2011 Business Plan

2011 Business Plan

February 16, 2011Alain Mercier

General Manager, Transit Services

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Towards a Sustainable Transit System for Ottawa

Transit Commission

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The Transit Commission is responsible for ensuring the development of a safe, efficient, accessible and client-focused transit system and for providing overall guidance and direction to the Transit Services Department on all issues relating to the operation of public transit, including the O-train and the Para Transpo service delivery model.

Annual Business Plans

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• Bring together various reporting and planning initiatives.

• Provide an opportunity Transit Commission and Council to set policy and objectives for the coming year.

• Respond to the City Budget with implementation plans.

• Set or reconfirm financial course for capital and operating budgets.

2011 Budget and the Path to Fiscal Sustainability

• Public transit has received $8.6 million in one time “bridge” financing for operations.

• $10 million of the $26 million in provincial gas tax revenue has further subsidized operations at the expense of capital funding.

• This plan bridges a sustainability gap that will grow from over $18 million in 2011 to approx. $26 million next year.

• If change is not implemented, our public transit system will demand a property tax increase of at least 5 per cent all on its own by 2016.

• This gap can be bridged so that OC Transpo will operate within a 2.5 per cent annual increase for the term of Council and save $145 million over 5 years.

The Significance of 2011 Business Plan

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Financial sustainability is critical($ Millions)

2010 2011 2012 2013 2014 2015 2016

Total Costs 429 442 453 465 480 490 506

Revenue 159 169 178 188 198 209 219

Provincial Gas Tax – Operation support

16 16 16 16 16 16 16

Provincial Gas Tax – Capital Contribution

10 10 19 19 19 19 19

One-time - From Gas Tax to Operations

10 9 0 0 0 0 0

Property Tax with Changes

234 235 240 242 247 246 255

Property Tax without Changes 242 263 269 274 274 288Annual Savings from Plan

7 23 27 27 28 33

Total Savings $145 million (2011-2016)

Strategic Recommendations of APTA Review

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1. Identify “key” management team objectives.

2. Pursue efficiency gains.

3. Develop public relations plan and community outreach program.

4. Explore strategies to accomplish labour objectives.

5. Move forward with 10-Year Tactical Plan.

Touchstones of Business Plan

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FINANCIALFINANCIALSUSTAINABILITYSUSTAINABILITY

O-TrainImprovements

Multi-yearFleet Plan

IntegratedSystems

New HiresReduce

Overtime

DoubleDeckerBuses

People Plan

Consolidation

ModernizationLight Rail

ConstructionChallenges

RouteConsolidation

Trunk-and-Feeder

(LRT in 2019)

Real-timeInformation

2012 and Beyond

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• Facility Plan

• IT Roadmap

• Mitigating costs to manage LRT construction

• Improved O-Train capacity

Business Plan sets a course to find efficiencies beyond the current 2012 target through measures indentified in:

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Facility PlanCurrently 4 bus garages - St. Laurent, Merivale, Pinecrest, Industrial

• Additional capacity will be placed at Industrial garage.• 50% of fleet will have preventative maintenance at this facility.• Modernization program at St. Laurent, Merivale, and Pinecrest.• Relocation of Swansea operations to reduce turn around time.

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IT Roadmap

IT initiatives will improve productivity, lower costs, and improve customer experience. Initiatives seek to:

• Increase the use of common infrastructure to maximize return on investment.• Minimize the number and variety of systems.• Reduce the number of interface points. • Shift from custom in-house software to fully integrated, vendor solutions.• Modernize the hardware, network and telecommunications infrastructure.

IT Priorities:

• 2012 Implementation of PRESTO Smart Card• GPS for real-time bus information• Scheduling technology upgrades

Increased O-Train Reliability and Capacity

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• O-Train capacity limits are currently being reached, partly due to U-Pass.• System compromised in the event of a train failure. Service reduced from 15- minutes to 30-minutes in some cases.• Purchase of one O-Train to increase reliability (currently in Draft 2011 Budget). • Examining increase in capacity. Business case presented before May of 2011. • Service could be increased to 10 minutes; capacity by 50 per cent, from 1,200 to

1,800 customers per hour in each direction.

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Light Rail Construction

Construction of Light Rail project will have significant effects on transit service

• Periodic lane closures on Albert, Slater, and Rideau• Transitway closure for conversion to light rail line• Need to transfer operations to other corridors• Additional buses will be required (118 buses 2014-2018; $157M total operating)

Year Extra Buses Required Operating Costs

2014 14 $6 million

2015 13 additional (27total) $14 million

2016 30 additional (57 total) $26 million

2017 56 additional (113 total) $53 million

2018 5 additional (118 in total) $58 million

Construction will start in 2014, increase in 2015/2016 and will be at peak in 2017/2018

Fleet Plan: Keys to Performance

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• Move to higher capacity vehicles.

• Move to newer designs of vehicles that are more reliable .

• Reduced operating costs (fuel and maintenance).

• Better environmental performance.

• 2010 purchased 306 new articulated buses.

• Savings paid for debt servicing cost delivering $9 million in annual cost reduction.

Fleet Plan

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Double-Decker Buses

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Double-decker buses will be used on express routes during peak periods.

• Higher carrying capacity (90 vs. 70 for Artic)• More seating (82 vs. 55 Artic)• Reduced operating costs (fuel and maintenance)• Better environmental performance

2012 2013 2014 2015 2016+

Savings $2.5 million $10 million $10 million $10 million $10 million

Financing Cost

$0 $4.0 million $4.0 million $4.0 million $0

Net Savings $2.5 million $6 million $6 million $6 million $10 million

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Ottawa’s Public Transit Objective

Council Policy is for:95% of population within a 5-minute walk during peak periods.95% of population with a 10-minute walk at other times of the week.

• This standard balances access with efficiency.• The 2010 APTA review found the current network was not providing good enough value for the high cost.• Today’s network contains duplications, routes with low ridership and too many indirect loops that reduce service efficiency.

Current route structure: 98.6% of urban households are within a 5-minute walk standard. 99.9% of urban households are within a 10-minute walk standard .

Categories of Route Optimization:

Elimination of Duplication and Delay in the Existing Network

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Unchanged Routes / Enhanced Routes

• The vast majority of trips (over 90%) will remain exactly as they are today with no change.

• Some of these routes will be enhanced through greater frequency or with larger capacity vehicles serving them.

• Express buses will continue to operate directly to downtown.• Sufficient capacity will remain on all routes to carry customers with no overcrowding. More seats on some routes; some wait times will be reduced.

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Unchanged Routes / Enhanced Routes

No Change or Increased Service

O-Train and Routes:

1, 2, 7, 8, 14, 15, 20, 21, 22, 24, 27, 33, 35, 38, 60, 61, 66, 67, 68, 69, 70, 71, 73, 76, 77, 86, 87, 94, 95, 96, 98, 99, 114, 118, 122, 123, 124, 126, 128, 135, 146, 148, 157, 164, 170, 172, 173, 176, 177, 183, 184, 186, 187, 189, 194, 199, 245, 261, 262, and 263.

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• Routes that have evolved to cover identical ground or run in close parallel to one another will be candidates for consolidation.

• Three routes might change to two better, more efficiently designed routes.

• Service will be maintained to all customers.

• Customers will, in most cases, not have any further to walk to get to their bus.

Consolidation and Elimination of Duplication

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Current Routes: 63 and 64 in Kanata

3, 4, 5, 6, 16, 23, 32, 34, 39, 40, 43, 57, 62, 63, 64, 65, 85, 88, 101, 111, 112, 115, 116, 117, 125, 130, 131, 133, 141, 142, 143, 144, 150, 151, 154, 155, 156, 158, 160, 165, 166, 168, 182, 188, 190, 191, and 316.

Better Coordination/ Consolidation

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The combining of Routes 63 and 64, as illustrated, would save approximately $175,000 per year

3, 4, 5, 6, 16, 23, 32, 34, 39, 40, 43, 57, 62, 63, 64, 65, 85, 88, 101, 111, 112, 115, 116, 117, 125, 130, 131, 133, 141, 142, 143, 144, 150, 151, 154, 155, 156, 158, 160, 165, 166, 168, 182, 188, 190, 191, and 316.

Better Coordination/ Consolidation

Possible Consolidation into One New Route 63

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Removal of Inefficient Local Loops and CrescentsLoops and detours cost time and system efficiency

Current Route 18 in Overbrook• “Milk runs” through

local residential and collector streets can irritate riders and lengthen travel times.

• Service would be

available by walking a short distance to catch the bus for all of the customers affected by these changes.

• Frequency would remain the same, travel times for customers would be reduced.

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Removal of Inefficient Local Loops and Crescents

Possible Revised Route 18

Loops and detours cost time and system efficiency

Improve Efficiency

Routes 5, 18, 31, 37, 101, 102, 179, 221, 231, and 283.

A more direct route, as depicted, would save approximately $184,000 per year.

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Reduce Hours of Service for Low-ridership Routes or Route Sections

• Some routes that have a reasonable number of users at peak times drop off dramatically between peak periods yet continue to run at the same frequency.

• Others routes have legs that have very low ridership.

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Reduce Hours of Service for Low-ridership Routes or Route Sections

• These routes starve the rest of the system of resources that could be better deployed.

• Where ridership off-peak is very low consideration will be given to eliminating off-peak service or to discontinuing service to sections of the route that slow it down without producing a reasonable number of customers.

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Peak RoutesDuring non-peak times, resources will be deployed to high

ridership areas

Peak Routes

Routes 103, 116, 127, 136, 137, 140, 143, 145, 147, 149, 152, 153, 161, 163, 165, 167, 171, 174, 175, 178, and 306,

Certain sections of Routes 5, 6, 9, 12, 16, 18, 40, 82, 97, 105, 106, 115, 120, 121, 125, 129, 131, 151, 154, 156, 166, 169, 190, 191, 192, 197, and 232.

Current Route 149 in Elmvale – Possible Peak Route

The removal of off-peak service on Route 149, for example, would save approximately $330,000 per year.

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Financial Impact

Initiative 2011 2012

Double-decker Bus Purchase $2.5 million

Move to 95% within 5 minute walk at peak periods $0.6 million $1.8 million

Move to 95% within 10 minute walk at other times $5.9 million $17.7 million

Operating Efficiencies $0.7 million

Total Savings $7.2 million $22 million

• Operating efficiencies can achieve savings of $22 million per year in 2012.

• Without these changes, public transit alone will drive property taxes up and cost an additional $145 million over 5 years.

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Performance Indicators

Ridership

Network Optimization

Occupancy

Service Availability

Reliability

Limiting fare increase to 2.5% per year will help increase ridership.Significant ridership jump in 2019 from light rail.

Implementation of 95% improves efficiency of network.Enables efficient accommodation of growth into future.

Increase in number of passenger-kilometres per seat-hour.Increase in service productivity, passengers per revenue hour.

Maintenance Total Rebuild program increases availability of buses.Decrease in bus cost per revenue hour.

On-time performance improves reliability.Maintenance and operational support improve reliability.

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Performance Indicators

Revenue/Cost Ratio

Accessibility

GHG Emissions

Rider Satisfaction

R/C increases sizeably from 2011 to 2012.R/C increases between 2013-2019 and jumps in 2019 (Light Rail).

Fleet Plan makes fleet younger faster, accelerating accessibility.

Minimize fleet, efficient and cleaner buses reduces GHGs.

Improving the customer experience improves rider satisfaction.

Security and Safety Initiatives such as Special Constables increase security and safety.NSAS and Low Floors improve rider safety.

Budget Process Update

Special Transit Commission – February 24

• Public delegations on budget (fares and network optimization).

• Questions to staff regarding fares and network optimization options.

• Transit Commission approves budget and recommends to Council.

February 22 to March 3

• Public consultation on budget – five public meetings.

Council Meeting – March 8 to 10

• Committee of the Whole debates and approves budget.

• Council approved budget authority to proceed with double-decker buses, subject to approval of business cases by Transit Commission.

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Budget Process UpdateTransit Commission – March 23

• Report on the detailed network optimization and implementation schedule.

• Business Plan debated, approved and referred to Council.

• Detailed business case for double-decker buses debated and approved.

March 23 to April 7

• Public consultation on proposed network optimization.

Council – April 13

• 2011 Business Plan on agenda for approval.

Transit Commission – April 20

• Transit Commission debates and approves proposed network optimization options.

• Detailed business case for O-Train debated and approved.

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Questions

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Documents

2011 Business Plan