City of Lompoc Transit (City, COLT) Covering the Most Recent Triennial Period, Fiscal Years 2015–2016 Through 2017–2018

October 2019

TABLE OF CONTENTS

Section I ...... 1

Introduction ...... 1

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

Section II ...... 7

Operator Compliance Requirements ...... 7

Section III ...... 14

Prior Triennial Performance Recommendations ...... 14

Section IV ...... 17

TDA Performance Indicators ...... 17

Section V ...... 28

Review of Operator Functions ...... 28

Operations ...... 28 Maintenance ...... 30 Planning ...... 31 Marketing ...... 31 General Administration and Management ...... 32

Section VI ...... 34

Results and Recommendations ...... 34

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 Santa Barbara County Association of Governments (SBCAG) engaged Michael Baker International to conduct a performance audit of the City of Lompoc Transit (City, COLT) covering the most recent triennial period, fiscal years 2015–2016 through 2017–2018. The purpose of the performance audit is to evaluate the City’s effectiveness and efficiency in its use of TDA funds to provide public transit 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 City’s compliance with the conditions specified in the California Public Utilities Code (PUC). This task involves ascertaining whether the City is meeting the PUC’s reporting requirements. Moreover, the audit includes calculations of transit service performance indicators and a detailed review of the City’s transit administrative functions. From the analysis that has been undertaken, a set of recommendations has been made for the agency 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 city transit management and the contract operator, 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

Background

Transit service in Lompoc began in January 1976 as a general public demand-response service. With the increased demand for transit, a four-line, fixed-route service was implemented in July 1999 and the demand-response service focused on serving seniors and the disabled. In 2007, demand- response services were made available to Americans with Disabilities Act (ADA) certified passengers only. The City of Lompoc Public Works Department provides system administration, planning, and oversight while enlisting the services of a private contractor for bus operations. The current total service area is approximately 40 square miles.

Lompoc was incorporated in 1888 and was initially developed from the Lompoc Valley Land Company as a temperance colony. The city is located at the junction of State Routes (SR) 1 and 246, Triennial Performance Audit 1 City of Lompoc Transit

which provide access to US Highway 101 and neighboring metropolitan areas. Lompoc is nestled at the foot of the Santa Ynez Mountains in Santa Barbara County, 155 miles north of Los Angeles, 55 miles north of Santa Barbara, and 270 miles south of San Francisco.

Based on the 2010 US Census, Lompoc’s population was 42,434, which grew 3.2 percent since the 2000 US Census. The senior citizen population, comprising residents aged 65 and over, is 9.95 percent. The 2019 population for Lompoc is estimated to be 43,649 as reported by the California Department of Finance; this estimate has been stagnant since 2014. The city limits cover an 11.60- square-mile area.

Early Lompoc was essentially agricultural, but the community’s economic and labor base has grown and diversified. Lompoc is known as “The City of Arts and Flowers” and for its wine industry. The city has also built a tourism industry with domestic and international travelers visiting La Purisima State Historical Park Mission, Surf Beach, flower fields, and downtown murals. Vandenberg Air Force Base located 9 miles to the north also plays an important role in the city's economic engine as the largest employer in the area.

System Characteristics

Lompoc’s transit system comprises urban and intercity fixed-route as well as ADA service. Intercity services consist of the Wine Country Express and the biweekly Santa Barbara Shuttle. COLT also operates an evening shuttle service from Allan Hancock College, Lompoc Valley Center campus Monday through Thursday where students board the shuttle on campus and receive a ride to their front door. The service is operated under contract to a private transportation operator, with City staff providing administration and transit management, as well as vehicle maintenance.

A new transit center opened in April 2018 at the corner of Cypress Ave and I Street in the southern area of the city, serving as COLT’s transfer center where all routes converge. The previous transit center was located at Mission Plaza at the northeast corner of H Street and Central Avenue on the northern side of town. All COLT routes continue to stop at Mission Plaza for transfers. Routes and schedule times were changed from the new transit center location.

COLT operates Monday through Friday between the hours of 6:10 a.m. and 6:45 p.m. and Saturday between the hours of 9:00 a.m. and 5:15p.m. The system does not operate on Sundays and the following holidays: New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Christmas Eve, and Christmas Day.

COLT Fixed Route: COLT fixed-route service comprises four routes that operate within the Lompoc city limits as well as Vandenberg Village and Mission Hills, located in the unincorporated northern outskirts of the city. Service frequencies range from 45 to 70 minute intervals. Riders pay a higher fare for service outside of the city limits. A summary of routes, frequencies, and timepoints is presented in Table I-1.

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Table I-1 COLT Fixed-Route Services

Route Number Frequency/Operation Key Timepoints 1 Every 45 to 55 minutes ▪ Central/H Street (Monday through Friday from ▪ H Street/Pine Avenue 6:10 a.m. to 6:45 p.m. & ▪ I Street/Cypress Avenue Saturday from 9:20 a.m. to ▪ A Street/Cypress Avenue 5:05 p.m.) ▪ Lompoc Valley Medical

Center ▪ Wine Ghetto ▪ A Street/College Avenue 2 Every 45 to 55 minutes ▪ Central/H Street (Monday through Friday from ▪ Central Avenue/Walmart 6:10 a.m. to 6:32 p.m. & ▪ Laurel Avenue @ COLT Saturday from 9:20 a.m. to office 5:03 p.m.) ▪ Olive Avenue/V Street

▪ Cypress Avenue/I Street ▪ O Street/College Avenue 3 Every 45 to 55 minutes ▪ Central/H Street (Monday through Friday from ▪ D Street/North Avenue 6:10 a.m. to 6:37 p.m. & ▪ Pine Avenue/H Street Saturday from 9:20 a.m. to ▪ Laurel Avenue @ COLT 5:03 p.m.) office

▪ Pine Avenue/3rd Street 4 Every 45 to 70 minutes ▪ Central/H Street (Monday through Friday from ▪ Allan Hancock College 6:44 a.m. to 7:10 p.m. & ▪ Via Dona/Via Cortez Saturday from 9:00 a.m. to ▪ Burton Mesa/Rucker Road 5:10 p.m.) ▪ Titan/Vanguard

▪ Constellation/Jupiter Source: COLT, November 2018 System Schedule

Transfers are free for continuing one-way trips on another bus route, and are valid for up to 30 minutes.

Allan Hancock College Night Service: This is an evening shuttle service serving Allan Hancock College, Lompoc Valley Center campus. There are four trips operating Monday through Thursday at 30-minute frequencies from 8:10 p.m. to 9:40 p.m. that transport students from the campus to their homes.

Santa Barbara Shuttle: COLT operates one round trip between Lompoc and Santa Barbara on Tuesdays and Thursdays. The vehicle picks up Dial-A-Ride passengers first and then picks up other riders at the transit center at Cypress and I Avenue at 8:30 a.m. for the outbound trip. Passengers Triennial Performance Audit 3 City of Lompoc Transit

are dropped off at the Santa Barbara Metropolitan Transit District (MTD) bus depot in downtown Santa Barbara with a stop at the Buellton Post Office. In the afternoon, the vehicle departs the Santa Barbara MTD bus depot at 3:30 p.m. and then picks up Dial-A-Ride passengers for the inbound trip. Reservations are required for ADA service and medical appointments in Santa Barbara. Lompoc transit staff indicated that general public riders also use the service, including UC Santa Barbara students.

Wine Country Express Intercity Fixed Route: The Wine County Express is an intercity service that operates between the Cities of Lompoc, Buellton, and Solvang along the SR 246 corridor. There are three round trips that operate Monday through Saturday between the hours of 7:15 a.m. and 6:30 p.m. (last stop). Operated by COLT, the service is a cooperative effort between Buellton, Lompoc, and Solvang and the County of Santa Barbara. Table I-2 provides a summary of routes, frequencies, and timepoints.

Table I-2 Wine Country Express Service Routing Frequency/Departures Destinations/Timepoints Eastbound Monday through Saturday ▪ Cypress/I Street – Lompoc Lompoc to Buellton 7:15 a.m.; 1:00 p.m.; and ▪ Albertsons/CVS Pharmacy – and Solvang 4:45 p.m. Buellton ▪ Solvang Park – Solvang Westbound Monday through Saturday ▪ Solvang Park – Solvang Buellton and Solvang 8:00 a.m.; 1:40 p.m.; and ▪ Albertsons/CVS Pharmacy – to Lompoc 5:25 p.m. Buellton ▪ Cypress/I Street – Lompoc Source: COLT System Schedule

COLT ADA Service: COLT ADA service offers curb-to-curb transportation for ADA-certified persons within a three-quarter mile radius of the local fixed-route lines. The ADA service is available during the same day and hours of operation as the fixed-route service. ADA service is also available on the Santa Barbara Shuttle. Trips are made by advance reservation. A personal aide may ride free of charge when accompanying a paying passenger in need of physical or medical assistance.

Fares

COLT fares are structured according to service mode, passenger category, and fare media. COLT offers its customers the opportunity to purchase monthly and punch passes. Transfers are free with the purchase of a one-way fare and are good for up to 30 minutes when transferring to another bus route. The Wine Country Express, and the Breeze intercommunity service operated by Santa Maria Area Transit, share the same fare at $2 per adult trip. The fare structure is summarized in Table I-3. It is noted that a fare increase was implemented for ADA demand-response in March 2016 based upon a citywide fee study. The ADA demand-response fare increased from $1.00 to $2.00 for travel within city limits, and from $1.50 to $4.00 for ADA demand-response outside city limits. The Santa Barbara Shuttle fare also increased from $6.00 to $7.00. Triennial Performance Audit 4 City of Lompoc Transit

Table I-3 COLT Fare Schedule

Fixed Route (Within City Limits) Fare Single Ride $1.25 Seniors (Age 65 and older)/Disabled $0.60 Children (Under 6 years of age with fare paying passenger) Free Transfers Free ADA Service $2.00 Personal Aide (escorts for persons with disabilities) Free Regular 10-Punch $11.25 Senior/Disabled 10-Punch $5.60 Regular Monthly Pass $40.00 Student Monthly Pass $30.00 Senior Monthly Pass $15.00 Fixed Route (Outside City Limits – Vandenberg Village/Mission Hills) Fare Single Ride $2.00 Seniors (Age 65 and older)/Disabled/Medicare Card Holders $1.00 Children (Under 6 years of age when accompanied by a fare paying passenger) Free Transfers Free ADA Service $4.00 Personal Aide Free Regular 10-Punch $18.00 Senior/Disabled 10-Punch $9.00 Regular Monthly Pass $60.00 Student Monthly Pass $45.00 Senior Monthly Pass $30.00 Santa Barbara Shuttle $7.00 Wine Country Express Adult $2.00 Seniors/Disabled $1.00 Source: City of Lompoc

Triennial Performance Audit 5 City of Lompoc Transit

Fleet

Lompoc has 15 active vehicles in its COLT revenue fleet. Larger vehicles are utilized interchangeably between fixed-route services. All vehicles in the COLT revenue fleet are either lift-equipped or have ramps/low floors and conform to ADA requirements. Table I-4 summarizes the vehicle fleet for all revenue services.

Table I-4 Lompoc Fleet Inventory

Seating Year Make & Model Quantity Fuel Type Capacity 2008 Chevrolet C5500 1 Diesel 26 Ford E350 Eldorado Versa 2009 1 Diesel 6 Shuttle International AeroElite 2009 1 Diesel 30 320 International AeroElite 2012 4 Diesel 30 320 International AeroElite 2014 1 Diesel 18 280 Chevrolet G450 Glaval 2018 7 Gasoline 18 Titan Total 15 Source: City of Lompoc, Fleet & Facilities Management Division

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Section II

Operator Compliance Requirements

This section of the audit report contains the analysis of the City of Lompoc’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, which contains a checklist of 11 measures taken from relevant sections of the PUC 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, Completion/submittal dates: submitted annual reports to Section 99243 the RTPA based upon the Fixed-Route/Motor Bus Service: Uniform System of Accounts and Records established by FY 2016: October 18, 2016 the State Controller. Report FY 2017: January 31, 2018* is due 90 days after end of FY 2018: February 6, 2019* fiscal year (Sept. 28/29), or 110 days (Oct. 19/20) if filed Specialized Service: electronically (Internet). FY 2016: October 18, 2016 FY 2017: January 31, 2018* FY 2018: February 6, 2019*

*Note: New state legislation was passed (AB 1113, Bloom) on July 21, 2017, that changes the timeline to submit the annual Transit Operators Financial Transaction Reports to the State Controller effective reporting year FY 2017. The submittal date has been extended from within 110 days after fiscal year end to 7 months after fiscal year end, or end of January. This is an extension of about 100 days from the original deadline. With the change in dates, these reports are required to contain

Triennial Performance Audit 7 City of Lompoc Transit

Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements underlying data from audited financial statements.

Conclusion: Complied.

The operator has submitted Public Utilities Code, Completion/submittal dates: annual fiscal and compliance Section 99245 audits to the RTPA and to FY 2016: March 27, 2017 the State Controller within FY 2017: March 30, 2018 180 days following the end FY 2018: April 17, 2019 of the fiscal year (Dec. 27), or has received the Conclusion: Complied. appropriate 90-day extension by the RTPA allowed by law.

The CHP has, within the 13 Public Utilities Code, COLT, through its contract operator, months prior to each TDA Section 99251 B participates in the CHP Transit Operator claim submitted by an Compliance Program in which the CHP has operator, certified the conducted inspections within the 13 operator’s compliance with months prior to each TDA claim. Vehicle Code Section 1808.1 following a CHP inspection Inspections were conducted at the of the operator’s terminal. contractor’s facility located at 417 Commerce Court in Lompoc.

Transit operator compliance certificates and inspection dates applicable to the audit period were July 14, 2015; August 30, 2016; March 29, 2017; and March 22, 2018.

Inspections were found to be satisfactory with minor violations.

Conclusion: Complied.

The operator’s claim for TDA Public Utilities Code, As a condition of approval, the COLT’s funds is submitted in Section 99261 annual claims for Local Transportation compliance with rules and Funds and State Transit Assistance are

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Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements regulations adopted by the submitted in compliance with the rules and RTPA for such claims. regulations adopted by SBCAG.

Conclusion: Complied.

If an operator serves Public Utilities Code, This requirement is not applicable, as COLT urbanized and non- Section 99270.1 serves an urbanized area. urbanized areas, it has maintained a ratio of fare Conclusion: Not Applicable. revenues to operating costs at least equal to the ratio determined by the rules and regulations adopted by the RTPA.

The operator’s operating Public Utilities Code, Percentage change in the COLT operating budget has not increased by Section 99266 expenses: more than 15% over the preceding year, nor is there FY 2016: 10.8% a substantial increase or FY 2017: 2.6% decrease in the scope of FY 2018: 32.0% operations or capital budget provisions for major new The significant increase in budgeted fixed facilities unless the operating cost occurred for various reasons operator has reasonably including the re-routing and some schedule supported and substantiated change of the fixed route service from the the change(s). opening of the new transit center in the southern part of the City, and the transition of a new contract operator for the service. ADA demand response cost also increased from an increase in demand from ADA passengers. The reasons for the budgeted cost increase were not described in the TDA claim submitted to SBCAG.

Source: COLT operating budgets FYs 2015 through 2018.

Conclusion: Partial Compliance.

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Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements The operator’s definitions of Public Utilities Code, COLT’s definition of performance is performance measures are Section 99247 consistent with PUC Section 99247. A consistent with Public review of trip sheets during the audit Utilities Code Section 99247, period indicates that correct performance including (a) operating cost, data are being collected. (b) operating cost per passenger, (c) operating cost Performance data for fixed route service in per vehicle service hour, (d) the State Controller Reports combine passengers per vehicle financial and service data for both the service hour, (e) passengers general service and the Clean Air Express. per vehicle service mile, (f) total passengers, (g) transit Modal performance measures for fixed vehicle, (h) vehicle service route and demand response are reported in hours, (i) vehicle service separate State Controller Reports. City of miles, and (j) vehicle service Lompoc transit management and hours per employee. administrative costs are allocated by mode based on the annual split of fixed route and demand-response service hours (generally around a 70/30 split) which is a reasonable method for system-wide cost.

Conclusion: Complied.

If the operator serves an Public Utilities Code, According to the farebox recovery urbanized area, it has Sections 99268.2, requirements described in the SBCAG LTF maintained a ratio of fare 99268.3, 99268.12, Manual, COLT is subject to either a system- revenues to operating costs 99270.1 wide ratio of 20 percent, or individual at least equal to one-fifth modal ratios of 20 percent for fixed route, (20 percent), unless it is in a and 10 percent for specialized services. county with a population of less than 500,000, in which In light of farebox recovery issues for COLT case it must maintain a ratio identified in past audits, SBCAG set the of fare revenues to required farebox recovery ratio for Lompoc operating costs of at least at 15 percent for three years (FY 2011-12 equal to three-twentieths through FY 2013-14) per SBCAG Resolution (15 percent), if so 10-36. Resolution 14-01 further extended determined by the RTPA. this temporary reduction for one additional year (FY 14-15). Resolution 14-34 extended the reduction for an additional three years (FY 15-16 through FY 17-18).

Triennial Performance Audit 10 City of Lompoc Transit

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

The audited system-wide fare ratios are as follows:

System-wide (with local support – Measure A)

FY 2016: 25.0% FY 2017: 19.4% FY 2018: 16.0%

Modal operating ratios using unaudited data are presented below:

Fixed Route: Dial-a-Ride:

FY 2016: 12.2% 4.6% FY 2017: 13.3% 3.9% FY 2018: 8.5% 5.6%

System-wide farebox was met during the audit period. Separate farebox for fixed- route and Dial-A-Ride was not met in any year.

Source: Annual Fiscal Audits for system- wide ratios, and National Transit Database and State Controller’s Reports for modal data.

Conclusion: Compliance using system-wide farebox ratios.

If the operator serves a rural Public Utilities Code, This requirement is not applicable, as COLT area, or provides exclusive Sections 99268.2, serves an urbanized area. services to elderly and 99268.4, 99268.5 disabled persons, it has Conclusion: Not Applicable. maintained a ratio of fare revenues to operating costs

Triennial Performance Audit 11 City of Lompoc Transit

Table II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements at least equal to one-tenth (10 percent).

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

If the operator receives state California Code of COLT receives its operator revenue share of transit assistance funds, the Regulations, Section State Transit Assistance funds and utilizes operator makes full use of 6754(a)(3) federal funds (FTA Section 5307) that are funds available to it under available to COLT, as reported in the NTD the Urban Mass reports as follows: Transportation Act of 1964 before TDA claims are FY 2016: $599,706 (Operations) granted. FY 2017: $632,493 (Operations) FY 2018: $954,466 (Operations)

Conclusion: Complied.

Findings and Observations from Operator Compliance Requirements Matrix

2. COLT is held to a temporary farebox recovery standard of 15 percent on a system-wide basis as an urban operator. Based on audited data, the system-wide farebox recovery ratios for COLT met the standard for the triennial period. The farebox ratios included deductions for depreciation costs, and inclusion of Measure A contributions in the revenue, both of which are allowed by the TDA. The measure revenues include local share to the City and

Triennial Performance Audit 12 City of Lompoc Transit

contributions from the County for its share of service provided by COLT. Together, these measure tax sources were greater than fare revenues collected in each year. On a modal basis, the respective farebox ratios are calculated without inclusion of Measure A revenue as there was no division of the sales tax revenue between modes.

3. Through its contract operators, Storer Transportation through FY 2016 and then Roadrunner Management Services, Lompoc participates in the CHP Transit Operator Compliance Program and received vehicle inspections within the 13 months prior to each TDA claim. Satisfactory ratings were made for all inspections conducted during the audit period.

4. Except for 2018, the operating budgets increased by less than 15 percent. For 2018, the operating budget increased by 32 percent over 2017. The significant increase in budgeted operating cost occurred for various reasons including the re-routing and some schedule change of the fixed route service from the opening of the new transit center in the southern part of the City, and the transition of a new contract operator for the service. ADA demand response cost also increased from an increase in demand from ADA passengers. The reasons for the budgeted cost increase were not described in the TDA claim submitted to SBCAG.

5. Select performance data were missing from the State Controller Reports (vehicle service miles for the ADA service in 2017 and general fixed route data separate from Clean Air Express). The City should improve oversight and review of data during preparation of the report.

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Section III

Prior Triennial Performance Recommendations

Lompoc’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

Ensure all financial and operations data are properly included in the State Controller’s Transit Operators Financial Transactions Report.

Background: The prior performance audit found that FTEs were omitted from the State Controller Reports. A review of the reports for the FY 2013-2015 triennial period shows that FTE data were still missing from at least one of the years for general public service. Also, ridership figures were missing from the FY 2013 report. In addition, passenger fare revenues were over $1.0 million each year in the income statement section of the Controller Reports, clearly an input error. While City transit management reviews the reports to a degree, operations and financial data contained in the State Controller Report should be reviewed carefully for accuracy and completeness prior to submittal to the state by the Lompoc Finance Department. Proper reporting of FTEs as well as all other required operations and fare revenue data will result in more accurate performance indicators of productivity and responsiveness to the state.

Actions taken by Lompoc

A review of State Controller Reports for this current audit period shows improvement in the reporting of operations data. Of the two Controller reports (fixed route and specialized service) for the three years, only vehicle service miles for the ADA service in 2017 was missing. Also, since fixed route data was combined with that from Clean Air Express, the State Controller Report does not separate operations or financial data between the two mode. When comparing the Controller operations data to the Federal National Transit Database (next section), the data match when including all fixed route. City transit staff indicated that the new service contractor has added more data to the monthly report submitted to the City, and the reports in general show greater accuracy than in the past.

Conclusion

This recommendation has been implemented.

Prior Recommendation 2

Include additional locally generated revenue in the farebox recovery.

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Background: COLT is taking measures to improve farebox recovery, including a combination of service adjustments and inclusion of allowable revenue. New state legislation (SB 508, October 2015) allows for other locally generated revenues in the farebox ratio. Examples of possible other local support revenues may include interest earnings, gains on the sale of capital assets, lease revenues generated by transit-owned property, alternative fueling services, and advertising revenues. COLT has an opportunity to further improve its farebox ratio with local support revenue. Examples include businesses purchasing interior advertisements on board COLT buses, as described on the City transit website. The new operations and maintenance facility will house the City motor fleet in which COLT intends to charge rent to the other City departments. The annual TDA fiscal audit of the public transit fund should calculate the farebox ratio inclusive of applicable additional revenue. The City’s aviation/transportation administrator should work with the City Finance Department to identify locally generated revenue from transit, and then account for these locally generated revenue sources in the calculation of farebox recovery under the provisions of the new TDA law, consistent with the SBCAG TDA manual.

Actions taken by Lompoc

The City receives Measure A tax revenue for transportation. In the annual audited financial statements of the public transit fund, the farebox ratio is developed and includes both passenger fares and local support in the calculation. The local support amount has been higher than passenger fare revenue, indicating a heavy reliance on local funding to meet the farebox requirement. The City is reviewing additional potential local support funds for transit such as advertisement.

Conclusion

This recommendation has been implemented.

Prior Recommendation 3

Ensure monthly contractor reports include all operational performance measures.

Background: A review of performance reports submitted to the City by the contractors shows key operational data that has not been recorded. These indicators are listed in the report but have not shown actual data such as service interruptions (road calls), accidents/incidents, and complaints. These operational measures are important to track and report to gauge services provided by the contractor and identify any areas to be addressed.

Actions taken by Lompoc

There was a change in operations contractor from Storer Transportation to Roadrunner between FYs 2016 and 2017. The monthly reports were generally the same between the two contractors that included a cover letter highlighting a number of performance indicators, followed by detailed tables. A sample monthly performance report by Storer in the first audit year showed all data being completed in the report with small exception of year to date on-time performance information. Sample monthly performance reports by Roadrunner in FYs 2017 and 2018 show all data being

Triennial Performance Audit 15 City of Lompoc Transit completed in the report as well as additional detailed service information such as for Hancock College service.

Conclusion

This recommendation has been implemented.

Prior Recommendation 4

Update system map and schedule description on COLT website.

Background: In the prior audit period, COLT information on the City’s website contained helpful information about the service. However, some parts of the website for transit were outdated and should be corrected to avoid customer confusion. For example, a description of the fixed-route service on the COLT main page stated five local bus routes serving Lompoc, Vandenberg Village, and Mission Hills, when there have only been four main routes for several years. Also, the route description section of the website continued to provide a link to an outdated map and schedule that included the eliminated Route 5. The City should review and update information regularly on the website to ensure valid transit system information is shown.

Actions taken by Lompoc

Information about COLT on the City’s website has been significantly updated with many links to key transit information including schedule, map, news, fares, and the ADA application. The transit system’s new logo and route configuration with four numbered and colored routes are shown on a map. The website also offers an accessible format option for the material to be available in large print. Icons to other services such as Breeze, Clean Air Express, and Traffic Solutions are also provided.

Conclusion

This recommendation has been implemented.

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Section IV

TDA Performance Indicators

This section reviews Lompoc’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 shown as a compliance measure. Therefore, farebox calculation is also provided and is shown with and without the Measure A local support revenues. The Measure A funds are allocated by the City between both fixed route and demand response for elderly and disabled transit. Findings from the analysis are contained in the section following the tables.

Tables IV-1 through IV-3 provide the performance indicators for COLT system-wide, fixed route, and Dial-A-Ride. Charts are also provided to depict the trends in the indicators. It is noted that the system-wide operating costs and fare revenues are based on audited figures, while modal costs and fare revenues for fixed route and Dial-A-Ride are unaudited. The annual fiscal audits do not provide a modal breakdown.

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Table IV-1 Lompoc System-wide Performance Indicators

Audit Period % Change FY 2015- Performance Data and Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost $1,340,002 $1,254,662 $1, 737,167 $2,150,031 60.4% Total Passengers 113,713 106,171 101,511 88,675 -22.0% Vehicle Service Hours 18,915 20,447 20,604 17,053 -9.8% Vehicle Service Miles 256,539 251,245 248,932 269,168 4.9% Employee FTEs 32 29 29 30 -6.3% Passenger Fares $159,716 $ 135,456 $154,579 $149,268 -6.5% Local Support (Measure A) $179,591 $178,564 $181,899 $194,519 8.3% Total Fare Revenue $339,307 $314,020 $336,478 $343,787 1.3%

Operating Cost per Passenger $11.78 $11.82 $17.11 $24.25 105.8% Operating Cost per Vehicle Service Hour $70.84 $61.36 $84.31 $126.08 78.8% Operating Cost per Vehicle Service Mile $5.22 $4.99 $6.98 $7.99 52.9% Passengers per Vehicle Service Hour 6.0 5.2 4.9 5.2 -13.5% Passengers per Vehicle Service Mile 0.44 0.42 0.41 0.33 - 25.7% Vehicle Service Hours per Employee 591.1 705.1 710.5 568.4 -3.8% Average Fare per Passenger $1.40 $1.28 $1.52 $1.68 19.8% Fare Recovery Ratio 11.9% 10.8% 8.9% 6.9% -41.8% Fare Recovery Ratio with Local Support 25.3% 25.0% 19.4% 16.0% -36.9% Consumer Price Index (CPI Los Angeles CSMA) 0.80% 1.80% 2.20% 1.40% 75.0% Source: Annual Fiscal & Compliance Audits; State Controller's Reports; Transit Performance Data Spreadsheets 2015-2018

Triennial Performance Audit 18 City of Lompoc Transit

Table IV-2 Lompoc Fixed Route Performance Indicators

Audit Period

% Change FY 2015- Performance Data and Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost $986,675 $1,003,586 $1,056,318 $1,456,278 47.6% Total Passengers 99,399 92,741 93,528 79,812 -19.7% Vehicle Service Hours 13,954 16,139 16,034 12,809 -8.2% Vehicle Service Miles 212,528 210,533 212,083 233,560 9.9% Employee FTEs 25 22 22 23 -8.0% Passenger Fares $145,807 $122,467 $140,090 $122,988 -15.7%

Operating Cost per Passenger $9.93 $10.82 $11.29 $18.25 83.8% Operating Cost per Vehicle Service Hour $70.71 $62.18 $65.88 $113.69 60.8% Operating Cost per Vehicle Service Mile $4.64 $4.77 $4.98 $6.24 34.3% Passengers per Vehicle Service Hour 7.1 5.7 5.8 6.2 -12.5% Passengers per Vehicle Service Mile 0.47 0.44 0.44 0.34 -26.9% Vehicle Service Hours per Employee 558.2 733.6 728.8 556.9 -0.2% Average Fare per Passenger $1.47 $1.32 $1.50 $1.54 5.1% Fare Recovery Ratio 14.78% 12.20% 13.26% 8.45% -42.9% Note: Data inclusive of local fixed route, wine country express, and Santa Barbara shuttle. Source: National Transit Database; State Controller Reports

Triennial Performance Audit 19 City of Lompoc Transit

Table IV-3 Lompoc Dial-A-Ride/ADA Service Performance Indicators

Audit Period % Change Performance Data and FY 2015- Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost $352,690 $281,751 $372,987 $468,423 32.8% Total Passengers 14,314 13,430 7,983 8,863 -38.2% Vehicle Service Hours 4,961 4,308 4,570 4,244 -14.5% Vehicle Service Miles 44,011 40,712 36,849 35,608 -19.1% Employee FTEs 7 7 7 7 0.0% Passenger Fares $13,910 $12,989 $14,489 $26,280 88.9%

Operating Cost per Passenger $24.64 $20.98 $46.72 $52.85 114.9% Operating Cost per Vehicle Service Hour $71.09 $65.40 $81.62 $110.37 55.3% Operating Cost per Vehicle Service Mile $8.01 $6.92 $10.12 $13.15 64.2% Passengers per Vehicle Service Hour 2.9 3.1 1.7 2.1 -27.8% Passengers per Vehicle Service Mile 0.33 0.33 0.22 0.25 -23.6% Vehicle Service Hours per Employee 708.7 615.4 652.9 606.3 -14.5% Average Fare per Passenger $0.97 $0.97 $1.81 $2.97 205.7% Fare Recovery Ratio 3.94% 4.61% 3.88% 5.61% 42.3% Source: National Transit Database; State Controller's Reports; Performance Data Reports

Triennial Performance Audit 20 City of Lompoc Transit

Graph IV-1 Operating Costs System-wide, Fixed Route, and ADA Service

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$- FY 2015 FY 2016 FY 2017 FY 2018

Systemwide Fixed Route Dial-a-Ride

Note: System-wide operating costs are drawn from audited data, while data by mode are unaudited

Graph IV-2 Ridership System-wide, Fixed Route, and ADA Service

120,000

100,000

80,000

60,000

40,000

20,000

- FY 2015 FY 2016 FY 2017 FY 2018

Systemwide Fixed Route Dial-a-Ride

Triennial Performance Audit 21 City of Lompoc Transit

Graph IV-3 Operating Cost per Passenger System-wide, Fixed Route, and ADA Service

$60.00

$50.00

$40.00

$30.00

$20.00

$10.00

$- FY 2015 FY 2016 FY 2017 FY 2018

Systemwide Fixed Route Dial-a-Ride

Note: System-wide operating costs are drawn from audited data, while data by mode are unaudited

Graph IV-4 Operating Cost per Vehicle Service Hour System-wide, Fixed Route, and ADA Service

$140.00

$120.00

$100.00

$80.00

$60.00

$40.00

$20.00

$- FY 2015 FY 2016 FY 2017 FY 2018

Systemwide Fixed Route Dial-a-Ride

Note: System-wide operating costs are drawn from audited data, while data by mode are unaudited

Triennial Performance Audit 22 City of Lompoc Transit

Graph IV-5 Passengers per Vehicle Service Hour System-wide, Fixed Route, and ADA Service

8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 FY 2015 FY 2016 FY 2017 FY 2018

Systemwide Fixed Route Dial-a-Ride

Graph IV-6 Fare Recovery Ratio System-wide, Fixed Route, and ADA Service

30%

25%

20%

15%

10%

0% FY 2015 FY 2016 FY 2017 FY 2018

Systemwide Fixed Route Dial-a-Ride

Note: System-wide audited farebox ratios include local support (Measure A) revenue.

Triennial Performance Audit 23 City of Lompoc Transit

Findings from Verification of TDA Performance Indicators

1. Operating cost per vehicle service hour, an indicator of cost efficiency, increased by 79.0 percent system-wide from $70.84 FY 2015 to $126.08 in FY 2018. System-wide operating costs increased 60.4 percent in the reporting period while vehicle service hours experienced a decline of 9.8 percent. A significant increase in system-wide operating costs occurred between FY 2016 and FY 2017 as costs increased 38.5 percent. Fixed-route cost per vehicle hour experienced a 60.8 percent increase over the triennial period as vehicle service hours declined and operating costs increased by 47.6 percent. Demand-response operating cost per hour exhibited an increase of 55.3 percent from $71.09 in FY 2015 to $110.37 in FY 2018 as vehicle service hours declined, and operating costs increased by 32.8 percent. As described in the prior section, the significant increase in operating cost occurred for various reasons including the re-routing and some schedule change of the fixed route service from the opening of the new transit center in the southern part of the City, and the transition of a new contract operator for the service. ADA demand response cost also increased from an increase in demand from ADA passengers.

2. Operating cost per passenger, an indicator of cost effectiveness, increased 105.8 percent system-wide from $11.78 in FY 2015 to $24.25 in FY 2018. Audited system-wide operating costs increased and system-wide ridership decreased. Unaudited fixed-route costs also increased and ridership declined, resulting in an increased cost per passenger. Demand- response services also experienced a decline in ridership and increased cost, resulting in increased operating cost per passenger.

3. Passengers per vehicle service hour, which measures the effectiveness of the service delivered, decreased by 13.5 percent system-wide from 6.0 to 5.2 passengers per hour for the three-year period. Fixed-route operations reflected a similar percentage decrease of 12.5 percent from 7.1 to 6.2 passengers per hour. Ridership decreased at a faster rate than the decline in vehicle service hours on both fixed route and demand-response operations, which exhibited an decrease of 27.8 percent from 2.9 to 2.1 passengers per hour.

4. Passengers per vehicle service mile, another indicator of service effectiveness, decreased 25.7 percent system-wide between FY 2015 and FY 2018 from 0.44 in FY 2015 to 0.33 in FY 2018 as annual ridership declined while vehicle service miles increased. For fixed-route operations, the number of passengers per service mile decreased by 26.9 percent from 0.47 to 0.34. Demand-response passengers per service mile decreased 23.6 percent from 0.33 to 0.25 during the triennial period due to a decrease in ridership that was faster than a reduction in vehicle service miles.

5. Vehicle service hours per employee from FY 2015 through 2018, the system-wide number of FTEs decreased by two while service hours also declined, resulting in a 3.8 percent decline in service hours per employee.

6. Farebox recovery without local support exhibited an overall decrease of 41.8 percent system-wide between FY 2015 and 2018 as audited passenger fares declined. Audited local

Triennial Performance Audit 24 City of Lompoc Transit

support funding showed an increase from $179,591 in FY 2015 to $194,519 in FY 2018. However, system-wide farebox recovery with local support still decreased 36.9 percent in the triennial period. By mode, farebox recovery (without local support) decreased by 42.9 percent on fixed-route service, while demand-response service farebox recovery increased by 42.3 percent over the three years.

The Measure A revenues include local share to the City and contributions from the County for its share of service provided by COLT. As described in the previous section on efforts to implement prior audit recommendations, the City has worked with the County on using local support rather than TDA funds to pay for a portion of the services COLT provides to the County. The City’s TDA claims show the contributions by the County using Measure A local support revenue in the amount of $100,000 per year in 2016 and 2017 and $112,000 in 2018, which is counted toward COLT’s farebox recovery. This swap in fund source boosted the local support amount shown in the system-wide performance table. The City Council also has authorized the use of its local Measure A funds to meet minimum farebox recovery requirements.

Conclusion from the Verification of TDA Performance Indicators

COLT’s performance indicators generally show negative trends from an operating cost perspective, as increased operating costs resulted in reduced cost efficiency and effectiveness as measured by operating cost per vehicle revenue hour and by vehicle revenue mile, and operating cost per passenger. Contractor costs increased for the triennial period by 58.4 percent. The contractor allocates cost based on vehicle revenue hours while reporting actual fare revenues collected by each service. The infusion of additional local support revenue further helped COLT to meet its farebox recovery standard.

Triennial Performance Audit 25 City of Lompoc Transit

Data Consistency

In a review of data consistency among external reports, fiscal year-end performance data was compared between the annual State Controller Report and the annual National Transit Database. Performance data reviewed included ridership, vehicle revenue service hours, and vehicle revenue service miles. Table IV-4 shows the side-by-side comparison during the audit period (FYs 2016, 2017, and 2018).

For ADA service, except for the missing vehicle service miles in the FY 2017 State Controller Report, the data are consistent between the two reports. For the fixed route service, the State Controller Reports do not separate the Clean Air Express from the general fixed route service which the National Transit Database does; therefore the NTD data in the comparison table separately shows both fixed route and Clear Air Express. From this more direct comparison, the passenger data, vehicle miles and vehicle hours in the State Controller Reports largely agree with the corresponding sum of the data for fixed route and Clean Air Express reported in the National Transit Database.

Table IV-4 Data Consistency – Fixed Route

Audit Review Period TDA Statistic Source FY 2016 FY 2017 FY 2018 FTA National Transit Database Unlinked Passengers (fixed route) 92,741 93,528 79,812 FTA National Transit Database (Clean Air Express) 192,375 174,031 83,913 Sum of NTD 285,116 267,559 163,725 State Controller Report 285,116 267,559 163,725

FTA National Transit Database Vehicle Service Hours (fixed route) 16,139 16,034 12,809 FTA National Transit Database (Clean Air Express) 9,483 9,500 4,630 Sum of NTD 25,622 25,534 17,439 State Controller Report 25,622 25,534 17,439

FTA National Transit Database Vehicle Service Miles (fixed route) 210,533 212,083 233,560 FTA National Transit Database (Clean Air Express) 392,757 401,511 191,634 Sum of NTD 603,290 613,594 425,194 State Controller Report 603,290 613,594 410,524

Triennial Performance Audit 26 City of Lompoc Transit

Data Consistency – ADA Service

Audit Review Period TDA Statistic Source FY 2016 FY 2017 FY 2018 Unlinked Passengers FTA National Transit Database 13,430 7,983 8,863 State Controller Report 13,430 7,983 8,863

Vehicle Service Hours FTA National Transit Database 4,307 4,570 4,244 State Controller Report 4,308 4,570 4,244

Vehicle Service Miles FTA National Transit Database 40,712 36,849 35,608 State Controller Report 40,712 n/a 35,608

Triennial Performance Audit 27 City of Lompoc Transit

Section V

Review of Operator Functions

This section provides an in-depth review of various functions within the City of Lompoc COLT transit service. The review highlights accomplishments, issues, and/or challenges that were determined during the audit period. The following departments and functions were reviewed at the City:

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

Operations

The intent of COLT/City of Lompoc transit as stated in its mission statement is to “provide a transit service that meets the needs of those who are transportation disadvantaged and the general public, while helping to reduce traffic congestion and assist air quality attainment. The system will offer convenient, safe, esthetically pleasing and reliable transit service, and an attractive alternative to the private automobile. It will contribute to the economic well-being of the city by improving easier access to employment, shopping, medical, educational, and recreational destinations.”

A number of service changes for COLT occurred during the audit period that impacted operations. A significant change was the transition of contract operators for the system starting July 1, 2016. Storer Transit Systems was replaced by RoadRunner Management Services (purchased in May 2018 by RATP Dev USA, a subsidiary of Paris-headquartered RATP Group, a large, international public transit firm). The Storer cost bid was higher than RoadRunner, and Storer did not identify a project manager for the Lompoc facility. RoadRunner, in contrast, identified a number of management staff. City transit management indicated that the transition process between contract operators had issues, as the prior contractor did not vacate the operations facility until midnight before the next contract commenced, thus leaving the new contractor little start up time at the facility for service operations the next morning. The prior contractor also left minimal operational material that required the new contractor to re-establish this information including rider database, schedules, etc. In addition, negotiation between the prior contractor and the City was undertaken over additional invoice costs.

RoadRunner elected to carry over the non-unionized operations staff composed of drivers, dispatchers, safety manager, and project manager, while implementing its own software system called Roadsoft developed by the parent company, RATP. The five-year contract is paid based on actual vehicle revenue hours.

Triennial Performance Audit 28 City of Lompoc Transit

Fare revenue collection and recording accuracy was improved with the installation of GFI Genfare farebox devices on the vehicles similar to the ones used by Santa Maria Area Transit and Santa Barbara MTD. The fareboxes include magnetic stripe and other fare reading methods, and will help to curb fare evasion. Upon installation and trial, the buses experienced vehicle battery decline and failure as the fareboxes were wired to the battery.

The fare collection devices are probed daily to download fare and passenger data and reconciled with actual fare counting. Vaults are pulled from the devices at each driver shift change and kept in a safe area for handling in the counting room. Only one key is available to the count room which is controlled by the RoadRunner program manager and a fare counter. Two people are present for the fare count. The fares are compared against other data such as trip sheets for the route, and the probed information from the farebox. This enhanced check and balance using the farebox devices since 2017 has served several benefits, including more accurate counts, and reduced fare cheats boarding during revenue service. With this newer technology in place that captures fares and type of passengers, the City is working with the contractor to eliminate manual tracking of this data on the trip sheet that has the driver provide tick marks next to the fare and passenger types.

Safety features are on-board the bus including GPS to track the vehicle by dispatch, six cameras on- board each bus, and drive cam system that provides added safety for the driver. The GPS tracks the speed of the bus and can send an alert to the driver to maintain safer speeds, as well as provide an alert when the bus is idling too long at a location. Drivers have handheld radios and call dispatch at timepoints along the route for check-ins.

City staff conduct the review of the ADA applications for Dial-A-ride and provide certification. The first few questions ask the applicant about their ability to take the bus, including the ability to get to a bus stop, and being able to get on and off the bus vehicle without assistance. A physician must also sign the form. Further questions are asked by the City to applicants to verify actual need. Travel training is emphasized given the growth in ADA demand from an increase in requests, particularly from seniors that qualify. Most Dial-A-Ride passengers call in advance with a reservation with same day service on a space available basis. On both Dial-A-Ride and fixed route, increases in wheelchair bound passengers have had some impact for on-time performance and schedule adherence from the additional time to safely secure the passenger with straps.

The aviation/transportation administrator meets with the contract project manager a few times per week. Both prior and current contractors provided monthly system management reports to the City with data shown by route and the number of boardings and alightings. The reports include a cover page with operational highlights such as ridership, incidents/accidents, complaints, service interruptions, and contract employee turnover. Performance tables attached to the cover letter include detailed fare collection and ridership data for the month and year-to-date, and operations data such as vehicle service hours and miles. Performance indicators for fixed route and demand response are also provided such as passengers per mile and passengers per vehicle service hours, and on-time performance. The monthly invoice and report are reviewed by the aviation/transportation administrator, then to the assistant public works director and finance department for payment. Adjustments to invoices are made as needed to account for discrepancies following discussion with the contractor.

Triennial Performance Audit 29 City of Lompoc Transit

In an effort to enhance the customer experience on COLT, the City moved forward with construction of a transit transfer center located on Cypress Avenue and I Street. This replaced the transfer point located at the intersection of Central Avenue and H Street adjacent to the Mission Plaza Shopping Center, although the bus route configurations all continue to meet at that location under the pulse system. The City used Proposition 1B funds toward the new transfer center featuring shelters, restrooms, and sawtooth bus bays.

Contract Personnel

Contract operations staff are composed of a program manager, safety manager, three dispatchers, and 20 drivers. Of the staff, 15 are full time working at least 30 hours per week, and the remaining staff are part time. Average driver experience level is about eight years, with some drivers being on staff for nearly 20 years. New drivers have generally been active and attentive. The contractor indicated challenges in recruitment of drivers in light of other employment opportunities combined with the relative isolation of the City’s geography. The program manager has been working on a driver recognition program and action plan through a corporate initiative to boost driver morale and retention.

Qualified driver candidates were required to have a good work history and a clean H-6 printout from the Department of Motor Vehicles (DMV) along with a Class B license with passenger endorsement. Verification of Transit Training (VTT) certificate issued by the DMV was required for bus operations. New drivers underwent 60 hours of training which included 20 hours of classroom and 40 hours behind-the-wheel and ADA/mobility sensitivity instruction. Drivers were also trained behind a computer-simulated drive cam for defensive driving skills.

Daily vehicle inspections reports are conducted each morning and managed by the program manager. Safety meetings are held each quarter, with some meetings hosting CHP provided training on drugs and alcohol, driving distance, and safety. RoadRunner implements the parent company’s policy for safety management including refresher training on defensive driving and wheelchair securement.

Maintenance

COLT buses are serviced by City maintenance staff at the transit maintenance and operations facility located at the City Corporation Yard, 1300 West Laurel Avenue. The facility has three service bays with two sets of lifts. Vehicle parts are stored in the municipal parts house on-site. The maintenance department no longer has a dedicated a mechanic to service COLT vehicles, combined with the department being short a mechanic, leading to slower turnaround of vehicle inspections. The relatively high vehicle spare ratio enables COLT service to not be disrupted if bus inspections are hampered. Vehicles that cannot be maintained in-house are shipped to other specialty repair shops including in Fresno and Paso Robles. The department will notify the contractor on which vehicles are due for service under the inspection guidelines. A mechanic is in the yard with operations staff to address maintenance concerns.

Triennial Performance Audit 30 City of Lompoc Transit

Vehicles are subject to the manufacturer-suggested preventive maintenance inspection guidelines of every 3,000 miles or 45 days. Vehicles are fueled by gas card at Pacific Pride Commercial Fueling located at 1400 West Laurel Avenue. Bus washing is contracted out to a vendor whereas bus stop and shelter janitorial maintenance is handled by a City maintenance staff member. COLT vehicles have received satisfactory CHP terminal inspections during the audit period.

Planning

Outside consultant assistance was retained to assess and implement route revisions upon completion of the new transit center in 2018. A community survey was administered to gauge whether the re-routing of bus service was meeting the need. Prior to this assessment, the prior planning study was conducted in 2012 as the Short Range Financial Plan (SRFP). The SRFP was prepared using excerpts from the draft 2011 SRTP and primarily focused on farebox attainment strategies. As a more focused implementation document, the SRFP does not include sections on marketing, public outreach, and system analysis. The planning documents generally have a five-year horizon and provide a financially constrained service planning document and the program of projects that are input into the transportation improvement programs developed by SBCAG for state and federal funding. The more recent assessment provides the latest evaluation.

System recommendations were developed that correspond to the service characteristics of each mode. The service recommendations are summarized in Table V-1:

Table V-1 SRFP Service Recommendations Fixed Route Dial-a-Ride Systemwide • Eliminate Route 5. • Reduce overall service • Continue to provide local • Reconfigure Route 1 to hours through improved support with Measure A funds service the Wine Ghetto scheduling/trip from the Cities of Santa Ynez and Hospital. planning. [sic] and Buellton along with the City of Lompoc’s Measure A – Specialized Transit Funds. • Adjust, as needed, local • Increase fares to be in- • Expand marketing efforts to fixed route schedule (stop line with other public increase ridership and times). transit systems in FY improve system identity. 2012-13. • Increase fare to be in-line • Increase shared-rides with other public transit [sic] through optimized systems in FY 2012-13. dispatching/trip planning efforts. Source: 2012 COLT SRFP

Marketing

Given the new logo and brand for the transit system, Lompoc has employed various marketing tools and strategies toward the promotion of its transit system. Traditional advertising methods are used including ads in newspapers and online sites. The City’s public information officer provided free

Triennial Performance Audit 31 City of Lompoc Transit public service announcements on the radio. Referrals and walk-ins to the transit center and city hall also occur for information. In addition, the buses were rewrapped with the new logo to provide a unified appearance.

The updated COLT/City of Lompoc System Map provides fare, route, and schedule information for services operating within the immediate service area. The City has a tri-fold brochure for the Wine County Express operating between Lompoc and Solvang which contains general information about hours of operation, fares, and schedules. Brochures are printed annually and after any service updates such as a fare increase.

Additional collateral print materials include a biannual mail insert in utility bills to city residents and special advertisements in the local Lompoc Record newspaper. The City publishes notices in the Lompoc Record one week prior to unmet transit needs hearings. A citywide survey was conducted about how COLT could serve the community and to assist with future planning. COLT promotional products are also passed out at Farmer’s Market.

Electronic access to transit information is available through the City’s website (http://www.cityoflompoc.com/transit/colt.htm), which contains links to routes and schedules, days of non-operation (holidays), news and announcements, general information, fare information, fixed-route service, curb-to-curb service (ADA), bikes on buses, advertising opportunities, and lost and found. The City’s webmaster is responsible for updating the content. The City IT department is working to install Google transit trip planning on the website as a customer service and to boost COLT’s visibility.

COLT has an in-kind agreement with Allan Hancock College that allows the college to sell passes in exchange for internal advertising on board the vehicles. A small advertisement about COLT service has been placed in the campus course catalog. The City markets interior advertising space on board its vehicles to generate ancillary revenue of about $1,000 per year. The new transit center has five shelter areas with glass panels which could be considered for advertising space.

General Administration and Management

The City of Lompoc operates as a general law city with a council-manager form of government. The City Council is the City’s principal policy-making body comprising five members: one mayor and four council members. The mayor and the four members of the City Council are elected at large to serve four-year terms. The City Council appoints the City administrator, who is responsible for administering City departments and operations. The City’s transit program is administered by the Public Works Department and managed by the aviation/transportation administrator, who is supported by a part-time office assistant and a part-time senior maintenance worker. The aviation/transportation administrator divides administrative time among work responsibilities, according to an allocation of approximately 75 percent COLT and 25 percent aviation. Within COLT, the estimated allocation by service mode is about 70 percent fixed route and 30 percent Dial-A- Ride.

Triennial Performance Audit 32 City of Lompoc Transit

Grant Administration and Funding

Grant funding allocated toward supporting transit services have been derived from local, state, and federal sources. The aviation/transportation administrator maintains a grant list of activities and timelines to track open state and federal grants. The grant list shows the current amount of the grant, purpose and spend by date, reporting timelines, and chronological history of reports submitted. Statements of grant closeout are also included.

Local support revenues for transit are provided primarily under the auspices of Measure A contributed by both the County and the City. Based on the National Transit Database reports submitted by Lompoc during the audit period, the agency received federal operating fund assistance in the amounts of $599,706 in FY 2016; $632,493 in FY 2017; and $954,466 in FY 2018. Federal operating assistance is derived through the FTA Section 5307 urban grant.

Lompoc received Proposition 1B Public Transportation Modernization, Improvement and Service Enhancement Account (PTMISEA) funds toward the construction of the transit transfer center and security cameras. Proposition 1B security grant funds were also acquired for purchase of the electronic fareboxes. The City has submitted the required progress status reports to the state.

Triennial Performance Audit 33 City of Lompoc Transit

Section VI

Results and Recommendations

The following material summarizes the information obtained from this triennial audit covering FYs 2016 through 2018. A set of recommendations is then provided.

Triennial Audit Results

1. Of the compliance requirements pertaining to COLT, the operator fully complied with eight applicable requirements and partially complied with one. Two additional compliance requirements did not apply to COLT (i.e., intermediate and rural farebox recovery ratios). The requirement partially in compliance was regarding providing reasonable support for a budget increase greater than 15 percent in the TDA claim. In FY 2018, the budget change was larger than 15 percent from the previous year, but no reasonable support for the change was included. Although the City checked off this requirement in the standard assurance form portion of the claim, no language was included.

3. Lompoc implemented each of the four prior audit recommendations. They pertained to completion of State transit reports, compliance with farebox recovery through local support funds, improved contractor report data, and updates to the schedules and map on the COLT website.

4. COLT’s operating cost performance indicators generally show negative trends, as higher operating costs resulted in reduced cost efficiency and effectiveness, as measured by operating cost per vehicle revenue hour and by vehicle revenue mile, and operating cost per passenger. Significant increase in operating cost occurred for various reasons including the re-routing and some schedule change of the fixed route service from the opening of the new transit center in the southern part of the City, and the transition of a new contract operator for the service. ADA demand response cost also increased from an increase in demand from ADA passengers.

5. Service effectiveness measures such as number of passengers per service hour showed declines as ridership decreased at a faster rate than the decline in vehicle service hours on both fixed route and demand-response operations.

Triennial Performance Audit 34 City of Lompoc Transit

6. There was a transition in contract operators for the system starting July 1, 2016. Storer Transit Systems was replaced by RoadRunner Management Services. The Storer cost bid was higher than RoadRunner, and Storer did not identify a project manager for the Lompoc facility. RoadRunner, in contrast, identified a number of management staff. City transit management indicated that the transition process between contract operators had issues ranging from when the prior contractor vacated the operations facility to the need for the new contractor to re-establish rider database, schedules, etc. In addition, negotiation between the prior contractor and the City was undertaken over additional invoice costs.

7. Fare revenue collection and recording accuracy was improved with the installation of GFI Genfare farebox devices on the vehicles similar to the ones used by Santa Maria Area Transit and Santa Barbara MTD. The fareboxes include magnetic stripe and other fare reading methods, and will help to curb fare evasion.

8. Safety features are on-board the bus including GPS to track the vehicle by dispatch, six cameras on-board each bus, and drive cam system that provides added safety for the driver. The GPS tracks the speed of the bus and can send an alert to the driver to maintain safer speeds, as well as provide an alert when the bus is idling too long at a location.

9. In an effort to enhance the customer experience on COLT, the City moved forward with construction of a transit transfer center that will be located on Cypress Ave and I Street. This replaced the transfer point located at the intersection of Central Avenue and H Street adjacent to the Mission Plaza Shopping Center. The City used Proposition 1B funds toward the new transfer center featuring shelters, restrooms, and sawtooth bus bays.

10. While an across-the-board fare increase was not approved by the City Council in 2012, a fare increase was implemented for ADA demand-response in March 2016 based upon a citywide fee study. The Santa Barbara Shuttle fare also increased.

11. Given the new logo and brand for the transit system, Lompoc has employed various marketing tools and strategies toward the promotion of its transit system. The City’s public information officer provided free public service announcements on the radio. the buses were rewrapped with the new logo to provide a unified appearance.

Triennial Performance Audit 35 City of Lompoc Transit

Triennial Audit Recommendations

1. Provide justification for operating cost increases in the TDA claim. (Statutory Requirement)

During the last two years of the audit period, the operating budget and actual costs for COLT increased by greater than 15 percent, the threshold for which a claimant for TDA must reasonably explain the increase in their claim. The SBCAG claim form includes a standard assurance checklist that includes this requirement for explanation of budget increases more than 15 percent. Several changes occurred during this time including the re-routing of the fixed route service from the opening of the new transit center in the southern part of the City, and the transition of a new contract operator for the service. ADA demand response cost also increased from an increase in demand from ADA passengers. The City should include description of the increase in its annual claim form and how these operating costs will be monitored and the implication on performance efficiency and effectiveness.

2. Simplify Driver Trip Sheet. (Auditor suggestion)

The driver trip sheet for fixed route requires the driver to manually enter tick marks indicating boardings by passenger and fare type. With the relatively new fareboxes installed on the buses, this type of information is captured by the devices from the driver selecting the programmed buttons during service. Probing of the devices releases the data and is used for reporting and analysis. With this capability, the driver has minimal need to also manually enter this information on the trip sheet when in service. As driver training is completed on use of the fareboxes, the trip sheet should also be modified to simplify the amount of information to capture. This could be limited to recording start/end hours and miles, revenue hours and miles, and break time. Passenger equipment used such as wheelchairs and bike loading can also continue to be on the trip sheet. The primary purposes of reducing information on the trip sheet is to free up the driver during revenue service and lessen chances for input errors.

3. Evaluate alternative transit delivery in light of performance trends. (Auditor suggestion)

Performance measures such as operating cost hour, operating cost per passenger, passengers per hour, and farebox recovery all declined during the audit period. Operating costs increased significantly while service delivery in terms of vehicle hours and ridership decreased which resulted in negative trends. With a number of changes occurring the past few years including the opening of a new transit center, re-routing of local fixed route, and increasing demands for ADA demand response, the City should closely monitor continued trends with COLT and evaluate the service structure should these declining trends continue. New transit delivery models have been developed that should be explored including transit’s relationship with non- motorized modes (bicycle/scooter), on-demand transit, and deviated service. City staff have indicated the challenges of providing efficient public transit in the City given alternative travel

Triennial Performance Audit 36 City of Lompoc Transit

modes (e.g. walking) are viable options, as well increased demand for ADA service which is more costly to provide than conventional transit service. The City should evaluate its ridership market and consider transit delivery options including additional emphasis on technology systems that enhance customer service. The City’s procurement of new smaller transit vehicles may provide flexibility for alternative service delivery options.

Triennial Performance Audit 37 City of Lompoc Transit