City of Anaheim OCTA Project V: Community-Based Transit Circulators Program

Executive Summary

Request

The City of Anaheim requests funding from the Orange County Transportation Authority (OCTA) Project V: Community-Based Transit/Circulators grant to provide a new circulator route from the Anaheim Regional Transportation Intermodal Center (ARTIC) to Downtown “CtrCity” Anaheim.

Description of Service

The City of Anaheim, in partnership with the Anaheim Transportation Network (ATN), which operates the Anaheim Resort Transportation (ART) service, proposes to create a new circulator route to provide service between ARTIC and Downtown “CtrCity” Anaheim using two 30-passenger buses with an estimated ridership of 54 boardings per day (six boardings per hour) within twelve months of operation and 90 boardings per day (ten boardings per hour) within 24 months of implementing the service through the end of the seven year program. The service would operate from Monday – Friday during AM and PM commute hours. In addition to the daily service, the circulator will provide evening service on Fridays and Saturdays. The route is approximately 4.25 miles in length with a commute time of 20 minutes between ARTIC and Downtown “CtrCity” Anaheim (see Route Map in Exhibit 1).

The circulator route will originate at ARTIC with 11 stops at the following locations:

1. ARTIC 2. State College Boulevard/Katella Avenue 3. Vermont Avenue/Olive Street 4. Anaheim Boulevard/Vermont Avenue 5. Anaheim Boulevard/South Street 6. Anaheim Boulevard/Santa Ana Street 7. Center Street Promenade at CtrCity 8. Anaheim Boulevard/Santa Ana Street 9. Anaheim Boulevard/South Street 10. State College Boulevard/Katella Avenue 11. ARTIC

The route will allow residents and workers in Downtown CtrCity Anaheim to reach ARTIC, either to commute to jobs outside of the city or to other points of interest near ARTIC, such as Angel Stadium of Anaheim or the Honda Center. It will also allow residents in The Platinum Triangle, which will house the largest concentration of residents in the city, to reach Downtown CtrCity Anaheim. Current population density per square mile within a % mile of the route is estimated at 6,391 persons, while employment density per square mile within a % mile of the route is estimated at 8,287 jobs.

Background

The proposed ARTIC/CtrCity Anaheim route is based on the City of Anaheim Transit Master Plan adopted by the City Council on December 18, 2007 which lays out a 25-year plan to help guide the development and implementation of transit projects in the City. A major objective of this study was to define feeder

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City of Anaheim OCTA Project V: Community-Based Transit Circulators Program

routes to improve connectivity to Anaheim’s two Metrolink stations – the Anaheim Regional Transportation Intermodal Center (ARTIC) and the Anaheim Canyon Station.

One of the concepts identified in the Transit Master Plan is a concept to allow residents and workers in Downtown CtrCity Anaheim to reach ARTIC, either to commute to jobs outside of the city or to other points of interest near ARTIC, or by taking transit from that hub, such as Angel Stadium of Anaheim, Honda Center, The Anaheim Resort or The Block of Orange. It will also allow people in the Platinum Triangle, which will house the largest concentration of residents in the city, to reach Downtown CtrCity Anaheim.

Exhibit 1 Route Map

A Stakeholder Visioning Workshop and other Outreach Meetings/Surveys were held during the development of the Transit Master Plan. Key learning relating to development of the proposed concept indicated that:

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City of Anaheim OCTA Project V: Community-Based Transit Circulators Program

1) Public transit should play a role in supporting walkable, village environments in the Anaheim Resort, Downtown Anaheim and The Platinum Triangle;

2) Public transit should connect key activity centers both within and outside the City of Anaheim so that people can move around easily without needing a car;

3) Bus and other feeder services should be timed to Metrolink train arrivals and departures; and 4) Station Link service should be used to reach as many job centers as possible.

Learning from the outreach meetings indicated that transit was viewed as essential to the success of urban revitalization in Downtown Anaheim and The Platinum Triangle, and developers viewed transit connections to Metrolink as a top priority to serve higher-density neighborhoods. A web survey was also conducted, which confirmed that quick, direct service that provides better connections to Metrolink was desired. Finally, an intercept/windshield survey was undertaken of Metrolink and Amtrak riders at the former Anaheim Stadium station (now ARTIC). The most important connections for riders were to Disneyland, other destinations in The Anaheim Resort and to Downtown (now CtrCity Anaheim).

With ARTIC now operational, the City believes providing direct connections between ARTIC and CtrCity Anaheim is an important next step in enhancing transit connections for residents and workers while fulfilling the City’s Transit Master Plan vision.

Operator

The ATN is proposed to operate the service. If funds are awarded, the intent is for the City to enter into a sub-recipient agreement with ATN to purchase one bus and related electronic equipment, and to operate the service. Through this sub-recipient agreement, the ATN would also own the bus. The ATN will also designate one additional bus from the ART fleet for this service. If the service is discontinued for any reason before the end of the seven year period, the sub-recipient agreement would require the new bus to either be returned to the OCTA or the ATN would have the option of purchasing the bus.

ATN Background

The ATN is a non-profit corporation formed and organized as a public-private partnership to solve transportation problems within certain defined areas of the City of Anaheim. In 2004, the City awarded ATN a non-exclusive franchise agreement for the operation of clean fuel and/or pure electric buses, passenger trams and other clean fuel vehicles within The Anaheim Resort®, the Honda Center, Angel Stadium of Anaheim and surrounding areas, the downtown area of Anaheim, the Anaheim Stadium Amtrak Station, and such other areas as may be designated by the City Manager. In 2011, the City amended the non-exclusive franchise with ATN to extend the term of the franchise, allow a limited number of ART trips to extend to destinations outside of the City, set design and advertising criteria for the bus and update the franchise requirements to reflect ART operations. The City, through a sub-recipient agreement, has also partnered with the ATN to provide bus shuttle commuter service connecting the Anaheim Canyon Metrolink Station with stops in Anaheim Canyon, CtrCity Anaheim and The Anaheim Resort (this service receives grant funding by the OCTA through Measure M2 Project S).

Funding Plan

Total Project Costs. Total cost to implement the proposed ARTIC/CtrCity Anaheim route is estimated at $1,285,309. This includes $220,000 for the purchase of a 30-passenger bus, plus signage. Operations &

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City of Anaheim OCTA Project V: Community-Based Transit Circulators Program

Maintenance for seven years is estimated at a total of $1,065,309. The City is requesting $1,122,556 in funding from OCTA, and will provide an 11% local match of $114,429 from the Anaheim Tourism Improvement District (ATID) as well as $48,324 from AB 2766 funds. Please see Exhibit 2 below for total project costs and funding sources:

Exhibit 2 Total Estimated Project Costs

OCTA AB 2766 ATID Local City of Anaheim Total Project Requested Local Match Match

Total Project Costs Capital O&M Cost Funding Funding Funding

Total CAPITAL and O&M $ 220,000 $ 1,065,309 $ 1,285,309 $ 1,122,556 $ 48,324 $ 114,429

In addition to the ATID and AB 2766 monetary match, the ATN will provide a second 30-passenger bus for this route.

Capital Costs. Costs to acquire one 30-passenger bus are estimated at $180,000. The City/ATN is required to obtain final pricing from two qualified bus manufacturers approved by the CalAct Purchasing Consortium, prior to the announcement of the selection of the manufacturer. These manufacturers are anticipated to be El Dorado National and A-Z Bus Sales. An additional $40,000 in capital costs is estimated for signage. This will include $5,000 to wrap the bus with the Anaheim Rapid Transportation logo (and possible CtrCity Anaheim logo); and signage for “head signs” on the front and side of bus estimated at $5,000. This cost also includes a voice enunciation system (an ADA requirement) for the visually and hearing impaired. An additional $30,000 has been estimated for construction of real-time street signage at each bus stop. These will be digital LCD screens signs located along the bus route in several places that will provide real-time information to riders.

The City is requesting $195,800 from OCTA and will provide matching funds from ATID in the amount of $24,200 (or 11%). Please see Exhibit 3 below for total capital costs and funding sources:

Exhibit 3 Total Capital Costs

Capital Costs OCTA Requested

Funding AB 2766 Local Match Funding

ATID Local Match Funding

Total Capital Cost

Bus (30-passenger) $ 160,200 $ - $ 19,800 $ 180,000 Signage $ 35,600 $ - $ 4,400 $ 40,000

Total Capital Costs $ 195,800 $ - $ 24,200 $ 220,000 Percent 89% 0% 11% 100%

Operations & Maintenance Costs. Preliminary cost estimates for operations and maintenance (O&M) are estimated at $1,065,309 for seven years. Total O&M costs are net the Metrolink fair subsidy of $2 per boarding. Costs includes marketing and public outreach in the amount of $25,000 for Year 1, and $10,000 each for Years 2-7, for $85,000 total. Marketing will include a combination of print, website and social media, press releases, and collateral. Planning costs of $25,000 are anticipated for Year 1 only. Costs will include permitting, design, equipment and vehicle acquisition, new bus stop sign electrical connections, and project oversight. Operating costs are anticipated to total $955,309 for seven years.

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City of Anaheim OCTA Project V: Community-Based Transit Circulators Program

Based on Year 1 estimated costs of $115,988, O&M will rise by 4% each year, with the exception of Year 3, which is estimated to increase by 10% (ATN’s agreement with the current contractor will end that year and the contract will be rebid, the actual cost increase may be lower). Please see Exhibit 4 below for total O&M costs for Bus #1 (to be purchased) and Bus #2 (to be donated by ATN):

Exhibit 4 Total O&M Costs

O&M Costs For Bus #1 and #2

Yr 1 Yr 2 Yr 3* Yr 4 Yr 5 Yr 6 Yr 7 Total Project 2017 2018 2019 2020 2021 2022 2023 Cost

Marketing Costs /Public Outreach** $ 25,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 85,000 Planning Costs $ 25,000 $ - $ - $ - $ - $ - $ - $ 25,000 Operating Costs*** $ 115,988 $ 120,628 $ 132,690 $ 137,998 $ 143,518 $ 149,259 $ 155,229 $ 955,309

Total $ 165,988 $ 130,628 $ 142,690 $ 147,998 $ 153,518 $ 159,259 $ 165,229 $ 1,065,309 *Change in Contractor.

**Project V contributions for marketing will be capped at $25,000 for startup and $10,000 annually thereafter for remaining grant period. ***Operating costs increase by 4% each year except for Year 3 (10% increase due to new contractor).

Funding Sources. As mentioned above, the funding request from OCTA for capital costs is $195,800 with the remaining local match provided by ATID funding at $24,200 (or 11%) of capital costs. Total costs for O&M are estimated at $1,065,309, with an AB 2766 local match of $48,324 in Years 1-3, and an ATID local match of $90,229 for Years 1, 4-7. The remaining funding is requested from OCTA in the amount of $926,756. Please see Exhibit 5 below for O&M funding sources:

Exhibit 5 O&M Funding Sources

Funding Source For O&M

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Total Funding 2017 2018 2019 2020 2021 2022 2023 Source

Anaheim Tourism Investment District (ATID) - 11% $ 21,369 $ - $ - $ 16,280 $ 16,887 $ 17,518 $ 18,175 $ 90,229 AB 2766 - 11% $ 18,259 $ 14,369 $ 15,696 $ - $ - $ - $ - $ 48,324 OCTA Incentive*** $ 126,360 $ 116,258 $ 126,994 $ 131,718 $ 136,631 $ 141,740 $ 147,054 $ 926,756

Total $ 165,988 $ 130,628 $ 142,690 $ 147,998 $ 153,518 $ 159,259 $ 165,229 $ 1,065,309

OCTA funding was calculated for Year 1 based on the minimum number of six passenger boardings per revenue vehicle hour (RVH) for 12 months multiplied by the estimated OCTA pro-rata basis of $9 as follows:

- 6 boardings per hour MIN - X 9 hours in service = 54 boardings per day - X 5 days per week = 270 boardings per week - X 52 weeks per year = 14,040 boardings per year - X $9 per person = $126,360.

If more than six boardings per revenue hour occur, the additional reimbursement from OCTA will require less ATID funding for Year 1.

Reimbursements for Years 2 – 7 were calculated based on 89% of net operating and maintenance costs, since reimbursement based on pro-rata for Years 2-7 at the minimum required 10 person boarding would exceed 90% of net O&M.

Contingency Plan. The City proposes additional ATID Transportation funding ($100,000) to be used as a contingency to cover any revenue shortfalls.

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