Report to/Rapport au:

Transportation Committee/Comité des transports

and Council/et au Conseil

April 13, 2004 / le 13 avril 2004

Submitted by/Soumis par: R.T. Leclair, General Manager/Directrice générale,

Transportation, Utilities and Public Works/Transport, services et travaux publics

Contact/Personne-ressource: G. Diamond, Director/Directeur,

Transit Services/Service du transport en commun

842-3636 ext. 2271, gordon.diamond@transpo.ottawa.on.ca

SUBJECT:     OC TRANSPO SERVICES – BUDGET 2004

OBJET:          SERVICES OC TRANSPO  - BUDGET 2004

REPORT RECOMMENDATION

That the Transportation Committee recommend Council approve the service reductions in Table 1, which are drawn from the Stage 3 proposals in the Draft 2004 Budget, for implementation in September 2004 to reduce net annual transit costs by $800,000 and to provide $950,000 to cover the annualisation of the September 2003 service increase in 2004, and growth in September 2004, as directed by Council.

RECOMMANDATION DU RAPPORT

Que le Comité des transports recommande au Conseil municipal d’approuver les réductions de service présentées dans le tableau 1 et tirées des propositions de l’étape 3 du budget préliminaire de 2004 et de les mettre en place en septembre afin de baisser les coûts annuels nets du transport en commun de 800 000 $ et d’affecter 950 000 $ à l’annualisation de l’augmentation de services de septembre 2003 en 2004 ainsi que la croissance en septembre 2004, comme le prescrit le Conseil municipal.

BACKGROUND

Three groups of potential transit service reductions were included in the Draft 2004 Budget.  These were labelled Stage 1, Stage 2 and Stage 3.  Each stage included reductions of hours of service or complete elimination of selected routes, which have poor financial performance, low ridership, or convenient alternatives available.

No reductions were proposed on the Council-approved base network of routes (Transitway routes, many routes on arterial roads, and connector routes in suburban areas) during the core service hours (06:30 to 12:00 midnight; earlier on weekends).

The lists of service in Stages 1, 2 and 3 were developed through an evaluation process based on the value the service provides to the mobility of transit customers in Ottawa.  The services with the lowest number of customers that would stop using transit per dollar of net saving are the ones that contribute the least to the mobility of customers, and thus contribute the least to the aims of the transit network as defined in the Transportation Master Plan.

The indicator used to rank the impact of the service reductions was: ‘Customers lost per net dollar saved’.  The average value of customers lost per net dollar saved for Stages 1, 2 and 3 were 0.15, 0.25 and 0.35, respectively.

At its meeting of March 24 to 26, 2004, Council approved the introduction of Stage 1 and 2 reductions, and approved the following motion:

That Stage 3 reductions be approved to increase net savings by $800,000 per year and that $950,000 be re-distributed into the OC Transpo budget to accommodate growth and that staff report back to Transportation Committee with regards to the routes impacted.

This report responds to that direction and also provides information on the implementation plan for the service reductions.

DISCUSSION

Stage 3 Service Reductions

The Stage 3 Service Reductions shown in Table 1 were selected based on the principle of minimizing the loss of customer trips while making net annual savings of $1.75 million, as well as ensuring that the result would be a practical transit route network.  The average value of customers lost per net dollar saved for this group of Stage 3 reductions is 0.27.  The value for the remaining Stage 3 reductions, not recommended for removal, would be 0.42. Of the 760,000 customer trips affected, the annual loss of customer trips is estimated to be approximately 485,000.

Like the service reductions made by Council in Stages 1 and 2, the services in this group, when compared with all of the services that make up the transit network, are those with lower ridership, some convenient alternatives, or a higher operating cost per customer.  In comparison with the service reductions that were made by Council, these services have higher ridership, fewer convenient alternatives, or lower operating cost per customer.  For those reasons, these services were ranked higher than those in Stages 1 and 2 in their value to customers and to the transit network.

As for the reductions that have been made by Council, many of the potential reductions listed from Stage 3 would remove service in the early morning or evening or on weekends.  Three routes would be removed entirely at this stage.  Route 181 provides a secondary but direct link between South Nepean (Barrhaven) and North Nepean (Bayshore and Nortel).  Route 194 provides service to the Canotek and Shefford employment area, and most of that area would have no convenient transit alternatives.  Route 195 provides peak-only service to the employment area along Walkley Road, and that area would continue to be served by other routes.

Growth

Annualisation of 2003 Service Increases

In September 2003, service was increased on several busy routes, and service was extended into newly-developed areas of the city.  Routes with new or increased service from September 2003 included 2, 3, 4, 7, 8, 14, 20, 22, 27, 28, 40, 66, 68, 71, 84, 85, 86, 95, 97, 111, 117, 118, 119, 126, 129, 131, 145, 172, 176, and 197.

The net cost of these services was approximately $1.0 million per year, but because they were in effect for only the last four months of 2003, the net cost in 2003 was only approximately $375,000.  This $375,000 was built into the base budget for 2004.  An additional $635,000 will be required to continue these services in 2004.

Increased Service to Support Ridership Growth in 2004

Transit ridership in Ottawa continues to grow, and as a result, some busy routes will require service increases in September 2004.  Routes that are being examined in detail to confirm the need for service increases include 4, 14, 30, 40, 76, 82, 90, 95, 97, and 148.

The net cost for service increases to be made in September 2004 is estimated to be approximately $316,000 for the four months from September to December 2004.  These services will carry with them additional costs of about $625,000 in future years to take account of the annualisation effect.

Ridership Impact of Growth

The combination of the annualisation of 2003 service increases and service increases in 2004 is estimated to attract 1.35 million new customer trips to transit in 2004.

Mitigating the Effect of Service Reductions

Staff are taking the following action to mitigate the effect on customers of some of the reductions in Stages 1 and 2.  When the Stage 3 changes are approved, staff will take the same approach.

·        Where the removal of local services during peak periods would affect customers travelling to or from middle schools and high schools, staff will work with the school boards to expand the number of special school trips provided by OC Transpo.  These special trips can be provided more-economically than service through the whole peak period because they can be customised to the particular travel needs of a smaller group of customers, and because they need only run at the times and on the days that those people are traveling.  The adjustments can be made within the funding envelope already proposed in the 2004 budget.

·         Some of the routes that would have their hours of service reduced are routes which use low-floor buses to provide fully-accessible service.  To mitigate the effect that these reductions would have on customers with disabilities, staff will, where feasible, assign low-floor buses to other routes which serve the same areas at the times affected.  Also, as the City will be receiving 100 new low-floor buses this year, the continuing expansion of the accessible transit network may reduce the effect of these removals of service.  These changes will be possible at no additional operating cost.

·        Staff are examining alternatives for local service in Kanata, with the goal of continuing to accommodate many of the customers who now use Route 162, but within the total funding level for local service in Kanata that would remain after the service reductions approved by Council.  Staff will consult with Councillor Feltmate in developing this plan.  Recommendations will be brought to the Transportation Committee at its meeting of May 5, 2004, along with the recommendations from the Transplan 2004 consultation process, so that, if approved, the revised service can begin in September 2004.

·        The removal of Routes 175 and 185 will have a major impact on customers travelling to and from the Colonnade employment area, and also to and from the Country Place, The Glens, and Merivale Gardens residential areas.  Staff are examining alternative ways of serving these areas, perhaps by making changes to other nearby routes that will remain after the service reductions made by Council.  Any recommended changes would be ones that would have no or very little cost, and that would reduce the impact on the present customers of Routes 175 and 185 without causing undue impacts on other transit customers.  Staff will consult with Councillor Harder in developing this plan.  Recommendations will be brought to the Transportation Committee at its meeting of May 5, 2004, along with the recommendations from the Transplan 2004 consultation process, so that, if approved, the revised service can begin in September 2004.

·        The removal of service on the northern part of Route 166 during the morning peak periods will have an impact on customers travelling from the Crystal Beach residential area.  Staff are examining alternative ways of serving this area, perhaps by making changes to other nearby routes that will remain after the service reductions made by Council.  Staff will consult with Councillor Cullen in developing this plan.  Recommendations will be brought to the Transportation Committee at its meeting of May 5, 2004, along with the recommendations from the Transplan 2004 consultation process, so that, if approved, the revised service can begin in September 2004.

·         Staff are also developing a revised plan for early-morning service across the City, so that the customers who rely on this service can continue to travel, but at a lower net cost than the present service.  The changes will require some customers to walk further to their nearest bus stop with service before 6:30 a.m. and will require that some customers have a longer ride on board the buses to reach their destinations. 

Implementation Plan

It is planned to implement the service changes in two parts: with the summer schedules on June 27, 2004 and with the fall schedules on September 5, 2004.  Service reductions that affect the route structure would be made in September 2004, so that the public can be properly notified of the revised route network, for instance by preparing a new system map.  Service reductions that can be explained to customers by the issuance of new route schedules will be introduced in June 2004.  Since they have yet to be approved, all Stage 3 service reductions will be implemented in September.

CONSULTATION/PUBLIC NOTIFICATION

Proposed reductions to transit services were communicated to customers and the public as part of the 2004 budget decision process.  Staff and councillors conducted public meetings in January and February; draft budget documents were posted on ottawa.ca.

Council budget decisions have been generally communicated to customers through the press and news media coverage of the budget and ensuing analysis by the media.

Where possible, strategies for mitigating approved reductions to bus service are being developed through discussions with community representatives and councillors.  This may result in proposed additional adjustments to other routes serving neighbourhoods affected by the budget reductions.

All service reductions and changes have been or will be communicated to affected customers through the standard transit information channels, as follows:

·        March 29 – April 16: Summary of approved service reductions and fare changes posted on octranspo.com; details made available through enquiries at the transit information centre and customer service office.  Information about alternative service is also available through these channels.

·        April 19 – 30: Summary of possible and approved Stage 3 service reductions posted on octranspo.com.

·        May 17 – June 27: Detailed maps and schedules of route reductions commencing June 27 will be posted on octranspo.com, at bus stops, and in transit stations.  Advisory notices will be posted at stations and bus stops where service reductions are significant.  Explanatory pamphlets and detailed maps and timetables will be distributed to affected customers on buses, through community associations, at client service centres, at community information displays and counters, and at transit pass vendors.  Changes to the accessible bus route network will be detailed on octranspo.com, through enquiries at the transit information centre, and through letters to appropriate community organizations.  Notification of changes will be advertised in city and community newspapers, and through public service announcements to the media.

·        Automated Internet trip planning will be available, and promoted mid-summer.

·        June 7 – July 16: Detailed maps and schedules of school bus services commencing September 5 will be distributed to school boards prior to the end of the current school year.  Information packages will be available at photo ID sessions in schools in June.  Details will be posted on octranspo.com by mid July.

·         July 19 – Sept 4: Detailed maps and schedules of route reductions commencing September 5 will be posted on octranspo.com, at bus stops, and in transit stations.  Advisory notices will be posted at stations and bus stops where service reductions are significant.  Explanatory pamphlets and detailed maps and timetables will be distributed to affected customers on buses, through community associations, at client centres, at community information displays and counters, and at transit pass vendors.  Changes to the accessible bus route network will be detailed on octranspo.com, through enquiries at the transit information centre, and through letters to appropriate community organizations.  Notification of changes will be advertised in city and community newspapers, and through public service announcements to the media.

TRANSPORTATION MASTER PLAN

The recommendations in this report are consistent with the principle of maximizing ridership within available resources, and maintain the base network of routes in core service hours. The additional service provided for growth should accommodate an additional 1,750,000 customer trips per year. However, the Stage 3 service reductions will result in a loss of approximately 500,000 customer trips annually.

Taken together, for a full year, the Stage 1, 2 and 3 reductions are expected to result in a loss of 1.5 million customer-trips, which will delay progress towards the TMP’s goal of increasing transit ridership and increasing the proportion of all travel that is made by transit. Increased funding for transit would be required in future to resume progress towards the ridership goals of the TMP.

FINANCIAL IMPLICATIONS

The service reductions approved in Stage 3 represent a net saving in operating costs of $1.75 million on an annual basis.  They will be implemented on September 5, 2004, and therefore their net impact on operating costs in 2004 will be a reduction of $580,000. 

Maintaining the service increases implemented in September 2003 into 2004 will have a net cost of $635,000 in 2004.  Adding some service to busy routes in September 2004 will cost an additional $315,000 in the period September to December. The total increase in costs in 2004 associated with growth is $950,000.

Therefore, in 2004, the total net cost of the recommendations in this report of $370,000 will be bridge-financed with a one-time contribution from reserve funds, as is the intent for the part year impact of all City Council approved reductions.   For 2005 and beyond, the full year net reduction of $800,000 is achieved.

SUPPORTING DOCUMENTATION

Attachment 1 - Table 1 - Stage 3 Service Reductions

DISPOSITION

Ridership on busy routes will be reviewed in May to finalize the plan for service growth.  The approved Stage 3 service reductions and the additional service to accommodate growth will be implemented on September 5, 2004.

Attachment 1

TABLE 1

SELECTED STAGE 3 REDUCTIONS