Benchmarking Highlights

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Benchmarking Highlights Finance Committee - benchmarking highlights July, 2016 CONFIDENTIAL AND PROPRIETARY SAFETY: RAIL Although safety performance has declined in 2015, Metrorail has better performance than peers on multiple measures for the last 3 years overall Safety and security incidents January 2013-August 2015 Collisions, derailments, and fires Security incidents Injuries and fatalities, excl. suicides Events per 1B unlinked passenger trips Events per 1B unlinked passenger trips Number per 1B unlinked passenger trips MTA 31 MTA 70 MTA 11 75 86 WMATA 32 MBTA 107 MBTA 13 79 92 BART 35 WMATA 141 BART 23 121 144 MBTA 39 BART 156 WMATA 8 244 252 SEPTA 67 CTA 322 CTA 21 464 485 CTA 69 SEPTA 543 SEPTA 26 517 543 Fatalities Injuries Ø 45 Ø 223 Ø 267 WMATA 5 / 6 3 / 6 5 / 6 6 / 6 2015 rank SOURCE: NTD 2 SAFETY: BUS Metrobus has more safety and security incidents and more injuries than peer bus agencies Safety and security incidents January 2013-August 2015 Collisions and fires Security incidents Injuries and fatalities, excl. suicides Events per 10B unlinked passenger trips Events per 10B unlinked passenger trips Number per 10B unlinked passenger trips MTA 2.2 King County 0.1 King County 0.2 5.0 5.2 LACMTA 3.5 NJ Transit 0.3 MTA 0.1 6.4 6.5 King County 4.2 MTA 0.4 LACMTA 0.1 7.4 7.5 MBTA 7.5 Denver 0.9 MBTA 0.2 13.0 13.2 CTA 7.9 LACMTA 1.3 CTA 0.1 18.5 18.6 NJ Transit 10.8 MBTA 1.5 Denver 0.6 18.4 19.0 WMATA 10.9 SEPTA 2.3 WMATA 0.1 23.9 23.9 SEPTA 12.1 CTA 2.7 NJ Transit 0.2 23.8 24.0 Denver 14.4 WMATA 2.8 SEPTA 0.1 26.5 26.7 Fatalities Injuries Ø 8.2 Ø 1.4 Ø 16 SOURCE: NTD 3 SERVICE RELIABILITY: 2A. RAILCAR AVAILABILITY Railcar availability historically lagged peers, and has fallen significantly further behind since April, partially but not only due to parts shortage Fleet availability Insights ▪ WMATA made service before Availability was slightly behind WMATA availability has Silver Line, but had a slightly peers declined significantly this WMATA railcars out-of- higher spare ratio than peers Vehicles operating in max. service / year service by cause ▪ The number of cars available vehicles available in max. service, Cars released for service, Share of out-of-service has since fallen, even as 2014, percent 2015 cars on 12/7/15, percent service requirements increased January 956 Planned 9 MTA1 82 inspection / – Minimum car requirement February 923 engineering was met only 10 out of 64 weekdays in Q3 81 CTA March 941 Awaiting parts 36 ▪ A significant problem is that 76 cars are out of service awaiting April 958 critical parts, in part due to BART 81 challenges procuring the items May 934 – Should be <10% (no stock June 884 and in-transit items) WMATA 79 – Immediate situation being July 892 addressed, 22 cars expected Under repair 55 back in service by January MBTA 78 August 895 31 September 926 – Root cause of parts shortage merits attention SEPTA 78 October 918 ▪ But another 118 cars are out- of-service due to repairs. Reducing unplanned repairs Ø 80 Target: 9542 could improve availability 1 Due to a data discrepancy in the NTD data, 2014 active vehicles used for MTA (excl. Staten Island Rail) 2 In October only 922 cars were required for service because Orange/Blue headways were extended in response to the car problems, but the plan is to return to 6 minute headways in January SOURCE: NTD; Vital Signs; WMATA Maintenance and Material Management System 4 SERVICE RELIABILITY: 2C. RAIL MAINTENANCE COST WMATA spends more than peers on rail maintenance, but less on rail ops Rail maintenance cost efficiency Rail operations efficiency Insights Rail vehicle and non-vehicle ▪ WMATA is ~30% maintenance spend per Rail vehicle operations higher than peer revenue mile Average fleet age spend per revenue mile average on rail 2014 Years, as of 2014 2014 maintenance cost ▪ Fleet age does BART 3.16 17 CTA 3.22 not fully explain the gap CTA 3.35 16 BART 3.69 – MBTA spends less with an older fleet SEPTA 4.28 22 WMATA 4.36 ▪ Reducing the gap on maintenance MBTA 5.82 26 SEPTA 5.36 spend between current state and peer average by MTA 6.43 21 MBTA 5.75 half would save ~$80M annually WMATA 7.14 24 MTA 6.51 ▪ Rail operations cost slightly below peers Ø 5.03 Ø 21 Ø 5 SOURCE: NTD 5 SERVICE RELIABILITY: 5A. BUS MAINTENANCE WMATA’s bus failure rate and maintenance spend are in line with or slightly ahead of peers, which may be partly due to a relatively young fleet Bus failures Bus maintenance costs Total vehicle system failures per Average $ spent per / revenue Bus fleet age 100,000 miles traveled, 20141 mile, 20141,3 Years as of 20141 Denver 5 Denver 2.43 NJ Transit 7 MBTA 7 NJ Transit 2.67 WMATA 8 NJ Transit 11 King County 3.10 CTA 8 WMATA 12 CTA 3.15 King County 8 MTA2 17 WMATA 3.41 MTA2 8 SEPTA 19 LACMTA 3.47 Denver 9 LACMTA 26 SEPTA 4.08 LACMTA 9 CTA 30 MBTA 4.83 SEPTA 10 King County 33 MTA2 7.54 MBTA 10 Ø 18 Ø 3.85 Ø 9 1 Excludes Commuter Bus 2 Combines NYCT Bus and MTA Bus 3 Calculated as sum of all vehicle and non-vehicle bus maintenance cost divided by bus vehicle revenue SOURCE: NTD 6 SERVICE RELIABILITY: 6AII. CAPITAL PEER SYSTEM COMPARISON WMATA spends 24% less capital on rail per revenue mile compared to its major US transit peers; on bus, WMATA is the highest Benchmarking Observations Average rail capital deployment 2003-2013 ▪ WMATA may be undercapitalizing its $ capital spend per revenue mile rail system - normalizing for system Average of peers 7.07 size, as measured by revenue mile, WMATA’s rail spend is significantly below peers for the period 2003-13 WMATA 5.11 (24% below peer average) CTA 5.38 MARTA 6.47 ▪ The situation would have been better MTA (NY) 7.39 but still below average if WMATA MBTA 7.43 would have spent its entire budget SEPTA 8.70 (spend would be $5.94, still below peer average of $7.07) -24% ▪ On the other hand, bus spending exceeds peers (WMATA spends the Average bus capital deployment 2003-2013 most of any major national peers). This $ capital spend per revenue mile is driven by the recent investments in Average of peers 2.22 fleet – Bus replacement was the largest MARTA 1.74 item of WMATA capital spend in FY SEPTA 1.84 2012 ($110M) and the second CTA 2.14 largest in FY 2013 ($70M) MTA 2.49 MBTA 2.90 WMATA 3.40 +55% SOURCE: NTD database on capital spend and vehicle revenue miles, 2003-2013 7 FISCAL SUSTAINABILITY: 1. OPERATING DEFICIT WMATA’s operating deficit is growing and farebox recovery declining as expense growth outpaces revenue growth Operational deficit and farebox recovery1 Insights Expense & revenue, $M by FY CAGR, % If revenue and expense continue on current trends: 2,500 FY11-15 2,000 Expense 4.0 ▪ WMATA’s operating deficit will continue to grow to $1.1B in FY20 1,500 ▪ By CY20, WMATA’s farebox recovery 1,000 Revenue 2.8 would be the lowest among 500 comparable peers’ if peer ratios Actual Projected remain the same 0 2011 12 13 14 15 16 17 18 19 2020 Farebox recovery ratio2, % by CY CAGR, % Other agency projections are flat growth from CY14 CY11-14 % 60 Benchmarking CY14 Recovery ratio, 55 System % 50 47 47 48 MTA 45 45 MTA NYCT 49 45 44 43 CTA 42 41 40 WMATA -1.4 WMATA 45 40 MBTA Actual Projected CTA 44 0 CY 2011 12 13 14 15 16 17 18 19 2020 MBTA 40 1 Excluding silver line expansion, which will grow the deficit 2 Farebox recovery ratio = total fare revenue / total operating expense SOURCE: WMATA 2011-YTD 2016 budget data; NTD 2014 8 FISCAL SUSTAINABILITY 2. FARE REVENUE The decline in rail annual passenger trips has limited revenue growth but has been mitigated by fare increases CAGR, Revenue decomposition FY11-15 % Insights Revenue1, $M ▪ Due to the decline in annual rail trips since FY12, WMATA lost ~$44M in rail 899 807 810 854 861 fare revenues in FY15 Farebox revenue 2.5 707 711 753 742 782 ▪ Growth in annual bus trips and bus Non-farebox revenue realized fare has led to a ~3% p.a. 4.2 99 99 101 119 117 growth in bus fare revenue 2011 12 13 14 2015 CAGR, CAGR, Rail FY11-15 % Bus FY11-15 % 627 146 Fare 141 606 593 139 Benchmarking Revenue, 571 569 131 134 $M 2.3 2.6 WMATA rail service includes commuter rail- type service and fares 134 Rail 287 288 132 132 133 UPT, fare/pass. Bus fare/pass. 274 269 Trips, K 267 -1.6 125 1.5 System mile mile WMATA 0.39 0.34 Realized 2.33 1.10 2.21 2.22 1.05 CTA 0.20 0.43 fare2, 1.05 1.05 1.99 1.98 1.02 $/Trip 4.0 1.1 MTA 0.28 0.54 FY 201112 13 142015 201112 13 142015 MBTA 0.33 0.29 1 Farebox revenue includes “passenger” revenue; non-farebox revenue includes “passenger-other” revenue and “non-farebox revenue” from payroll data 2 Realized fare = fare revenue / annual ridership SOURCE: WMATA FY2011-YTD 2016 budget data; NTD 2014, OMBS actuals FY2012-2015; NTD FY 2012 – 15 9 FISCAL SUSTAINABILITY 3.
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