth rate for Butte

County;

3. Promote citizen participation and education in transit planning and

operations;

4. Maintain a reliable transit system.

BCAG has already made significant progress

toward achieving the goals, objectives and actions

delineated in the RTP.

Market-Based Transit Study

The Market-Based Transit Study initiated

during the Audit period represents a major

planning achievement. BCAG. Objectives

included identifying market needs, determining the

most cost-effective routing and scheduling to

meet these needs with available resources, and

improving and/or maintaining other specific

aspects of system performance. Four Working



Papers have been completed—the final one after

this Audit period

BCAG has taken steps to make improvements

in areas identified by the On-Board Survey:

information at the stops and shelters, and on-time

performance. BCAG has installed stop-specific

signage, and is contracting to install new shelters.

The completion and implementation of the Study

should also improve on-time performance.

The Community Telephone Survey and E-

Survey, both conducted in the spring of 2009,

provided valuable data about potential rider

markets that can be used in planning routing and

scheduling.

In addition to outreach for the Study, BCAG

has implemented multiple media to support public

participation with B-Line.

Also, during FY 07/08, BCAG developed a

Coordinated Public Transit-Human Services

Transportation Plan, discussed in detail in the

separate BCAG Audit.

PERFORMANCE MONITORING

B-Line management reviews and monitors key

indicators by route, maintaining a spreadsheet for

each route in order to decipher trends. Evaluation

has been thorough though informal.

Staff may want to consider comparing

performance to minimum and desired standards.

Standards should include those for on-time

performance, Passengers per Revenue Hour,

Farebox Recovery, and complaints per x number

of passenger trips per month.

SCHEDULING, DISPATCHING & OPERATIONS

BCAG contracts with a private provider,

Veolia Transportation, for B-Line’s operation.

Drivers bid on their work schedules, based on

seniority, on a quarterly basis.

One dispatcher for Fixed Route and two to

three dispatchers for Paratransit are on duty

during service hours. Paratransit dispatchers use

Trapeze software.

PERSONNEL MANAGEMENT & TRAINING

BCAG’s Personnel and Administrative

Manager oversees all human resources issues,

including hiring for BCAG transit administration

employees, who are subject to BCAG employee

policies.

Drivers, dispatchers, customer service

representatives, maintenance personnel and

operations management are employees of the

operations contractor, Veolia Transportation.

Veolia recruits through the website and postings;

applicants also apply directly.

Drivers, dispatchers, mechanics, and customer

service representatives belong to Teamsters 137,

and union contract terms apply.

Drivers and maintenance technicians receive

comprehensive, regular training:



New driver training is extensive and

includes classroom instruction, pre-

driving skills and behind-the-wheel

training and observation. It is provided by

two FTA-certified trainers.

Drivers’ ongoing safety training meets

state requirements.

Maintenance technicians receive regular

training from Veolia corporate offices and

original equipment manufacturers.

The turnover rate has decreased substantially

over the Audit period. The 2007 turnover rate was

29%, compared to 20% in 2009.

ADMINISTRATION BCAG’s Chief Financial Officer (CFO),

helped by the administrative assistant, oversees

budgeting, financial management, and accounts

payable, reviewing payment claims before

forwarding them to the County Treasurer.

BCAG’s Personnel and Administrative Services

Manager monitors accounts payable and receivable

and payroll, and develops and maintains purchasing

and contract procedures.

BCAG has been successful in securing and

administering multiple federal and state grants

over the Audit period.

FACILITIES MANAGEMENT In FY 08/09, after a bid process, BCAG

negotiated with Stott Outdoor Advertising for

amenities and maintenance at stops, as well as

outdoor, on-bus, and at-stop advertising.

BCAG sold or relinquished three of its four

Compressed Natural Gas (CNG) fueling systems

throughout the county, which it had gained upon

consolidation, to the entities that own the facilities

where the systems were located. These entities had

also been using the systems, which were no longer

funded and required costly ongoing maintenance

and repairs. The system at the County maintenance

yard remains under BCAG’s ownership.

BCAG has begun research to build a new B-

Line Operations and Maintenance Facility. The

current Facility, at 326 Huss Street, is leased and

maintained by Veolia. For the new Facility, BCAG

is reviewing three possible property locations.

MARKETING & PUBLIC INFORMATION

MARKETING

Maps and schedules are well designed, and

carry the yellow and green color scheme

throughout.

A spreadsheet including predicted marketing

expenditures is prepared each year as part of the

Annual Transit Service Plan and Budget. The

spreadsheet provides guidance on media, but does

not fully meet the requirements of a marketing

plan.

Overall marketing objectives and strategies

have not been defined. Ad campaigns do not

appear to be focused, and a clear brand image is



not evident—although the ads in various media

are creative and memorable, with spots that use a

consistent jingle.

Marketing expenditures were approximately

1.1% of each year’s Operating Costs, which is

below the recommended levels of 2% to maintain

ridership or 3% to 5% to grow it.

PUBLIC INFORMATION

BCAG makes information regarding B-Line

available through multiple media, and solicits

public input.

B-Line information is available as a tab on the

BCAG website, or by automatic transfer from

www.BlineTransit.com; BCAG plans to develop a

separate website for B-Line. Information on the

B-Line web pages is comprehensive and easy to

access; its appeal would be enhanced by a more

graphically rich home page.

CUSTOMER RELATIONS

The kiosk at the new Chico Transit Center

puts a human face on B-Line’s customer service.

A representative is available for questions,

comments/complaints, and pass sales: in person

during regular business hours, and by phone on

evenings and weekends.

BCAG reviews, addresses as necessary, and

responds to all comments and complaints. However,

these are not classified or reviewed for trends;

quarterly analysis of this information could help to

improve service.

CONTRACT MANAGEMENT

The Project Manager, which is either of the

two Senior Planners as relevant, is primarily

responsible for contract negotiation and

management; however, both Senior Planners are

involved to some degree. BCAG’s Personnel and

Administrative Services Manager provides key

assistance with contract development, compliance,

and review.

The contract with Veolia for operation of B-

Line, signed upon consolidation in 2005, is for

five years with two one-year options; the BCAG

board approved a two-year contract extension in

May 2010. During negotiations, staff reduced the

option years’ contracted rate increase.

The Senior Planner, Transit Administration is

responsible for approval and validation of invoices

for the operations contractor, though three BCAG

personnel are involved in the review.

BCAG staff reviews and charts performance

indicators each month, and works with the

contractor to improve these. Recent focus has

been on paratransit losses, improving service

effectiveness, and identifying any system errors in

counting fare revenues due to farebox changes.

During the Audit period, BCAG had a five-

year contract with California State University,

Chico to provide transit for the students, staff and

faculty, using school identification card as a swipe

passes in order to track rides and bill for them. In

FY 09/10, BCAG began negotiating a new



contract, which would provide unlimited rides for

a flat fee.

MAINTENANCE

The five-bay maintenance facility is leased by

Veolia as part of the operations contract. It

includes two drive-through bays, and all required

safety equipment—including a CNG monitor.

The facility is open nearly 20 hours each

weekday, and 12-15 hours on weekend days. The

routine is to perform minor repairs during

weekdays, and conduct major repairs and

inspections on evenings and weekends. Vehicle

cleaning occurs weekly.

A Maintenance Manager, seven utility workers,

and eight technicians (two Class A, four Class B

and two Class C) compose the maintenance staff.

Veolia uses RTA maintenance software to track

mileage, repairs and inspections. Daily and weekly

reports are prepared, and reports and files are

reviewed regularly by Veolia regional management.

Maintenance files and records appear to be in

excellent order.

Drivers inspect the vehicles before pull-out,

using a Daily Vehicle Inspection form. Vehicles

with critical safety issues are held out of service

until they can be inspected further and repaired.

The Preventive Maintenance Inspection

schedule varies by make and model, using a form

tailored to each manufacturer’s requirements.

During the Audit period, BCAG and the

contractor improved the Preventive Maintenance

(PM) Program, improving the rate of completion

within guidelines from 60% to 70% of PMIs at

the beginning of the period to a rate of

approximately 98% in 2009.

Most work is done in-house, including minor

maintenance of GFI fareboxes, which are covered

by warranty for major issues. Examples of

outsourced work are bodywork, glass and

alternators.

RECOMMENDATIONS

RECOMMENDATION 1

DEVELOP AN ANNUAL MARKETING PLAN

AND REGULARLY ASSESS PROGRESS TOWARD

ACHIEVING MARKETING GOALS.

This recommendation is carried forward from

a recommendation in the prior Performance

Audit. An allocation of between two and three

percent of the operating budget for marketing and

public information purposes is considered

appropriate for growing a ridership. B-Line’s

marketing budget averages about one percent,

which is below the recommended amount to

sustain ridership (2%).

In addition, an evaluation mechanism should

be built into each marketing program and

campaigns. For a small transit marketing budget,

the impact is often cumulative. Each program and

campaign needs to build on the previous one, with

a common look and feel among all collateral and

ads.



RECOMMENDATION 2

ENSURE DEFINITIVE SEPARATION OF

BCAG AS THE RTPA FROM BCAG AS THE

TRANSIT OPERATOR.

This recommendation is to be carried forward

from a recommendation in the prior Performance

Audit. During this Audit period, BCAG made

considerable progress in separating BCAG as the

RTPA from BCAG as the transit operator on the

staff level. The two Senior Planners who are

responsible for the transit operations no longer

report to the Program Manager, who is

responsible for processing TDA claims. Both

now report to the Executive Director, along with

the Assistant Planner, who supports ADA and

paratransit services.

Discussion with BCAG management indicate

that more definitive separation of the transit

operations from the RTPA responsibilities is

planned over the next several years. BCAG will

continue to provide Butte Regional Transit with

administrative support. However, a distinct

separation between the BCAG, the RTPA, and

BCAG, the transit operator, diminishes any

likelihood that a conflict of interest might be

perceived regarding the RTPA’s oversight

responsibilities.

Although a separation of the Board’s dual

responsibilities is preferred, BCAG is not disposed

to form a separate joint powers authority (JPA) to

oversee public transportation at this time. While it

respects and understands the need for separation

of responsibilities, the added administrative

burden and complication of two separate entities

is not considered necessary.

RECOMMENDATION 3

ENSURE THAT ALL FINANCIAL AND

PERFORMANCE DATA IS CORRECTLY

REPORTED ON THE STATE CONTROLLER’S

REPORTS AND THAT SUPPORTING

DOCUMENTATION IS MAINTAINED FOR A

MINIMUM OF FOUR YEARS.

Complete documentation was not available to

determine how performance measures and Full

Time Equivalents (FTE) were collected and

reported during the Audit period. Documentation

had to be recreated, and the source documents for

the original report were not available.

At a minimum, both hard copies and

electronic files should be retained for all source

documents used in compiling the State

Controller’s Reports. Any calculations and/or

assumptions also need to be documented.



Table 1: B-Line Recommendations

Recommendation Priority Responsibility Timeframe 1 Develop an Annual

Marketing Plan and

regularly assess progress

toward achieving

marketing goals.

Medium Senior Planner,

Transit Operations

FY 2011-12

2 Ensure definitive

separation of BCAG as

the RTPA and BCAG as

the transit operator.

Medium Executive Director FY 2012-13

3 Ensure all financial and

performance data is

correctly reported on the

State Controllers Reports

and supporting

documentation is

maintained for a minimum

of four years.

High Senior Planner,

Transit

Administration

FY 2010-11



I N T R O D U C T I O N

This report of the Triennial Performance Audit

for Butte County Association of

Governments (BCAG), as operator for Butte

Regional Transit (B-Line), covers a three-year

period ending June 30, 2009. The California

Public Utilities Code (PUC) requires all public

transit agencies to conduct a Triennial

Performance Audit in order to be eligible for

Transportation Development Act (TDA)

funding.

Figure 4: B-Line began operation July 5, 2005.

The Audit is designed to be an independent

and objective evaluation of BCAG, as the transit

operator. The Audit has four objectives:

1. Assess compliance with TDA regulations;

2. Review improvements that have been implemented and progress

toward goals;

3. Evaluate the efficiency and effectiveness of B-Line operations;

4. Provide sound, constructive recommendations for improving the

efficiency and functionality of the

operations.

AUDIT SCOPE & METHODOLOGY

The Performance Audit was conducted in

accordance with the processes established by

the California Department of Transportation, as

outlined in the Performance Audit Guidebook for

Transit Operators and Regional Transportation

Planning Entities, as well as Government Audit

Standards, published by the U.S. Comptroller

General.

The Performance Audit is a high-level

review evaluating the efficiency, economy, and

effectiveness of the transit operations. While the

primary purpose of the Audit is to ensure

compliance with Transportation Development

Act requirements, it should also provide BCAG

with practical and useful recommendations to

improve the efficiency and effectiveness of its

transit operations. The Audit of B-Line

operations comprised the evaluation of four

elements:

1. Compliance with TDA requirements and regulations;

2. Implementation of recommendations contained in prior

Performance Audits;



3. Methodology for calculating performance indicators and

significant performance measures;

4. Major functions performed by BCAG to support its public

transportation operations,

including−

General management and

organization;

Service planning;

Scheduling, dispatching, and

operations;

Personnel management and

training;

Administration;

Marketing and public information;

Maintenance.

The Audit presents conclusions and

recommendations to address opportunities for

improvement based upon analysis of the

previous four elements.

The methodology for this Audit

encompassed interviews with key personnel

from BCAG and the operations contractor; site

visits; verification of data sources; examinations

of financial and statistical reports; and reviews

of relevant planning documents and reports.

The Audit Report comprises four sections:

1. Executive Summary

A brief summary of the key findings and

recommendations developed during the

Performance Audit processes.

2. Introduction

Methodology of the Audit and pertinent

background information.

3. Audit Results

In-depth discussion of findings surrounding

each of the major elements of the Audit:

Compliance with statutory and regulatory requirements;

Progress in implementing prior Audit recommendations;

Performance measures and trends;

Functional review.

4. Findings and Recommendations

A delineation of the key findings of the

Performance Audit, and recommendations for

improving the efficiency and effectiveness of B-

Line transit service operations, and a timeline

for implementing the recommendations.

DESCRIPTION OF BUTTE REGIONAL TRANSIT (B-LINE)

Butte Regional Transit, or B-Line, provides

fixed route and paratransit services to the cities,

town, and Butte County. The Butte County

Association of Governments (BCAG) Board of

Directors is the policy-making authority.

BCAG is a Joint Powers Authority (JPA)

operating under a Joint Powers Agreement (also



a JPA) between the County of Butte and the

incorporated cities of Chico, Gridley, Biggs,

Oroville, and the Town of Paradise. BCAG is

the state-designated Regional Transportation

Planning Agency (RTPA) and the federally

designated Metropolitan Planning Organization

for Butte County.

Prior to this audit period, all transit systems

in Butte County, with the exception of Gridley

Golden Feather Flyer, were consolidated as

Butte Regional Transit or B-Line. B-Line service

began in July 2005, although administrative

consolidation took place in January 2005.

BCAG contracts the operation of B-Line to

a private contract operator, Veolia

Transportation Services.

TRANSIT CENTER

The Chico Transit Center is the city's hub

for Butte Regional Transit. It is located at

Second and Salem in the former site of the

Hotel Oaks. All buses that serve Chico,

including regional service from Chico to other

cities such as Oroville, pulse at the center.

In 2007, the transit center was temporarily

moved to 2nd Street and Normal Avenue to

facilitate construction of the new center at a

cost of $1.2 million. This new center was

constructed by the City of Chico.

Figure 5: This new transit center opened on February 20th, 2008.

The facility has three shelters for travelers,

as well as benches and public bathrooms. In

addition, it is powered by solar energy, collected

from the tops of the shelters. The bus hub's

central location directly across the street from

California State University Chico makes taking

the mass transportation ideal for students,

downtown workers, and shoppers. However,

one complaint about the new center is that

regional travelers are still out in the winter rains

and summer sunshine on the Normal Avenue

side of the center.

B-Line customer service representatives are

available at the Center’s kiosk from 8:00 a.m. to

5:30 p.m., Monday through Friday. Riders may

purchase passes, lodge complaints or leave

compliments, and obtain information about B-

Line routes and schedules at this location.



TRANSIT MODES

B-Line service is divided into four service

modes:

1. URBAN FIXED ROUTE (Routes 1-10)

2. URBAN PARATRANSIT

3. RURAL FIXED ROUTE (Routes 20 and over)

4. RURAL PARATRANSIT

URBAN FIXED ROUTE SERVICE

Figure 6: The Urban Fixed Route and Urban Paratransit services serve the City of Chico, which is the only urbanized area in Butte County.

The Urban Fixed Routes serve the City of

Chico. These routes operate from 6:50 a.m. to

9:45 p.m. Monday through Friday, and 8:50 a.m.

through 6:15 p.m. on Saturdays. The routes are

based on timed connections from the Transit

Center at Second Street and Salem in downtown

Chico. Eight routes operate year round:

Route 1: Bi-directional hourly service

between downtown and Sycamore Glen

(Ceres and Lassen) via Esplanade and

Lassen;


between downtown and Sycamore Glen

(Ceres and Lassen) via Mangrove

Avenue;


between downtown and North Valley

Plaza via Nord Avenue and East

Avenue;

Route 4: Bi-directional service every

half hour between downtown and

North Valley Plaza via East First

Avenue and East Avenue;


half-hour between downtown and

Chico Mall via Eighth Street;


half hour between downtown and

Chico Mall via Park Avenue and Dr.

Martin Luther King Jr. Parkway;


between Chico Mall and Pleasant Valley

High School via Bruce Road and

Manzanita Avenue;


between downtown and Highway 99

along the Esplanade.



Two student shuttles operate on weekdays

only during the California State University

Chico school year when classes are in session.

The services are open to the general public:

Route 8: Student shuttle service every

half hour between the downtown

Transit Center and West Eighth

Avenue and Nord Avenue;

Route 9: Student shuttle service every

half hour between Seventh Street and

Hickory Street, and Fourth Avenue and

Cedar via the downtown Transit

Center.

CHANGES TO FIXED ROUTE

The following changes were made during the

2006/07 fiscal year:

Route 1 Times adjusted. Interlined with

route 2 at Ceres/Lassen.

Route 2 Times adjusted. Northern

portion of route changed. Interlined

with route 1 at Ceres/Lassen.

Route 7 Times adjusted. Northern

portion of route changed for better on-

time performance.

Route 8 Interlined with route 9.

Route 9 Times adjusted. Interlined

with route 8.

Route 24 Added deviation by Wal-Mart

upon request, and added a new stop

location for return trip.

Route 41 Saturday service added

between Magalia and Paradise.

Paradise Transit Center Moved from

Skyway/Foster to Almond/Birch.

Figure 7: B-Line bus shelters and transit station shield riders from the elements.

URBAN PARATRANSIT SERVICE

The Urban Paratransit service provides

paratransit service for the elderly (65 years or

older) who live more than a quarter mile from

the nearest bus stop, as well as individuals

certified by the Americans with Disabilities Act

(ADA) in order to complement the fixed route

service in the greater Chico area.

RURAL FIXED ROUTE SERVICE

The Rural Fixed Route service provides

local service within the City of Oroville (routes

in the 20s) and intercity routes connecting

communities within Butte County (routes in the

30s and 40s). One route also operates within

the town of Paradise.



Four routes operate Monday through Friday

from 6:46 a.m. to 5:28 p.m. in the City of

Oroville and surrounding area:


two to three hours between Oroville

Transit Center (Mitchell and Spencer)

and County Center via Thermalito;

Route 25: Clockwise service every hour

between Oroville Transit Center along

5th and Mitchell;

Route 26: Clockwise service every two

hours between Oroville Transit Center

and Oroville Hospital with bi-

directional service along Olive Highway

from Foothill Boulevard to Tyme;


two hours from Oroville Transit Center

and Las Plumas High School.

RURAL PARATRANSIT SERVICE

The five intercity routes include—


between Chico and Oroville, between

the hours of 5:50 a.m. and 7:20 p.m.

Monday through Friday;

Route 30: Four trips each way Monday

through Friday, and four trips each way

on Saturday—between Oroville,

Palermo, Gridley and Biggs;

Route 31: Morning commute service

from Paradise to Oroville, with an

afternoon return;

Route 40: Bi-directional service

between Chico and Paradise every two

hours, Monday through Friday, with

limited hours of operation on Saturday

and Sunday;

Route 41: Bi-directional service

between Chico and Paradise

Pines/Magalia, every two hours on

weekdays, with limited hours of

operation on Saturday.

One route operates within the Town of

Paradise:

Route 46: Weekday service in the

Town of Paradise between Almond and

Birch Streets and Feather River

Hospital.

Figure 8: B-Line Paratransit is a shared ride service designed to meet the needs of seniors and persons with qualifying disabilities who are unable to use the B-Line fixed route services.



B-Line’s Rural Paratransit service provides

paratransit services in the Oroville area and

Paradise area seven days a week. The service is

available to riders who are age 65 or older and

live more than a quarter mile from the nearest

bus stop, and to riders who have an ADA-

certified disability.

FARE STRUCTURE

B-Line fixed route fares have a two-tier

structure:

Local Fares for travel within a single

local jurisdiction (Chico, Paradise,

Oroville, or Gridley/Biggs);

Regional Fares for intercity travel

from one local jurisdiction to another.

Up to two children under the age of six may

ride free with each paying adult. Free transfers

are available.

One-way regular local fares maintained a

rate of $1.00, and one-way regular regional fares

maintained a $1.25 fare during this audit period.

Regional transfers are valid for two hours from

the time issued. Local transfers are valid for one

hour. A local pass, ticket or transfer may be

upgraded for use on a regional bus by paying

the fare difference of 25 cents (or ten cents on

discount).

Fares for all paratransit services were raised

in July of 2006. B-Line one-way fare for both

Urban Paratransit and Rural Paratransit services

is $2.00. A non-discounted 10-ride ticket book

is available for $20.00.

All B-Line fixed route buses are equipped

with GFI Odyssey fareboxes. The fareboxes use

magnetic stripe tickets and passes. Although the

old B-Line paper tickets are no longer sold, they

are still valid for rides.

At the April 2009 BCAG Board of

Directors meeting, BCAG staff presented a

proposed fare increase for B-Line. The

proposed fare increase was recommended to

take effect at the beginning of the 2009/10 FY

and is the result of:

Increased operating costs;

Declining farebox recovery

revenues;

Recent state funding cuts for

transit.

New transit fares went into effect on

August 1, 2009 and will be analyzed during the

following audit period.



Table 2: Change in B-Line fixed route fares

FARE TYPE LOCAL SERVICE REGIONAL SERVICE LOCAL SERVICE REGIONAL SERVICE

THROUGH JUNE 2009 CURRENT FARES CASH CASH

Regular $1.00 $1.25 $1.40 $1.80 Discount $0.50 $0.60 $0.70 $0.90 Student (6-18) $0.75 $1.00 $1.00 $1.30 Child (under 6) 2 free 2 free 2 free 2 free

2-RIDE PASS 2-RIDE PASS Regular $2.00 $2.50 $2.80 $3.60 Discount $1.00 $1.20 $1.40 $1.80 Student (6-18) $1.50 $2.00 $2.00 $2.60

10-RIDE PASS 10-RIDE PASS Regular $9.00 $11.00 $12.60 $16.20 Discount $4.50 $5.00 $6.30 $8.10 Student (6-18) $6.50 $8.50 $9.00 $11.70

30-DAY PASS 30-DAY PASS Regular $30.00 $37.50 $35.00 $43.00 Discount $15.00 $18.00 $18.00 $22.50 Student (6-18) $20.00 $25.00 $25.00 $30.00



C O M P L I A N C E R E P O R T

This section examines BCAG’s compliance

with the Transportation Development Act (TDA)

and relevant sections of the California Code of

Regulations. An annual certified fiscal audit

confirms TDA funds were apportioned in

conformance with applicable laws, rules, and

regulations. Although compliance verification is not

a TPA responsibility, several specific requirements

concern issues germane to the Performance Audit.

Compliance was determined through interviews

with BCAG staff and the operation’s contractor

(Veolia) and through inspection of relevant

documents including fiscal audits, planning

documents, performance reports, and other related

documentation.

BCAG administers TDA laws and regulations

related to the operation of Butte Regional Transit,

B-Line in an efficient and effective manner and is

in compliance with TDA rules and regulations with

three exceptions.

1. The paratransit service for the exclusive use of elderly and

handicapped persons, has

maintained the required fare ratio of

10 percent for only two of the three

years (FY 2007/08 and FY 2008/09)

The other two exceptions are minor

administrative issues:

2. The State Controllers Report was submitted beyond the specified

timeframe in FY 2008/09 (PUC

99243);

3. The Fiscal and Compliance Audits were completed and submitted beyond

the specified timeframe in FY 2007/08.

The TPA compliance findings and related

comments are delineated in the table on the

following pages.



Table 3: TDA Compliance Chart

REFERENCE REQUIREMENT COMPLIANCE COMMENTS

PUC 6754 (A) (3) If the operator receives State Transit Assistance funds, the operator makes full use of funds available to it under the Urban Mass Transportation Act of 1964 before TDA claims are granted.

In Compliance B-Line has applied for and received federal transit assistance grants:

FY 06/07—$1,876,344;

FY 07/08—$2,023,731 and $1,600,000 CMAQ grant;

FY 08/09—$2,089,603.

PUC 99243 The transit operator annually reports to the RTPA, based upon the Uniform System of Accounts and Records established by the State Controller, within 90 days of the end of the fiscal year.

Exception Noted

State Controller’s Reports were filed within the 90-day window (110 days for filling electronically) with the exception of FY 08/09:

FY 06/07 filed 10/1/07;

FY 07/08 filed 9/24/08;

FY 08/09 filed 10/28/09 (ten days later than the deadline when filling electronically).

PUC 99245 The operator has submitted annual fiscal and compliance audits to its RTPA and to the State Controller within 180 days following the end of the fiscal year, or has received the appropriate 90-day extension allowed by law.

Exception Noted

Fiscal and Compliance audits have consistently been completed within the 180-day window with the exception of FY 07/09. Only FY 08/09 was submitted within the required timeframe:

FY 06/07 completed 11/6/07, filed 2/20/07;

FY 07/08 completed 1/20/09, filed 3/3/09;

FY 08/09 completed 12/18/09, filed 12/29/09. The audit conforms to all TDA requirements.



PUC 99251 The CHP has, within the 13 months prior to each TDA claim submitted by an operator, certified the operator’s compliance with Vehicle Code Section 1808.1 following a CHP inspection of the operator’s terminal.

In Compliance Satisfactory CHP Terminal Reports were completed:

3/13/07

3/20/08

3/11/09

PUC 99261 The operator’s claim for TDA funds is submitted in compliance with rules and regulations adopted by the RTPA for such claims.

In Compliance Claims are submitted by the individual jurisdictions.

PUC 99264 The operator does not routinely staff two or more persons with public transportation vehicles designed to be operated by one person.

In Compliance Vehicles are staffed appropriately.

PUC 99266 The operator’s operating budget has not increased by more than 15% over the preceding year, nor is there a substantial increase or decrease in the scope of operations or capital budget provisions for major new fixed facilities unless the operator has reasonably supported and substantiated the charge(s)

In Compliance Operating budgets were analyzed excluding depreciation, contingency, and capital reserve. During the three years of the Audit, operating budgets did not increase by more than 15%:

FY 06/07—(1.7%)

FY 07/08—4.2%

FY 08/09—0.0%

PUC 99268.2, 99268.3, 99268.12, 99270.2

If the operator serves an urbanized area, it has maintained a ratio of fare revenues to operating costs at least equal to one-fifth (20 percent), unless it is in a county with a population of less than 500,000, in which case it must maintain a ratio of fare revenues to operating costs of at least equal to three-twentieths (15%), if so determined by the RTPA.

In Compliance Farebox Recovery Ratio for Urban Fixed Route service was consistently above 20%:

FY 06/07—20.7%

FY 07/08—21.3%

FY 2008/09—22.8%.



PUC 99268.2, 99268.4, & 99268.5

If the operator serves a rural area, it has maintained a ratio of fare revenues to operating costs at least equal to one-tenth (10 percent).

In Compliance Farebox Recovery Ratio for Urban Fixed Route service was consistently above 20%:

FY 06/07—14.6%

FY 07/08—15.1%

FY 2008/09—17.9%

PUC 99268.5 If an operator’s services are for the exclusive use of elderly and handicapped persons, it has maintained a fare ratio of at least one-tenth (10 percent).

Exception Noted

Farebox Recovery Ratio for combined paratransit services was below 10% for two of the three years of the Audit:

FY 06/07—10.9%

FY 07/08—9.9%

FY 2008/09—8.9%

PUC 99271 The current cost of the operator’s retirement system is fully funded with respect to officers and employees of its public transportation system or the operator is implementing a plan approved by the RTPA, which will fully fund the retirement system within 40 years.

In Compliance B-Line employees with BCAG are covered by PERS. Contract employees are under the contractor’s (Veolia’s) retirement system.

PUC 99314.5 If the operator receives State Transit Assistance funds, the operator is not precluded by contract from employing part-time drivers or from contracting with common carriers.

In Compliance The operator is not precluded from employing part-time drivers.

CCR 6634 Operator funding provided through the Transportation Development Act makes up no more than 50% of operating, maintenance, capital, and debt service requirements.

Not Relevant Butte Regional Transit meets the farebox recovery ratio requirements.



P R I O R AU D I T

R E C O M M E N DA T I O N S

The implementation of the prior Triennial

Performance Audit recommendations provides

a measure of each transit operator’s efforts to

improve its efficiency and effectiveness.

During the last year of the prior Audit

period, the operations of four entities and six

transit services were consolidated as Butte

Regional Transit, known as B-Line.

Recommendations focused on optimizing this

new system.

The prior Audit had a total of six

recommendations, four of which were

considered high priority, and two of which were

considered medium priority. Two of the six

addressed planning, three addressed reporting,

and one addressed organizational structure.

PRIOR RECOMMENDATION 1

RECOMMENDATION: Develop a Short-

Range Transit Plan to guide B-Line growth.

STATUS: In Progress; due for completion by

July, 2010.

RATIONALE: The prior Audit recommended

short-term planning as fundamental to effective

resource use and development of a transit

system to meet Butte County’s future needs.

The Audit noted that Butte County

Association of Governments (BCAG) had

elected to incorporate a Short Range Transit

Plan (SRTP) and a Long Range Transit

Plan as elements of the Reg ional

Transportation Plan (RTP), and that this

could allow for a more efficient use of planning

funds and better integration between short- and

long-term objectives.

However, the prior Audit recommended

that the RTP should still provide the same level

of detail normally found in a stand-alone SRTP,

including:

5. Overview of existing transit system; 6. Transit demand analysis; 7. Goals, objectives, measures, and

standards;

8. Service and system evaluation; 9. Operations plan; 10. Operations budget; 11. Capital Improvement Program.

The prior Audit also noted potential state

and federal funding sources for this purpose.

This recommendation was considered a

high priority for FY 2007/08, under the likely

supervision of the Senior Planner, Transit

Administration.

DISCUSSION: In November 2008, BCAG

released a Request for Proposals to perform a

Market Based Transit Study for the Butte

Regional Transit System. Proposals were

submitted in December of 2008. A consultant



was selected, and the study commenced in

February of 2009.

The approach has five key components:

1. Market research; 2. Gather and illustrate facts on existing

conditions;

3. Develop and evaluate four alternatives; 4. Extensive public outreach; 5. Recommend preferred alternative.

Four working papers have been completed:

Working Paper I: Survey Results

Working Paper II: Existing

Conditions

Working Paper III: Four

Alternatives

Working Paper IV: Preferred

Alternative

The Study is in the final stage of

incorporating the last series of public comments

into the plan for implementing the preferred

alternative.

Although the Market Based Transit Study is

not in the format of a traditional Short Range

Transit Plan or Transit Development Plan, the

Study presents a plan for the most effective use

of resources in providing a transit system to

meet Butte County’s current and future transit

needs. The plan does not address capital needs

and fleet replacement. This element could be

addressed as part of the budget development.

Longer term projections of capital requirements

would assist the jurisdictions in understanding

budget allocations including the capital reserve

requirement.


RECOMMENDATION: Provide the Board and

the public with an annual report on B-Line

performance, with quarterly updates.

STATUS: Fully Implemented.

RATIONALE: This recommendation was a

carryover from the then-previous BCAG

Triennial Performance Audit. The most recent

prior Audit noted that since BCAG has become

the transit operator, as well as the Regional

Transportation Planning Agency (RTPA),

this reporting recommendation had become

more appropriate than it had been previously.

The prior Audit noted that, although

BCAG staff receives and analyzes performance

data on a regular basis, B-Line performance is

not reported to the Board or member agencies.

The Audit recommended an Annual Report

with quarterly updates to provide accountability

to the Board and the public, and suggested an

outline for the Report and updates to include:

1. Annual/quarterly accomplishments; 2. Ridership compared to prior year; 3. Key performance indicators compared

to prior year and to adopted standards.

The Audit noted that such a Report would

provide valuable information to key officials and

the public, and that it could be submitted as part

of the B-Line Annual Transit Service Plan



and Budget, with the addition of performance

data to provide a more complete overview of

operations.


medium priority for FY 2007/08, also under the

likely supervision of the Senior Planner, Transit

Administration.

DISCUSSION: BCAG implemented an Annual

Report in FY 2007/08. The Report covers all

BCAG responsibilities, in addition to B-Line

operations.

The Message from the Executive states: “Looking

back at the past year, the sole intention is not to

focus on what was accomplished as much as to

look at where we’re headed, based on the type

of planning that is being developed to help

guide our future here within the region.”

The Report provides an overview of BCAG and

a summary of major projects. In the FY

2007/08 Report, one page addresses B-Line

accomplishments and one page is devoted to

the B-Line financials and changes in ridership.

In the FY 2008/09 Report, two pages are

devoted to B-Line accomplishments, including

information on the Market Based Transit Study,

and one page on B-Line financials.

In FY 2009/10, staff began preparing quarterly

reports for the Board. The quarterly reports

highlight key performance and operational

statistics, along with accomplishments for the

quarter.


RECOMMENDATION: Develop an Annual

Marketing Plan and regularly assess

progress toward achieving marketing goals.

STATUS: Partially Implemented. This

recommendation will be carried forward.

RATIONALE: The prior Audit noted that B-

Line’s marketing was on a program-by-program

basis, and recommended that a marketing plan

be developed as the foundation for a marketing

program that would effectively achieve ridership

and outreach goals.

The Audit recommended that this

marketing plan should contain:

Long-term marketing and positioning

goals;

Objectives regarding ridership and

public awareness;

Strategies, including branding and

positioning, to provide focus;

Tactics defining the message and media

for implementing the strategies;

Program descriptions and schedules,

including milestones (or control points),

and budgets;

Monitoring and evaluation mechanisms,

including measures and standards, for

each strategy, tactic, and program.

The Audit noted that B-Line’s marketing

budget had been averaging about one percent,



which was below the recommended amount to

sustain ridership (2%). The Audit suggested

that an allocation of three to five percent of the

operating budget be made for marketing and

public information purposes—an amount that is

generally considered appropriate for an

established transit operation to grow ridership.


high priority for FY 2007/08, under the likely

supervision of the Senior Planner, Transit

Operations.

DISCUSSION: As part of the development of

the Annual Transit Service Plan and Budget,

an Excel spreadsheet is prepared each year with

all predicted marketing expenditures delineated.

During the year, the Senior Planner, Transit

Operations, tracks actual expenditures to budget

projections. The spreadsheet provides some

guidance as to tactics with respect to media, but

not message. Many of the ads are very creative

and memorable; the jingle provides a consistent

hood for television and radio.

The plan does not appear to included “earned”

or “bartered” media or public relations that

might support the advertising campaign.

The B-Line marketing includes sponsorship of

the athletic program at Cal State Chico, and

adds in several specialized publications, such as

101 Things to Do…in and Around Butte

County and The Source, as well as local

newspapers, including the Chico Enterprise

Record and the Paradise Post.

The marketing programs and campaigns do not

appear to be evaluated on a regular basis.

During FY 08/09, a strategic decision was made

to shift television advertising dollars from cable

to network using broad rotators. The decision

was based on the greater reach afforded with

network television, although no formal analysis

of reach/frequency/cost appears to have been

made.

Overall marketing strategies, including branding

and positioning for B-Line, have not been

clearly defined to support marketing objectives

regarding ridership and public awareness.


RECOMMENDATION: Continue to monitor

system performance on a monthly basis to

determine productivity improvements.

STATUS: Fully Implemented

RATIONALE: The prior Audit noted that major

changes in a transit system, especially in

conjunction with a fare increase, often have a

temporary negative effect. The Audit

recommended that BCAG staff and the

contractor regularly monitor performance and

schedule adherence, and make adjustments as

required.

Areas of concern noted by the prior Audit,

based on the first year of consolidation (FY

2005/06), included:

Increased Operating Cost per VSH and

VSM (particularly for Urban services);



Increased Operating Cost per Passenger;

Decreased Passengers per VSH and

VSM;

Decreased Farebox Recovery Ratio,

with the Ratios for both Urban and

Rural Paratransit services below the

10% required ratio.

The Audit noted that BCAG had worked

with the operations contractor’s general

manager to increase service effectiveness for the

paratransit services during FY 2005/06, with

good success. The recommendation was made

that BCAG staff continue working with the

contractor to determine where improvements in

productivity and further efficiencies could be

instituted.


high priority for FY 2006/07, also under the


Operations.

DISCUSSION: BCAG receives performance data

from its contractor on a monthly basis in both

hard copy and electronic formats. The data is

reviewed by both Senior Planners and the

Assistant Planner for accuracy and performance.

Data is examined on a route-by-route basis. In

addition, key performance measures are tracked

on a monthly spreadsheet to determine trends

and outliers.

Questionable data is reviewed with the

contractor on a regular basis, and the contractor

appears willing to provide any additional reports

as requested.


RECOMMENDATION: Work with contractor

to ensure that all performance measures are

correctly reported.

STATUS: Partially Implemented.

RATIONALE: The prior Audit found minor

discrepancies in the reporting of TDA

performance measures:

Vehicle Service Miles and Hours did not

include figures for backup buses for

Route 2;

Employee counts rather than employee

hours were used to calculate Full-Time

Equivalents (FTEs).

The Audit noted that corrections were made

as soon as the miscalculations were brought to

the attention of the contractor and BCAG staff.

The Audit recommended that BCAG staff

review the TDA definitions of VSM, VSH,

FTE, and Passenger counts with the contractor

annually when the State Controller’s Report

is being prepared, in order to ensure that

performance continues to be correctly

calculated.


medium priority for FY 2006/07, under the




Administration.

DISCUSSION: Both the contractor and BCAG

staff are conscientious about reporting

performance measures and indicators correctly.

However, a discrepancy was noted in the

reporting of Full Time Equivalents, and

documentation supporting the numbers on the

State Controller’s Report were not readily

available.

Some of the issues noted in this Audit may be

due in part to turnover in staff at BCAG, and

with the operations contractor.


RECOMMENDATION: Ensure definitive

separation of BCAG as the RTPA from

BCAG as the transit operator.

STATUS: Partially Implemented. This is a

valid recommendation and will be carried

forward with modification.

RATIONALE: The prior Audit found that the

effect of incorporating B-Line’s operation into

BCAG was that the separation between BCAG as

the Regional Transportation Planning Agency

(RTPA) and BCAG as the transit operator was

blurred.

The Audit noted that maintaining a division

between these two roles provided some checks

and balances, because they have very separate and

different responsibilities:

B-Line, as the transit operator, is

responsible for the delivery of effective

and efficient public transportation in

Butte County;

BCAG the RTPA is responsible for

regional intermodal transportation

planning and the administration and

oversig

Submitted by - bcag.org Triennial Performance Audits/… · 2010 P AGE 7 E XECUTIVE S UMMARY This...

Documents

Transcript of Submitted by - bcag.org Triennial Performance Audits/… · 2010 P AGE 7 E XECUTIVE S UMMARY This...