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Public and Private Partnerships
A Small Operator’s Experience
Carl Sedoryk
Monterey-Salinas Transit, CEO
Monterey, CA
MST – Quick Facts
• Monterey County’s Primary Transit Agency
• A Joint Powers Agency
• 4.5 million passenger boardings/year
• 50 regular/seasonal bus routes
• 3.8 million miles/year
• 132 vehicles (78 buses, 6 trolleys, 48 minibuses)
• 237 direct employees, 85 contracted (MVTI)
MST Service AreaBig Sur Marina
Carmel Monterey
Carmel Valley Morgan Hill
Castroville Moss Landing
Chualar Pacific Grove
Del Rey Oaks Pebble Beach
Gilroy Prunedale
Gonzales Salinas
Greenfield San Jose
Soledad Seaside
King City Watsonville
Why Pursue Partnerships?
Traditional Funding Levels Are Decreasing
Competition For Funds Is Increasing
Why pursue public/private partnerships?
• Replaces shrinking revenues from traditional sources
• Offsets skyrocketing expenses (fuel, benefits,…)
• Can help forestall the need to raise fares or cut service.
• Provides required local match (JARC, NF)
• Private partners bring energy, ideas & start up funds
• Provide additional services to current riders
• Grows transit ridership!
FY 2000 vs. FY 2010
• Wages rates have increased 33%
• Health Care costs have increased 115%
• Fuel Cost per Gallon has increased 225%
FY 2000 vs. FY 2010
• Federal Revenue has remained flatincreases in formula funds have been offset by other losses
• State Transit Assistance - eliminated
• Local share of sales tax generated - +60%
Though revenues are down 20% from previous year
FY 2000 vs. FY 2010
• Ridership increased 11%
• Base fare has doubled
• Routes funded in whole, or in part, by partnership has grow from one to sixteen
• Boardings on sponsored routes has grown from 2% to 16% of total ridership
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FY 2000 Revenue
11
Other; 2%
Fares; 18%
Federal; 27%
Local; 32%
State; 17%
PPP; 4%
FY 2008 Revenue
Other; 2%
Fares; 18%
Federal; 27%
Local; 32%
PPP; 4%
FY 2009 Revenue
FY 2010 Revenue
Tourism Partnership - MST Trolley
• City of Monterey and Monterey Bay Aquarium fund 20% local match for trolleys; 100% of operating costs
• Operate during summer/holidays
• 10-year agreement
• First year of trolley service (‘04) ridership jumped by over 65%
• Since implementation MST has initiated similar service in Salinas, Pacific Grove and Carmel-by-the-Sea
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Agricultural Partnership
Carmel Valley Grapevine Express• Local vintners and growers helped establish
funding for rebranding, marketing and additional hours of service
• Ridership quadrupled within first year
• Relationships developed helping with future MST local biodiesel project.
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• Local military workforce of over 16,000 military staff, students, contractors, and civilians.
• Annual local military budgets nearly $1 Billion.
• Since 9/11 no transit service was allowed on local bases
• Traffic in and around military installations was having a negative impact on local communities.
• Parking/Traffic within the installations was problematic
• Installations landlocked and unable to grow
• After much outreach, transit seen as a solution
Military Partnerships
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Military Partnership14 new express routes providing peak hour service to
local Army and Navy military communities.
100% funded through the Federal Transit Benefit.
Provides appx. $2.0M of funding to MST that does not
require a local match or grant administration.
Nearly 1,000 military personnel enrolled in first months,
and enrollment continues to grow.
Over 10,000 monthly passenger boardings.
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Military Partnership Results
6M miles of reduced VMT
5M pounds of reduced carbon emissions
300,000 gallons reduced gasoline consumption
$3,000 of annual savings on fuel alone for each participant in the program.
26 new transit jobs created
$1.5M generated for local economy
Monthly boardings up 49% after 9 months
The Federal Transit Benefit
Transportation Incentive Program –Mass Transit Benefit program
Up to $230 benefit per month paid to eligible participants for alternative transportation.
Available to all federal active duty military, DOD civilians and NAF employees
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Why important to Small Operators?
Many military bases are in rural areas
No local match required
No need for State designated recipient
Funds are flexible for many purposes
Funding grows as ridership grows
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Important Things To KnowEach branch manages the program differently
The transit system need to coordinate with DOD coordinator at each installation.
Working with the military is time consuming.
Inter branch rivalries can be counterproductive.
The volume of Transit Benefit checks received can be overwhelming – MST received 4,532 separate checks for one quarterly payment!
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Not A Bad Problem To Have!
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How do you make PPP’s work?
• Know your local businesses and key stakeholders and build relationships.
• Remain active in local trade associations.
• Nurture relationships with key stakeholders.
• Don’t ignore the private sector.
• Remember the 30 foot rule.
• Be prepared to say Yes!
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Be Aware Of…
• Expectations of partners (productivity/scheduling).
• Partners financial position may be unpredictable.
• Demand for services may exceed labor and equipment available during peak periods.
• Potential Title VI issues as regular service is cut?
• Expectations of choice riders drive new technology.
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Free Wi-Fi on buses and at stations
Transit
People Notice These Partnerships!
Support from partners and allies can lead to:
• Support for transit tax and revenue measures.
• Increased marketing exposure.
• Attracting Non-traditional and/or choice transit riders
• Advocacy from private sector on state and federal legislative/funding issues.
• Improved relationships with key local industries.
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People Notice These Partnerships!
"In short, Presidio of Monterey Express Bus Service is a
win-win for the entire Monterey Peninsula. We will continue to promote the program to our employees and service members in an effort to take cars off the road and provide a service to our employees."
Col. Darcy A. Brewer, Garrison Commander – Presidio of Monterey
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