Fresno County Rural Transit Agency (FCRTA) Covering the Most Recent Triennial Period, Fiscal Years 2009-10, 2010-11, and 2011-12

January 2014 December 2012

TABLE OF CONTENTS

Section I ...... 1

Introduction ...... 1 Overview of the Transit System ...... 1

Section II ...... 10

Operator Compliance Requirements ...... 10

Section III ...... 16

Prior Triennial Performance Recommendations ...... 16

Section IV ...... 18

TDA Performance Indicators ...... 18

Section V ...... 27

Review of Operator Functions ...... 27

Operations ...... 27 Maintenance ...... 29 Planning ...... 31 Marketing ...... 31 General Administration and Management ...... 32

Section VI ...... 34

Findings ...... 34 Recommendations ...... 37

Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Section I

Introduction

California’s Transportation Development Act (TDA) requires that a triennial performance audit be conducted for public transit entities that receive TDA revenues. The performance audit serves to ensure accountability in the use of public transportation revenue.

The Fresno Council of Governments (Fresno COG) engaged PMC to conduct the Transportation Development Act (TDA) Triennial Performance Audit of the public transit operators under its jurisdiction in Fresno County. This performance audit is conducted for the Fresno County Rural Transit Agency (FCRTA) covering the most recent triennial period, fiscal years 2009-10, 2010-11, and 2011-12.

The purpose of the performance audit is to evaluate the FCRTA’s effectiveness and efficiency in its use of TDA funds to provide public transportation in its service area. This evaluation is required as a condition for continued receipt of these funds for public transportation purposes. In addition, the audit evaluates the FCRTA’s compliance with the conditions specified in the California Public Utilities Code (PUC). This task involves ascertaining whether the FCRTA is meeting the PUC’s reporting requirements. Moreover, the audit includes calculations of transit service performance indicators and a detailed review of the transit administrative functions. From the analysis that has been undertaken, a set of recommendations has been made which is intended to improve the performance of transit operations.

In summary, this TDA audit affords the opportunity for an independent, constructive and objective evaluation of the organization and its operations that otherwise might not be available. The methodology for the audit included in-person interviews with management, collection and review of agency documents, data analysis, and on-site observations. The Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities published by the California Department of Transportation (Caltrans) was used to guide in the development and conduct of the audit.

Overview of the Transit System

FCRTA is the primary provider of public transportation services for the rural incorporated cities and many unincorporated rural communities in Fresno County. Public transit services are available to the general public, elderly and disabled, and children riding with an adult. FCRTA is responsible for the overall administrative and financial supervision of the general public operations, consisting of twenty (20) subsystems. FCRTA was established as a Joint Powers Agency (JPA) in September 1979 by the thirteen (13) rural incorporated cities and the County of Fresno.

Fresno County is located in the central San Joaquin Valley and extends eastward into the Sierra Nevada mountain range and westward toward the Coast Range. The County is bordered by Madera and Merced Counties to the North, Kings and Tulare counties to the South, Monterey PMC - 1 1 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12 and San Benito Counties to the West, and Inyo and Mono Counties to the East. Fresno County was created in 1856 out of Mariposa, Merced, and Tulare counties. The county derives its name from Fresno Creek. The word Fresno is a Spanish term for the ash trees that were found in abundance in the region. The county geographically is the sixth (6th) largest in the state, encompassing over 6,017 square miles in total with a land area of 5,963 square miles. The highest elevation is 14,248 feet at the summit of North Palisade, the third (3rd) highest mountain in the Sierra Nevada range.

Fresno is the County seat and largest city. Other incorporated cities in order of population rank are Clovis, Sanger, Reedley, Selma, Coalinga, Kerman, Parlier, Kingsburg, Orange Cove, Mendota, Huron, Firebaugh, Fowler, and San Joaquin. The 15 incorporated cities account for nearly 82 percent of the county’s total population. Notable unincorporated communities and census- designated places include Auberry, Biola, Calwa, Cantua Creek, Caruthers, Centerville, Del Rey, Easton, Friant, Lanare, Laton, Malaga, Minkler, Raisin City, Riverdale, Shaver Lake, Squaw Valley, and Tranquility. Federally-recognized Native American tribal entities in Fresno County include the Big Sandy Rancheria of Mono Indians of California, Cold Springs Rancheria of Mono Indians of California and the Table Mountain Rancheria comprised of the Chukchansi band of Yokuts and the Monache tribe. A demographic snapshot of incorporated cities and the County is presented below in Table I-1:

Table I-1 Fresno County Demographics City/Jurisdiction 2010 US Change from Population 65 Land area Census 2000 US years & older (in square Population Census miles) Clovis 95,631 39.7% 10.6% 23.28 Coalinga 13,380 14.7% 7.9% 6.12 Firebaugh 7,549 31.4% 6.5% 3.46 Fowler 5,570 40.0% 10.0% 2.53 Fresno (county seat) 494,665 15.7% 9.3% 111.96 Huron 6,754 7.1% 4.9% 1.59 Kerman 13,544 58.4% 7.2% 3.23 Kingsburg 11,382 23.7% 12.8% 2.83 Mendota 11,014 39.6% 4.7% 3.28 Orange Cove 9,078 17.6% 5.7% 1.91 Parlier 14,494 30.0% 5.5% 2.19 Reedley 24,194 16.6% 9.5% 5.08 Sanger 24,270 28.2% 9.4% 5.52 San Joaquin 4,001 22.4% 4.4% 1.15 Selma 23,219 19.4% 9.9% 5.14 Unincorporated Area 171,705 18.5% N/A 5,778.72 Fresno County (Co. Total) 930,450 16.4% 10.0% 5,957.99 Source: 2010 U.S. Census

The county and its incorporated cities saw significant growth between the 2000 and 2010 U.S. Census. Kerman saw the highest percentage increase in population followed by Fowler, Clovis

PMC - 2 2 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12 and Mendota. The senior citizen population, comprised of residents aged 65 and over, is ten percent (10%) countywide. The 2013 population for Fresno County is estimated to be 952,166 as reported by the State Department of Finance.

System Characteristics

FCRTA is comprised of twenty (20) general public demand response and intercity deviated fixed route subsystems throughout Fresno County and parts of Kings and Tulare Counties. Three subsystems, Coalinga, Kerman and Reedley, designate municipal staff to provide drivers, dispatchers, accounting and supervision. Two (2) subsystems, Dinuba Connection and Laton Transit, operate under contract with the City of Dinuba and Kings Area Rural Transit (KART), respectively. Sanger Transit was operated by a private contractor. The remaining fourteen (14) subsystems operate under private non-profit contracts with the Fresno Economic Opportunities Commission (Fresno EOC) as the co-designated Rural Consolidated Transportation Service Agency (Rural CTSA). The FCRTA subsystems are summarized in Table I-2:

Table I-2 FCRTA Subsystems Auberry Transit Mendota Transit Coalinga Transit Orange Cove Transit Del Rey Transit Parlier Transit Dinuba Connection Reedley Transit Firebaugh Transit Rural Transit Fowler Transit Sanger Transit Huron Transit San Joaquin Transit Kerman Transit Selma Transit Kingsburg Transit Southeast Transit Laton Transit Westside Transit

Sixteen (16) FCRTA subsystems are operated as “real time” demand responsive services. The only exception is the Rural Transit subsystem, which requires twenty-four (24) hours advance reservations. Pursuant to the Americans with Disabilities Act (ADA), each respective fixed route service may deviate from its specific route on a demand responsive basis up to a three-quarter (¾) mile in either direction to accommodate disabled passengers.

FCRTA service days and hours of operation vary according to subsystem. Most services generally operate Monday through Friday between the hours of 7:00 a.m. and 5:30 p.m. with limited service on Saturdays. Transit services do not operate on Sundays and major holidays. Each subsystem generally adheres to the local city’s holiday schedule which may include: New Year’s Day, Martin Luther King Jr. Day, Lincoln’s Birthday, Presidents’ Day, Cesar Chavez Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve (afternoon), Christmas Day and New Year’s Eve (afternoon).

A summary of FCRTA’s services is presented in Table I-3:

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Table I-3 FCRTA Services FCRTA Subsystem Service Type Frequency/Operation Destinations/Timepoints Auberry Transit Demand Response Monday thru Friday . Adler Springs; Inter-Community 8:00 a.m. to 3:00 p.m. . Auberry; Service . New Auberry; . Big Sandy Indian Rancheria; . Burrough Valley; . Cold Springs Indian Rancheria; . Friant; . Prather; and . Tollhouse Inter-City Service 24-Hour Prior Tuesday . Table Mountain Reservation Demand 8:00 a.m. to 5:00 p.m. Rancheria Response . Fresno-Clovis Metropolitan Area Coalinga Transit Demand Response Monday thru Friday . Coalinga Sphere of Intra-City Service 8:30 a.m. to 4:15 p.m. Influence

Inter-City Service Fixed Route with Monday thru Saturday . Coalinga; Route Deviation One Bi-Directional Trip . Huron; 8:00 a.m. to 5:45 p.m. . Five Points; . Lanare; . Riverdale; . Caruthers; . Raisin City; . Easton; and . Fresno Del Rey Transit Demand Response Monday thru Friday . Del Rey; 8:00 a.m. to 5:00 p.m. . Sanger Dinuba Transit Inter-County Monday thru Friday . Dinuba (Dinuba Connection) Fixed Route 7:00 a.m. to 9:00 p.m. . Reedley Inter-City Service (During the School Year) 9:00 a.m. to 5:00 p.m. (Summer Schedule) Firebaugh Transit Demand Response Monday thru Friday . Firebaugh Sphere of Intra-City Service 7:00 a.m. to 5:30 p.m. Influence Fowler Transit Demand Response Monday thru Friday . Fowler Sphere of Intra-City Service 7:00 a.m. to 5:30 p.m. Influence Huron Transit Demand Response Monday thru Friday . Huron Sphere of Intra-City Service 6:00 a.m. to 6:00 p.m. Influence Inter-City Service Fixed Route Monday thru Friday . Huron 9:00 a.m. to 3:00 p.m. . Coalinga Kerman Transit Demand Response Monday thru Saturday . Kerman Sphere of Intra-City Service 7:00 a.m. to 4:00 p.m. Influence .

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FCRTA Subsystem Service Type Frequency/Operation Destinations/Timepoints Kingsburg Transit Demand Response Monday thru Friday . Kingsburg Sphere of Intra-City Service 7:00 a.m. to 5:30 p.m. Influence Saturday 8:00 a.m. to 5:00 p.m. Laton Transit Fixed Route Monday thru Friday . Laton; (in conjunction with One Bi-Directional Trip . Hardwick; Kings Area Rural 9:20 a.m. to 3:00 p.m. . Grangeville; and Transit) . Hanford Inter-City Service Inter-City Service Fixed Route Monday, Wednesday, . Hanford; Fresno Friday . Laton; One Bi-Directional Trip . Selma; and 9:00 a.m. to 4:15 p.m. . Fresno-Clovis Mendota Transit Demand Response Monday thru Friday . Mendota Sphere of Intra-City Service 7:00 a.m. to 5:30 p.m. Influence Orange Cove Transit Demand Response Monday thru Friday . Orange Cove Sphere of Intra-City Service 7:00 a.m. to 5:30 p.m. Influence Inter-City Service Fixed Route with Monday thru Friday . Orange Cove; Route Deviation Two Bi-Directional Trips . Reedley; 7:00 a.m. to 5:30 p.m. . Parlier; . Sanger; and . Fresno Parlier Transit Demand Response Monday thru Friday . Parlier Sphere of Intra-City Service 7:00 a.m. to 4:00 p.m. Influence Reedley Transit Demand Response Monday thru Friday . Reedley Sphere of Intra-City Service 7:00 a.m. to 5:30 p.m. Influence Saturday 8:00 a.m. to 5:00 p.m. Rural Transit Demand Response Monday thru Friday . Remote areas of Fresno Inter-City Service County Sanger Transit Demand Response Monday thru Friday . Sanger Sphere of Intra-City 7:00 a.m. to 5:30 p.m. Influence Demand Response Saturday 8:00 a.m. to 5:00 p.m. San Joaquin Transit Demand Response Monday thru Friday . San Joaquin Sphere of Intra-City Service 8:00 am. to 5:00 p.m. Influence Selma Transit Fixed Route with Monday thru Friday . Selma Sphere of Intra-City Service Route Deviation 30 minute frequencies Influence 8:00 a.m. to 5:00 p.m. Intra-City Demand Response Monday thru Friday . Selma Sphere of Demand Response 7:00 a.m. to 5:30 p.m. Influence Saturday 8:00 a.m. to 5:00 p.m. Southeast Transit Fixed Route with Monday thru Friday . Kingsburg; Inter-City Service Route Deviation Three Bi-Directional Trips . Selma; 7:00 a.m. to 5:30 p.m. . Fowler; and . Fresno

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FCRTA Subsystem Service Type Frequency/Operation Destinations/Timepoints Westside Transit Fixed Route with Monday through Friday . Firebaugh; Inter-City Service Route Deviation Two Bi-Directional Trips . Mendota; 7:00 a.m. to 5:30 p.m. . Kerman; . San Joaquin; . Cantua Creek; . El Porvenir; . Half Way; . Tranquility; . Three Rocks; and . Fresno Source: Fresno COG’s FCRTA Short Range Transit Plan for Rural Fresno County

Fares

FCRTA’s fares are structured according to subsystem, passenger category and fare media. Intra-city fares range between $0.75 and $1.25 for the general public. For seniors aged 60 to 64, the disabled and accompanied children, fares range from $0.50 to $1.25 per one-way trip. Measure-C funding allows seniors age 65 and older to ride free with identification in their local cities. Inter-city fares are generally set at half the amount granted to common carriers by the California Public Utilities Commission (CPUC) and range from $0.75 to $6.50 per one-way trip, depending on the distance traveled. Table I-4 summarizes fares for each subsystem.

In the summer of 2010, Clovis Transit and FAX staff received a phone call and follow-up letter from a southern California attorney regarding the observation that if “free fares” are extended to seniors, the California Public Utilities Code (PUC) Sections clearly indicate that the same fare would then apply to disabled persons. The referenced PUC Code Section is 99206.5. Other references are made to the California Vehicle Code Sections 295.5, 295.7, and 22511.55. The matter was reviewed by Fresno COG Staff; Fresno County Counsel; Fresno County Transportation Authority Staff; FCRTA’s Fiscal Auditors; Triennial Performance Auditors; and the FCRTA General Manager. Each entity concluded that they were previously unaware of the legal references, and its obvious impact to previous decisions. As such, the Transit Agencies were found to be out of compliance with the existing regulations, and could be subject to sanctions and legal actions. The FCRTA General Manager recommended following an expressed opportunity for public comment, that the FCRTA Board of Directors amend its policy in implementing the Measure-C Expenditure Plan, with its associated funding to the FCRTA, for the reimbursement of fares for the “free service to Seniors, 65 years and older”, to also include “disabled passengers”, and that this program modification would be in effect on November 1, 2010. Table I-4 FCRTA Fare Schedule Senior/Disabled/ Subsystem General Public Fare Child Monthly Pass Auberry Transit $0.75 ($5.00 RT to Seniors 60-64 $0.50 $30.00 Fresno/Clovis) Seniors Age 65+ Free Disabled Free

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Senior/Disabled/ Subsystem General Public Fare Child Monthly Pass Child 0-17 $0.50 Coalinga Transit (Intra-City) $1.00 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Coalinga Transit (Inter-City/Fresno) Varies Varies Varies Del Rey Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Dinuba Transit (Dinuba $1.25/Free $45.00/$25.0 Connection) $1.50 0 Firebaugh Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Fowler Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Huron Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Kerman Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Kingsburg Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Laton Transit $1.25 $1.25 N/A Mendota Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Orange Cove Transit (Intra-City) $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Orange Cove Transit (Inter-City) Varies Varies N/A Parlier Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50

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Senior/Disabled/ Subsystem General Public Fare Child Monthly Pass Reedley Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Rural Transit $7.50/$1.50 side trips $5.00 N/A Sanger Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 San Joaquin Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Selma Transit $0.75 Seniors 60-64 $0.50 $30.00 Seniors Age 65+ Free Disabled Free Child 0-17 $0.50 Southeast Transit Varies Varies N/A Westside Transit Varies Varies N/A Source: Fresno COG’s Fresno County Transportation Guide

Fleet

FCRTA’s fleet is comprised of seventy (70) vehicles including a number of vehicles that operate on alternative fuels. There are forty-nine (49) vehicles that use compressed natural gas (CNG). The remaining twenty-one (21) vehicles operate on gasoline only because no conversion kits were approved by the California Air Resources Board (CARB). All vehicles are owned by FCRTA and equipped with wheelchair lifts in accordance with ADA requirements as well as bicycle and parcel racks. Table I-5 provides a summary of the FCRTA fleet inventory:

Table I-5 FCRTA Fleet Inventory Seating Wheelchair Year Make & Model Quantity Fuel Type Capacity Capacity 1997 Ford Cut-away Van 3 Gasoline 22 2 1999 Ford Van 1 Gasoline 14 1 2001 Ford Cut-away Van 5 Gasoline 22 2 2002 Ford Cut-away Van 8 Gasoline 22 2 2004 Ford Cut-away Van 10 CNG 22 2 2006 Ford Cut-away Van 5 CNG 22 2 2006 John Deere Bluebird 3 CNG 37 2 2007 John Deere Bluebird 4 CNG 37 2 2008 GMC – Glaval Cut-away 11 CNG 22 2 2009 GMC – Glaval Cut-away 16 CNG 22 2

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Seating Wheelchair Year Make & Model Quantity Fuel Type Capacity Capacity 2009 Chevrolet Mini-van 4 Gasoline 5 1 Total 70 Source: Fresno COG’s FCRTA Short Range Transit Plan for Rural Fresno County

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Section II

Operator Compliance Requirements

This section of the audit report contains the analysis of FCRTA’s ability to comply with State requirements for continued receipt of TDA funds. The evaluation uses the guidebook, Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Agencies, September 2008 (third edition), which was developed by the Department of Transportation (Caltrans) to assess transit operators. The guidebook contains a checklist of eleven (11) measures taken from relevant sections of the Public Utilities Code and the California Code of Regulations. Each of these requirements is discussed in the table below, including a description of the system’s efforts to comply with the requirements. In addition, the findings from the compliance review are described in the text following the table.

TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements The transit operator Public Utilities Code, Section Completion/submittal dates submitted annual reports to 99243 (internet filing): the RTPA based upon the Uniform System of Accounts FY 2009-10: October 18, 2010 and Records established by FY 2010-11: October 18, 2011 the State Controller. Report FY 2011-12: October 18, 2012 is due ninety (90) days after end of fiscal year (Sept. 30), Conclusion: Complied or one-hundred eleven (110) days (Oct. 20) if filed electronically (internet).

The operator has submitted Public Utilities Code, Section Completion/submittal dates: annual fiscal and compliance 99245 audits to the RTPA and to the FY 2009-10: March 1, 2011 State Controller within one- FY 2010-11: March 1, 2012 hundred eighty (180) days FY 2011-12: January 16, 2013 following the end of the fiscal year (Dec. 27), or has Conclusion: Complied received the appropriate ninety (90) day extension by the RTPA allowed by law.

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TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements The CHP has, within the Public Utilities Code, Section FCRTA participates in the CHP thirteen (13) months prior to 99251 B Transit Operator Compliance each TDA claim submitted by Program in which the CHP has an operator, certified the conducted inspections within operator’s compliance with the thirteen (13) months Vehicle Code Section 1808.1 prior to each TDA claim. following a CHP inspection of Copies of certificates are the operator’s terminal. attached to TDA claims. Copies of certificates were also submitted to the auditor for review.

Inspections were conducted at the maintenance contractor’s facility in Clovis:

Inspection dates applicable to the audit period were April 22 & 24, 2009; May 7 & 12, 2009; May 10, 24-26, 2010; June 9, 2010; June 21, 23 & 24, 2011; May 14, 15 & 17, 2012.

Inspections were rated “satisfactory” by the CHP.

Conclusion: Complied

The operator’s claim for TDA Public Utilities Code, Section As a condition of approval, funds is submitted in 99261 FCRTA’s annual claims for compliance with rules and Local Transportation Funds regulations adopted by the and State Transit Assistance RTPA for such claims. are submitted in compliance with rules and regulations adopted by Fresno COG. COG staff provides assistance as necessary to the agency in completing the claim.

Conclusion: Complied

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TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements If an operator serves Public Utilities Code, Section FCRTA only serves non- urbanized and non-urbanized 99270.1 urbanized areas and is not areas, it has maintained a subject to this requirement. ratio of fare revenues to operating costs at least equal Conclusion: Not Applicable to the ratio determined by the rules and regulations adopted by the RTPA.

The operator’s operating Public Utilities Code, Section Percentage increase in the budget has not increased by 99266 FCRTA’s operating budget: more than fifteen (15%) over the preceding year, nor is FY 2009-10: +19.5% there a substantial increase FY 2010-11: -3.1% or decrease in the scope of FY 2011-12: +3.5% operations or capital budget provisions for major new The change in FY 2010 budget fixed facilities unless the is attributed to increases in operator has reasonably contract and maintenance supported and substantiated costs due to service the change(s). expansion and higher fringe benefit contributions.

Source: FY 2009-10, 2010-11, and 2011-12 FCRTA Budgets.

Conclusion: Complied

The operator’s definitions of Public Utilities Code, Section FCRTA’s definition of performance measures are 99247 performance measures is consistent with Public consistent with Public Utilities Utilities Code Section 99247, Code, Section 99247. including (a) operating cost, (b) operating cost per Conclusion: Complied passenger, (c) operating cost per vehicle service hour, (d) passengers per vehicle service hour, (e) passengers per vehicle service mile, (f) total passengers, (g) transit vehicle, (h) vehicle service

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TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements hours, (i) vehicle service miles, and (j) vehicle service hours per employee.

If the operator serves an Public Utilities Code, Sections This measure is not applicable urbanized area, it has 99268.2, 99268.3, 99268.12, to FCRTA, as it does not serve maintained a ratio of fare 99270.1. an urbanized area. revenues to operating costs at least equal to one-fifth or Conclusion: Not Applicable twenty percent (20 %), unless it is in a county with a population of less than five hundred thousand (500,000), in which case it must maintain a ratio of fare revenues to operating costs of at least equal to three- twentieths or fifteen percent (15 %), if so determined by the RTPA.

If the operator serves a rural Public Utilities Code, Sections The system’s fare ratios using area, it has maintained a ratio 99268.2, 99268.4, & 99268.5 audited data are as follows: of fare revenues to operating costs at least equal to one- FY 2009-10: 12.33% tenth or ten percent (10 %). FY 2010-11: 12.75% FY 2011-12: 12.38%

Source: FY 2009-10, 2010-11, and 2011-12 Annual Fiscal and Compliance Audits.

Conclusion: Complied

The current cost of the Public Utilities Code, Section FCRTA has an interagency operator’s retirement system 99271 agreement with Fresno COG is fully funded with respect to to participate in the COG’s the officers and employees of defined contribution plan. its public transportation system, or the operator is Conclusion: Complied implementing a plan

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TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements approved by the RTPA which will fully fund the retirement system within forty (40) years.

If the operator receives State California Code of Regulations, As a recipient of State Transit Transit Assistance Funds, the Section 6754(a)(3) Assistance Funds, FCRTA is operator makes full use of making full use of federal funds available to it under funds available under the the Urban Mass Urban Mass Transportation Transportation Act of 1964 Act of 1964 as amended. before TDA claims are granted. FY 2009-10: $1,717,984 FY 2010-11: $1,891,296 FY 2011-12: $1,078,744

Source: FY 2009-10, 2010-11, and 2011-12 Annual Fiscal and Compliance Audits.

Conclusion: Complied

Findings and Observations from Operator Compliance Requirements Matrix

1. Of the compliance requirements pertaining to FCRTA, the operator fully complied with all nine (9) applicable requirements. Two (2) additional compliance requirements are not applicable to FCRTA (e.g., intermediate farebox recovery ratio under PUC 99270.1, and urbanized area farebox recovery ratio).

2. Through its contract maintenance provider, FCRTA participates in the CHP Transit Operator Compliance Program in which the CHP has conducted inspections within the thirteen (13) months prior to each TDA claim. The CHP inspection reports submitted for review were found to be satisfactory.

3. FCRTA’s operating budget exhibited modest fluctuations during the audit period, with the exception of the FY 2009-10 budget. The budget increased 19.5 percent in FY 2009-10 due to subsystem service expansion, maintenance costs and fringe benefits. During the following year, the budget decreased 3 percent and increased 3.5 percent in FY 2011-12.

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4. Based on the available data from the Annual Fiscal and Compliance Audits, the agency’s farebox recovery ratio remained above the required ten (10) percent during the review period. The average farebox during the triennial period was 12.49 percent.

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Section III

Prior Triennial Performance Recommendations

FCRTA’s efforts to implement the recommendations made in the prior triennial audit are examined in this section of the report. For this purpose, each prior recommendation for the agency is described, followed by a discussion of the Agency’s efforts to implement the recommendation. Conclusions concerning the extent to which the recommendations have been adopted by the Agency are then presented.

Prior Recommendation 1

Consider using an advertising co-op for placement of telephone book listings.

Actions taken by FCRTA:

FCRTA has expressed interest in pursuing cooperative advertising agreements with telephone book publishers. The number of new community phone books continues to multiply and the general cost-benefit of associated annual costs versus actual usage by riders is difficult to measure. The advertising ranges from $60 to $600 monthly. Staff inquired with potential publishing industry representatives to determine their added fees for cooperative advertising. FCRTA indicated challenges with such arrangements. Meanwhile, costs to advertise in telephone books have been increasing on average two (2%) percent annually due to the proliferation of telephone books representing individual communities in place of consolidated listings. FCRTA is examining other options for leveraging its marketing budget such as having FCRTA information included in the public service sections of each phone book at no charge.

Conclusion:

This recommendation has been implemented.

Prior Recommendation 2

Format driver daily log to enable the recording of actual time of pickup and drop off.

Actions taken by FCRTA:

The prior audit noted that the driver trip sheets did not include columns next to the trip description to allow for the recording of pick-up and drop-off times. In response to this recommendation, staff has revised its daily log sheets to accommodate column to record such information. A review of driver trip sheets utilized by the contract operator confirms the presence of columns to denote actual pick-up and drop-off times.

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Conclusion:

This recommendation has been implemented.

Prior Recommendation 3

Ensure Annual Fiscal Audits and State Controller Reports are submitted on time.

Actions taken by FCRTA:

This recommendation was prompted by the late submittal of the FY 2008-09 fiscal and compliance audit beyond the ninety (90)-day extension period. As explained by FCRTA staff, this was due to delays in the processing of Federal Transit Administration (FTA) American Recovery and Reinvestment Act (ARRA) Grant Application and Section 5311 Operating Assistance Grant Application. FCRTA was contacted by the State Controller’s office regarding the delinquent fiscal audit, which resulted in the withholding of FCRTA’s TDA and STA apportionments. This matter was subsequently addressed with Caltrans and FCRTA was able to secure the necessary documentation to finalize the audit. The staffs of FCRTA and Fresno COG have taken the necessary measures to ensure the timely submittal of fiscal audits. The annual fiscal and compliance audits prepared during the audit review period for FCRTA were submitted within the ninety (90)-day extension granted by Fresno COG in compliance with the law.

Conclusion:

This recommendation has been implemented.

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Section IV

TDA Performance Indicators

This section reviews FCRTA’s performance in providing transit service in an efficient and effective manner. TDA requires that at least five (5) specific performance indicators be reported, which are contained in the following tables. Farebox is not one (1) of the five (5) specific indicators, but is a requirement for continued TDA funding. Therefore, farebox calculation is also included for each mode. Findings from the analysis are contained in the section following the Tables and graphs, followed by the analysis.

Tables IV-1 through IV-3 provide the performance indicators for FCRTA systemwide, fixed route and demand response service. Charts are also provided to depict the trends in the indicators. It is noted that the systemwide operating costs and fare revenues are based on audited figures. The annual fiscal audits themselves do not provide a modal breakdown.

PMC - 18 18 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Table IV-1 FCRTA “Systemwide” Performance Indicators Audit Period

% Change FY Performance Data and Indicators FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 2009-2012 Operating Cost $4,509,597 $4,592,655 $4,304,448 $4,542,356 0.7% Total Passengers 446,406 460,268 451,440 437,471 -2.0% Vehicle Service Hours 67,248 67,248 62,327 63,374 -5.8% Vehicle Service Miles 924,876 949,522 888,908 897,008 -3.0% Employee Full-Time Equivalent 46 46 46 46 0.0% Passenger Fares $572,893 $566,363 $548,775 $562,192 -1.9%

Operating Cost per Passenger $10.10 $9.98 $9.53 $10.38 2.8% Operating Cost per Vehicle Service Hour $67.06 $68.29 $69.06 $71.68 6.9% Operating Cost per Vehicle Service Mile $4.88 $4.84 $4.84 $5.06 3.9% Passengers per Vehicle Service Hour 6.6 6.8 7.2 6.9 4.0% Passengers per Vehicle Service Mile 0.48 0.48 0.51 0.49 1.0% Vehicle Service Hours per Employee 1,461.9 1,461.9 1,354.9 1,377.7 -5.8% Average Fare per Passenger $1.28 $1.23 $1.22 $1.29 0.1% Fare Recovery Ratio 12.70% 12.33% 12.75% 12.38% -2.6%

Source: Annual Fiscal & Compliance Audits, National Transit Database; State Controller's Reports

PMC - 19 19 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Table IV-2 FCRTA “Fixed Route” Performance Indicators Audit Period

% Change FY Performance Data and Indicators FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 2009-2012 Total Passengers 67,983 74,688 75,697 86,155 26.7% Vehicle Service Hours 12,508 12,508 12,179 12,186 -2.6% Vehicle Service Miles 261,862 281,215 269,131 268,582 2.6% Employee Full-Time Equivalent 7 7 7 7 0.0%

Passengers per Vehicle Service Hour 5.4 6.0 6.2 7.1 30.1% Passengers per Vehicle Service Mile 0.26 0.27 0.28 0.32 23.6% Vehicle Service Hours per Employee 1,786.9 1,786.9 1,739.9 1,740.9 -2.6%

Source: National Transit Database; State Controller's Reports

PMC - 20 20 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Table IV-3 FCRTA Demand Response Performance Indicators Audit Period

% Change FY Performance Data and Indicators FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 2009-2012 Total Passengers 378,423 385,580 375,743 351,316 -7.2% Vehicle Service Hours 54,740 54,740 50,148 51,188 -6.5% Vehicle Service Miles 663,014 668,307 619,777 628,426 -5.2% Employee Full-Time Equivalent 39 39 39 39 0.0%

Passengers per Vehicle Service Hour 6.9 7.0 7.5 6.9 -0.7% Passengers per Vehicle Service Mile 0.57 0.58 0.61 0.56 -2.1% Vehicle Service Hours per Employee 1,403.6 1,403.6 1,285.8 1,312.5 -6.5%

Source: National Transit Database; State Controller's Reports

PMC - 21 21 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Graph IV-1 Operating Costs Systemwide

Graph IV-2 Ridership Systemwide, Fixed-Route & Demand Response

PMC - 22 22 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Graph IV-3 Operating Cost Per Passenger Systemwide

Graph IV-4 Operating Cost Per Vehicle Service Hour Systemwide

PMC - 23 23 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Graph IV-5 Passengers Per Vehicle Service Hour Systemwide, Fixed-Route & Demand Response

Graph IV-6 Fare Recovery Ratio Systemwide

PMC - 24 24 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Findings from Verification of TDA Performance Indicators

1. Operating costs systemwide increased by a negligible 0.7 percent based on audited data from the FY 2008-09 base fiscal year through FY 2011-12. Based upon the latest fiscal analysis, FCRTA’s largest expense is contracted purchased transportation which comprised 35 percent (35%) of operating costs followed by maintenance at 18 percent and compensation at 13 percent (13%). The increase in operating costs is attributed to service expansion and maintenance.

2. Ridership decreased 2 percent (2%) systemwide during the audit period. Fixed route ridership increased 26.7 percent while demand response ridership decreased by a modest 7.2 percent. Although ridership on fixed route services was a fraction of that for demand response, there were increases of 10 percent (10%) in FY 2009-10 and 13.8 percent in FY 2011-12. Demand response ridership trends were attributed to the modest systemwide decrease during the period.

3. The provision of revenue hours and miles exhibited decreases systemwide during the audit period. Fixed route revenue hours decreased 2.6 percent, while revenue miles increased conversely by 2.6 percent. Demand response revenue hours and miles decreased 6.5 percent and 5.2 percent, respectively. Systemwide, vehicle service hours decreased 5.8 percent and vehicle service miles decreased 3 percent. The decreases in revenue hours and miles reflect changes in the subsystem services and other service efficiencies implemented during the period.

4. Operating cost per passenger, an indicator of cost effectiveness, increased 2.8 percent systemwide. The trend for this indicator reflects a larger increase in operating costs when compared to the decline in passenger trips.

5. Operating cost per hour, an indicator of cost efficiency, increased 6.9 percent systemwide. The trends in this indicator show contrast between the increases in operating costs compared to the decreases in revenue service hours over the audit period.

6. Passengers per vehicle service hour, which measures the effectiveness of the service delivered, exhibited an increase of 4 percent (4%) systemwide. Passengers per hour on fixed route services increased 30.1 percent. In contrast, passengers per hour on the demand response services decreased by a negligible 0.7 percent. Systemwide, the number of passengers per service hour increased from 6.6 passengers in FY 2008-09 to 6.9 passengers in FY 2011-12, peaking at 7.2 passengers in FY 2010-11.

7. The fare recovery ratio over the past three years decreased systemwide based on audited data, but remained above the TDA minimum requirement. Farebox decreased 2.6 percent from 12.70 in FY 2008-09 to 12.38 percent in FY 2011-12. Audited passenger

PMC - 25 25 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

fare revenues decreased 1.9 percent from $572,893 in FY 2009 to $562,192 in FY 2011- 12.

PMC - 26 26 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Section V

Review of Operator Functions

This section provides an in-depth review of various functions within FCRTA. The review highlights accomplishments, issues and/or challenges that were determined during the audit period. The following departments and functions were reviewed at FCRTA’s offices in Fresno:

 Operations  Maintenance  Planning  Marketing  General Administration and Management

Within some departments are sub-functions that require review as well, such as Grants Administration, which is included with General Administration.

Operations

As Fresno County’s primary rural intercity transit operator, FCRTA has continued to meet the needs of commuters and the transit dependent over an extensive and diverse service area. FCRTA saw notable changes in its operations, maintenance and administration during the audit period. These changes included the hiring of an Operations Manager, service expansion, a series of equipment and technology upgrades and a new maintenance contractor.

With regard to service expansion, FCRTA implemented “Rural Transit” which is a lifeline service created to address the unmet transit needs of residents not served by the existing subsystems. The service requires twenty-four (24)-hour advance reservations. Rural Transit operates with a fleet of three (3) five (5) passenger mini-vans acquired specifically for this service. Given the nature of the service, double round-trip mileage and extended travel time, fares are generally higher than for the other subsystems.

The FCRTA implemented a series of demonstration services in direct response to requests requested during the FCOG’s annual Unmet Transit Needs process. The FCRTA offered Juvenile Justice Campus Transit (JJCT) for a second (2nd) time when the campus was fully developed to include Probation Offices and Courtrooms. Actual ridership during the first half of FY 2009-10 did not support continuation. Also In the first half of FY 2009-10, the FCRTA offered Coalinga Express Medical Transit service from Coalinga to Fresno. Unfortunately, very limited ridership occurred and the service was discontinued. In each when a service was discontinued, actual ridership and farebox recovery failed to meet the minimum standards.

PMC - 27 27 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

In FY 2011-12, the FCRTA also received requests for service to operate in the Community of Lanare, located in Southern Fresno County, near Riverdale. Lanare is currently served by Coalinga Transit on a round-trip basis Monday through Saturday between Coalinga and Fresno. The FCRTA conducted an extensive public outreach campaign consisting of a bilingual survey mailed to one hundred and fifty-five (155) community residents and a public meeting in November 2012. The FCRTA will be implementing demand responsive, fixed route and inter- Agency transfers within the Mount Whitney Avenue corridor (between Five-Points, Lanare, Riverdale and Laton) for additional alternative service to Fresno and Hanford in Kings County in the Third Quarter of FY 2013-14. Through an FTA Section 5316 Job Access/Reverse Commute (JARC) grant, FCRTA will be acquiring new employment shuttle vehicles to supplement connections to Fresno Area Express (FAX).

The shuttle to the Juvenile Justice Campus which ran from the Downtown Courthouse Park in Fresno was reinstated for a brief period during the first half of FY 2009-10 when the Juvenile Justice Courtrooms and Probation Offices were completed, but was later discontinued.

In addition to the shuttle vehicles, FCRTA implemented a series of other service improvements. The Agency used Measure-C revenues to provide service expansion vehicles to outlying communities such as Firebaugh, Fowler, Kingsburg, Reedley and Sanger. Due to the economic downturn, the additional vehicles were discontinued in Firebaugh, Fowler and Reedley. Sanger received a third vehicle and the Kingsburg service was able to support the provision of a second vehicle.

Each subsystem’s performance is monitored as part of the Transit Productivity Evaluation conducted annually based on the 6 standard performance indicators pursuant to the TDA. Eleven subsystems showed positive performance for at least one out of the 6 performance indicators. However, 11 of FCRTA’s 20 subsystems failed to achieve the minimum 10 percent farebox recovery standard. Despite this shortfall, FCRTA was able to meet its systemwide farebox recovery and each subsystem met the minimum 10 percent with the addition of Measure-C support revenues.

The Agency was awarded a small Caltrans grant for five bus shelters. The shelters feature solar panels with interior lighting. One shelter was installed in front of the Greyhound Bus Station in downtown Fresno, for use by FCRTA and FAX passengers. The second was installed on Van Ness Avenue adjacent to Courthouse Park. The third and fourth were installed in Mendota and the fifth was installed in Coalinga. Fifteen additional shelters were purchased for additional installations in rural cities.

FCRTA earmarked $75,000 toward centralizing its dispatching operations. This effort included the implementation of Intelligent Transportation Systems (ITS) technology in the form of Mobilitat paratransit and scheduling software for $150,000. The Mobilitat Easy Rides software program contains Automatic Vehicle Location (AVL) and Geographic Information Systems (GIS) capabilities as well as a bilingual phone call confirmation feature compliant with federal Title VI and Environmental Justice (EJ) requirements. FCRTA is also introducing tablets in its vehicles in an effort to move away from paper manifests and trip sheets.

PMC - 28 28 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

The City of Fresno’s Fresno Area Express (FAX) sought to replace their existing fareboxes with “Smart Card” technology. In an effort to achieve seamless travel throughout Fresno County, Clovis Transit and the FCRTA participated in the joint effort. Following the preparation of detailed specifications, a Request for Proposals (RFP) was advertized. Submitted responses were initially incomplete. Rebids resulted in awarding a contract to Fare Logistics, with the expressed understanding that a thirty (30) day demonstration period would be necessary to prove equipment reliability. After two (2) iterations with different equipment, the manufacturer was unable to comply, so the contract was terminated. Legal challenges delayed the rebidding process. The third (3rd) rebidding resulted in awarding a contract to GIF/Genfare. The equipment was recently installed to begin the thirty (30) day test for reliability. Clovis Transit and the FCRTA are waiting for the system to prove itself. Clovis Transit and the FCRTA will later determine if the Genfare “Smart Card” reader module will prove to be usable for their respective systems. Both Agencies have previously programmed funds for the project’s implementation.

Drivers are trained in accordance with the General Public Paratransit Vehicle (GPPV) mandates pursuant to SB 1586. New drivers hired by FCRTA contractors undergo a forty (40) hour training program that includes classroom and behind-the-wheel operations. Topics covered in the training sessions include defensive driving; operational safety guidelines; motor vehicle code regulations; customer assistance techniques; daily vehicle inspections; maintenance and record keeping and reporting procedures. In addition to the aforementioned training, drivers attend mandatory three (3) hour in-service meetings every other month. The in-service trainings are conducted by supervisors and have included guest speakers from the CHP and representatives from the Drug and Alcohol Consortium; and the insurance industry. Topics include accessibility and customer service training. FCRTA continues to work with its subcontractors to enhance driver training.

Maintenance

Vehicle maintenance is performed on a three-thousand (3,000) mile or forty-five (45) day inspection schedule in accordance with the State’s General Public Paratransit Vehicle (GPPV) regulations. The California Highway Patrol (CHP) is responsible for certifying FCRTA’s maintenance facilities and for inspecting vehicles on an annual basis.

FCRTA took steps to change its maintenance contract due to escalating costs. Staff observed that even with the introduction of newer vehicles into the fleet, maintenance expenditures increased disproportionately. Maintenance had been contracted with a private vendor, Transportation Specialties, based in Clovis. Because FCRTA vehicles operate and generally layover in their respective service areas throughout the County, the maintenance contractor would shuttle recently maintained vehicles from Clovis and replace the existing vehicle in the field. Spare vehicles were also maintained in the field when other vehicles are switched out for maintenance.

PMC - 29 29 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

In May 2012, the FCRTA Board of Directors entered into a Memorandum of Understanding (MOU) with the City of Fresno’s Fresno Area Express (FAX) to contract for maintenance services of its vehicle fleet. The MOU provided the basis for development of an actual Service Contract that was adopted in June 2012 for implementation beginning on July 1, 2012. FAX’s Fleet Management Division is located at 2101 “G” Street, Building “F” (Fleet) in Fresno. The CHP conducted a thorough terminal inspection resulting in a very “satisfactory” rating. FCRTA was able to take advantage of bulk parts purchases and tire purchases. The change in maintenance contractors is anticipated to result in considerable cost savings of over twenty percent (20%).

The Agency is acquiring the Zonar electronic fleet management system in January 2014. Zonar’s Electronic Vehicle Inspection Report (EVIR) technology is utilized for daily pre- and post-trip inspections, which is transmitted via cellular signal into a computer database. Radio-frequency identification (RFID) tags are placed on the vehicle in critical inspection areas or zones. Drivers conduct their vehicle inspections by placing the Zonar reader within inches of each tag indicating the condition of the components within the zone with associated push-button responses. When a defect is discovered, the driver selects a description from a pre-defined list. Fault codes are transmitted to the lead mechanic and enable the driver and mechanic to determine if the vehicle is safe to operate. The reports generated by the EVIR are CHP compliant.

The Agency’s inter-city vehicles are refueled at five (5) existing CNG fast-refueling facilities located throughout the County. FCRTA generally utilizes FuelMaker’s slow-fill CNG equipment to refuel its fleet of intra-city CNG vehicles overnight in remote locations. There are forty-five (45) of these units currently installed. A FuelMaker combines natural gas compression with controls, electronics, and software into a simple compact package that can be installed anywhere that has residential natural gas service. This was the only company in North America to manufacture and service such devices. The FuelMaker company filed for bankruptcy in March 2009 and was purchased by an Italian company, which initially was not responsive to FCRTA inquiries.

The FCRTA staff and prior maintenance contractor searched worldwide for a similar device to meet the Agency’s needs. A product was identified in China that had been utilized for over a decade. The FCRTA contacted a Chinese company to procure sixty (60) new pumps. FCRTA encountered operational and reliability problems with the units. After three (3) years, the pumps reached their useful life expectancy.

The FCRTA staff attended alternative fuel trade shows to evaluate CNG pump manufactured by other companies. One (1) dealer installed a demonstration unit at no cost for use by the FCRTA. The unit was operated for nine (9) months. It required numerous repairs by the dealer at their expense. The system was not reliable for further consideration.

While searching the internet, staff came across an announcement designating a new USA FuelMaker distributor that was located in Ontario, California. After considerable discussion and a site visit, FCRTA Staff recommended and the Board of Directors concurred that the Agency should return to proven product that we were familiar with. New pumps were acquired and installed. The availability of parts and technical assistance has allowed the FEOC to hired two (2)

PMC - 30 30 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12 experienced employees to install and service our units.

Planning

FCRTA engages in on-going planning analysis efforts through its annual Transit Productivity Evaluation and Fresno COG’s Short-Range Transit Plan for the Rural Fresno County Area updates. The Short-Range Transit Plan for the Rural Fresno County Area is updated every two (2) years and contains a five (5) year action-oriented program to implement the Public Transportation Element of the Regional Transportation Plan (RTP). The SRTP is developed by Fresno COG in cooperation with the constituent member agencies of FCRTA and the Fresno EOC. The Transit Productivity Evaluation is presented to the Fresno COG Policy Board in conjunction with the SRTP. The evaluation is conducted annually in order to assess the performance of FCRTA as a recipient of TDA funding.

There was one (1) SRTP update conducted and adopted during the audit period. The SRTP for 2011-2016 contained existing service evaluation, recommendations and the financial status of the FCRTA system. The Agency also uses Fresno COG’s annual Unmet Transit Needs hearing process as a service planning tool. Requests for additional rural service are evaluated to determine the viability for a demonstration project that may be implemented by the FCRTA.

Marketing

FCRTA markets its services through a variety of media. The Agency maintains a Web site, (http://www.ruraltransit.org/), which offers a synopsis of each local subsystem, including fares, hours of operations and schedules. The Agency is preparing to expand its online presence by making its route and schedules accessible over “Google Transit.”

Information about FCRTA is also contained in the Fresno County Transportation Guide published by Fresno COG as well as through the Fresno COG Web site. The “Transportation Guide” is published in a bilingual (English/Spanish) format and was last updated in spring 2007. Fresno COG is changing the format of the Fresno County Transportation Guide from a booklet to a folded pocket guide. The pocket guide will continue to be bilingual and feature basic information about transit services contact phone numbers, and Web site links. FCRTA also prepares individual information flyers for each of its subsystems.

A significant portion of that budget is allocated towards advertisements in fourteen (14) community telephone books, including two (2) Spanish-language publications. The monthly cost of such advertisements ranges from $60 to $600 monthly. The rationale given for this expenditure is due to public expectation and known widespread print distribution. Staff inquired with potential publishing industry representatives to determine their added fees for cooperative advertising. FCRTA indicated challenges with such arrangements. Meanwhile, costs to advertise in telephone books have been increasing on average two percent (2%) annually due to the proliferation of telephone books representing individual communities in place of consolidated listings.

PMC - 31 31 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

The last on-board passenger survey was conducted in 2009. The survey underscored the overall transit-dependency by FCRTA ridership. More than eighty-four percent (84%) of FCRTA riders have no other means to make their trip and about fifty-nine percent (59%) of riders use the system five (5) days a week. Approximately two-thirds (2/3) of the ridership is comprised of females and about 74 percent (74%) identify themselves as Hispanic.

In spite of its marketing efforts, the Agency has found it challenging to market transit services to rural communities. It is suggested that FCRTA consider marketing its services through potentially lower cost means such as bilingual municipal utility inserts and community recreation guides and senior resource publications.

General Administration and Management

As a Joint Powers Agency (JPA), FCRTA is comprised of the County of Fresno and thirteen (13) rural incorporated cities. The Agency’s governing Board is comprised of fourteen (14) members. Each City has a member (represented by a mayor or councilmember) who receives one vote while the County has one (1) member from the Board of Supervisors who receives six (6) votes. Nine (9) votes are required for a quorum. By the mutual agreement of its members, the FCRTA is administered by its designated General Manager. FCRTA contracts with Fresno COG to provide administrative and fiscal management services.

The FCRTA Budget is based upon the individual subsystems’ service areas. Each incorporated city has its own “City Limits” and its “Sphere of Influence” (as determined by the Fresno County Local Agency Formation Commission - LAFCO), which serves as the area the City is expected to grow into over the next twenty (20) years. The subsystem budget is shared by the relative City population within the “City Limits” versus the Fresno County population within the surrounding “Sphere of Influence” boundary. The City’s population percentage versus the County’s population is the basis for sharing the actual costs. For inter-city routes through unincorporated areas of the County, residents within three-quarters (3/4) of a mile on either side of the route are attributed to the County’s share for those respective subsystems. The budget details the service hours of each subsystem and provides a narrative status of each subsystem, including any changes and the reasons for the change. Within financial constraints, the Agency tailors transit services to the unique needs of each jurisdiction to meet trip demand, whether from fixed route, demand response or both.

The Cities of Coalinga, Kerman, and Reedley utilize their own personnel (drivers, dispatchers, supervisors, and accountants) to staff the transit service under FCRTA’s direction in their respective cities.

It should be noted that the General Manager has been managing the system since its inception more than thirty (30) years ago. A prior audit recommendation suggested that FCRTA undertake succession planning scenarios to ensure the Agency continues to operate efficiently and effectively well into the future. FCRTA hired an Operations Manager in January 2012 for day-to- day operations who has previous experience as a Transit Director at the Fresno EOC as well as an Associate Transportation Planner at Caltrans and an employee at the California Public Utilities

PMC - 32 32 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Commission’s (PUC) Rail Safety Division. The Operations Manager has focused on customer service and contractor oversight of driver, dispatcher, and maintenance services.

Also, the General Manager was recognized by the Community Transportation Association of America (CTAA) in May 2012 as “Transit Manager of the Year” at its annual meeting held in Baltimore, Maryland.

Grants Management

Grant funding allocated towards supporting transit services have been derived from local, State and Federal sources. The principal source of local funding has been the California Transportation Development Act of 1971 (TDA). The secondary source is the extension of Measure-C, the County-wide, one-half (1/2) cent sales tax overwhelmingly reauthorized by a seventy-seven percent (77%) voter margin in November 2006. About twenty-four percent (24%) of the expected Measure-C funds are allocated to Regional Public Transit Agencies in an effort to expand mass transit programs that have a demonstrated ability to get people to use alternative transportation and improve air quality. Measure-C funds are budgeted to be utilized to expand existing services, increase service levels, leverage grant dollars, and complete minor capital projects. The FCRTA is entitled to four percent (4%) of total annual Measure-C revenues through 2027. Measure-C support revenues toward operations have ranged between $679,000 and $769,000 during the audit period.

State funding has consisted of TDA Local Transportation Funds (LTF); State Transit Assistance (STA) funds and Proposition 1B allocations. The Agency’s TDA apportionment has ranged between $1,364,142 and $2,788,540 during the audit period. The agency received Proposition 1B Public Transportation Modernization, Improvement & Service Enhancement (PTMISEA) funds toward approved capital projects. Based upon the finding of the FY 2011-12 fiscal and compliance audit, FCRTA had $1,313,199 in unexpended PTMISEA funds that are programmed for the purchase of replacement fleet vehicles. The FCRTA has also received funding through the California Emergency Management Agency (CalEMA), which changed its name to the Governor’s Office of Emergency Services (CalOES).

Based on the National Transit Database reports submitted by the FCRTA during the audit period, the agency received $1,809,762 in Federal Transit Administration (FTA) Section 5311 operating funds in FY 2009-10; $1,891,296 in federal operating funds in FY 2010-11; and $1,078,744 in federal operating funds in FY 2011-12. In addition, included in the federal allocation was $1,671,364 in American Recovery and Reinvestment Act (ARRA) funding during the audit period toward “preventative maintenance.” It should be noted that the FCRTA also receive FTA Section 5316, Job Access/Reverse Commute (JARC) funds, FTA Section 5317 New Freedom funds, and Congestion Mitigation/Air Quality (CMAQ) funds.

PMC - 33 33 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Section VI

Findings

The following summarizes the major findings obtained from this Triennial Audit covering fiscal years 2009-10 through 2011-12. A set of recommendations is then provided.

Triennial Audit Findings

3. FCRTA’s operating budget exhibited modest fluctuations during the audit period, with the exception of the FY 2009-10 budget. The budget increased 19.5 percent in FY 2009- 10 due to subsystem service expansion, maintenance costs and fringe benefits. During following year, the budget decreased three percent (3%) and increased 3.5 percent in FY 2011-12.

5. FCRTA fully implemented the three (3) prior audit recommendations.

6. Operating costs systemwide increased by a negligible 0.7 percent based on audited data from the FY 2008-09 fiscal base year through FY 2011-12. Based upon the latest fiscal analysis, FCRTA’s largest expense is contracted purchased transportation which comprised thirty-five percent (35%) of operating costs followed by maintenance at 18 percent and compensation at thirteen percent (13%). The increase in operating costs is attributed to service expansion and maintenance.

7. Ridership decreased two percent (2%) systemwide during the audit period. Fixed route ridership increased 26.7 percent while demand response ridership decreased by a modest 7.2 percent. Although ridership on fixed route services was a fraction of that for demand response, there were increases of ten percent (10%) in FY 2009-10 and 13.8 percent in FY 2011-12. Demand response ridership trends were responsible for the modest systemwide decrease during the period. PMC - 34 34 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

8. The provision of revenue hours and miles exhibited decreases systemwide during the audit period. Fixed route revenue hours decreased 2.6 percent, while revenue miles increased conversely by 2.6 percent. Demand response revenue hours and miles decreased 6.5 percent and 5.2 percent, respectively. Systemwide, vehicle service hours decreased 5.8 percent and vehicle service miles decreased three percent (3%). The decreases in revenue hours and miles reflect changes in the subsystem services and other service efficiencies implemented during the period.

9. Passengers per vehicle service hour, which measures the effectiveness of the service delivered, exhibited an increase of four percent (4%) systemwide. Passengers per hour on fixed route services increased 30.1 percent. In contrast, passengers per hour on demand response services decreased by a negligible 0.7 percent. Systemwide, the number of passengers per service hour increased from 6.6 passengers in FY 2008-09 to 6.9 passengers in FY 2011-12, peaking at 7.2 passengers in FY 2010-11.

10. The fare recovery ratio over the past three years decreased systemwide based on audited data but continued to exceed the TDA minimum requirement. Farebox decreased 2.6 percent from 12.70 in FY 2009 to 12.38 percent in FY 2011-12. Audited passenger fare revenues decreased 1.9 percent from $572,893 in FY 2009 to $562,192 in FY 2011-12.

11. FCRTA implemented “Rural Transit” which is a lifeline service created to address the unmet transit needs of residents not served by the existing subsystems. The service requires twenty-four (24)-hour advance reservations. Rural Transit operates with a fleet of three (3) five (5) passenger mini-vans acquired specifically for this service.

12. The Agency used Measure-C revenues to provide additional vehicles to in outlying communities such as Firebaugh, Fowler, Kingsburg, Reedley and Sanger. Due to the economic downturn, the additional vehicle fleet was eventually discontinued in Firebaugh, Fowler and Reedley. Sanger received a third (3rd) vehicle and the Kingsburg service was able to support the provision of second (2nd) vehicle.

13. FCRTA earmarked $75,000 toward centralizing its dispatching operations. This effort included the implementation of Intelligent Transportation System (ITS) technology in the form of Mobilitat paratransit and scheduling software. The Mobilitat “Easy Rides” software program contains Automatic Vehicle Location (AVL) and Geographic Information Systems (GIS) capabilities as well as a bilingual phone call confirmation feature compliant with federal Title VI and Environmental Justice (EJ) requirements.

14. FCRTA took steps to change its maintenance contract due to escalating costs. During FY 2011-12, FCRTA entered into a Memorandum of Understanding (MOU) with the City of Fresno/Fresno Area Express’ (FAX) Fleet Management Division, to contract for maintenance services of its vehicle fleet. The change in maintenance contractors has resulted in considerable cost savings of over twenty percent (20%).

PMC - 35 35 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

15. The Agency is acquiring the Zonar electronic fleet management system. Zonar’s Electronic Vehicle Inspection Report (EVIR) technology is to be utilized for daily pre- and post-trip inspections, which is transmitted via cellular signal into a computer database for the lead mechanic.

16. FCRTA markets its services through a variety of media. The Agency maintains a Web site, (http://www.ruraltransit.org/), which offers a synopsis of each local subsystem, including fares, hours of operations and schedules. The Agency has successfully expanded its online presence by making its route and schedules accessible over “Google Transit.”

17. FCRTA hired an Operations Manager in January 2012, who has previous experience as a Transit Director at the Fresno EOC as well as an Associate Transportation Planner at Caltrans and an employee at the California Public Utilities Commission’s (PUC) Rail Safety Division. The Operations Manager has focused on customer service and contractor oversight of driver, dispatcher, and maintenance services.

18. The General Manager was recognized by the Community Transportation Association of America (CTAA) in May 2012 as “Transit Manager of the Year” at its annual meeting held in Baltimore, Maryland.

PMC - 36 36 Triennial Performance Audit of Fresno County Rural Transit Agency – FY’s 2009-10, 2010-11 & 2011-12

Recommendations

1. Review and adjust Full Time Equivalent Data shown in the annual State Controller Transit Operators Report.

The Full Time Equivalent (FTE) data contained in the State Controller Reports compiled for FCRTA appear static for all years covered by this audit. The FTE figure of forty-six (46) systemwide is shown each year despite fluctuations in service including decreases in vehicle service hours and miles during the audit period. FCRTA should verify that the proper calculation of FTEs to meet the TDA definition is the sum of all labor hours expended on transit and dividing the figure by 2,000 annual hours. Employee hours should include those from each subsystem (whether city staff or Fresno EOC) and FCRTA personnel responsible for administering the transit system. With maintenance switched to the City of Fresno, the calculation would also include the hours expended by the maintenance contractor in servicing FCRTA vehicles. Labor hours allocated to the transit system should be tracked and tabulated using the proper formula contained in the TDA statute. Regular reporting of FTEs will result in better responsiveness to TDA requirements.

2. Work with local municipalities to have bilingual inserts marketing FCRTA services included in community publications and mailings.

FCRTA has been seeking cost-effective ways to market its transit services. The placement of advertisements in local telephone directories has been a primary advertising method but is relatively expensive. An alternative approach that FCRTA could consider would be to work with each community served by a FCRTA subsystem and insert FCRTA materials into local community publications such as a recreation guide or senior publication, as well as the use of utility billing inserts mailed to residents. The billing inserts and community publications could reach a wider and more “captive” audience and show the relationships between each community and FCRTA services. It is suggested that FCRTA staff work with its member jurisdictions about implementing such an approach.

3. Develop a travel training program.

With challenges serving rural populations throughout the County, FCRTA should embark on developing a travel training program that provides education and training on transit for residents in the service area. FCRTA indicated that grant funding could help fund this program. This could include working with each community, as well as with the transit contractors and city staff that operate their respective services, in the recruitment of local volunteer ambassadors to assist riders with trip planning, taking the bus, and answering questions. Ambassadors would complement the bus drivers who also build rapport with the passengers. Given FCRTA’s responsiveness to the community through the provision of new demonstration services as a result of unmet needs, a travel training program could help develop the ridership during the demonstration period while maintaining and expanding ridership on existing services.

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