REINVENTING TRANSIT FROM A SOCIAL SERVICE TO A CRITICAL PUBLIC UTILITY

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(1)

REINVENTING TRANSIT

FROM A SOCIAL SERVICE TO A CRITICAL PUBLIC UTILITY

(2)

THE PRE 1950 PAST

. Extensive networks for

streetcars , trams and buses

. Operated by the private sector through a system of franchises with oversight by PSC

. Profitable up until WWII

(3)

THE DISMANTLEING PERIOD 1950 – 1970

. Transit outside very large dependent eastern cities completely dismantled.

. A few hang on with public support from cities and

Chambers of Commerce . Assets including garages,

vehicles, sold off and

converted to other purposes.

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THE RESSURRECTION PERIOD AS A SOCIAL SERVICE

. New Regional Authorities developed city by city with public tax funding as the mainstay.

. Service spread broadly to

provide some access (though very inadequate) for

disenfranchised.

. Service and fares set by public hearing

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THE REINVENTION PERIOD 1990 TO PRESENT

. Beginnings of recognition that PT has a vital role to play in our communities not an

incidental one.

. New High Performance Transit Networks begin to be

conceived, funded and built . Recognition of critical role of

Market Research for service development

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How Has Transit Changed?

Finances

Demographics

• Politics

• Processes,

equipment,

technology

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Creation of High Performance Networks include :

 Unique branding

 Off-board ticketing

 Level boarding

 Real Time passenger information

 Substantial stations

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Western U.S. Investment in Transit (in billions) City/Agency Past 10 Years Current Next 10 Years TOTAL

Salt Lake City $1.10 $3.00 $5.50 $9.6

Denver $1.50 $4.70 $7.50 $13.70

Portland $3.10 $1.55 $2.80 $7.45

Phoenix $1.40 $0.00 $7.50 $8.90

Houston $0.30 $2.40 $1.50 $4.20

Atlanta $0.30 $0.05 $15.00 $15.35

Las Vegas $0.85 $0.90 $0.25 $2.00

Minneapolis $1.00 $2.00 $6.50 $9.50

San Francisco $4.50 $4.20 $5.10 $13.80

Dallas $2.00 $3.60 $2.50 $8.10

Los Angeles $4.30 $4.40 $6.70 $15.40

San Diego $2.00 $0.00 $4.00 $6.00

Seattle $5.00 $5.00 $15.00 $25.00

Albuquerque $0.42 $0.00 $0.03 $0.45

Austin $0.40 $0.00 $0.60 $1.00

Charlotte $0.46 $1.90 $3.00 $5.36

TOTALS $28.63 $33.70 $83.48 $145.81

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Different modes may be selected for each service type.

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Flexible

Schedule Fixed

Schedule Need for Fixed

Schedule Flexible

Schedule Fixed

Schedule

No Transit Transit Willingness

to Use Transit

No Transit Transit No Transit Transit No Transit Transit

Market Segments

Attitudinal Focus

Anxious Amblers

None of These Factors Sensitivity to

Time Low Sensitivity of Time High Sensitivity of Time

All Travelers

Transit Flexible

Riders

Fixed Schedule Productive

9 to 5-ers

Fixed Schedule Transitand Routine

Riders

Time Cautious

Flyers

Time and Fixed

Schedule Cautious 9 to 5-ers

Time, Fixed Schedule and

Transit Routine

Flyers

Time and Transit

Flexibl e Flyers

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MARKET SEGMENTATION

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CHANGE CULTURAL ATTITUDES

1. Shift the culture from a social service to that of a critical public utility

2. Perceive of the public investment as paying for reduced traffic and assume a leadership role in the development of new modes including car

sharing, bike and pedestrian ways and van pools 3. Identify social service needs and turn

responsibility over to social service organizations

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CHANGING CULTURE

4. Do not use Public Hearing input for service design but for communication of changes

5. Pay executives and top level staff according to market. Currently US transit executives are paid

½ to 1/3 comparable counterparts in other regional utility industries.

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Modernize and technologize

. Create a developing technology center.

. Incorporate new fare payment technology for distance based fare collection

. Take full advantage of new social media such as Facebook and Twitter to keep public informed

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Market based service criteria

. Conduct market research to identify markets to serve.

. Establish fares at levels the markets will bear

. Establish standards for efficiency to explain why not all markets can be served including ISO 9000 and 14000 certification.

. Use market research to continuously evaluate public perception of value such as Net Promoter Score

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Financial Sustainability

. Identify the ROI for the community stockholders.

. Be aggressive about gaining non-tax revenue

generation from non-traditional sources i.e. TODs and commercial franchises within stations

. Seek relationships with energy developers

. Open the market to allow the best equipment to be purchased for the required service

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CONVERSION TO PUBLIC UTILITY MODEL

Study and evaluate the many models used world wide to support the privatization of the Public Transit Sector including:

1. Authorizing/ organizing Authority systems common in Europe.

2. Public/Private Partnerships for the development and operation of major infrastructure investments

3. Allow Private Sector partners to do what they do best, choose markets, take risks which

controlling them etc.

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Thank you for listening.

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Transit Ridership in Utah

0 10 20 30 40 50 60 70 80 90

1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Annual Riders (Millions)

Total Annual Transit Riders

World

War 2 Energy Crisis

Start of TRAX 33 Million

93 Million

39 Million

Rise of the Automobile

Creation of UTA

Transit Ridership in Utah

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The Potential of Transit in Utah

0 50 100 150 200 250 300 350

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

Annual Boardings (millions)

Transit Oriented Growth Financially Sustainable Regional Transportation Plan

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Why

John M. Inglish, General Manager/CEO Utah Transit Authority

Salt Lake City, Utah

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(22)

The Transit 2030 Plan

Plan highlights include:

Commuter Rail: 120+ miles Light Rail: 60 miles Bus Rapid Transit: 80+ miles Increases in bus service

Integrated multi-modal system

Intelligent Transportation Systems (ITS)

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The Results

Passed in both

counties at a 2-1

margin

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Business Support

• In 2005, top local business and community leaders participated in UTA television and print

campaign.

(25)

Evidence About

Programs & Projects

Decision

61.1

46.1

22.7

69.9

66.6 66.6

51.8

17.6

71.1

47.7

0 10 20 30 40 50 60 70 80

FrontRunner Trax Regular Bus Fast/Express 35M

UTA Net Promoter Score by Service Type

2008 2011

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Lower sensitivity to time Fixed schedule

Travel during rush hours Willingness to use transit

Routine Riders

Most have one car per household

Employed full-time or part-time

Lower income Half are married

Two-thirds are male Your typical college

student is

representative of this group

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Evidence About Processes

Decision

Figure

Updating...

References

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