3-19-19 School Bus Business PlanTown Council Meeting
3/19/2019
SCHOOL BUS BUSINESS PLAN
BACKGROUND AND GOAL
Goal
Reducing traffic congestion near schools
Council Direction
Annual subscription: $350
Two routes
Budget for 18 months of service
1
Strengths and Weakness
Scale of Service
Cost Projection
Revenue and Funding Strategies
Management Challenges
Organization Structure
Near-Term Opportunities
Business Plan Highlights
SCHOOL BUSBUSINESS PLAN 2
RIDERSHIP VS. SUBSCRIBERS
3
Foundation for projection
To achieve
10% automobile trip reduction
Need
10% of student population subscribed (~516)
Range of Service Scale
2 to 6 routes in 5 years
Service Scale in Five Years
SCHOOL BUSBUSINESS PLAN 4
5
FIVE-YEAR COST PROJECTIONS
Five-Year Projections Year 1/2 Year 2 Year 3 Year 4 Year 5
FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23
Two Routes 2 2 2 2 2
$167,528 $285,563 $294,130 $302,954 $315,072
Six Routes 2 2 2 4 6
$167,528 $285,563 $294,130 $605,908 $945,216
Fare
Customer’s price sensitivity
Farebox recovery ratio
Cost increase
Grants and Regional Funds
Few grant programs available
Measure B
Risks of relying on grants
Town Sources and Other Partners
Revenue and Funding Strategies
SCHOOL BUSBUSINESS PLAN 6
Contracted Service
Very few providers available
Cost increase potential
Contract Management
High demand on staff resources
Wide range of expertise required
Diversion of staff resources
Management Challenges
SCHOOL BUSBUSINESS PLAN 7
8
ORGANIZATION STRUCTURE
Option Town-
Managed
Outsourced JPA Transit Agency
Decision-Making Town: 100% Town: 100% Shared Shared
Cost to Town High High Medium Low
Town Staffing Level High Low Medium Low
Pre-requisite Town’s
contribution
Town’s
contribution
Other
partners
Transit agency
engagement
Pros and Cons of Program Management Options
Continue the current service model
and expand
Alternative models (conceptual):
VTA school tripper
Vanpool incentive program
Near-Term Opportunities
SCHOOL BUSBUSINESS PLAN Going back to the problem statement …
9
Number of subscribers
Ridership
Transportation Benefits
Financial Sustainability
Safety
Service Quality
Staffing Impact
Performance Standards
and Metrics
SCHOOL BUSBUSINESS PLAN 10
11
TOPICS FOR DISCUSSION
Scale in Five Years
Fare Structure
Organization Structure
Alternative Models
Performance Metrics
Additional slides follow to support the discussion as needed.
ADDITIONAL SLIDES
12
Route A -North Los Gatos To Fisher
Middle & Blossom Hill
13
Route A Morning Route A Afternoon
CONGESTION RELIEF SCHOOL BUS 14
Route B -Mountains to
Los Gatos
High School and Fisher
Middle School
CUSTOMER COUNTS
15
Route Paid Sign Ups
Route A -North Los Gatos to Fisher Middle &
Blossom Hill
50 49
Route B -Mountains to Los Gatos High
School and Fisher Middle School
63 64
TOTAL 113 113
Route C -North and East to Los Gatos High
School
--37
Updated March 1, 2019
CUSTOMER BY SCHOOL
16