Fresno Area Express (FAX) Covering the Most Recent Triennial Period, Fiscal Years 2009-10 Through 2011-12

January 2014 December 2012

TABLE OF CONTENTS

Section I ...... 1

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

Section II ...... 9

Operator Compliance Requirements ...... 9

Section III ...... 14

Prior Triennial Performance Recommendations ...... 14

Section IV ...... 17

TDA Performance Indicators ...... 17

Section V ...... 26

Review of Operator Functions ...... 26

Operations ...... 26 Maintenance ...... 31 Planning ...... 32 Marketing ...... 34 General Administration and Management ...... 35

Section VI ...... 38

Findings ...... 38 Recommendations ...... 41

Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Section I

Introduction

California’s Transportation Development Act (TDA) requires that a triennial performance audit be conducted of 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 Area Express (FAX) covering the most recent triennial period, fiscal years 2009-10 through 2011-12.

The purpose of the performance audit is to evaluate FAX’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 FAX’s compliance with the conditions specified in the California Public Utilities Code (PUC). This task involves ascertaining whether FAX 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

The City of Fresno has been providing transit service since 1961, having taken over the privately- run Fresno City Lines. The system was rebranded to Fresno Area Express (FAX) in 1989. FAX is the largest public transportation operator in Fresno County under the direction of the City of Fresno Department of Transportation. Administrative oversight is provided by the Fresno City Council, which serves as FAX’s principal policy board.

FAX operates a general public fixed-route bus service and a paratransit service (Handy Ride) to persons eligible under the Americans with Disabilities Act (ADA) and unable to access the fixed- route services. FAX is the co-designated Consolidated Transportation Services Agency (CTSA) with the Fresno Economic Opportunities Commission (FEOC) for the urbanized area. In its capacity, FAX provides coordinated efforts with FEOC in the provision of consolidated transportation for social service agencies and community programs. PMC - 1 1 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Fresno is the county seat and largest city in Fresno County located at the junctions of State Routes (SR) 41, 99, 168, and 180. In addition, Fresno is the fifth largest city in California and the principal commercial hub of the San Joaquin Valley. The city has a total land area of approximately 111.96 square miles. The 2010 U.S. Census data showed a population of 494,665, which grew 15.7 percent since the 2000 U.S. Census. The senior citizen population, comprised of residents aged 65 and older, is 9.32 percent. Based on the 2013 California Department of Finance estimate, Fresno’s population grew to 508,453 residents.

While agriculture remains the primary industry (13.95 percent of jobs), Fresno’s economy continues to diversify, reflecting its advantageous location and lower cost of living. Fresno is also known as the gateway to Yosemite National Park, located 94 miles to the north along SR-41, and Kings Canyon National Park, which is located 57 miles to the east along SR-180.

System Characteristics

The FAX service area comprises the City of Fresno, parts of the City of Clovis, and adjacent areas of unincorporated Fresno and Madera counties. A portion of FAX Route 28 operates in the City of Clovis and is subsidized by Clovis based on the number of service hours and miles provided in Clovis. Payments from Clovis include only direct fixed-route service costs. Separately, Route 58E serves Children’s Hospital of Central California located just to the north in Madera County.

Fixed-route services operate Monday through Friday between 5:30 a.m. and 10:00 p.m., and Saturday and Sunday between 6:30 a.m. and 7:00 p.m. Service is not provided on Thanksgiving Day and Christmas Day. Weekend-level service is provided on New Year’s Day, Martin Luther King Jr. Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Veterans Day, the day after Thanksgiving, and the day before Christmas. FAX operates one service center where passengers can purchase passes, tickets, and tokens as well as obtain route maps and schedules. The service center is located at the Manchester Transit Center.

Fixed Route: FAX operates 16 fixed routes across the Fresno Metropolitan Area. The majority of routes operate at 30-minute frequencies during the week and at 30- to 60-minute frequencies on weekends. Routes 28, 30, and 34 operate at 20-minute frequencies during peak hours Monday through Friday. A summary of FAX’s fixed-route service is presented in Table I-1.

Table I-1 FAX Fixed-Route Services Route Number Description Frequency/Operation Destinations/Timepoints 9 Shields & Brawley/ Every 30 minutes (Monday . Tioga Middle School Shaw Crosstown through Friday from 5:40 . Fresno State a.m. to 9:58 p.m.) . International English Every 30 minutes Institute (Weekends from 6:35 a.m. . Fashion Fair Shopping to 7:24 p.m.) Center . Fig Garden Village

PMC - 2 2 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Route Number Description Frequency/Operation Destinations/Timepoints . Sierra Vista Mall

20 North Hughes/North Every 30 minutes (Monday . Fresno High School Marks/Downtown through Friday from 5:40 . Cooper Middle School a.m. to 9:50 p.m.) . Fresno City College Every 45 minutes . Fulton Mall (Weekends from 6:45 a.m. . Cesar E. Chavez Adult to 6:32 p.m.) School . County Library . Fresno City Hall 22 North West Avenue/East Every 30 minutes (Monday . Roosevelt High School Tulare Avenue through Friday from 5:30 . Kings Canyon Middle School a.m. to 9:50 p.m.) . Bullard West Shopping Every 50 minutes Center (Weekends from 6:30 a.m. . Fulton Mall to 7:11 p.m.) . City Hall . State Building . County Library . Fresno City Personnel 26 North Palm/Peach Every 30 minutes (Monday . Bullard High School Avenue/Clinton Crosstown through Friday from 5:55 . Kings Canyon Middle School a.m. to 9:58 p.m.) . Fig Garden Village Every 60 minutes . Riverpark (Weekends from 7:15 a.m. . IRS to 7:30 p.m.) . Fresno High School . Fresno Pacific University . Fulton Mall . Downtown Transfer Center . Fresno Yosemite International Airport . Sunnyside High School . Kings Canyon Pavilion 28 CSUF/Manchester Center/ Every 20-25 minutes . Fort Miller School Ventura Avenue (Monday through Friday . Tioga Middle School from 5:45 a.m. to 9:50 p.m.) . Fresno State Every 60 minutes . Fresno Pacific University (Weekends from 6:40 a.m. . Fashion Fair Shopping to 7:32 p.m.) Center . Manchester Shopping Center . Fulton Mall . IRS . Sunnyside High School 30 Riverpark/North Every 20-30 minutes . DeWolf High School Blackstone/West Fresno (Monday through Friday . Opportunity Program School from 5:45 a.m. to 9:49 p.m.) . Manchester Shopping

PMC - 3 3 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Route Number Description Frequency/Operation Destinations/Timepoints Every 60 minutes Center (Weekends from 6:35 a.m. . Cesar E. Chavez Adult School to 7:19 p.m.) . Fulton Mall . City Hall . Federal Building . State Building . County Library 32 Riverpark/Manchester Every 30 minutes (Monday . San Joaquin Memorial High Center/West Fresno through Friday from 5:54 . DeWolf High School a.m. to 9:56 p.m.) . Fort Miller Middle School Every 30 minutes . Eastgate Plaza Inc. (Weekends from 6:30 a.m. . Fashion Fair Shopping to 7:05 p.m.) Center . Kearney Palms Shopping Center . Kaiser Hospital . Manchester Center 33 Belmont Crosstown Every 30 minutes (Monday . Roeding Park through Friday from 6:00 . Chaffee Zoo a.m. to 7:55 p.m.) . Tehipite Middle School Every 60 minutes (Weekends from 7:30 a.m. to 6:55 p.m.)

34 Northeast Fresno/North Every 20 minutes (Monday . Tioga Middle School First/West Fresno through Friday from 5:50 . Kearney Palms Shopping a.m. to 9:45 p.m.) Center Every 30 minutes . Fashion Fair Shopping (Weekends from 6:45 a.m. Center to 7:35 p.m.) . Fulton Mall . Saint Agnes Medical Center 35 Olive Crosstown Every 30 minutes (Monday . The Tower District through Friday from 5:45 . DMV a.m. to 9:57 p.m.) . Roeding Park Every 45 minutes . Yosemite Middle School (Weekends from 7:00 a.m. . Social Security Office to 6:55 p.m.)

38 Chukchansi Every 20 minutes (Monday . Fresno State Park/Riverpark/North through Friday from 5:45 . McLane High School Cedar/SW Fresno a.m. to 9:46 p.m.) . Edison High School Every 30 minutes . Duncan Polytechnical High (Weekends from 6:45 a.m. School to 7:30 p.m.) . Roosevelt High School . Sequoia Middle School . Kearney Palms Shopping Center

PMC - 4 4 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Route Number Description Frequency/Operation Destinations/Timepoints 39 Clinton Avenue Crosstown Every 30 minutes (Monday . McLane High School through Friday from 5:30 . Manchester Mall a.m. to 9:58 p.m.) . Manchester Transfer Center Every 60 minutes . Veteran’s Medical Center (Weekends from 7:30 a.m. . Fresno Art Museum to 7:22 p.m.) . Fresno Yosemite International Airport . Fresno High School . Social Security . Fresno City College 41 North Marks/Shields/MTC/ Every 30 minutes (Monday . Fort Miller Middle School Chestnut through Friday from 5:40 . Scandinavian Middle School a.m. to 9:35 p.m.) . California Christian College Every 50 minutes . Fresno Pacific University (Weekends from 7:05 a.m. . Eastgate Shopping Center to 7:28 p.m.) . Manchester Mall

45 West Herndon/Fruit/Ashlan/ Every 60 minutes (Monday . Fresno High School Fowler through Friday from 6:03 . Fort Miller Middle School a.m. to 9:03 p.m.) . Fresno City College Every 60 minutes . Ashlan Park Shopping Center (Weekends from 9:40 a.m. . Manchester Mall to 6:30 p.m.)

58 VCH Express/Northeast Every 60 minutes (Monday . Clovis West High School Regular Service through Friday from 6:53 . Market Place a.m. to 6:40 p.m.) . U.S. Post Office Every 60 minutes . Shopping Centers (Weekends from 11:00 a.m. to 6:25 p.m.)

58E Children’s Hospital Express Every 60 minutes (Monday . Market Place through Friday from 6:20 . Children’s Hospital of Central a.m. to 6:10 p.m.) California Every 60 minutes (Weekends from 11:30 a.m. to 5:55 p.m.)

Source: FAX

Dial-A-Ride: The Handy Ride paratransit service is operated under a contract with a private transportation operator. Handy Ride provides curb-to-curb service during the same operating hours as the fixed route, and next day reservations are allowed in compliance with ADA regulations. Same-day reservations may be made on a spot availability basis. The service area covered is the same as the fixed route and currently includes additional areas that extend beyond

PMC - 5 5 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012 the ADA requirement of three-quarters of a mile from the FAX fixed routes. Trips originating in Fresno that end in Clovis are also returned on Handy Ride.

Fares

FAX’s fares are structured according to service type, passenger category, and fare media. Senior and Special Rider (disabled) fares and passes require proper identification. The fare structure was modified at the beginning of calendar year 2011 including fare increases and a change in age for the senior fare. The fare structure prior and after the adjustments is shown in Table I-2.

Table I-2 FAX Fare Schedule Fare Prior to Fare After Fixed Route 1/1/2011 1/1/2011 General $1.00 $1.25 Seniors (age 62–64 years of age)/Monday through Saturday $0.35 n/a Seniors (age 62–64 years of age)/Sunday Free n/a Seniors (age 65 years of age and older) Free $0.60 Disabled $0.35 $0.60 Medicare Cardholder Fare $0.35 $0.60 Children (Ages 6 and under up to a maximum of 4) Free Free Route 4 Downtown Trolley Free n/a Handy Ride ADA Eligible Individual $0.75 $1.50 ADA Eligible Individual’s Personal Care Attendant, Sighted Guide, Support Service Provider Free Free ADA Eligible Individual’s Companion per Ride Fare $0.75 $1.50 ADA Eligible Individual’s Children (under age 6) Limited to a Maximum of 4 Children Free Free Tickets/Tokens Tokens $0.85 $1.25 Roll of 20 Tokens n/a $22.50 Roll of 50 Tokens n/a $55.00 Book of 5 Tickets $4.25 n/a Book of 10 Tickets $8.50 n/a Monthly Passes Convenience Pass $35.00 n/a Mid-Month Discount $17.50 n/a Senior (Age 62 and older)/After 1/1/2011 (Age 65 and older) $10.00 $24.00 Special Rider $10.00 $24.00 Handy Ride (60 one-way trips) $25.00 $48.00 Metro Pass (FAX & Clovis Transit) $40.00 $48.00 Source: FAX

PMC - 6 6 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Fleet

FAX’s vehicle fleet is comprised of 185 vehicles. There are 128 vehicles in the fixed-route fleet and 57 vehicles utilized for Handy Ride. All vehicles, with the exception of Handy Ride sedans, are lift equipped and conform to the requirements of ADA in regard to wheelchair accessibility. Table I-3 summarizes the composition of the fixed-route fleet.

Table I-3 FAX Fixed-Route Fleet Inventory Seating Wheelchair Year Make & Model Quantity Fuel type Capacity Capacity 1993 Gillig Phantom 12 Diesel 45 2 1994 Gillig Phantom 8 Diesel 45 2 1996 Gillig Phantom 4 Diesel 45 2 1997 Gillig Phantom 11 Diesel 45 2 1999 Gillig Phantom 10 Diesel 45 2 2003 Orion 05501 25 CNG 28 2 2004 Optima Trolley AH28 2 CNG 44 2 2005 New Flyer C40LF 10 CNG 45 2 Hybrid 2005 New Flyer C40LF 2 (Gas/Electric) 45 2 2006 New Flyer C40LF 15 CNG 45 2 2009 New Flyer C40LF 16 CNG 45 2 2009 New Flyer GE40LF 1 Gasoline 45 2 2011 Gillig Low Floor 9 CNG 37 2 2012 30 Ft. Gillig Low Floor 3 CNG 26 2 Total 128 Source: 2012 National Transit Database Report

The FAX fleet is comprised of 82 vehicles that are powered by alternative fuels (such as CNG) or electric hybrid technology. Based on information reported to the National Transit Database, 105 fixed route vehicles are in active service. The Handy Ride fleet is comprised of smaller cutaway vehicles and sedans with gasoline powered engines. Six vehicles are powered by CNG. Table I-4 summarizes the composition of the Handy Ride fleet.

Table I-4 Handy Ride Fleet Inventory Seating Wheelchair Year Make & Model Quantity Fuel type Capacity Capacity 2004 El Dorado E450 14 Gasoline 10 1 2005 El Dorado E450 8 Gasoline 10 1 2005 Chevy Malibu 1 Gasoline 4 n/a 2005 Ford Taurus SEL 3 Gasoline 4 n/a 2005 Ford Taurus SE 2 Gasoline 4 n/a 2006 Starcraft E450 3 Gasoline 10 1 2006 Starcraft E450 1 Gasoline 12 2 2006 Chevy Impala LS 3 Gasoline 4 n/a

PMC - 7 7 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Seating Wheelchair Year Make & Model Quantity Fuel type Capacity Capacity 2007 Starcraft E450 1 Gasoline 10 1 2007 Starcraft E450 7 Gasoline 12 n/a 2007 Starcraft E450 5 Gasoline 16 2 2007 Starcraft E450 1 CNG 16 2 2008 Starcraft E450 5 CNG 16 2 2008 Starcraft E450 1 Gasoline 16 2 2011 Ford E450 2 Gasoline 16 2 Total 57 Source: 2012 National Transit Database Report

PMC - 8 8 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Section II

Operator Compliance Requirements

This section of the audit report contains the analysis of FAX’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 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 submitted Public Utilities Code, Section Completion/submittal dates annual reports to the RTPA based 99243 (internet filing): upon the Uniform System of Accounts and Records established Fixed Route: by the State Controller. Report is due 90 days after end of fiscal FY 2010: April 12, 2011 year (Sept. 30), or 110 days (Oct. FY 2011: January 8, 2012 20) if filed electronically FY 2012: December 3, 2012 (Internet). Specialized Service:

FY 2010: April 12, 2011 FY 2011: December 20, 2012 FY 2012: December 4, 2012

Conclusion: Not in Compliance

State Controller Reports prepared during the audit period were submitted after the Internet filing deadline.

The operator has submitted Public Utilities Code, Section Completion/submittal dates: annual fiscal and compliance 99245 audits to the RTPA and to the FY 2010: May 13, 2011 State Controller within 180 days FY 2011: March 29, 2012 following the end of the fiscal FY 2012: April 30, 2013 year (Dec. 27), or has received the

PMC - 9 9 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements appropriate 90-day extension by Conclusion: Partial Compliance the RTPA allowed by law. The FYs 2010 and 2012 Fiscal and Compliance Audits were not submitted within the 180- day time frame or the 90-day extension period.

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

Inspections were conducted at FAX’s maintenance and operations facility.

Inspection dates applicable to the audit period were August 21, 2008; September 24, 2009; November 15, 2011; and November 15, 16 & 30, 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 compliance 99261 FAX’s annual claims for Local with rules and regulations Transportation Funds and State adopted by the RTPA for such Transit Assistance are claims. submitted in compliance with rules and regulations adopted by Fresno COG. COG staff provides assistance to the agency in completing the claim.

PMC - 10 10 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements

Conclusion: Complied

If an operator service urbanized Public Utilities Code, Section FAX serves the Fresno-Clovis and non-urbanized areas, it has 99270.1 Urbanized Area and is not maintained a ratio of fare subject to this requirement. revenues to operating costs at least equal to the ratio Conclusion: Not Applicable determined by the rules and regulations adopted by the RTPA.

The operator’s operating budget Public Utilities Code, Sections Percentage increase in the FAX has not increased by more than 99266 operating budget: 15% over the preceding year, nor is there a substantial increase or FY 2010: -34.3% decrease in the scope of FY 2011: -6.9% operations or capital budget FY 2012: +5.1% provisions for major new fixed facilities unless the operator has The FAX operating budget reasonably supported and decreased significantly in FY substantiated the change(s). 2010 due to changes in the City Transportation Department’s accounting structure. FAX also implemented cost saving measures that included reductions in travel and training, office supplies, printing, overtime pay, equipment purchases and marketing.

Source: FY 2009–2012 City of Fresno Budgets

Conclusion: Complied

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

PMC - 11 11 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements service mile, (f) total passengers, (g) transit vehicle, (h) vehicle service hours, (i) vehicle service miles, and (j) vehicle service hours per employee.

If the operator serves an Public Utilities Code, Sections The system’s fare are as urbanized area, it has maintained 99268.2, 99268.3, 99268.12, follows: a ratio of fare revenues to 99270.1 operating costs at least equal to FY 2010: 20.30% one-fifth (20 percent), unless it is FY 2011: 21.23% in a county with a population of FY 2012: 22.00% less than 500,000, in which case it must maintain a ratio of fare Source: Annual Productivity revenues to operating costs of at Evaluation Report least equal to three-twentieths (15 percent), if so determined by Conclusion: Complied the RTPA.

If the operator serves a rural area, Public Utilities Code, Sections The FAX service area does not it has maintained a ratio of fare 99268.2, 99268.4, & 99268.5 extend into rural areas and is revenues to operating costs at subject to the urbanized area least equal to one-tenth (10 farebox ratio requirement. percent). Conclusion: Not Applicable

The current cost of the operator’s Public Utilities Code, Section To be eligible for TDA funds, retirement system is fully funded 99271 the annual TDA claims form with respect to the officers and requires a sign-off from the employees of its public transit claimant to comply with transportation system, or the standard assurances, one of operator is implementing a plan which is that the City of Fresno approved by the RTPA which will retirement system is funded. fully fund the retirement system within 40 years. The City of Fresno has a self funded retirement system.

Conclusion: Complied

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, the City of operator makes full use of funds Fresno is making full use of available to it under the Urban federal funds available under Mass Transportation Act of 1964 the Federal Transit before TDA claims are granted. Administration.

PMC - 12 12 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements

FY 2010: $16,208,997 FY 2011: $14,327,946 FY 2012: $10,029,960

Source: National Transit Database

Conclusion: Complied

Findings and Observations from Operator Compliance Requirements Matrix

1. Of the compliance areas pertaining to FAX, the operator fully complied with seven of nine applicable requirements. Two additional compliance requirements are not applicable to FAX (e.g., intermediate farebox recovery ratio, and rural area farebox recovery). The operator was in partial compliance with the timely submittal of its Annual Fiscal and Compliance Audits for FYs 2010 and 2012. The transit agency was in noncompliance with regard to the timely submittal of the State Controller Report during the audit period. Fresno’s finance department experienced turnover of staff who had prepared the State Controller Reports for a number of years. Budgetary constraints (no overtime) and training of new staff have also delayed the completion. In addition, the City’s practice was to attempt to ensure the accrual data for the Controller’s Report closely matched that presented in the Comprehensive Annual Financial Report which was typically completed after the Controller report deadline. The City will now have to simply cut off the accruals to meet the deadline.

2. FAX participates in the CHP Transit Operator Compliance Program as required by TDA. The CHP inspection reports submitted for review were found to be satisfactory.

3. The operating budget was reduced significantly during FY 2010 followed by moderate fluctuations during the subsequent years of the audit period. The FAX operating budget decreased in FY 2010 due to changes in the City Transportation Department’s accounting structure. In addition, FAX implemented cost saving efficiencies that included reductions in travel and training, office supplies, printing, overtime pay, equipment purchases and marketing. In FY 2011, the operating budget decreased 6.9 percent, followed by an increase of 5.1 percent in FY 2012.

4. Based on the available data from the Annual Fiscal and Compliance Audits, the agency’s farebox recovery ratio remained at the required 20 percent standard during the review period.

5. FAX continues to utilize federal grant funding in addition to TDA revenues. Funding for operations and capital varied from a high of $16.2 million in FY 2010 to a low of $10 million in FY 2012.

PMC - 13 13 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Section III

Prior Triennial Performance Recommendations

FAX’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

Report paratransit contract employees in the State Controller Report.

Actions taken by FAX:

As a carryover from the prior performance audit, state law requires that transit operators provide the count of full-time employee (FTE) equivalents in the annual State Controller Report for both directly employed and contracted employees. An FTE is derived by dividing total employee work hours by 2,000. FAX should include the count of contracted employees for Handy Ride in the annual report. It was suggested that the Support Services Division work more closely with the contract operator in ensuring that FTEs are calculated based on the criteria stipulated in the TDA statute. The auditor did receive a breakdown of FTEs for both service modes during the audit period from FAX staff. However, the Transit Operators Financial Transaction Reports for the Handy Ride Specialized Service submitted to the State Controller during the audit period still omit the FTEs in the Operating Data section of the report.

Conclusion:

This recommendation has not been implemented and is carried forward for full implementation.

Prior Recommendation 2

Perform “final” review of State Controller Report for consistency with the Fresno COG Transit Productivity Evaluation Report.

Actions taken by FAX:

The prior audit found that the performance indicator data presented in the annual Transit Operators Financial Transaction Report submitted to the State Controller and the Fresno COG Transit Productivity Evaluation Report have not been consistent, although both reports are completed concurrently. It was suggested that the Support Services Division institute better monitoring verification procedures that would result in consistency amongst the various reports.

PMC - 14 14 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

There continue to be some challenges in this area. A comparison of the State Controller Reports and the Transit Productivity Evaluation found discrepancies in the data reported for the triennial period as shown in the following table.

State Controller Report Productivity Evaluation FAX 2010 2011 2012 2010 2011 2012 Passenger Trips 18,087,391 15,527,490 14,304,222 17,589,425 15,778,132 14,304,222 Vehicle Service Hours 399,153 344,036 341,348 391,873 331,983 331,184 Vehicle Service Miles 4,586,748 3,915,553 3,899,000 4,586,748 3,893,426 3,881,078 Handy Ride Passenger Trips 238,707 227,954 212,117 238,707 227,955 209,473 Vehicle Service Hours 100,334 96,690 94,103 101,788 98,086 94,104 Vehicle Service Miles 1,120,776 1,103,757 1,101,118 1,609,206 1,191,892 1,123,401

For example, the vehicle service miles reported for Handy Ride in FY 2010 are not consistent (1,120,776 in the State Controller vs. 1,609,206 in the Productivity Evaluation). Also the number of passenger trips reported for FAX in FY 2010 is not consistent (18,087,391 in the State Controller vs. 17,589,425 in the Productivity Evaluation). Other data discrepancies are more minor. It is recommended that Department of Transportation staff continue to collaborate closely with the Finance Department to ensure more accurate data reporting.

Conclusion:

This recommendation has not been implemented and carried forward for full implementation.

Prior Recommendation 3

Record accidents in the statistical summary report based on the metric utilized in the Short-Range Transit Plan (SRTP).

Actions taken by FAX:

It was recommended that FAX record preventable accidents in its monthly statistical summary reports using the performance metric from the SRTP, which is the number of accidents per 100,000-miles. The inclusion of this information in the summary reports provides an indication of operator ability and whether FAX is meeting the SRTP performance goals. However, the statistical summary report for FY 2012 has not yet shown this metric for fixed-route collisions. FAX should continue efforts to implement the recommendation during development of the monthly report.

Conclusion:

This recommendation has not been implemented and carried forward for full implementation.

PMC - 15 15 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Prior Recommendation 4

Consider enhanced marketing channels that directly reach out to FAX passengers.

Actions taken by FAX:

This recommendation suggested methods that FAX could utilize to more effectively market its services electronically. During the audit period, FAX embarked on a trip planning project that provides integrated and coordinated trip planning services on the internet and via interactive phone voice response. The service will be available 24 hours a day, which would provide on- demand trip planning services and information. This includes a trip planner powered by Google Transit on the FAX webpage. Moreover, social media has become the preferred communication method for certain transit market segments, such as students. In this area, FAX has established a basic Facebook page that has yet to be fully developed. Also, the FAX Twitter feed only had 18 followers as of the preparation of this report in spite of its creation in November 2010. As a City department subject to citywide policies with respect to use of technology, the auditor recognizes the constraints that might be placed on advancing a social media program. However as Bus Rapid Transit (BRT) is implemented with ITS architecture, it is incumbent upon FAX to continue to implement electronic media that complements the BRT system and enhances the overall ride experience.

Conclusion:

This recommendation has been partially implemented.

PMC - 16 16 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Section IV

TDA Performance Indicators

This section reviews FAX’s performance in providing transit service in an efficient and effective manner. TDA requires that at least five specific performance indicators be reported, which are contained in the following tables. Farebox is not one of the five 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 FAX systemwide, fixed route and Dial-a-Ride. Charts are also provided to depict the trends in the indicators.

PMC - 17 17 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Table IV-1 FAX Systemwide Performance Indicators

Audit Period % Change FY 2009- Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 2012 Operating Cost $42,843,165 $43,429,509 $42,634,365 $45,240,352 5.6% Total Passengers 14,296,439 17,828,132 16,006,087 14,513,695 1.5% Vehicle Service Hours 477,127 493,661 430,069 425,288 -10.9% Vehicle Service Miles 5,810,179 6,172,222 5,449,851 5,004,479 -13.9% Employee FTE's 459 442 414 422 -8.1% Passenger Fares $9,114,724 $8,814,697 $9,053,247 $9,951,095 9.2%

Operating Cost per Passenger $3.00 $2.44 $2.66 $3.12 4.0% Operating Cost per Vehicle Service Hour $89.79 $87.97 $99.13 $106.38 18.5% Operating Cost per Vehicle Service Mile $7.37 $7.04 $7.82 $9.04 22.6% Passengers per Vehicle Service Hour 30.0 36.1 37.2 34.1 13.9% Passengers per Vehicle Service Mile 2.46 2.89 2.94 2.90 17.9% Vehicle Service Hours per Employee 1,039.5 1,116.9 1,038.8 1,007.8 -3.0% Average Fare per Passenger $0.64 $0.49 $0.57 $0.69 7.5% Fare Recovery Ratio 21.27% 20.30% 21.23% 22.00% 3.4%

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

PMC - 18 18 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Table IV-2 FAX Fixed-Route Performance Indicators

Audit Period

% Change FY Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 2009-2012 Operating Cost $37,005,244 $37,043,267 $38,693,929 $39,368,424 6.4% Total Passengers 14,062,016 17,589,425 15,778,132 14,304,222 1.7% Vehicle Service Hours 372,809 391,873 331,983 331,184 -11.2% Vehicle Service Miles 4,690,193 4,563,016 3,893,426 3,881,078 -17.3% Employee FTE's 372 357 331 341 -8.3% Passenger Fares $9,311,431 $8,655,263 $8,851,741 $9,683,538 4.0%

Operating Cost per Passenger $2.63 $2.11 $2.45 $2.75 4.6% Operating Cost per Vehicle Service Hour $99.26 $94.53 $116.55 $118.87 19.8% Operating Cost per Vehicle Service Mile $7.89 $8.12 $9.94 $10.14 28.6% Passengers per Vehicle Service Hour 37.7 44.9 47.5 43.2 14.5% Passengers per Vehicle Service Mile 3.00 3.85 4.05 3.69 22.9% Vehicle Service Hours per Employee 1,002.2 1,097.7 1,003.0 971.2 -3.1% Average Fare per Passenger $0.66 $0.49 $0.56 $0.68 2.2% Fare Recovery Ratio 25.16% 23.37% 22.88% 24.60% -2.2%

Source: National Transit Database; State Controller's Report; FAX

PMC - 19 19 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Table IV-3 Handy Ride Demand Response Performance Indicators

Audit Period

% Change FY Performance Data and Indicators FY 2009 FY 2010 FY 2011 FY 2012 2009-2012 Operating Cost $5,907,331 $5,979,628 $5,842,747 $6,015,310 1.8% Total Passengers 234,423 238,707 227,955 209,473 -10.6% Vehicle Service Hours 104,318 101,788 98,086 94,104 -9.8% Vehicle Service Miles 1,119,986 1,609,206 1,556,425 1,123,401 0.3% Employee FTE's 87 85 83 81 -6.9% Passenger Fares $154,557 $159,434 $201,506 $267,557 73.1%

Operating Cost per Passenger $25.20 $25.05 $25.63 $28.72 14.0% Operating Cost per Vehicle Service Hour $56.63 $58.75 $59.57 $63.92 12.9% Operating Cost per Vehicle Service Mile $5.27 $3.72 $3.75 $5.35 1.5% Passengers per Vehicle Service Hour 2.2 2.3 2.3 2.2 -0.9% Passengers per Vehicle Service Mile 0.21 0.15 0.15 0.19 -10.9% Vehicle Service Hours per Employee 1,199.1 1,197.5 1,181.8 1,161.8 -3.1% Average Fare per Passenger $0.66 $0.67 $0.88 $1.28 93.7% Fare Recovery Ratio 2.62% 2.67% 3.45% 4.45% 70.0%

Source: National Transit Database; State Controller's Reports; FAX

PMC - 20 20 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Graph IV-1 Operating Costs Systemwide, Fixed-Route & Handy Ride

Note: Systemwide costs are audited while modal costs are unaudited.

Graph IV-2 Ridership Systemwide, Fixed-Route & Handy Ride

PMC - 21 21 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Graph IV-3 Operating Cost Per Passenger Systemwide, Fixed-Route & Handy Ride

Graph IV-4 Operating Cost Per Vehicle Service Hour Systemwide, Fixed-Route & Handy Ride

PMC - 22 22 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Graph IV-5 Passengers Per Vehicle Service Hour Systemwide, Fixed-Route & Handy Ride

Graph IV-6 Fare Recovery Ratio Systemwide, Fixed-Route & Handy Ride

PMC - 23 23 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Findings from Verification of TDA Performance Indicators

1. Operating costs systemwide increased 5.6 percent based on audited data from the FY 2009 base year through FY 2012. Fixed route operating costs increased by 6.4 percent during the audit period. Dial-a-Ride operating costs increased by a more modest 1.8 percent.

2. Ridership increased 1.5 percent systemwide during the audit period. Fixed route ridership increased 1.7 percent while Dial-a-Ride ridership decreased 10.6 percent. Systemwide ridership increased by 24.7 percent in FY 2010 from the prior year but declined in FY 2011 and 2012. Fixed route ridership trends were responsible for the systemwide increase in FY 2010 and the subsequent decrease. Dial-a-Ride saw more modest declines in ridership with an 8.1 percent decrease in FY 2012.

3. The provision of revenue hours and miles exhibited decreases systemwide during the audit period as well as for all modes. Fixed route revenue hours and miles decreased 11.2 and 17.3 percent, respectively while DAR revenue hours decreased 9.8 and revenue miles increased slightly by 0.3 percent. Systemwide, vehicle service hours decreased 10.9 percent and vehicle service miles decreased 13.9 percent. The decreases in revenue hours and miles reflect route service cutbacks implemented during the period.

4. Operating cost per passenger, an indicator of cost effectiveness, increased 4 percent systemwide. Cost per passenger increased by a comparable 4.6 percent on fixed route, as well as a 14 percent increase on Dial-a-Ride. The trend for this indicator reflects a larger percentage increase in operating costs when compared to the increase in passenger trips.

5. Operating cost per hour, an indicator of cost efficiency, increased 18.5 percent systemwide. The indicator exhibited a comparable increase on the fixed route of 19.8 percent whereas Dial-a-Ride saw its cost per hour increase 12.9 percent over the period. The trends in this indicator reflect the increase in operating costs compared to the decrease 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 13.9 percent systemwide. The rate of increase in this indicator was slightly higher for fixed route, which saw passengers per hour increase by 14.5 percent. In contrast, passengers per hour on Dial-a-Ride decreased 0.9 percent. Systemwide, the number of passengers per service hour increased from 30 passengers in FY 2009 to 34.1 passengers in FY 2012, peaking at 37.2 passengers in FY 2011.

7. The fare recovery ratio over the past three years increased systemwide due to a combination of controlled costs and increased fare revenues. The systemwide farebox ratio increased 3.4 percent, increasing from 21.3 percent to 22.0 percent. On the modal level, farebox for fixed route slightly decreased by 2 percent while on Dial-a-Ride farebox recovery increased by a significant 70 percent. This is attributed to the fare increase

PMC - 24 24 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012 implemented in February 2011 when the Handi-Ride fare was doubled. For fixed-route, passenger fare revenues increased 4 percent and for Dial-a-Ride fare revenue increased 73.1 percent. With these changes, FAX has been able to continue meeting the required 20 percent farebox recovery standard.

PMC - 25 25 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Section V

Review of Operator Functions

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

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

Within some departments are sub-functions that require review as well, such as Grants Administration that falls under General Administration.

Operations

FAX is the largest urban transit operator in the Fresno-Clovis Metropolitan Area. After a period of service expansion, the transit agency was faced with operational and fiscal constraints due to the economic recession and reduced municipal budget. During the audit period, FAX took measures in order to sustain the transit service while looking to implement the next phase of transit infrastructure with Bus Rapid Transit (BRT) and technology upgrades. FAX service is comprised of 16 fixed routes with three major hubs located at the downtown transit mall, Manchester Transit Center and the River Park shopping center in north Fresno. The FAX Mission Statement adopted in 1997 sets the strategic direction and framework for policy and service planning:

The mission of Fresno Area Express is to provide a comprehensive transportation system that improves the quality of life in our community.

Fresno’s political leadership is committed to upholding the FAX Mission Statement by sustaining service to most areas of the city in spite of a reduction in service hours and a fare increase. Much of FAX’s ridership is transit-dependent with 50 percent or more living at or below the poverty level. Among the cost savings measures enacted from the budget issues during the audit period including the following: Route 56, which ran in north Fresno to the Willow International Community College campus, was discontinued due to low ridership. FAX also eliminated Route 12, which ran as a neighborhood shuttle. Service on Shaw Avenue into Clovis was reduced to 30 minute frequency, down from 15 minute frequency. Availability of 20 minute service on four high capacity routes was reduced from 12 hours to 6 total hours per weekday. Service on Fourth of July and New Years Day was changed from 30-minute to one-hour frequency service, while

PMC - 26 26 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012 service was discontinued on Christmas Day and Thanksgiving Day. FAX also de‐funded vacant bus driver and mechanics positions and deleted additional filled and unfilled positions.

The first fare increase in 10 years was implemented in January 2011, which saw the regular fixed- route fare increase from $1.00 to $1.25. Fares on Handy Ride underwent their first increase in 20 years. A Transit Rates and Services Committee was established to evaluate and make recommendations on issues such as fare structure and service efficiencies. Prior to the fare increase, the Committee held public forums to involve the community. Findings and recommendations were submitted to the Mayor and City Council for review and approval.

Conversion to CNG vehicles has helped to moderate the rise in fuel costs. Sixteen new CNG buses were procured during the audit period. This included the purchase of 10 - 2011 New Flyer 40-foot buses, three 2012 New Flyer 30-foot buses and one electric hybrid bus. There were also two new Handy Ride vehicles delivered in FY 2012.

FAX made a number of investments in ITS technology such as video surveillance, automated fareboxes and passenger counters and radios. Each FAX bus is equipped with eight digital security cameras that capture images from the interior and exterior of the bus. The new video surveillance system is able to capture accurate footage utilizing remote wireless downloads, accelerate incident investigations, allow FAX supervisors and Fresno Police officers to access live video of activity inside and outside of the buses and to deter vandalism and other criminal behavior.

The farebox system also underwent an upgrade. The existing Automated Fare Collection (AFC) system had been in use since 1988. In October 2012, FAX released a Request for Proposals for a new AFC system. In April 2013, Fresno awarded a $3,058,347 contract to GFI Genfare of Elk Grove Village, Illinois to install the new AFC system. The new fareboxes contain fare-payment displays, provide automated transfers and change cards. In the event a passenger should insert more than the price of the fare, the farebox will issue a change card that can be used on future bus rides. The value of the card is printed on the back.

In anticipation of the new AFC system, farebox handling measures were tightened up during the audit period. Fareboxes were inventoried and inspected on a regular basis. Security cameras were installed in the maintenance shop areas. In addition, regular audits of fare revenues are conducted with an established revenue baseline using GFI data and variance reporting. The audits had uncovered unusual discrepancies in fare revenues stemming from employee theft in the maintenance division. Separately, the vault crew responsible for counting and handling the fare revenues were checked and cleared. FAX is looking to expand and further secure its vault counting room. Vaults were normally removed when a vehicle had to be taken back to the maintenance yard due to a roadcall.

The installation of new automatic passenger counters was another priority technological upgrade. FAX only had about 15 percent of its fleet equipped with passenger counters. The current vendor of these units, Red Pine, has discontinued the manufacture and servicing of the counters. With the assistance of American Recovery and Reinvestment Act (ARRA) grant funds,

PMC - 27 27 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

FAX initiated procurement of new units that would be installed on the entire fleet. This effort will enhance FAX’s ability to monitor passenger activity at all stops, improve annual reporting and provide improved data collection.

FAX experienced customer service issues involving its dispatching and automatic vehicle location (AVL) system. The operator’s AVL provider was purchased by Trapeze, which provides dispatching and scheduling software. The challenges involved the interface between the AVL and dispatching programs. FAX found that the support it received for the Handy Ride paratransit system was better than the support received for the fixed-route. This issue has prompted FAX to search for a new AVL/GPS system vendor.

Operational data for both service modes is tracked on the Statistical Summary Report, which provides monthly, yearly and prior year’s performance tracking. The Report provides information about customer service trends, revenue and ridership, and employee services statistics. One of the key operational indices measured by FAX is on-time performance which is summarized in Table V-1.

Table V-1 FAX Fixed Route On-Time Performance Data 2009 2010 2011 2012 On-Time Performance 81.43% 82.98% 79.90% 81.32% Source: FAX

On-time performance standard for the FAX fixed-route is 92 percent of departures occurring within five minutes of the schedule. The average on-time performance during the audit period was 81.41 percent, which is below standard. On-time performance is monitored by Trapeze dispatching software.

Complaints are handled based on an established protocol. Customers can file a comment through several means such as contacting the FAX customer service number (621-RIDE), email, or downloading an online form on the FAX website. The complaint is received by a Complaint Coordinator who in turn inputs the information into a data base for record keeping purposes. The complaint report is then forwarded to a transit supervisor for review with the bus driver. The report form is signed by three parties to the issue - the complainant, the driver and the supervisor. The bus driver’s signature does not signify an admission of guilt, but to acknowledge that the complaint has been discussed with the driver. A response to the complaint is then sent to the Complaint Coordinator and placed into a log and follow-up is made to determine current status and resolution. The Complaint Coordinator will send the Complainant a letter when the complaint investigation is completed. A synopsis of customer satisfaction data including the number of complaints and compliments received for FAX fixed route services is presented in Table V-2 below.

PMC - 28 28 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Table V-2 FAX Customer Service Performance Data Year/Metric 2009 2010 2011 2012 Complaints received 978 1,114 990 967 Compliments received 20 7 21 44 Percentage of customers surveyed who rated service as “Good” or “Excellent” 88.18% N/A 88.93% 89.95% Percentage of customers surveyed who felt “Safe” or “Very Safe” on FAX buses 88.95% N/A 90.46% 88.91% Percent surveyed who rated the appearance and cleanliness of passenger loading facilities as “Good” or “Excellent” 82.97% N/A 84.48% 78.83% Source: FAX Statistical Summary Reports

The number of complaints has decreased marginally over the last few years while the number of compliments increased over the same period. Customers surveyed about service, safety, and cleanliness have registered a high level of satisfaction during the audit period with how FAX is performing in these categories. This type of data for FY 2010 was unavailable.

In regard to safety, FAX also tracks the number of collisions and passenger injuries. Table V-3 provides a summary of vehicle collisions and passenger injuries recorded during the audit period.

Table V-3 FAX Safety Performance Data Year/Metric 2009 2010 2011 2012 Number of Collisions 63 N/A 124 149 Number of Passenger Injuries 91 N/A 152 203 Source: FAX Statistical Summary Reports

The number of incidents for both indicators has increased. The number of collisions peaked in FY 2012 at 149, more than double the number of collisions reported in FY 2009. Passenger injuries also increased during the period from 91 incidents in FY 2009 to 203 incidents in FY 2012. Data for FY 2010 was unavailable. Given the reduction in vehicle revenue hours and miles for fixed route, the ratio of collisions and passenger injuries to revenue hours and miles increases which is an adverse trend and also increases the agency’s risk exposure.

Handy Ride Paratransit

The Support Services Division oversees the Handy Ride contract, which had been operated by MV Transportation since 2005. The most recent contract extension included a four percent unit price increase from July 1, 2011 through December 17, 2012. Prior contract addendums have emphasized enhanced performance benchmarks resulting in fewer no-shows and overall increased passenger satisfaction. An intervention program aimed at addressing no-shows was implemented. In February 2013, there was a change in contract operator. The City awarded the paratransit contract to Los Angeles-based Keolis Transit America.

PMC - 29 29 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

The new Handy Ride Center located at 4488 North Blackstone in central Fresno opened in January 2012. The location of the center is the site of a former automotive sales lot. The City Department of Transportation purchased the property, thus alleviating the need to pay rent and resulting in annual operations savings of $85,000 annually. The Handy Ride Center is staffed with up to five FAX employees and has a fueling station and maintenance facility on site.

FAX offers coaching for paratransit passengers, which is guided by a sight-impaired employee. A disabled employee is involved in sensitivity training of drivers. The City’s Disability Advisory Commission has a Transportation Task Force that reviews Handy Ride policies, operations and statistical data and provides recommendations to improve the ride experience for those with a disability. FAX staff make presentations to the Commission regarding disability issues while reporting back on the status of implementing recommendations. While beyond the audit time horizon, the Commission voted to create a transportation subcommittee in May 2013 to address ADA issues. Committee members indicated that there are issues with no shows, the lack of complaint forms on buses, that the information on response letters to complaints do not share enough information about what has been done, and issues with hold time for calls to the dispatchers.

Customer service performance data for Handy Ride for the triennial period was compiled by both FAX and MV Transportation. The contract operator compiled a data summary for on time performance, no–shows, and complaints. A synopsis of customer service performance including the number of complaints received for Handy Ride is presented in Table V-4 below.

Table V-4 Handy Ride Customer Service Performance Data Year/Metric 2009 2010* 2011 2012 On Time Performance 96.13% N/A 95.26% 94.70% Total Late Trips 7,839 N/A 7,839 10,748 Complaints 55 N/A 62 36 Source: FAX Statistical Summary Reports; Handy Ride Vehicle Operations Data

Based on the aforementioned data, Handy Ride has shown mixed performance across all metrics. On-time performance has averaged 95 percent of trips. This trend is reflected in the total number of late trips, which increased during the triennial period from 7,839 in FY 2009 to 10,748 in FY 2012. The data for FY 2011 appears to be repeated from FY 2009 in the statistical summary report. Data for FY 2010 was unavailable.

Operation safety and passenger injury data for Handy Ride is also tracked on the FAX Statistical Summary Report. Table V-5 provides a summary of vehicle collisions and passenger injuries recorded during the audit period for Handy Ride.

PMC - 30 30 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Table V-5 Handy Ride Safety Performance Data Year/Metric 2009 2010* 2011 2012 Number of Collisions 20 N/A 18 11 Number of Passenger Injuries 5 N/A 5 6 Source: FAX Statistical Summary Reports

The number of collisions declined from a high of 20 in FY 2009 to a low of 11 in FY 2012, whereas the number of passenger injuries has averaged about five per year. Data for FY 2010 was unavailable.

Maintenance

Maintenance of FAX vehicles fall under the purview of the Department’s Maintenance Division. The Maintenance Division operates out of a dedicated maintenance facility located at 2223 G Street. The current Fleet Manager began working with FAX’s Maintenance Division during the audit period. Mechanics are Automotive Service Excellence (ASE) certified.

Preventive maintenance is scheduled at regular intervals using Fleet Focus maintenance software. Maintenance schedules are monitored daily and parts are pulled in accordance with the schedule. Vehicles are generally serviced every 6,000 to 7,000 miles, which varies according to make. Type 3 vehicles are serviced every 5,000 miles, trolleys every 6,000 miles, and New Flyer buses every 7,000 miles. Records are kept both in an electronic (Fleet Anywhere) and paper format based on mileage. The 11 maintenance service bays on site are organized by function:

 One tire shop bay;  Two body shop bays;  One air conditioning service bay;  Six shop floor bays; and  One open bay, which also serves as a steam chamber.

In addition to the service bays, there is one bus wash facility with two lanes. Vehicles are washed once weekly. FAX is in the process of upgrading its maintenance facilities to accommodate the future BRT service, which will involve articulated buses. The facilities and equipment undergoing upgrades include the bus vacuum system, steam facility, lifts and bus wash.

One measure of vehicle maintenance is the number of vehicle breakdowns during revenue service. Roadcalls pertain to mechanical and other operational failures while the transit vehicles are in service. The City records roadcall information in its National Transit Database (NTD) Reports. A review of the NTD reports shows roadcall data for all audit years for fixed route but only for FY 2009 and FY 2012 for demand response. Table V-6 summarizes FAX’s roadcalls during the audit period.

PMC - 31 31 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Table V-6 FAX/Handy Ride Vehicle System Roadcalls Year FAX Fixed Route Handy Ride Demand Response Total Major Other Major Other 2009 859 240 2 49 1,150 2010 866 281 N/A N/A 1,147 2011 518 121 N/A N/A 639 2012 509 103 3 87 702 Source: FAX, National Transit Database

The number of roadcalls reported during the period has exhibited an overall downward trend. This trend mirrors the decrease in revenue miles between 2009 and 2012. The delivery of new alternative-fueled vehicles has also contributed to the reduction in mechanical failures. Future delivery of additional vehicles should continue the downward trend in mechanical failures.

Staff responsible for vehicle parts storage and management adhere to a set of control procedures. The four major areas of control include (1) inventory control; (2) maintain levels; (3) maintain shop tools; and (4) a review of the first three methods. There is limited access to the parts storage room, which is accessed by the storekeeper or supervisor on duty. The room is manned five days a week for all shifts. However, management of inventory is more limited on weekends, as a Parts Supervisor is not on shift. Access to the parts room is given to the Lead Worker and Maintenance Supervisor.

Parts are bar-coded and tracked by Fleet Focus software. The value of parts on hand will fluctuate based on demand. Parts for the New Flyer buses are procured from a regional parts facility in Fresno, thus reducing the need to stock certain inventory. Obsolete parts are returned to the manufacturers, auctioned, passed on to other agencies or recycled.

An inventory cycle count is performed once monthly for a selected parts section. The cycle count involves reconciling physical inventory against the counts in the computer. The monthly cycle count report compares the expected quantity on the computer with the actual hand-counted total and the value of the discrepancy. Both shorts and overages are recorded, with the net difference calculated as well as total discrepancy. A full inventory is performed at the end of the fiscal year.

The vault room is staffed from 3:30 p.m. to midnight. As buses come in from their routes, the GFI fareboxes are probed for trip data and the fares are locked and dropped off. Mileage is recorded by a GPS system manufactured by Siemens.

Planning

FAX initiated several service planning initiatives aimed at raising the profile of transit in the Fresno-Clovis Metropolitan Area. The most significant of these is the Short Range Transit Plan (SRTP) for the Fresno-Clovis Urbanized Area. The SRTP is updated every two years and is the basis for FAX’s funding and operational goals over a five-year period. During the audit period the FY

PMC - 32 32 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

2010–2014 SRTP and the FY 2012-2016 SRTP were adopted. The SRTP update evaluates existing service at the route level and allows FAX to identify underperforming routes. The SRTP also takes into account other service plans such as the Bus Rapid Transit (BRT) Master Plan, the San Joaquin Valley Blueprint Study and the Public Transportation Infrastructure Study (PTIS).

The SRTP’s Strategic Plan contains seven goals with specific performance measures: Service Levels, Service Quality, Provide Efficient and Effective Service, System Image, Private Sector and Citizen Involvement, Integrated Multi-Modal Transportation, and Coordinate Transportation, Land Use and Air Quality Policy. Service quality and reliability standards contained in the FY 2012- 2016 SRTP provide a measurement tool to gauge the effectiveness and success of the transit service. Table V-7 summarizes the fixed-route performance and service quality standards presented in the current SRTP.

Table V-7 FAX Fixed-Route Performance & Service Quality/Reliability Standards Service Performance Indicator Performance Standard/Goal for FAX Fixed Route Transit Coverage Minimum 90 percent of service area population residing within one-half mile of bus route Route Frequencies/Headways 60 minutes maximum on every route Boardings per Revenue Hour 40 Farebox Recovery Ratio 24 percent On-Time Performance 92 percent departure within 5 minutes of schedule Preventable Accidents/Revenue Miles Operated 1 preventable accident per 100,000 revenue miles Detailed Mechanical Inspections Every 1,000 miles Trip Completion 99.5 percent of all scheduled trips Source: Short Range Transit Plan (SRTP), FY 2012–2016 for the Fresno-Clovis Urbanized Area

In comparing the SRTP performance standards with actual performance trends, FAX has encountered some challenges due to certain operational and fiscal constraints. With the development of low-density residential tracts in the far northern and western areas of Fresno, it has become difficult for FAX to maintain the minimum service coverage standard. With regard to service frequencies, FAX is still able to provide route frequencies of 60 minutes or better on all of its routes, but had to reduce the offering of its 15-minute service on four of its main trunk routes to 20 minutes due to decreased funding. However, FAX has been able to meet its boarding per revenue hour standard on its fixed-route services. Also, FAX continues to meet the mandated farebox recovery standard of 20 percent while also meeting the SRTP farebox recovery standard of 24 percent in FY 2012.

On-time performance is gauged through the Trapeze dispatching software with Global Positioning System (GPS) technology. As shown in prior Table V-1, on-time performance was below the SRTP standard of 92 percent having averaged about 81 percent. FAX does not record accidents based on the one per 100,000 mile standard in its Statistical Summary Reports, but instead records the actual number of incidents.

PMC - 33 33 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

With the implementation of BRT, the orientation of the overall fixed-route service will change. Policies adopted in the SRTP that call for higher frequencies on transit-intensive corridors are instrumental in supporting BRT. The Fresno General Plan contains policies that advocate transit corridors and Transit-Oriented Development (TOD) as well as incentives for infill development and relaxed parking requirement standards. Other policy initiatives have included a regional transit consolidation study which has lacked the necessary coordination at the policy and political level.

Marketing

FAX publishes a Schedule Guide containing information about fares, rules to ride by, destination guide, customer survey, and a driver appreciation nomination form in addition to schedules and route maps for both FAX and Clovis Transit. The Schedule Guide is published primarily in English with Spanish-language translation. In anticipation of the fare increase that went into effect in January 2011, FAX released a glossy tri-fold brochure announcing the new fare structure.

Information about FAX is also accessible over the City of Fresno website, (http://www.fresno.gov/DiscoverFresno/PublicTransportation/default.htm), which contains links to route schedules and maps, fares, compliment and compliant forms, user guide, planning documents, ADA Advisory Committee, and a trip planner. The bilingual online trip planner was developed in conjunction with Google Transit. The trip planner features real-time bus information tied to a specific bus stop number. FAX schedules are also available in the Fresno County Transportation Guide published by Fresno COG. The COG’s 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.

FAX operates a service center located at 3590 North Blackstone Avenue at the corner of Blackstone and Shields Avenue adjacent to the Manchester Mall. The Manchester Transit Center is open Monday through Friday from 8:00 a.m. to 5:00 p.m., and offers a full complement of services including ticket/pass sales, route information, lost and found, and the issuance of FAX ID cards. FAX participates with Clovis Transit in the Metro Pass program, which offers unlimited monthly rides on both systems. Metro Passes are sold at the Manchester Transit Center in Fresno and the Clovis City Hall. Fresno and Clovis have been in discussions regarding the continued use of the Metro Pass and the fare revenue distribution between the two transit systems.

Additional forms of outreach have included the publication of a newsletter related to the proposed BRT line, surveys and engaging local students at Fresno State University and Fresno City College during orientations. FAX conducted a passenger survey from January through March 2010 that included survey cards and intercept interviews conducted at bus stops in the downtown area and at the Manchester Transit Center. On average, Handy Ride passengers are surveyed every four years and FAX passengers are surveyed every two years.

PMC - 34 34 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

FAX also generates revenue from exterior and interior advertising, including bus wraps. FAX has continued its $500,000 contract with Lamar Transit Advertising to provide advertising on all FAX buses. FAX exercised the first of two contract options to extend the contract through 2013. FAX also provides interior advertising space on its vehicles to nonprofit organizations at a discount. No market for bus shelter advertising has been identified. FAX and the Fresno Bee have an in-kind agreement where copies of the newspaper would be made available on the buses in exchange for advertising space.

General Administration and Management

Fresno is a full-service charter city operating under a mayor-council form of government. The Fresno City Council consists of seven members elected from seven districts within the City of Fresno and is the policy making board for FAX. The Council is responsible for setting operating policy and annually adopting the budget. The Mayor is elected at large and does not serve on the Council, but has veto power over certain actions taken by Council. The City Manager, who is appointed by the Mayor, is responsible for appointing all other department heads in 13 different departments such as the Department of Transportation.

FAX is administered by the City’s Department of Transportation. As part of the City, FAX’s day-to- day operations are overseen by the Director of Transportation, who reports directly to the City Manager. The number of authorized positions by FAX operating division is presented in Table V-8. The position count is a reduction from prior years.

Table V-8 FAX Divisions & Authorized Positions Division Number of Authorized Positions Administration 16 Fleet Equipment Acquisition 4 Fleet Management 69 Maintenance 64 Operations 246 Planning 3 Support Services 7 Total Authorized Positions 409.00 Source: 2011–2012 Adopted Budget, City of Fresno

During FY 2011, a citywide internal reorganization resulted in the Fleet Equipment Acquisition and Fleet Management Divisions being transferred to the Department of Transportation. At the end of FY 2012, FAX had 269 bus operators, comprising 249 full-time drivers and 20 permanent part-time drivers. The City’s fiscal situation during the recession prompted a series of furloughs across all departments. The measures included a week off without pay and staffing reductions. FAX decreased its administrative staff by 8 employees. In addition, FAX was able to secure a 3 percent wage concession from the unions and changes in work rules. It is anticipated that several high level FAX management positions will change over through retirements in the near future. Succession planning has been in the works.

PMC - 35 35 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

FAX employees are represented by five bargaining units. The drivers are represented by the Amalgamated Transit Union (ATU), Local 1027, and mechanics are represented by the International Union of Operating Engineers (I.U.O.E.), Local 39. Management employees are also represented by the City of Fresno Management Employees Association, Unit 14 and the City of Fresno Professional Employees Association, Inc. Non-supervisory white collar personnel are represented by the Fresno City Employees Association, Inc. Personnel issues have included a high rate of driver absenteeism due to worker’s compensation claims and turnover in supervisory staff.

Drivers receive eight hours of annual training and retraining for accidents and customer complaints. Training is also provided for new buses and fareboxes. FAX offers employee safety awards to maintain and enhance morale. In recognition of superlative performance, drivers are honored through the “Gold Standard” program. The FAX Gold Standard program was developed by the Director of Transportation in conjunction with employee groups to acknowledge drivers who excelled in their vocation. The key performance measures of the program include reliability (2,000 hours worked), safety (no preventable accidents), and customer relation skills (no complaints, etc). Drivers recognized under this program receive distinctive gold colored polo shirts to signify their excellent performance.

FAX has established a Transit Rates and Services Committee that provides oversight to transit issues such as fare structure and service efficiencies and holds public forums to involve the community. The Rates and Services Committee was engaged in the procurement of the new farebox system and has been instrumental in partnering with local colleges. Committee findings and recommendations are submitted to the Mayor and Fresno City Council for review and further consideration.

FAX provides transit data that feed into the City’s Stat Track reporting program that includes a matrix of noteworthy statistics from each City department. The statistics are followed by a series of bar graphs showing notable trends for each department. FAX uses Stat Track to report key performance indicators, such as ridership and revenues.

FAX’s most recent FTA Triennial Review was conducted in 2012. The Triennial Review examines 24 areas. FAX was found deficient in four areas pertaining to satisfactory continuing control, ADA, EEO and ITS. Deficiencies in satisfactory continuing control and EEO were closed out in response to the draft report. The ADA service deficiencies pertained to FAX’s operator policy and procedures handbook, written in 1986, that incorrectly lists the minimum requirements for operator stop announcements. The operator handbook was updated to conform to ADA requirements and distributed in November 2012. As for ITS architecture, the Federal audit found that FAX did not have a process for determining risk and system engineering analysis of ITS related projects. The ITS deficiency was corrected by the update of the Intelligent Transportation Systems Management Plan in July 2012.

PMC - 36 36 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Grants Management

Grant funding allocated toward supporting transit services has been derived from local, state, and federal sources. The principal source of local funding has been the Measure C Extension, the countywide, one-half cent sales tax reauthorized by voters in November 2006. About 24 percent of the expected Measure C funds are allocated to Regional Public Transit 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 support existing services, increase service levels, leverage grant dollars, and complete minor capital projects.

Based on the Measure C Extension Expenditure Plan Regional Public Transit program, FAX is programmed to receive on average $11.75 million annually or $235 million over the 20 year life of the measure in multimodal funding. Measure C Extension funds have been used to support night and weekend service, 15-20 minute headways, and bus shelter improvements. However, given the shortfall in sales tax revenues due to the economic recession, Measure C Extension funds allocated toward FAX have ranged from $6.6 million in FY 2010 to $7.8 million in FY 2012.

State funding has consisted of TDA and Proposition 1B allocations. FAX’s Local Transportation Fund (LTF) apportionment has ranged from $11.67 million in FY 2010 to $19.24 million in FY 2011 to $21.41 million in FY 2012. State Transit Assistance Funds (STAF) received ranged from $4.28 million in FY 2011 to $4.55 million in FY 2012. As allowed by Fresno COG in filing of TDA claims, the City of Fresno uses a continuing resolution by the City Council for the submission of the annual claim. FAX received state Public Transportation Modernization, Improvement and Service Enhancement Account (PTMISEA) funds as a part of the Proposition 1B bond act. PTMISEA funds have been applied toward capital projects such as vehicle procurement and facility upgrades. Based on the FY 2012 Annual Fiscal and Compliance Audit, FAX received $10.2 million in PTMISEA funding.

Most transit-related federal grants are derived from several funding formulas. FTA Section 5307 funds are used to support operations such as preventive maintenance, passenger amenities, and a portion of the Handy Ride contract. FTA Section 5310 funding has been received for the replacement of paratransit vehicles. FAX was allocated FTA Section 5309 small starts funding toward BRT. Statewide planning grant funding was received from Caltrans through the FTA Section 5304 program. Also, the trip planning project was funded with the assistance of FTA Section 5316 JARC funds. With the enactment of the new federal transportation authorization bill, Moving Ahead for Progress in the 21st Century (MAP-21), FAX will be subject to a new allocation formula. In addition, FAX had one active Federal ARRA grant. The projects funded by this grant included the purchase of two 30-foot and two 40-foot buses; relief vehicles; installation of bus stop signs and other bus stop improvements; bus stop shelters; funding of preventive maintenance; Automatic Passenger Counters; and the CNG station upgrade.

PMC - 37 37 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Section VI

Findings

The following summarizes the major findings obtained from this Triennial Audit covering fiscal years 2010 through 2012. A set of recommendations is then provided.

Triennial Audit Findings

2. FAX participates in the CHP Transit Operator Compliance Program in which the CHP has conducted inspections within the 13 months prior to each TDA claim. The CHP inspection reports submitted for review were found to be satisfactory.

4. Based on the available data from the Annual Fiscal and Compliance Audits, the agency’s farebox recovery ratio remained at the required 20 percent standard during the review period.

5. Of the four prior audit recommendations, FAX partially implemented one recommendation that pertains to enhanced marketing channels. The remaining three recommendations have been carried forward for full implementation.

6. Operating costs systemwide increased 5.6 percent based on audited data from the FY 2009 base year through FY 2012. Fixed route operating costs increased by 6.4 percent during the audit period. Dial-a-Ride operating costs increased by a more modest 1.8 percent. The increase in operating costs is attributed to fixed route service improvement, labor cost growth and increases in uncontrollable costs such as fuel.

PMC - 38 38 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

7. Ridership increased 1.5 percent systemwide during the audit period. Fixed route ridership increased 1.7 percent while Dial-a-Ride ridership decreased 10.6 percent. Systemwide ridership increased by 24.7 percent in FY 2010 from the prior year but declined in FY 2011 and 2012. Fixed route ridership trends were responsible for the systemwide increase in FY 2010 and the subsequent decrease. Dial-a-Ride saw more modest declines in ridership with an 8.1 percent decrease in FY 2012.

8. Operating cost per hour, an indicator of cost efficiency, increased 18.5 percent systemwide. The indicator exhibited a comparable increase on the fixed route of 19.8 percent whereas Dial-a-Ride saw its cost per hour increase 12.9 percent over the audit period. The trends in this indicator reflect the increase in operating costs compared to the decrease in revenue service hours. A similar trend occurred for the performance indicator that measures operating cost per passenger where operating cost grew at a faster pace than the increase in ridership.

9. Passengers per vehicle service hour, which measures the effectiveness of the service delivered, exhibited an increase of 13.9 percent systemwide which is positive. The rate of increase in this indicator was slightly higher for fixed route, which saw passengers per hour increase by 14.5 percent. In contrast, passengers per hour on Dial-a-Ride decreased 0.9 percent. Systemwide, the number of passengers per service hour increased from 30 passengers in FY 2009 to 34.1 passengers in FY 2012, peaking at 37.2 passengers in FY 2011.

10. The first fare increase in 10 years was implemented in January 2011, which saw the regular fixed-route fare increase from $1.00 to $1.25. Fares on Handy Ride underwent their first increase in 20 years.

11. Conversion to CNG vehicles has helped to moderate the rise in fuel costs. Sixteen new CNG buses were procured during the audit period. This included the purchase of 10 - 2011 New Flyer 40-foot buses, three 2012 New Flyer 30-foot buses and one electric hybrid bus. There were also two new Handy Ride vehicles delivered in FY 2012.

12. FAX’s Automated Fare Collection (AFC) system, which had been in use since 1988, underwent an upgrade. In October 2012, FAX released a Request for Proposals for a new AFC system. In April 2013, Fresno awarded a $3.1 million contract to GFI Genfare to install the new AFC system.

13. In anticipation of the new AFC system, farebox handling measures were tightened up during the audit period. Fareboxes were inventoried and inspected on a regular basis. Security cameras were installed in areas where fare handling is conducted. In addition, regular audits of fare revenues are conducted with an established revenue baseline to determine fluctuations in monthly collections.

14. The new Handy Ride Center located at 4488 North Blackstone in central Fresno opened in January 2012. The location of the center is the site of a former automotive sales lot. The Department of Transportation purchased the property, thus alleviating the need to pay rent and resulting in annual savings of $85,000 to the City.

PMC - 39 39 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

15. FAX is in the process of upgrading its maintenance facilities to accommodate the future Bus Rapid Transit (BRT) service, which will involve articulated buses. The facilities and equipment undergoing upgrades include the bus vacuum system, steam facility, lifts and bus wash.

16. During FY 2011, a citywide internal reorganization resulted in the Fleet Equipment Acquisition and Fleet Management Divisions being transferred to the Department of Transportation. At the end of FY 2012, FAX had 269 bus operators, comprising 249 full-time drivers and 20 permanent part-time drivers.

PMC - 40 40 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

Recommendations

1. Report paratransit contract employees in the State Controller Report.

As a carryover from the prior performance audit, state law requires that transit operators provide the count of full-time employee (FTE) equivalents in the annual State Controller Report for both directly employed and contracted employees. An FTE is derived by dividing total employee work hours by 2,000. FAX should include the count of contracted employees (e.g. drivers, supervisors and administrative managers) for Handy Ride in the annual report. It was suggested that the Support Services Division work more closely with the contract operator in ensuring that FTEs are calculated based on the criteria stipulated in the TDA statute. FAX administrative staff did provide a breakdown of FTEs for the Handy Ride paratransit service to the auditor during the site visit. However, the Transit Operators Financial Transaction Reports submitted to the State Controller for the Handy Ride service during the audit period still omit the FTEs in the Operating Data section of the report. The recent change in contract operator affords FAX the opportunity to have this data reported in a consistent manner.

2. Perform “final” review of State Controller Report for consistency with the Fresno COG Transit Productivity Evaluation Report.

The prior audit found that the performance indicator data contained in the annual State Controller Transit Operators Financial Transaction Report and the Fresno COG Transit Productivity Evaluation Report have not been consistent, although both reports are completed concurrently. It was suggested that the Support Services Division institute better monitoring verification procedures that would result in consistency among the various reports. There continue to be challenges in this area.

For example, the vehicle service miles reported for Handy Ride in FY 2010 are not consistent (1,120,776 in the State Controller vs. 1,609,206 in the Productivity Evaluation). Also the number of passenger trips reported for FAX in FY 2010 is not consistent (18,087,391 in the State Controller vs. 17,589,425 in the Productivity Evaluation). In addition, the operating cost page in the FY 2011 State Controller Report for Specialized Service was incomplete. Other data discrepancies are slight yet noticeable. It is recommended that Department of Transportation staff continue to collaborate closely with the Finance Department to ensure more accurate data reporting.

PMC - 41 41 Triennial Performance Audit of Fresno Area Express – FY’s 2010-2012

3. Record accidents in the statistical summary report based on the metric utilized in the Short-Range Transit Plan (SRTP).

As a carryover from the prior triennial audit, it was recommended that FAX record accidents in its monthly statistical summary reports based upon the metric used in the SRTP, which is which is the number of accidents per 100,000-miles. The inclusion of this information in the summary reports provides an indication of operator ability and whether FAX is meeting the SRTP performance goals. However, the statistical summary report for FY 2012 has not yet shown this metric for fixed-route collisions. FAX should continue efforts to implement the recommendation during development of the monthly report.

4. Focus management priorities on BRT implementation and ITS application.

With FAX progressing toward BRT implementation along with roll out of new ITS architecture, the focus of management should be to ensure the success of this new service which is anticipated to significantly improve transit delivery. Management priorities of the service must be transferred to new transit leadership, as there are indications of near term changeover of FAX management through retirement. In addition to succession planning and high level recruitment, department divisions as a whole will need to be prepared for advancements in data collection and reporting, customer service and operations support, and technology savvy that accompany BRT systems and ITS components.

PMC - 42 42