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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