Long Beach Transit

Board of Directors Barbara Sullivan George, Chair Freda Hinsche Otto, Vice Chair Lori Ann Farrell, Secretary/Treasurer Maricela de Rivera, Director Donald M. First, Director Victor Irwin, Director Dr. James P. Norman, Jr., Director Michael Conway, City Representative David Roseman, City Representative

President and Chief Executive Officer Laurence W. Jackson

Long Beach Public Transportation Company Board of Directors Regular Meeting

May 20, 2013 12:00 P.M.

Long Beach City Hall City Council Chambers 333 West Ocean Boulevard Long Beach, California 90802

Agenda

1. Call to Order. Barbara Sullivan George

2. Roll Call. Olga Livingston

3. Approval of Minutes of Board Meeting held April 22, 2013. Barbara Sullivan George

RECEIVE AND FILE

4. Employees of the Month for May, 2013. Marcelle Epley

Angel Carillo, Operations Roberto Vargas, Maintenance Vivian Garcia, Staff 5. Financial Report for the Month of April, 2013. Lisa Patton

RECEIVE AND FILE

6. FTA Triennial Report. Lisa Patton

RECEIVE AND FILE

7. Statement of Investment Policy. Lisa Patton

An annual review by the Board is required.

STAFF RECOMMENDATION: Approve the Company’s Statement of Investment Policy.

8. FY 2013 – 2015 Strategic Business Plan Update. Marcelle Epley

A review by the Board is required.

STAFF RECOMMENDATION: Adopt the Company’s updated 2013-2015 Strategic Business Plan

9. Executive Session – Pursuant to California Government Code Section 54957 (b) (1) Position: President/Chief Executive Officer, Executive Search Update.

10. Electric Bus Project Update. Rolando Cruz

INFORMATION

11. Public Comment

Any member of the public may approach the lectern and, upon recognition by the Chairperson, state his or her name and address for the record and proceed to address the Board on any item within the subject matter jurisdiction of the Board, provided that no action may be taken on off-agenda items unless authorized by law. Comments shall be limited to three (3) minutes for all comments, unless different time limits are set by the Chairperson, subject to the approval of the Board.

12. Adjourn. The next regular meeting will be held Monday, June 24, 2013.

NOTE: The City of Long Beach intends to provide reasonable accommodations in accordance with the Americans with Disabilities Act of 1990. If special accommodation is desired, please call the City Clerk Department 48 hours* prior to the meeting at 570-6101.

(* The City Clerk's office is closed on weekends. To assure proper accommodations please call by 4:30 p.m. on the Friday prior to the meeting.) (Telecommunication Device for the Deaf – Please call 570-6626. Inquire at the City Council Chamber Audio Visual Room for Assistive Listening Device.)

AGENDA ITEM NO. 7: STATEMENT OF INVESTMENT POLICY

We are requesting the Board’s approval of the Company’s Statement of Investment Policy which is pursuant to annual review.

Background

The Statement of Investment Policy establishes policies and procedures for Long Beach Transit’s cash management system and investment activities. The policy applies to all financial assets of the Company, excluding pension plan assets which are covered under a separate investment policy.

The California Government Code requires an annual review and adoption of the Company’s Investment Policy. Each year staff evaluates the policy to ensure it meets the objectives of preservation of principal, liquidity, yield, safety, compliance with current law, Governmental Accounting Standards Board (GASB), and the needs of Long Beach Transit.

There were no changes during the last year to the California Government Code, GASB or the State of California’s Local Agency Investment Fund (LAIF) Policy which require amendments to our existing investment policy. Therefore, the Company’s Statement of Investment Policy remains unchanged.

As detailed in the Quarterly Investment Reports, Long Beach Transit’s investments continue to be handled by the State of California’s Local Agency Investment Fund (LAIF) and the Corporate Investment Account which contains investment vehicles similarly structured to LAIF.

STAFF RECOMMENDATION: Approve the Company’s Statement of Investment Policy.

AGENDA ITEM NO. 8: FY 2013 – 2015 STRATEGIC BUSINESS PLAN UPDATE Long Beach Transit Memorandum

To: Long Beach Transit Board of Directors

From: Marcelle Epley, Chief Administrative Officer & Senior Vice President

Date: May 20, 2013

Re: Long Beach Transit Strategic Business Plan: Fiscal Year (FY) 2014 Update

Attached for the Board's adoption is the updated FY 2013-2015 Long Beach Transit Strategic Business Plan. Information in this plan reflects current key economic markers that impact our anticipated funding levels, service demand and overall business direction heading into FY 2014. The FY 2013-2015 Strategic Business Plan serves as a planning document at the highest level of the day-to-day operations of the organization, to which we are developing the FY 2014 operating and capital budgets that will be presented to the Board in June. The following is a brief summary of information that has been updated in the plan.

Funding Outlook Considering that 60% of Long Beach Transit’s operating income comes from county and state subsidies that are sales tax based, unemployment and consumer confidence play a major role in anticipating funding levels. Compared to early 2012, national, state and local unemployment rates have dropped. More people are returning to work and have discretionary income that support increased sales tax revenue. Alongside this trend, consumer confidence has remained virtually unchanged, but remains well above devastating levels seen at the height of the recession. These two indicators support the prediction provided to the Board last year in the FY 2013-2015 Strategic Business Plan that the economy would begin to improve. These optimistic signs show a recovering economy and a sign that county and state subsidies will begin to rise.

Ridership Outlook While our region is not experiencing $5 per gallon gas prices seen in parts of California in 2012, southern California gas prices remain relatively high around $4 per gallon, and continue to persuade residents to leave their cars at home and ride public transportation. Further, the desire to take public transportation to be “green” and clean up our environment continues to increase patronage from discretionary riders. These factors, in conjunction with increased housing density and a growing proportion of senior citizens, point to increasing demand.

Organizational Priorities While this updated information does not significantly impact the initial business direction outlined in the FY 2013-2015 Strategic Business Plan, it does support the original goals of achieving our mission and corporate standards of excellence, budgeting conservatively, May 16, 2013 focusing on cost efficiency, modestly enhancing our service within our financial means, investing in employee skill development, improving the quality that we communicate with our customers, and seeking out alternative revenue sources.

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Chapter 1 – Executive Summary……………………….…….…01

Chapter 2 – Review Scope and Methodology………….…07

Chapter 3 – Program Compliance………………………………11

Chapter 4 – Prior Recommendations…………………………17

TABLE OF CONTENTS

Chapter 5 – Data Reporting Analysis...... 21

Chapter 6 – Performance Analysis...... 25

Chapter 7 – Functional Review………………………………….43

Chapter 8 – Findings and Recommendations…………….61

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1. EXECUTIVE SUMMARY

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CHAPTER 1 – EXECUTIVE SUMMARY

The Triennial Performance Review (TPR) of Long Beach Transit’s public transit program covers a three- year period ending June 30, 2012. The California Public Utilities Code requires all recipients of Transit Development Act (TDA) funding to complete an independent review on a three-year cycle in order to maintain funding eligibility.

This chapter summarizes key findings and recommendations developed during the Triennial Performance Review (TPR) of Long Beach Transit’s public transit program for the period defined as:

• Fiscal Year 2009/10, • Fiscal Year 2010/11, and • Fiscal Year 2011/12.

The Triennial Performance Review was conducted in accordance with the processes established by the California Department of Transportation (Caltrans), as outlined in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities , as well as Government Audit Standards published by the U.S. Comptroller General. The Triennial Performance Review includes five elements:

• Compliance requirements, • Follow-up of prior report recommendations, • Analysis of program data reporting, • Performance review, and • Functional review.

Description of Transit Program The City of Long Beach began operating public transit service in 1963 when the City became the sole shareholder in the newly-formed Long Beach Public Transportation Company. Marketed as Long Beach Transit, the City’s transit program serves Long Beach as well as other South Bay and Gateway communities including Artesia, Bellflower, Carson, Cerritos, Compton, Hawaiian Gardens, Lakewood, Norwalk, Paramount, Seal Beach, and Signal Hill.

Long Beach Transit’s service offerings have evolved significantly since 1963, expanding upon traditional fixed-route bus service to include limited-stop routes, a shuttle serving downtown businesses and tourist destinations, demand-response service, and two water taxi services.

Long Beach Transit operates 31 regular fixed routes, most of which operate seven days a week, from as early as 4:30 a.m. to as late as 1:30 a.m. These routes form the backbone of the agency’s service offerings and generally operate along major thoroughfares (i.e., Cherry Avenue, Anaheim Street, Pacific Coast Highway, Long Beach Boulevard, etc.). Long Beach Transit also operates two ZAP routes (Route 96 along Seventh Street and Bellflower Blvd and Route 176 along Pacific Coast Highway and N. Lakewood)

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Long Beach Transit introduced the Runabout service in 1991 to alleviate congestion during the Long Beach Grand Prix. Now called Passport, the service is offered free within downtown Long Beach and, during the review period, consisted of four routes serving popular tourist destinations, major employers, and the Blue Line station/Transit Mall. In August 2012, three of the Passport routes were converted to regular fixed routes. The remaining Passport route – which is free to ride – serves the Queen Mary, Aquarium of the Pacific, and other popular locations.

In 1998, Long Beach Transit introduced the AquaBus, a 40-foot water taxi linking downtown Long Beach with popular destinations around Queensway Bay including the Aquarium of the Pacific, Queen Mary, Shoreline Village, Pine Avenue Circle, and the Hotel Maya. The AquaLink service was introduced in 2001 using a 68-foot, 75-passenger catamaran. The AquaLink connects Long Beach Harbor with the Queen Mary, Aquarium of the Pacific, Belmont Pier, and Alamitos Bay Landing. The AquaLink Express service provides faster service between Alamitos Bay Landing and the Aquarium of the Pacific. Base fare is five dollars for the AquaLink/AquaLink Express and one dollar for the AquaBus. The services operate seven days a week during summer months. AquaLink and AquaBus are operated under contract by Catalina Express.

Long Beach Transit also offers the Dial-A-Lift service for persons with disabilities residing in Long Beach, Signal Hill, and Lakewood who are at least 18 years of age. The shared-ride, curb-to-curb service is operated via contract with Taxi Systems, Inc. (TSI) (all fixed-route services are operated by Long Beach Transit employees). Base fare is two dollars for the Dial-A-Lift service, with 10-ride ticket books available (membership cards are an extra charge). A Personal Care Attendant may ride free, while a companion is required to pay the two dollar fare.

Test of Compliance Based on our review, we conclude Long Beach Transit complies with all Transportation Development Act (TDA) regulations in an efficient and effective manner. Therefore, no material findings specific to the compliance element have been developed.

Status of Prior Recommendations The prior Triennial Performance Audit – completed in 2010 by Moore & Associates, Inc./Ma and Associates for the three fiscal years ending June 30, 2009 – forwarded the following recommendation:

1. Increase marketing funding levels in an effort to attract more “choice” riders to the service.

Status: Implemented.

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Findings Based on discussions with Long Beach Transit staff, analysis of program performance, and a review of program compliance and function, the audit team submits no compliance findings for Long Beach Transit.

Recommendations Given there were no findings submitted as a result of this review, no recommendations are presented herein.

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2. REVIEW SCOPE AND METHODOLOGY

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CHAPTER 2 – REVIEW SCOPE AND METHODOLOGY

The Triennial Performance Review (TPR) of Long Beach Transit’s public transit program covers the three- year period ending June 30, 2012. The California Public Utilities Code requires all recipients of Transit Development Act (TDA) funding to complete an independent review on a three-year cycle in order to maintain funding eligibility.

The review is designed to be an independent and objective evaluation of Long Beach Transit as a public transit operator. The review has four primary goals:

1. Assess compliance with TDA regulations, 2. Review improvements implemented subsequent to the prior TPR as well as progress toward adopted goals, 3. Evaluate the efficiency and effectiveness of the transit operator, and 4. Provide sound, constructive recommendations for improving the efficiency and functionality of the transit operator.

The review was conducted in accordance with the processes established by the California Department of Transportation, as outlined in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities , as well as Government Audit Standards published by the U.S. Comptroller General.

The TPR is a systematic review of performance evaluating the efficiency, economy, and effectiveness of the transit operator. The review of Long Beach Transit’s public transit program included six tasks:

1. A review of compliance with the TDA requirements and regulations. 2. An assessment of the implementation of recommendations contained in prior performance reviews. 3. A verification of the methodology for calculating performance indicators including the following activities: • Assessment of internal controls, • Test of data collection methods, • Calculation of performance indicators, and • Evaluation of performance. 4. Comparison of data reporting practices: • Transit Performance Measurement, • National Transit Database, and • Transit Operator Reports.

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5. Examination of the following functions: • General management and organization, • Service planning, • Scheduling, dispatching, and operations, • Personnel management and training, • Administration, • Marketing and public information, and • Fleet maintenance. 6. Conclusions and recommendations to address opportunities for improvement based upon analysis of the information collected and the review of the transit operator’s major functions.

The methodology for this review included a site visit to the Long Beach Transit offices located at 1963 E. Anaheim Street on December 5, 2012. The audit team met with Marcelle Epley (Chief Administrative Officer), Robyn Gordon-Peterson (Chief Operating Officer), Lisa J. Patton (Executive Director), Ashley S. Zu (Accounting Manager), Rhea Morallos (Finance Manager), and Jennifer Abro (Controller); reviewed materials germane to the triennial review; and toured the operator’s transit maintenance and operations facility.

An exit interview with Long Beach Transit staff was conducted via phone on March 14, 2013, at which time the operator was given the opportunity to address and comment on any issues. Discussions and/or details from that interview were subsequently incorporated into this report.

This report is comprised of eight chapters divided into three sections:

1. Executive Summary: A summary of the key findings and recommendations developed during the Triennial Performance Review process. 2. Review Scope and Methodology: Methodology of the review and pertinent background information. 3. Review Results: In-depth discussion of findings surrounding each of the subsequent elements of the review: • Compliance with statutory and regulatory requirements, • Progress in implementing prior recommendations, • Consistency between data reported to different agencies, • Performance measures and trends, • Functional review, and • Findings and recommendations.

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3. PROGRAM COMPLIANCE

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C HAPTER 3 – P ROGRAM C OMPLIANCE

This section examines Long Beach Transit’s compliance with the Transportation Development Act as well as relevant sections of the California Code of Regulations. An annual certified fiscal audit confirms TDA funds were apportioned in conformance with applicable laws, rules, and regulations. The Los Angeles County Metropolitan Transportation Authority (LACMTA) considers full use of funds under California Code of Regulations (CCR) 6754(a) as referring to operating funds but not capital funds. The Triennial Performance Review findings and related comments are delineated in Exhibit 3.1.

Compliance was determined through discussions with LBT staff as well as a physical inspection of relevant documents including the fiscal audits for each year of the triennium, TDA claim forms, State Controller annual filings, California Highway Patrol terminal inspections, year-end performance reports, and other items deemed relevant by the audit team.

Long Beach Transit met the test of compliance with respect to Transportation Development Act (TDA) regulations.

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Exhibit 3.1 Transit Development Act Compliance Requirements REQUIREMENT REFERENCE COMPLIANCE COMMENTS The transit operator submits annual reports to the RTPA based upon FY 2009/10: 10/14/2010 the Uniform System of Accounts and records established by the State PUC 99243 In compliance. 1 FY 2010/11: 10/18/2011 Controller. FY 2011/12: 10/11/2012 The operator has submitted annual fiscal and compliance audits to the FY 2009/10: 10/29/2010 RTPA and the State Controller within 180 days following the end of PUC 99245 In compliance. FY 2010/11: 12/14/2011 the fiscal year, or has received the appropriate 90-day extension FY 2011/12: 11/30/2012 allowed by law. CHP reports with a satisfactory ra ting dated: Anaheim St: The CHP has, within the 13 months prior to each TDA claim submitted 01/21/2010 by an operator, certified the operator’s compliance with California 01/12/2011 PUC 99251 In compliance. Vehicle Code §1808.1 following a CHP inspection of the operator’s 01/27/2012 terminal. Cherry Ave: 11/12/2009 11/23/2010 11/17/2011 The operator’s claim for TDA funds is submitted in compliance with PUC 99261 In compliance. rules and regulations adopted by the RTPA for such claims. The operator’s operating budget has not increased by more than 15% over the preceding year, nor is there a substantial increase or decrease in the scope of operations or capital budget provisions for PUC 99266 In compliance. major new fixed facilities unless the operator has reasonably supported and substantiated the change(s).

1 Note: Reflective of guidance received from Caltrans, a standard 30-day month was used to determine compliance with regard to the submission of Transit Operators Financial Transaction Reports and annual fiscal and compliance audits to the State Controller. Therefore October 31 and December 31 were considered as cut-off dates in determining compliance.

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REQUIREMENT REFERENCE COMPLIANCE COMMENTS The operator’s definitions of performance measures are consistent with the Public Utilities Code Section 99247, including (a) operating cost, (b) operating cost per passenger, (c) operating cost per vehicle service hour, (d) passengers per vehicle service hour, (e) passengers PUC 99247 In compliance. per vehicle service miles, (f) total passengers, (g) transit vehicle, (h) vehicle service hours, (i) vehicle service miles, and (j) vehicle service hours per employee. FY 2009/10: 23.7 percent FY 2010/11: 23.6 percent If the operator serves an urbanized area, it has maintained a ratio of PUC 99268.2, FY 2011/12: 24.7 percent fare revenues to operating cost at least equal to one-fifth (20 In compliance. 99268.4, 99268.5 percent). *Data taken from Transit Performance Measurement reports. The current cost of the operator’s retirement system is fully funded Annual Pension Cost in both of the with respect to the officers and employees of its public transportation company’s retirement plans is 100 In compliance. system, or the operator is implementing a plan approved by the RTPA, PUC 99271 percent funded for all three years of which will fully fund the retirement system for 40 years. the review period. If the operator receives State Transit Assistance funds, the operator makes full use of funds available to it under the Urban Mass CCR 6754(a)(3) In compliance. Transportation Act of 1964 before TDA claims are granted.

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4. PRIOR RECOMMENDATIONS

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C HAPTER 4 – P RIOR R ECOMMENDATIONS

This section reviews and evaluates the implementation of prior Triennial Performance Review recommendations. This objective assessment provides assurance Long Beach Transit has made quantifiable progress toward improving both the efficiency and effectiveness of its public transit program.

The prior review – completed in 2010 by Moore & Associates, Inc./Ma and Associates for the three fiscal years ending June 30, 2009 – prescribed three recommendations.

1. Increase marketing funding levels in an effort to attract more “choice” riders to the service. Discussion : Long Beach Transit has historically marketed itself effectively to traditional “core riders” such as the ride-dependent. This has been accomplished through, among other things, applying approximately one-third of the its marketing budget to Spanish-language advertising and outreach as well as hiring a separate Latino-focused advertising agency (LatinSphere) in addition to the more traditional advertising agency under contract (Nostrum). However, the prior auditor did not feel Long Beach Transit had devoted sufficient resources to marketing itself to discretionary or “choice” riders. Therefore, the prior review recommended Long Beach Transit build upon its success marketing to specific ethnic communities and ride-dependent populations by increasing its marketing budget to comprise at least three percent of its total operating budget. The prior audit also recommend Long Beach Transit identify specific strategies geared toward positioning itself as not only the “green” alternative (as the operator has successfully accomplished through its RideHybrid program), but also the reliable, low-cost, convenient alternative to the automobile.

Progress: A marketing budget of three percent of the total operating cost would total approximately $2.2 million given Long Beach Transit’s current operating costs. The prior auditor noted implementation of this recommendation may not be feasible until the economy and transit funding climate improve. However, Long Beach Transit did take a number of steps to promote marketing to new riders and engage ethnically diverse populations. In its FY 2011/12 Marketing Budget and Media Plan, “new rider” marketing efforts make up 64 percent of the total marketing dollars spent. Other activities included a television commercial in English and Spanish, floor graphics at a local mall during the winter holidays, the “Look. Ride. Connect” campaign targeting seniors, the “99 Reasons to Ride” campaign in FY 2009/10, the implementation of its Rider Rewards merchant partnership program (with specific promotion to Hispanic businesses and residents), and the launch of its Employee Rider Program. FY 2012/13 will include messages promoting the affordability of Long Beach Transit at the Long Beach Airport.

Status: Implemented.

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5. DATA REPORTING ANALYSIS

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C HAPTER 5 – D ATA R EPORTING ANALYSIS

An important aspect of the Triennial Performance Review process is assessing how effectively and consistently the transit operator reports performance statistics to local, state, and federal agencies. Often as a condition of receipt of funding, an operator must collect, manage, and report data to different entities. Ensuring such data are consistent can often times be challenging given the varying definitions employed by different entities as well as the varying reporting timeframes. This chapter examines the consistency of performance data reported to the Los Angeles County Metropolitan Transportation Authority (LACMTA), State Controller, and Federal Transit Administration by Long Beach Transit during the audit period. Submissions to these entities were included within the Transit Performance Measurement (TPM) report, Transit Operators Financial Transactions Report (TOR), and the National Transit Database (NTD) report, respectively.

Exhibit 5.1 provides a comparison between performance data reported within TPM, NTD, and TOR reports for the prior audit period (beginning in FY 2006/07) through the current audit period (ending in FY 2011/12). Data for FY 2006/07 through FY 2008/09 reflects the prior audit completed by Moore & Associates/Ma and Associates.

Performance data reported to all three reporting entities is largely consistent for all performance measures. Some variation in reporting is normal, as reporting deadlines differ and not all information is finalized at the time of submittal.2

2 Note: Total Vehicle Hours and Total Vehicle Miles are not reported as part of the Transit Operators Financial Transaction Report.

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Exhibit 5.1 Data Reporting Consistency System-Wide Performance Measure FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Operating Cost (Actual $) TPM $61,351,818 $69,484,729 $68,130,611 $69,892,392 $73,440,639 $73,276,202 National Transit Database $61,351,819 $69,484,729 $68,130,611 $69,948,064 $73,679,266 $73,254,821 State Controller Report $61,351,818 $69,484,722 $68,130,611 $69,892,388 $73,440,639 $73,276,201 Fare Revenue (Actual $) TPM $14,291,815 $14,893,788 $15,857,912 $16,545,718 $17,350,225 $18,107,329 National Transit Database $14,291,815 $14,893,789 $15,857,912 $17,387,194 $18,075,367 $18,798,989 State Controller Report $14,291,815 $14,893,781 $15,857,912 $16,473,909 $17,308,290 $18,085,943 Local Subsidies & Auxilary Revenue TPM $7,755,498 $9,783,299 $6,096,840 $5,361,218 $6,665,290 $7,157,677 National Transit Database $0 $0 $0 $0 $0 $0 State Controller Report $2,616,512 $2,543,571 $1,624,888 $1,573,351 $1,077,660 $1,056,548 Vehicle Service Hours (VSH) TPM 686,782 699,542 689,652 690,521 674,323 678,076 National Transit Database 686,782 687,796 689,652 687,644 672,427 675,127 State Controller Report 686,782 687,796 689,652 687,644 672,427 675,127 Total Vehicle Hours TPM 717,592 730,928 725,177 725,082 707,489 710,330 National Transit Database 717,592 722,132 725,177 722,205 705,593 707,381 State Controller Report Not reported Not reported Not reported Not reported Not reported Not reported Vehicle Service Miles (VSM) TPM 7,307,211 7,453,355 7,280,824 7,221,703 6,862,041 6,833,996 National Transit Database 7,156,841 7,237,604 7,280,824 7,210,798 6,855,569 6,819,979 State Controller Report 7,307,210 7,237,604 7,280,824 7,210,798 6,855,569 6,819,979 Total Vehicle Miles TPM 7,923,826 8,082,304 7,994,358 7,909,035 7,518,731 7,473,804 National Transit Database 7,923,826 7,936,119 7,994,358 7,898,130 7,512,259 7,459,787 State Controller Report Not reported Not reported Not reported Not reported Not reported Not reported Passengers TPM 26,636,190 27,168,914 29,799,051 28,650,509 27,939,234 28,271,455 National Transit Database 26,636,190 28,285,338 29,799,051 28,605,571 27,912,518 28,230,703 State Controller Report 26,636,190 28,285,338 29,799,051 28,605,571 27,912,518 28,230,703 Employees TPM 696.0 0.0 684.0 779.0 772.0 759.0 National Transit Database 669.6 665.1 684.4 702.7 676.7 726.1 State Controller Report 829.0 665.0 684.0 687.0 661.0 711.0 Peak Vehicles TPM 197 197 201 204 201 201 National Transit Database 197 196 201 201 198 197 State Controller Report 197 197 201 201 198 197 Source: Transit Performance Measurement, National Transit Database, and Transit Operator Financial Transaction Reports.

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6. PERFORMANCE ANALYSIS

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C HAPTER 6 – P ERFORMANCE A NALYSIS

Performance indicators are typically employed to quantify and assess the efficiency of a transit operator’s activities. Such indicators provide insight into current operations as well as trend analysis of operator performance. Through a review of indicators, relative performance as well as possible inter- relationships between key functions is revealed.

The Transportation Development Act (TDA) requires recipients of TDA funding to track and report five performance indicators:

• Operating Cost/Passenger, • Operating Cost/Vehicle Service Hour, • Passengers/Vehicle Service Hour, • Passengers/Vehicle Service Mile, and • Vehicle Service Hours/Employee.

To assess the use and accuracy of performance indicators, the audit team completed the following activities:

• Assessed internal controls in place for the collection of performance-related information, • Validated collection methods of key data, • Calculated performance indicators, and • Evaluated performance indicators.

The procedures used to calculate TDA-required performance indicators for the current triennium were verified and compared with indicators included in similar reports to external entities (i.e., State Controller, Los Angeles County Metropolitan Transportation Authority, and Federal Transit Administration).

Operating Cost The Transportation Development Act requires an operator to track and report transit-related costs reflective of the Uniform System of Accounts and Records developed by the State Controller and the California Department of Transportation. The most common method for ensuring this occurs is through a compliance audit report prepared by an independent auditor in accordance with California Code of Regulations Section 6667. 3 The annual independent financial audit should confirm the use of the

3 CCR Section 6667 outlines the minimum tasks which must be performed by an independent auditor in conducting the annual fiscal and compliance audit of the transit operator.

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Uniform System of Accounts and Records. Operating cost – as defined by PUC Section 99247(a) – excludes the following:

• Cost in the depreciation and amortization expense object class adopted by the State Controller pursuant to PUC Section 99243, • Subsidies for commuter rail services operated under the jurisdiction of the Interstate Commerce Commission, • Direct costs of providing charter service, and • Vehicle lease costs.

Vehicle Service Hours and Miles Vehicle Service Hours (VSH) and Miles (VSM) are defined as the time/distance during which a revenue vehicle is available to carry fare-paying passengers, and which includes only those times/miles between the time or scheduled time of the first passenger pickup and the time or scheduled time of the last passenger drop-off during a period of the vehicle's continuous availability.4 For example, demand- response service hours include those hours when a vehicle has dropped off a passenger and is traveling to pick up another passenger, but not those hours when the vehicle is unavailable for service due to driver breaks or lunch. For both demand-response and fixed-route services, service hours will exclude hours of "deadhead" travel to the first scheduled pick-up, and will also exclude hours of "deadhead" travel from the last scheduled drop-off back to the terminal. For fixed-route service, a vehicle is in service from first scheduled stop to last scheduled stop, whether or not passengers board or exit at those points (i.e., subtracting driver lunch and breaks but including scheduled layovers).

Passenger Counts According to the Transportation Development Act, total passengers is equal to the total number of unlinked trips (i.e., those trips that are made by a passenger that involve a single boarding and departure), whether revenue-producing or not.

Employees or Full-Time Equivalent (FTE) Employee hours is defined as the total number of hours (regular or overtime) which all employees have worked, and for which they have been paid a wage or salary. The hours must include transportation system-related hours worked by persons employed in connection with the system (whether or not the person is employed directly by the operator). Full-Time Equivalent (FTE) is calculated by dividing the number of person-hours by 2,000.

Fare Revenue Fare revenue is defined by California Codes of Regulations Section 6611.2 as revenue collected from the farebox plus sales of fare media.

4 A vehicle is considered to be in revenue service despite a no-show or late cancellation if the vehicle remains available for passenger use.

MOORE & ASSOCIATES, INC. PAGE 28 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

TDA Required Indicators To calculate the TDA indicators for Long Beach Transit, the following sources were employed:

• Operating Cost was not independently calculated as part of this review. Operating Cost data were obtained via National Transit Database reports submitted to the Federal Transit Administration for each fiscal year covered by this review. Operating Cost data included within the reports are consistent with TDA standards. • Fare Revenue was not independently calculated as part of this review. Fare revenue data were obtained via National Transit Database reports submitted to the Federal Transit Administration for each fiscal year covered by this review. Fare revenue from the reports is consistent with TDA guidelines. • Vehicle Service Hours (VSH ) data were obtained via National Transit Database reports submitted to the Federal Transit Administration for each fiscal year covered by this review. Data from these reports was then compared to information included within monthly performance data summary reports. LBT calculates VSH using schedule hours reconciled with driver trip sheets, and its calculation methodology is consistent with PUC guidelines. • Vehicle Service Miles (VSM) data were obtained via National Transit Database reports submitted to the Federal Transit Administration for each fiscal year covered by this review. Data from these reports was then compared to information included within monthly performance data summary reports. The LBT calculates VSM by subtracting deadhead and out-of-service miles subtracted from total vehicle mileage (as noted on each vehicle’s odometer). This methodology is consistent with PUC guidelines. • Unlinked trip data were obtained via National Transit Database reports submitted to the Federal Transit Administration for each fiscal year covered by this review. Data from these reports was then compared to information included within monthly performance data summary reports. LBT’s calculation methodology is consistent with PUC guidelines. • Full-Time Equivalent (FTE) data were obtained via Transit Operator Reports (TORs) submitted to the State Controller for each fiscal year covered by this review. Data from these reports were then compared to information included within monthly performance data summary reports as well as reports to other external agencies. LBT’s calculation methodology is consistent with PUC guidelines.

MOORE & ASSOCIATES, INC. PAGE 29 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Performance Trends Performance trends were analyzed for Long Beach Transit for the three years covered by this Triennial Performance Review. Indicators were calculated using the methodologies described in the previous section. Additionally, performance data from the prior audit period were provided to illustrate trends since the last audit period.

System Performance System operating cost for Long Beach Transit increased 7.8 percent the first two years of the triennium, before declining slightly in FY 2011/12 (0.2 percent). The number of Vehicle Service Hours and Vehicle Service Miles decreased across the review period. Vehicle Service Hours decreased 1.8 percent while Vehicle Service Miles declined 5.4 percent between FY 2009/10 and FY 2011/12. Ridership began declining in FY 2009/10, rebounding slightly in FY 2011/12 to end the review period just 6.0 percent higher than FY 2006/07. Fare revenue continued to increase, however, ending 9.8 percent higher at the end of the review period than in FY 2009/10.

Efficiency of LBT’s services declined slightly in FY 2010/11 before rising again in FY 2011/12. The decrease in VSM and VSH ultimately resulted in increased passengers/VSH and passengers/VSM. The increase in fare revenue and decrease in ridership resulted in a 10.3 percent increase in fare/passenger. Operating Cost/VSH had a net increase of 6.8 percent across the review period and Operating Cost/VSM saw a net increase of 10.8 percent during the same period. Operating cost/passenger also increased, rising 6.6 percent between FY 2009/10 and FY 2011/12.

MOORE & ASSOCIATES, INC. PAGE 30 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Exhibit 6.1 System Performance Indicators System-Wide Performance Measure FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Operating Cost (Actual $) $61,351,818 $69,484,722 $68,130,611 $69,892,388 $73,440,639 $73,276,201 Annual Change 13.3% -1.9% 2.6% 5.1% -0.2% Fare Revenue (Actual $) $14,291,815 $14,893,781 $15,857,912 $16,473,909 $17,308,290 $18,085,943 Annual Change 4.2% 6.5% 3.9% 5.1% 4.5% Vehicle Service Hours (VSH) 686,782 687,796 689,652 687,644 672,427 675,127 Annual Change 0.1% 0.3% -0.3% -2.2% 0.4% Vehicle Service Miles (VSM) 7,307,210 7,237,604 7,280,824 7,210,798 6,855,569 6,819,979 Annual Change -1.0% 0.6% -1.0% -4.9% -0.5% Passengers 26,636,190 28,285,338 29,799,051 28,605,571 27,912,518 28,230,703 Annual Change 6.2% 5.4% -4.0% -2.4% 1.1% Employees 829.0 665.0 684.0 703.0 677.0 726.0 Annual Change -19.8% 2.9% 2.8% -3.7% 7.2% Performance Indicators Operating Cost/VSH (Actual $) $89.33 $101.03 $98.79 $101.64 $109.22 $108.54 Annual Change 13.1% -2.2% 2.9% 7.5% -0.6% Operating Cost/Passenger (Actual $) $2.30 $2.46 $2.29 $2.44 $2.63 $2.60 Annual Change 6.7% -6.9% 6.9% 7.7% -1.3% Passengers/VSH 38.78 41.12 43.21 41.60 41.51 41.82 Annual Change 6.0% 5.1% -3.7% -0.2% 0.7% Passengers/VSM 3.65 3.91 4.09 3.97 4.07 4.14 Annual Change 7.2% 4.7% -3.1% 2.6% 1.7% Farebox Recovery 23.3% 21.4% 23.3% 23.6% 23.6% 24.7% Annual Change -8.0% 8.6% 1.3% 0.0% 4.7% Hours/Employee 828.4 1034.3 1008.3 978.2 993.2 929.9 Annual Change 24.8% -2.5% -3.0% 1.5% -6.4% TDA Non-Required Indicators Operating Cost/VSM $8.40 $9.60 $9.36 $9.69 $10.71 $10.74 Annual Change 14.3% -2.5% 3.6% 10.5% 0.3% VSM/VSH 10.64 10.52 10.56 10.49 10.20 10.10 Annual Change -1.1% 0.3% -0.7% -2.8% -0.9% Fare/Passenger $0.54 $0.53 $0.53 $0.58 $0.62 $0.64 Annual Change -1.9% 1.1% 8.2% 7.7% 3.3% Source: Transit Operators Financial Transaction reports.

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Exhibit 6.2 System Ridership Exhibit 6.3 System Operating Cost/VSH

30,500,000 $120.00 $108.54 30,000,000 29,799,051 $101.03 $109.22 29,500,000 $100.00 $101.64 $98.79 29,000,000 $89.33 28,230,703 $80.00 28,500,000 28,285,338 28,605,571 28,000,000 27,912,518 $60.00 27,500,000

27,000,000 $40.00

26,500,000 26,636,190

26,000,000 $20.00

25,500,000

25,000,000 $0.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

Exhibit 6.4 System Operating Cost/VSM Exhibit 6.5 System VSM/VSH

$12.00 10.70 $10.74 10.64 10.60 $10.00 $9.60 $10.71 10.52 10.56 10.49 $9.69 10.50 $9.36

$8.00 $8.40 10.40

10.30 $6.00 10.20 10.20

$4.00 10.10 10.10

10.00 $2.00 9.90

$0.00 9.80 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

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Exhibit 6.6 System Operating Cost/Passenger Exhibit 6.7 System Passengers/VSH

$2.70 44.00

43.21 $2.63 $2.60 43.00 $2.60

42.00

41.12 41.82 $2.50 41.60 $2.46 41.51 $2.44 41.00

$2.40 40.00

39.00 $2.30 $2.30 38.78 $2.29 38.00

$2.20 37.00

$2.10 36.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

Exhibit 6.8 System Passengers/VSM Exhibit 6.9 System VSH/FTE

4.20 1200.0 4.14 4.09 4.10 1,008.3 4.07 1000.0 1,034.3 4.00 978.2 993.2 828.4 929.9 3.91 3.97 3.90 800.0

3.80 600.0 3.70 3.65

3.60 400.0

3.50 200.0 3.40

3.30 0.0 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

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Exhibit 6.10 System Farebox Recovery Exhibit 6.11 System Fare/Passenger

$0.70 25.0%

24.7% $0.64 $0.60 $0.62 24.0% $0.58 $0.54 23.3% $0.50 23.6% 23.6% $0.53 $0.53 23.0% 23.3%

$0.40

22.0% $0.30

21.4% 21.0% $0.20

20.0% $0.10

19.0% $0.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

MOORE & ASSOCIATES, INC. PAGE 34 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Fixed-Route Performance Given LBT’s fixed-route transit service comprises the lion’s share of the total budget (i.e., $72.3 million of a total system budget of $73.2 million), fixed-route performance closely mirrors that of the system as a whole.

Exhibit 6.12 Fixed-Route Performance Indicators Performance Measure Fixed-Route FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Operating Cost (Actual $) $60,119,540 $68,164,953 $66,874,586 $68,762,681 $72,512,810 $72,347,675 Annual Change 13.4% -1.9% 2.8% 5.5% -0.2% Fare Revenue (Actual $) $14,159,033 $14,712,964 $15,707,476 $16,388,078 $17,223,998 $18,004,465 Annual Change 3.9% 6.8% 4.3% 5.1% 4.5% Vehicle Service Hours (VSH) 674,840 675,962 678,363 677,353 662,899 665,854 Annual Change 0.2% 0.4% -0.1% -2.1% 0.4% Vehicle Service Miles (VSM) 7,033,621 6,966,309 7,031,434 6,997,824 6,681,274 6,648,365 Annual Change -1.0% 0.9% -0.5% -4.5% -0.5% Passengers 26,577,075 28,228,397 29,746,317 28,556,522 27,865,454 28,183,414 Annual Change 6.2% 5.4% -4.0% -2.4% 1.1% Employees 829.0 665.0 684.0 687.0 661.0 711.0 Annual Change -19.8% 2.9% 0.4% -3.8% 7.6% Performance Indicators Operating Cost/VSH (Actual $) $89.09 $100.84 $98.58 $101.52 $109.39 $108.65 Annual Change 13.2% -2.2% 3.0% 7.8% -0.7% Operating Cost/Passenger (Actual $) $2.26 $2.41 $2.25 $2.41 $2.60 $2.57 Annual Change 6.7% -6.9% 7.1% 8.1% -1.4% Passengers/VSH 39.38 41.76 43.85 42.16 42.04 42.33 Annual Change 6.0% 5.0% -3.9% -0.3% 0.7% Passengers/VSM 3.78 4.05 4.23 4.08 4.17 4.24 Annual Change 7.2% 4.4% -3.5% 2.2% 1.6% Farebox Recovery 23.6% 21.6% 23.5% 23.8% 23.8% 24.9% Annual Change -8.4% 8.8% 1.5% -0.3% 4.8% Hours/Employee 814.0 1016.5 991.8 986.0 1002.9 936.5 Annual Change 24.9% -2.4% -0.6% 1.7% -6.6% TDA Non-Required Indicators Operating Cost/VSM $8.55 $9.78 $9.51 $9.83 $10.85 $10.88 Annual Change 14.5% -2.8% 3.3% 10.4% 0.3% VSM/VSH 10.42 10.31 10.37 10.33 10.08 9.98 Annual Change -1.1% 0.6% -0.3% -2.4% -0.9% Fare/Passenger $0.53 $0.52 $0.53 $0.57 $0.62 $0.64 Annual Change -2.2% 1.3% 8.7% 7.7% 3.4% Source: Transit Operators Financial Transaction reports.

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Exhibit 6.13 Fixed-Route Ridership Exhibit 6.14 Fixed-Route Operating Cost/VSH

30,000,000 $120.00 29,746,317 $108.65 29,500,000 $100.84 $109.39 $100.00 29,000,000 $101.52 $98.58 28,500,000 28,228,397 $89.09 28,556,522 $80.00 28,000,000 28,183,414 27,865,454 27,500,000 $60.00 27,000,000

26,500,000 26,577,075 $40.00 26,000,000

25,500,000 $20.00

25,000,000

24,500,000 $0.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

Exhibit 6.15 Fixed-Route Operating Cost/VSM Exhibit 6.16 Fixed-Route VSM/VSH

$12.00 10.50 $10.88 10.40 $9.78 $10.85 10.42 $10.00 10.33 10.31 $9.83 10.37 $9.51 10.30

$8.00 $8.55 10.20

$6.00 10.10 10.08

10.00 $4.00 9.98 9.90

$2.00 9.80

$0.00 9.70 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

MOORE & ASSOCIATES, INC. PAGE 36 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Exhibit 6.17 Fixed-Route Operating Cost/Passenger Exhibit 6.18 Fixed-Route Passengers/VSH

$2.70 45.00

$2.60 44.00 $2.60 43.85

$2.57 43.00 $2.50 41.76 $2.41 $2.41 42.00 42.16 42.04 42.33 $2.40 41.00

$2.30 40.00 $2.26 $2.25 $2.20 39.38 39.00

$2.10 38.00

$2.00 37.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

Exhibit 6.19 Fixed-Route Passengers/VSM Exhibit 6.20 Fixed-Route VSH/FTE

4.30 1200.0

4.23 4.24 1016.5 4.20 991.8 1002.9 1000.0 936.5 4.17 986.0 4.10 4.05 814.0 4.08 800.0 4.00

3.90 600.0

3.80 400.0 3.78 3.70

200.0 3.60

3.50 0.0 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12

MOORE & ASSOCIATES, INC. PAGE 37 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Exhibit 6.21 Fixed-Route Farebox Recovery Exhibit 6.22 Fixed-Route Fare/Passenger

$0.70 26.0%

$0.64 25.0% $0.60 $0.62 24.9% $0.57 $0.53 $0.50 24.0% $0.52 $0.53 23.5% 23.8% 23.8% 23.6% 23.0% $0.40

22.0% $0.30

21.6% 21.0% $0.20

20.0% $0.10

19.0% $0.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

MOORE & ASSOCIATES, INC. PAGE 38 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Demand-Response Performance Operating Cost for LBT’s demand-response transit program decreased significantly in FY 2010/11, reflective of decreases in passengers, VSH, and VSM across the review period. Overall, the program became more cost-effective and efficient across the review period as Operating Cost/VSH and Operating Cost/Passenger decreased while Passengers/VSH and Passengers/VSM increased. Long Beach Transit does not calculate the Full-Time Equivalent metric for its demand-response service given it is purchased transportation.

Exhibit 6.23 Demand-Response Performance Indicators FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Operating Cost (Actual $) $1,180,003 $1,215,798 $1,183,636 $1,129,707 $927,829 $928,526 Annual Change 3.0% -2.6% -4.6% -17.9% 0.1% Fare Revenue (Actual $) $80,507 $76,846 $78,047 $85,831 $84,292 $81,478 Annual Change -4.5% 1.6% 10.0% -1.8% -3.3% Vehicle Service Hours (VSH) 11,942 11,834 11,289 10,291 9,528 9,273 Annual Change -0.9% -4.6% -8.8% -7.4% -2.7% Vehicle Service Miles (VSM) 273,589 271,295 249,390 212,974 174,295 171,614 Annual Change -0.8% -8.1% -14.6% -18.2% -1.5% Passengers 59,115 56,941 52,674 49,049 47,064 47,289 Annual Change -3.7% -7.5% -6.9% -4.0% 0.5% Employees Not Reported Not Reported Not Reported 16.0 16.0 15.0 Annual Change 0.0% -6.3% Performance Indicators Operating Cost/VSH (Actual $) $98.81 $102.74 $104.85 $109.78 $97.38 $100.13 Annual Change 4.0% 2.1% 4.7% -11.3% 2.8% Operating Cost/Passenger (Actual $) $19.96 $21.35 $22.47 $23.03 $19.71 $19.64 Annual Change 7.0% 5.2% 2.5% -14.4% -0.4% Passengers/VSH 4.95 4.81 4.67 4.77 4.94 5.10 Annual Change -2.8% -3.0% 2.1% 3.6% 3.2% Passengers/VSM 0.22 0.21 0.21 0.23 0.27 0.28 Annual Change -2.9% 0.6% 9.0% 17.2% 2.0% Farebox Recovery 6.8% 6.3% 6.6% 7.6% 9.1% 8.8% Annual Change -7.4% 4.3% 15.2% 19.6% -3.4% Hours/Employee Not Reported Not Reported Not Reported 643.2 595.5 618.2 Annual Change -7.4% 3.8% TDA Non-Required Indicators Operating Cost/VSM $4.31 $4.48 $4.75 $5.30 $5.32 $5.41 Annual Change 3.9% 5.9% 11.8% 0.4% 1.6% VSM/VSH 22.91 22.93 22.09 20.70 18.29 18.51 Annual Change 0.1% -3.6% -6.3% -11.6% 1.2% Fare/Passenger $1.36 $1.35 $1.48 $1.75 $1.79 $1.72 Annual Change -0.9% 9.8% 18.1% 2.3% -3.8% Source: Transit Operators Financial Transaction reports.

MOORE & ASSOCIATES, INC. PAGE 39 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Exhibit 6.24 Demand-Response Ridership Exhibit 6.25 Demand-Response Operating Cost/VSH

70,000 $112.00 $109.78 $110.00 60,000 56,941 59,115 $108.00 52,674 49,049 50,000 47,064 $106.00

47,289 $104.00 $104.85 40,000 $102.00 $102.74

$100.00 $98.81 30,000 $100.13 $98.00

$97.38 20,000 $96.00

$94.00 10,000 $92.00

0 $90.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12 Exhibit 6.26 Demand-Response Operating Cost/VSM Exhibit 6.27 Demand-Response VSM/VSH

$6.00 25.00 $5.41 22.93 $5.30 22.91 $5.32 $5.00 22.09 20.00 20.70 $4.31 $4.75 $4.48 18.29 18.51 $4.00 15.00

$3.00

10.00 $2.00

5.00 $1.00

$0.00 0.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12

MOORE & ASSOCIATES, INC. PAGE 40 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT

Exhibit 6.28 Demand-Response Operating Cost/Passenger Exhibit 6.29 Demand-Response Passengers/VSH

$24.00 5.20

5.10 $23.03 5.10 $23.00

$22.47 5.00 $22.00 4.95 4.94

4.90 $21.35 $21.00 4.81 4.80 $19.96 4.77 $20.00 4.70 $19.71 $19.64 4.67 $19.00 4.60

$18.00 4.50

$17.00 4.40 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12 Exhibit 6.30 Demand-Response Passengers/VSM Exhibit 6.31 Demand-Response VSH/FTE

0.30 700.0 643.2 618.2 0.28 0.27 600.0 0.25 0.23 595.5

500.0 0.22 0.20 0.21 0.21

400.0 0.15

300.0

0.10 200.0

0.05 100.0

Not reported Not reported Not reported 0.00 0.0 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

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Exhibit 6.31 Demand-Response Farebox Recovery Exhibit 6.32 Demand-Response Fare/Passenger 10.0% $2.00 9.1% 9.0% $1.80 8.8% $1.79 $1.75 $1.72 8.0% $1.60

7.6% $1.36 $1.48 7.0% $1.40 6.3% 6.8% 6.6% $1.35 6.0% $1.20

5.0% $1.00

4.0% $0.80

3.0% $0.60

2.0% $0.40

1.0% $0.20

0.0% $0.00 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 F Y 2011/12

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7. FUNCTIONAL REVIEW

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C HAPTER 7 – F UNCTIONAL RE VI E W

A functional review of Long Beach Transit’s public transit program is intended to assess the extent and efficiency of the operator. Following a general summary of Long Beach Transit’s service, this chapter addresses seven functional areas. The list, taken from Section III of the Performance Audit Guidebook published by Caltrans, reflects those transit services provided by Long Beach Transit through its transit program:

• General management and organization; • Service planning; • Scheduling, dispatch, and operations; • Personnel management and training; • Administration; • Marketing and public information; and • Fleet maintenance.

Service Overview The City of Long Beach began operating public transit service in 1963 when the City became the sole shareholder in the newly-formed Long Beach Public Transportation Company. Marketed as Long Beach Transit, the City’s transit program serves Long Beach as well as other South Bay and Gateway communities including Artesia, Bellflower, Carson, Cerritos, Compton, Hawaiian Gardens, Lakewood, Norwalk, Paramount, Seal Beach, and Signal Hill.

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Exhibit 7.1 Long Beach Transit Fixed-Route Fare Structure Fare Category Fare Cost Single-Ride/Cash Fares Base fare $1.25 Inter-agency transfer $0.50 Medicare $0.60 Senior (62 years and older) $0.60 Disabled cash $0.60 Legally blind Free Wheelchair passenger Free Children (age 4 and under) Free Multi-Ride Fare Media 25-ride ticket book $31.25 Regular day pass $4.00 Reduced fare day pass $2.50 Regular 5-day pass $18.00 Reduced fare 5-day pass $9.00 Regular 30-day pass $65.00 Student 30-day pass $40.00 Reduced fare 30-day pass $24.00 EZ Transit pass $84.00 Reduced fare EZ transit pass $35.00

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General Management and Organization Long Beach Transit is a nonprofit corporation owned by the City of Long Beach. The President/Chief Executive Officer is responsible for day-to-day management and reports directly to the Board of Directors, which establishes the overall direction, goals, and policies for the company. The Board is composed of seven members appointed by the Mayor with the approval of the City Council and two ex- officio members appointed by the City Manager. Each member is appointed to a four-year term, and may serve up to two consecutive terms. Board of Directors meetings are held on the fourth Monday of each month in the Long Beach City Council Chambers located at 333 W. Ocean Boulevard.

In 2009, Long Beach Transit underwent a significant reorganization. The organization was divided into three primary functions: Operations, Administration, and Finance. These functional areas are overseen by the Chief Operating Officer/Senior Vice President, Chief Administrative Officer/Senior Vice President, and Executive Director/Vice President Financial Services, all of whom report to the President and CEO. The Operations side includes Planning and Service Development, Maintenance and Facilities, and Operations and System Security. The Administration side includes Administrative Services, Information Systems Technology, Marketing and Customer Services, and Government Relations. The Financial Services department oversees grants as well as all financial functions. Four organizational charts for Long Beach Transit (representing Management, Administration, Operations, and Finance) are presented on the following pages.

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Exhibit 7.2 Organizational Chart - Management

Source: Long Beach Transit.

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Exhibit 7.3 Organizational Chart - Administration

Source: Long Beach Transit.

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Exhibit 7.4 Organizational Chart - Operations

Source: Long Beach Transit.

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Exhibit 754 Organizational Chart – Finance

Source: Long Beach Transit.

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Long Beach Transit implements service adjustments three times a year, in August, February, and June. Given the impact of students and/or tourists on LBT ridership, several routes regularly change between a fall/winter schedule and a summer schedule. The changes to its service during the review period are outlined below.

FY 2009/10: • August 2009 o Passport routes A and D returned to the school schedule operated in February. o Late evening service on Friday and Saturday eliminated on Line 34. o One bus removed from peak-hour service on Line 80. o Slight adjustments to ZAP service (Lines 90 and 96). o Running time adjustments on Lines 100, 110, 170, and 190. o Additional bus added to Line 171 due to cancellation of CSULB Off-Campus Shuttle Service. o Early morning and late evening service frequency reduced on Line 180. • February 2010 o Alignment adjustments on Passport routes A, C, and D. o Major routing changes to Line 60. o Additional trips added to ZAP Lines 90 and 96 and Line 171. o Reduction in frequency on Line 130. • June 2010 o Service frequency reduced on Passport routes A and D, ZAP Lines 90 and 96, and Line 171. o Service frequency increased on Passport route B. o Early morning service frequency reduced on Line 40. o ZAP Line 66 service replaced with school trippers. o New weekday schedules on Lines 172, 173, and 174.

FY 2010/11: • August 2010 o Reduced weekday frequency on Lines 1, 2, and 70. o Passport routes A and D and Line 171 returned to winter schedule. o Reduction in evening service frequency on Lines 34 and 180 and Passport route B. o Reduction in early morning service frequency on Lines 40, 50, and 60. o Running time adjustments on Lines 50, 60, 90, 100, 110, and 130. o No service on school holidays on ZAP Line 96. • February 2011 o Weekend service frequency reduced on Lines 1, 20, 70, 171, and 180. o Slight service adjustments to Passport routes A and D. o Weekday service frequency reduced on Passport route C. o Running time adjustments on Lines 50, 60, and 110.

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o Additional trips added on ZAP Lines 90 and 96. • June 2011 o Shift to summer schedule on Passport routes A, C, and D and Lines 91, 92, 93, 94, 96, 111, 112, and 171. o Expanded evening service on Line 45. o Introduce weekend service on Line 45. o Minor schedule adjustments on Lines 21, 51, 191, 192, and 193.

FY 2011/12: • August 2011 o Passport routes A, C, and D; ZAP Lines 90 and 96; and Lines 110 and 171 returned to winter schedule. o Service frequency reduced on Passport route B. o Line 100 modified to provide more direct crosstown service and improved service to Long Beach Airport. o Alignment changes to Line 101. o Line 102 expanded to provide direct service from Blue Line to Long Beach Airport. o Line 103 added an extension to Lakewood High School during peak hours and the service span was expanded to run all day rather than peak hours only. o New Line 104 expanded service along East Spring Street to serve El Dorado Park and Nature Center and downtown Los Alamitos. • February 2012 o Service modifications to Passport routes A, B, and D; ZAP Lines 90 and 96; and Lines 171 and 192. o Running time adjustments to Lines 51, 61, 63, and 170. o Service frequency reduced on Line 182. • June 2012 o Shift to summer schedule on Passport routes A, C, and D and Lines 91, 92, 93, 94, 96, 111, 112, and 171.

A number of service changes also took place in August 2012, immediately following the review period. The most significant changes were the decision to transition three of the four Passport routes to regular fixed routes, discontinue service to Seal Beach, and introduce Line 176 (funded by a JARC grant).

Several other improvements were noted during the review period. In June 2009, Long Beach Transit opened its Transit and Visitor Information Center (at First and Pine, adjacent to Metro Blue Line and Transit Gallery) through a partnership with the Long Beach Area Convention and Visitors Bureau and the Downtown Long Beach Associates. In June 2011, the First Street Transit Gallery (formerly known as the Long Beach Transit Mall) reopened following renovations. In addition, 64 new CNG vehicles were delivered during the first half of FY 2012/13 and the CNG fueling station at the Jackson Transit Center opened in September 2012.

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In 2011, Long Beach Transit was accepted into the FTA/Virginia Tech two-year Environmental and Sustainability Management Systems (ESMS) program for transit systems. The primary goal of the program is reducing environmental impacts throughout every aspect of operations. Thus far, efforts have included the conservation of water and energy through the installation of efficient fluorescent lights, motion sensors, low-flush toilets, and solar-powered bus stops. Long Beach Transit is currently developing Standard Operating Procedures (SOP) and Work Instruction Plans (WIP) to systematically address environmental issues.

Long Beach Transit regularly cooperates with other local and regional transit entities. It regularly participates in joint ventures for equipment purchases and maintenance training programs, and by sharing its procurement experience with other agencies. The current Executive Director/Vice President of Planning and Service Development has a strong background in intergovernmental relations. Long Beach Transit is also a member of the Regional Integration of Intelligent Transportation Systems (RIITS) project sponsored by the LACMTA to exchange ITS information and improve transportation systems.

Long Beach Transit representatives also participate in other regional activities, including LACMTA Gateway Sector, Bus Operators Subcommittee, and Board and Committee meetings; the Gateway Council of Governments Transportation Committee; and OCTA service development meetings.

Service Planning The mission of Long Beach Transit is "to provide public transit services that enhance and improve the quality of life for the residents of our community." Management develops a Business Plan/Short Range Transit Plan every three years. The Business Plan includes internal goals and objectives as well as program/staff strengths and weaknesses. It can be updated in off-years as necessary. Program and staff performance is compared to the goals and objectives included within the Plan on a quarterly basis.

System performance is monitored regularly and frequently. Staff generates weekly and monthly reports to management with critical performance information such as ridership, fare revenue, road calls, preventative maintenance schedule adherence, etc. Each quarter, management reviews performance versus adopted goals and objectives and takes a proactive approach toward addressing any problems. Key performance indicators are reported to the Board twice annually. Long Beach Transit also conducts physical passenger counts using random staff (“mystery rider” program). Automatic passenger counters (APCs) have been installed on 35 transit vehicles, with more slated to receive the technology in the near future. Ridership data is also generated by the GFI fareboxes. All vehicles feature an Automatic Vehicle Locator (AVL) system which can be used to monitor on-time performance. All coaches are equipped with cameras.

Long Beach Transit conducts a comprehensive (i.e., 100 percent) line-by-line analysis every three years, which includes on-time performance/productivity checks as well as customer surveys. The line-by-line analysis assists staff in evaluating current performance and provides information upon which to base

MOORE & ASSOCIATES, INC. PAGE 54 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT service planning decisions. A line-by-line analysis also helps staff through a detailed analysis of travel patterns at the route, route segment, day-part, and operating day levels; intra- and inter-system transfer patterns analysis; and customer preference/satisfaction results.

ADA complementary paratransit service and certification provided by Access Services Inc (ASI) also Long Beach Transit began providing special service with Dial-A-Lift for persons with disabilities in 1976 as a supplement to its fixed-route service. Dial-A-Lift (operated by Taxi Systems, Inc.) is a curb-to-curb service offered for mobility impaired adults not physically able to use the fixed route system. It supplements Access Services by providing additional services to Long Beach, Lakewood, and Signal Hill. The hours of operation are Sunday through Thursday and holidays, 7:00 a.m. to 10:30 p.m.; Friday and Saturday, 7:00 a.m. to 11:30 p.m.

Reduced fares on the fixed-route service are available for seniors, persons with disabilities, and Medicare card holders. The legally blind and wheelchair passengers ride fixed-route for free with appropriate identification. All vehicles are handicap-accessible; however, eight stop locations are not accessible. These locations are identified on the Long Beach Transit website.

An annual Customer Satisfaction Survey and additional research are conducted by an outside contractor. The survey typically records customer satisfaction data but does not document travel data (origin/destination, etc.).

Scheduling, Dispatch, and Operations Long Beach Transit performs its own run-cutting, scheduling, and dispatch in-house using HASTUS software along with Transit Watch (Fleet Watch for the marine service). Drivers bid assignments three times annually based on seniority. Included within the pieces of work being bid upon are 151 full-time extra board assignments. Work is assigned to the extra board drivers based on seniority. LBT has not used part-time operators since 1996, and has 475 total operator positions. All operators are trained to operate all rolling stock, including the over-the-road coaches utilized for charter service. 5

Twenty-two road supervisors and four operations assistants are responsible for day-to-day supervision of fixed-route operations. Vehicles are assigned to routes based on whether they can operate on that specific route alignment. Dispatchers have a list indicating which vehicles can be assigned to specific routes. Dispatch and operations for the Dial-A-Lift service is handled by the operations contractor, Taxi Systems, Inc; while dispatching and operations of the AquaLink and AquaBus services are handled by that operations contractor, Catalina Express.

5 Note: Long Beach Transit received an exemption from the Federal Transit Administration for its charter service.

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Personnel Management and Training The Administrative Services Department is responsible for all recruitment, administering employee benefits, and labor negotiations. The recruitment of sufficient qualified drivers is not a problem; in fact, there is a relatively low turnover rate. Operations and maintenance personnel are represented by the Amalgamated Transit Union (ATU). The contract stipulates represented full-time employees are entitled to medical, dental, and vision coverage (available to dependents as well), retirement benefits, life insurance, and paid time off.

Long Beach Transit has a stringent eight-week training program for all bus operators as well as state- mandated annual remedial training. The Administrative Services Department is responsible for all training (administrative staff, operators, maintenance personnel, etc). The Department has a staff of seven trainers under the supervision of a Training Manager.

Long Beach Transit is a founding member of the Southern California Regional Transit Training Consortium (SCRTTC), a partnership organization of public and private transportation service operators and community colleges focused on developing instructional curriculum and training in bus technology and equipment maintenance. Maintenance staff and mechanics are required to participate in an eight-week training program through Long Beach City College.

Management strives to create a "family" environment. Employees of the month are recognized for both exemplary safety and maintenance.

Administration Purchasing for Long Beach Transit is the responsibility of the Administrative Services Department. Any procurement exceeding $2,500 triggers a competitive-bid process wherein Long Beach staff advertises the bid in the local print publication. The operator has an annual Disadvantaged Business (DBE) goal and DBE participation program which is administered by a DBE Officer who reports directly to the Chief Executive Officer. Long Beach Transit applies Federal Transit Administration standards to all grants and procurements.

A one-year operating budget is crafted on an annual basis. The Finance Manager leads the budget process, while the Controller is in charge of the capital aspect of the budget. Long Beach Transit does not operate on a “line-item” basis, meaning individual budget items can exceed their budgeted expenditures, so long as overall budget figures are met. The budget process begins in February of each year and is adopted by the Board of Directors in May. Long Beach Transit has a mechanism for mid-year revisions in January as necessary. Staff regularly monitors the budget to ensure expenses and revenues are on target. Finance reports to the Board on a monthly basis and the ledger is reviewed quarterly to identify any problems associated with individual accounts. The Controller position provides Long Beach Transit with an internal audit function.

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The Controller oversees both a grants accountant and a grants administrator. Compliance reporting is supported by Ellipse software which helps track key performance indicators. Risk management is under the Administrative Services Department, ultimately reporting to the Chief Administrative Officer.

Long Beach Transit uses fareboxes that segregate and cash and non-cash fare media as well as record individual boardings by type (via driver key-in). Each facility has a secure, limited-access cash room wherein all coins and cash are counted. Money is collected at both facilities daily via armored car service. Farebox receipts are reconciled with money deposited at the bank. Long Beach Transit has not implemented any aspect of the regional Universal Fare System (TAP). Staff sees the value in having a universal fare system and is eager to take part in the program, but is waiting until more progress is made with respect to improving operating rules and resolving hardware/software problems. The agency is an active participant in working groups related to the universal fare program.

The Dial-A-Lift program is operated under contract by Taxi Systems, Inc. All Dial-A-Lift vehicles are owned and maintained by LBT, while dispatch and operations are handled by the contractor. The vehicles are used for normal taxi service while Dial-A-Lift customers are not on-board. A Dial-A-Lift Administrator in the Operations and System Security Department is responsible for managing customer eligibility and program administration.

Marketing and Public Information The Marketing and Customer Services Department reports to the Chief Administrative Officer. Marketing staff develop and update the Long Beach Transit marketing strategy which is provided to one of two advertising agencies under contract (one traditional and one specializing in Spanish-language advertising). The advertising agencies are responsible for all media planning, creative, and production. The current Marketing and Customer Services Manager also has advertising agency experience. Marketing staff regularly reviews program performance and compares it to program goals and objectives. Staff also reviews ridership patterns to determine the efficacy of marketing and advertising efforts. Approximately two-thirds of the LBT marketing budget is currently devoted to “new rider” marketing efforts.

Long Beach Transit has a real-time “next bus” system on its website as well as electronic signage at 64 high-volume bus stops. The TranSmart system also allows for on-board computerized stop announcements. Every stop is marked with a four-digit code allowing customers to call in to track the arrival of the next bus. The system also provides real-time vehicle monitoring capabilities for operations/dispatch personnel as well as on-time performance data for planning purposes.

Long Beach Transit utilizes an Interactive Voice Recording (IVR) system on its customer service phone lines to assist customers with questions and trip planning when live staff is not available to answer phones. A smartphone version of the website was launched in August 2012.

Immediately prior to the review period (June 2009), Long Beach Transit opened a new customer service center adjacent to the First Street Transit Gallery. The customer service center is staffed with

MOORE & ASSOCIATES, INC. PAGE 57 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT knowledgeable customer service personnel who can answer service-related questions, assist with trip planning, take complaints/feedback, and sell fare media. The facility also features self-service kiosks for customers to use after-hours when the facility is not staffed. All personnel at the call center are cross- trained to work the customer service center at the Transit Gallery as well.

Long Beach Transit has a long history of working collaboratively with local businesses and education institutions to encourage the use of mass transit among students, faculty, and employees. LBT has an agreement with California State University – Long Beach (CSULB) to allow all part- and full-time students and staff to ride any Long Beach Transit fixed route free of charge. The “U-PASS” program has proven wildly successful, creating some capacity issues along some routes serving the campus.

The Customer Services Department handles rider comments. The department phone number is listed online as well as an option to submit a comment electronically. Long Beach Transit boasts strong customer satisfaction numbers (record highs in the Fall 2012 Customer Survey), which have increased over the years along with overall ridership.

Long Beach Transit conducts outreach prior to each service change. A federal Title VI Assessment Report completed in 2010 found transit services and amenities are distributed in a non-discriminatory manner.

Maintenance Long Beach Transit performance all vehicle maintenance at two facilities – 1963 E. Anaheim Street and the Jackson Transit Center at 6860 Cherry Avenue. The James A. Ditch Maintenance Facility and Learning Center is located within the Jackson Transit Center. In September 2012, a CNG fueling station opened at the Jackson Transit Center, in concert with the delivery of the first CNG coaches. Ultimately, Long Beach Transit aims to maintain all CNG coaches at the Jackson Transit Center, and all gasoline- electric hybrid and future electric buses at the Anaheim Street facility. LBT is working toward phasing out its “clean diesel” buses in order to have a 100 percent clean fleet by 2016.

All vehicles are inspected every 6,000 miles (+/- 5 days), this cycle is a combination of major and minor inspections based on the CHP’s A-B-C maintenance program. Specifics of each Preventative Maintenance Inspection (PMI) vary for each vehicle series. Ellipse computer software identifies repairs covered by warranty; all warranty work is performed on-site by the respective manufacturer. All tire work is performed by a Goodyear Tire Company employee housed on-site at the Anaheim Street facility (the tire contract is bid competitively every five years).

All PMI scheduling/monitoring and parts management is handled by the Ventyx Ellipse EAM and EAP software platforms. Computer terminals are placed throughout each Maintenance facility, allowing maintenance personnel to review work orders and update the status of maintenance being performed on each vehicle. Preventive maintenance performance is monitored monthly (on-time, percent on-time, and average). Long Beach Transit was recently awarded a state of good repair grant to develop an industry standard comprehensive asset management system, as well as a grant for bus lift replacement.

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Access to the parts room is controlled via a Storeroom Supervisor and six Parts Storekeepers and inventory is monitored through the Ellipse system.

Maintenance and Facilities personnel also are responsible for cleaning and maintenance of all bus shelters within the system. Long Beach Transit reviews all stops within the system on an annual basis, analyzing ridership and usage patterns to determine which can be improved with new/enhanced amenities and artwork given available funding. Maintenance and upgrades of all shelters are now included within the regular preventative maintenance program and maintenance personnel regularly switch shelters out and rehab them (fresh coats of paints, deep cleaning, etc).

Fleet vehicles range from model year 1996 to 2009. LBT strives to maintain its fleet in a "like new" condition, providing a cosmetic upgrade halfway through each vehicle’s lifespan. Thirty-three CNG vehicles were delivered in August 2012, with another 31 delivered by end of 2012. Twenty-nine 30-foot diesel buses were retired in August 2012 and replaced with CNG-fueled vehicles.

Exhibit 7.6 Long Beach Transit Fleet Model Fuel Number of Manufacturer/Model Use Year Type Vehicles 1996 New Flyer D40LF5 Diesel Contingency 20 199 7 New Flyer D40LF6 Diesel Contingency 4 1997 New Flyer D40LF6 Diesel Fixed -Route 14 1998 New Flyer D40LF6 Diesel Fixed -Route 16 1998 Willard AquaBus Diesel Ferry 2 1999 Prevost H Series Diesel Charter 1 2000 New Flyer D40LF6 Diesel Fixed -Route 18 200 1 Chance/Optima Opus Diesel Fixed -Route 29* 2002 New Flyer D40LF6 Diesel Fixed -Route 39 2002 Kvichak AquaLink Diesel Ferry 1 2003 New Flyer D40LF6 Diesel Fixed -Route 13 2004 New Flyer GE40LF Hybrid Fixed -Route 22 2005 New Flyer GE40LF Hybrid Fixed -Rou te 27 2007 New Flyer GE40LF Hybrid Fixed -Route 15 2007 El Dorado Amerivan Gasoline Demand -Response 3 2008 El Dorado Amerivan Gasoline Demand -Response 10 2009 New Flyer GE40LFA Hybrid Fixed -Route 25 2009 El Dorado Amerivan Gasoline Demand -Response 2 2012 Gillig G27B102N4 CNG Fixed -Route 64 2012 Kvichak AquaLink Diesel Ferry 1 *Retired in August 2012. Source: Long Beach Transit.

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8. FINDINGS AND RECOMMENDATIONS

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C HAPTER 8 – FINDINGS AND R ECOMMENDATIONS

Based on discussions with Long Beach Transit staff, analysis of program performance, and a review of program data, the audit team submits no findings or recommendations for Long Beach Transit.

Discussion While not presented as a finding or recommendation, we would like to offer discussion of one additional issue that arose during the review.

Initially, Long Beach Transit did not report Full-time Equivalent (FTE) data according to the definition included in PUC 99247(j) in its State Controller filings, as it did not report contractor hours for its Dial-A- Ride service. However, Long Beach Transit has already identified this problem and has submitted corrected TORs to the State Controller. Given LBT has already addressed and corrected the issue, we do not submit this as a compliance finding at this time. Instead, this discussion is intended to document this inaccuracy and explain the presence of past incorrect State Controller filings.

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Table of Contents

Introduction…………………………………………………………………………………………….1

Executive Summary…………………………………………………………………………………...2

Current and Projected Business Conditions………………………………………….…3

Overall Business Direction FY 13‐15…………………………………………………….….4

LBT Business Objectives ……………..……………………………………………………….….5

Plan Implementation……………………………………………………………………………...….7

APPENDIX 1: Corporate Standards of Excellence……………………….…………….8

APPENDIX 2: Unemployment Rates………………………………………………………..15

APPENDIX 3: Consumer Confidence ………………………………………………………16

APPENDIX 4: Long Beach Transit Rider Demographics……………………………17

APPENDIX 5: Aging Population in Long Beach………………………………………..20

APPENDIX 6: Population Density ……………………………………………………………21

APPENDIX 7: Population Age …………………………………………………………………22

APPENDIX 8: California and U.S. Gasoline Prices ……………………………………23

APPENDIX 9: Fleet Funding Plan ………………………………………………………………24

Introduction

This document is a mid‐life update of the FY 2013‐2015 Strategic Business Plan, to revisit economic uncertainties that existed at the start of FY 2013. The economic climate from 2008‐ 2012 could be described as fairly frightening and unpredictable at best. Our nation was plagued with record high unemployment, massive layoffs, devastating funding cuts for government entities, civil unrest, record high fuel prices and corporate scandals. For our organization, that equated to an experience mixed with tough decisions made to balance our budget, while attempting to survive the financial impacts of a wild racing economic roller coaster. All the while, we remained true to our corporate mission statement, which is “to provide public transit services that enhance and improve the quality of life for the residents of our community,” while attempting to minimize the negative impact on our customers and employees.

Despite financial sacrifices endured by our staff, our organization and our customers, we achieved virtually all of our corporate standards of excellence (see Appendix 1). Other notable accomplishments during the last three years include:

 A major renovation of one of the busiest transit hubs in Southern California: The First Street Transit Gallery and other economic stimulus projects, provided by federal funds received through the American Recovery and Reinvestment Act.

 Our coach operators and staff provided world class customer service, which contributed to receiving all‐time high ratings from our customers.

 Our new modern, sleek 2900 series coaches, the first to be put in service in the nation, turned heads and set a new standard for what a fun customer‐friendly bus can look like.

These accomplishments achieved by our Long Beach Transit employees are truly remarkable considering the difficult operating environment that strained our financial resources the past four years. This strategic business plan is based on our mission and the reason we are in existence. It serves as a roadmap that will set the direction of our organization during fiscal years 2013‐2015.

Long Beach Transit | FY 2013‐2015 Strategic Business Plan | FY14 UPDATE 1

Executive Summary

Where will Long Beach Transit be in fiscal years 2013‐2015, and how will we get there? This plan outlines the challenges we face, the opportunities we have, our strategic business goals, the objectives that will pave the way to achieve those goals, and how we will continue to achieve our mission and our corporate standards of excellence.

Between 2008 and 2012, Long Beach Transit took the following actions to address budget reductions caused by dire economic conditions:

 Raised bus fares twice in two years, equating to an overall increase of 39%  Cut service by 3.5% and finalized plans for additional service reductions up to 10%  Froze wages for the past four years  Implemented a 5% pension contribution and an increased healthcare contribution for all employees  Left critical positions unfilled  Eliminated all nonessential travel and meetings and reduced overhead expenses  Used $23 million in federal capital funds to cover operating expenses, as permissible by federal law  Used $3 million annually from our emergency reserves for the past three years to pay for operating expenses

By taking these steps, we were able to maintain a balanced budget and weather the economic storm without any layoffs to date. Given that we operate in a global economy and there are many unknowns at the world level, it is difficult for anyone to predict how fast our local economy will rebound. As of May 2013, the economic outlook that showed hope of improvement in 2012 has continued on a positive trend toward recovery. Consumer confidence and spending has increased, the stock market has recovered for the first time to levels not seen since before the recession, unemployment is declining, and organizations have started to hire again. We are hopeful that the financial bleeding has stopped and we can slowly regain our momentum to make conservative and incremental improvements to grow our transit system.

Over the next two fiscal years, our priorities as an organization will remain to continue a strong focus on achieving our mission and corporate standards of excellence. We will stay focused on cost efficiency as well as budget conservatively. Considering a more stable and prosperous economy, we are formalizing plans to modestly improve our service, invest in employee skill development, improve the quality with which we communicate with our customers, and seek out alternative revenue sources.

Long Beach Transit | FY 2013‐2015 Strategic Business Plan | FY14 UPDATE 2

Current and Projected Business Conditions

Two major factors impacting our current environment that will influence future business conditions are funding and ridership.

Funding Outlook

Greatly influencing our funding is the unemployment rate. According to the Bureau of Labor Statistics, the average unemployment rate in the United States in 2007 before the recession hit was 4.6%. That figure peaked in October 2009 at 10%, which equated to 13.7 million people without jobs. In 2012, that rate dropped to 8.3% and as of May 2014 is 7.6%. In California, the unemployment rate peaked at 12.4% in July 2010, was 11.2% in 2012, and is 9.4% in May 2014. Locally in the Long Beach/Los Angeles Metro area, the unemployment rate is 11.3%, down slightly from 11.6%, last year. This figure still reflects over 500,000 people locally unemployed. See Appendix 2.

High unemployment directly affect consumer spending. Considering that approximately 60% of our operating income comes from county and state funds that are sales‐tax based, when jobs are lost, consumer spending declines. Conversely, as the economy gets better and people find jobs, consumer spending should increase, and so too should the amount of our subsidies.

Consumer confidence, an economic indicator that measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation, also impacts spending and ultimately our funding outlook. It is closely watched because it constitutes 70% of U.S. economic activity. A reading of 90 or above indicates a healthy economy, but that number has not been reached since December 2007. Consumer confidence hit an all‐time low in March 2009 at 25.3. As of February 2012, consumer confidence was the highest it’s been since the start of the recession at 70.8, and today measures 68.1. See Appendix 3.

Ridership Outlook

While the economy is moderately improving, our ridership remains high. We experienced 27.8 million boardings in FY11 and 28.2 million in FY12. Demand is projected to increase slightly over the next two years due to the economy getting better as people get back to work, and a strong “green” movement locally and statewide, making public transit more appealing. A growing population and the increasing number of transit dependent senior citizens will also contribute to increased ridership. See Appendix 4 to 7. In addition, the increasingly high cost of fuel will continue to sway vehicle owners to use our system. Ridership increases as high as 10% were experienced in summer of 2008, when gas prices spiked near $5 per gallon and drove people Long Beach Transit | FY 2013‐2015 Strategic Business Plan | FY14 UPDATE 3

out of their cars, on to our buses. In 2012, gasoline prices reached $5 per gallon in some parts of California and have slightly come down to about $4 per gallon. See Appendix 8. Our system continues to experience overcrowding during peak periods of service. Therefore, more service will be required to sustain demand should ridership spike again as a result of the high cost of fuel.

Overall Business Direction FY 13‐15

Taking into account the current and projected business conditions and our ridership outlook, our six main goals and company focus will be the following:

1. Focus on core mission every day with strong attention to LBT’s Corporate Standards of Excellence

2. Budget and plan conservatively with an emphasis on cost efficiency

3. Prepare plans to modestly improve service

4. Invest in employee skill development

5. Improve the quality with which we communicate with customers and develop “choice” riders

6. Seek alternative funding resources by developing predictable and regular revenue streams

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LBT Business Objectives

This portion of the plan lists our company objectives that will enable us to achieve our six main goals over the next three years:

Goal #1: Focus on core mission every day with strong attention to LBT’s Corporate Standards of Excellence

Objective 1A: Achieve LBT’s Corporate Standards of Excellence. These standards keep our organization focused on providing service excellence to our customers, living within our financial resources, and achieving specific results in bottom line efficiency and effectiveness.

Objective 1B: Deliver excellent customer service to our customers, business partners, our service vendors and each other. Ultimately, our passengers are our #1 customer; however, LBT departments also serve internal customers. For instance, Human Resources provides healthcare information to employees, Service Planning creates ridership maps for Marketing & Customer Service, Finance provides managers with budget updates, Marketing & Customer Service provides customer comment details to Operations, Purchasing keeps Maintenance supplied, while Information Systems keeps our computer programs functioning, and so on.

Goal #2: Budget and plan conservatively with an emphasis on cost efficiencies

Objective 2A: Develop a long‐term plan to fund the operations of our company. For the past few years, LBT has been forced to use monies intended for our capital programs to fund our operations due to the state budget crisis and the recession. If this trend continues, we would need to make a decision to reduce service or see the quality of our assets deteriorate. This five year projection will look at the current and future demand required of our system and how we will be able to fund our programs. See fleet funding replacement plan, Appendix 9.

Objective 2B: Continue implementation of sustainable and “green” business practices that will ultimately lead to long‐term cost savings for the company. LBT is a signatory to the UITP (International Association of Public Transport) Charter on Sustainable Development as well as a certified by the Environmental and Sustainability Management System (ESMS).

Goal #3: Prepare plans to modestly improve service

Objective 3A: Long Beach Transit was recently awarded a grant to purchase electric vehicles. It will be our goal to successfully add these electric buses to our fleet in the most desirable location for our customers and visitors.

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Objective 3B: Implement a restructuring of the existing Passport service to accommodate 40 foot buses and support the City’s development efforts.

Objective 3C: Complete an update of our facilities master plan to ensure our operating facilities can support and sustain future service requirements.

Objective 3D: Add CNG coaches to our vehicle fleet. Long Beach Transit recently purchased 64 Compressed Natural Gas (CNG) coaches, which will be operated and maintained out of our 6860 Cherry Avenue facility currently being modified to accommodate CNG operations.

Objective 3E: Develop a long‐term vision plan for the organization. We have experienced positive, incremental growth over the last fifty years. What do we want our service to look like in the next 50 years?

Goal #4: Invest in employee skill development

Objective 4A: As technology, regulations and laws change, the skill sets of our team need to be developed accordingly. We will work to provide critical training as warranted to our staff.

Objective 4B: Our workforce has modestly grown over the years and the skillsets needed to accomplish our tasks has become more complicated. To remain fiscally conservative, we continue to operate with minimal increases to our employee count. Cross training and mentoring programs for our staff will enable us to function better within our respective departments as well as provide opportunities for future leaders of LBT.

Goal #5: Improve the quality with which we communicate with customers and develop “choice” riders

Objective 5A: Prepare an updated Information Systems Business Plan. LBT has aggressively implemented new technologies (on‐board camera systems, TranSmart real‐time bus tracking, hybrid and CNG coaches) to benefit our customers and community. We will update our Information Systems Business Plan to ensure our IS infrastructure can continue to support and maintain our technology systems.

Objective 5B: Complete a comprehensive analysis of our water taxi service. The service has been in place for over 10 years. The number of boats, available stops and marketing efforts

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have been enhanced since then and so too has our ridership. This analysis will tell us who is riding, where they are going, and why.

Goal #6: Seek alternative funding resources by developing predictable and regular revenue streams

Objective 6A: Work with other municipal transit operators to encourage increased federal and regional transit funds. Ensure the community is well informed of the critical service that Long Beach Transit provides, as well as the impact of decreased funding at the state and local level.

Objective 6B: Negotiate a cost effective labor contract that reflects our current economic environment. We are approaching negotiations of the last year of our contract and a new contract will need to be finalized for the period beginning July 1, 2013.

Plan Implementation:

The implementation of this plan will be directed by the Executive Committee of Long Beach Transit, consisting of the Chief Executive Officer, Chief Administrative Officer, Chief Operating Officer, and Executive Directors of Finance, Operations and System Security, Maintenance and Facilities, Administration (HR/Risk Management/Training/Purchasing), Planning and Service Development, and Information Systems. The Executive Committee will ensure that:

 Appropriate resources are directed to accomplish the Business Plan objectives

 Departmental action plans in support of the Business Plan are planned and implemented

 The Business Plan is communicated throughout the organization

 Results are reviewed and reported to the organization on a quarterly basis

 The plan is monitored and changed as necessary as a result of business conditions

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APPENDIX 1: FY 2013‐2015 Long Beach Transit Corporate Standards of Excellence

The mission of Long Beach Transit is to provide public transit services that enhance and improve the quality of life for the residents of our community.

To achieve this mission, the company has identified standards of excellence in seven strategic business areas: human resources, safety and security, facilities and fleet, service quality and efficiency, financial resources and revenue, customer satisfaction, and leadership. In each of these seven strategic business areas, the company has set specific levels of performance that we will strive to attain in the conduct of our business. Achievement of the Long Beach Transit standards of excellence will signify accomplishment of our corporate mission.

A summary of the standards we intend to achieve is shown below. The specific standards in each of the seven strategic business areas are shown on the attached pages.

Summary of Standards

Human Resources: Our employees are the very foundation of the organization. Long Beach Transit will support our employees in achieving excellence in serving our customers through training and development, teamwork building, and continuous efforts at effective communication and treating each and every employee with dignity.

Safety and Security: We recognize the tremendous importance of safety and security in the operation of a public transit system. Therefore, the safety and security of our customers and employees will be an organizational priority, and we will be proactive in promoting system safety. Our goal will not be mere compliance with safety regulations, but an ongoing effort to operate a safe and secure transit system.

Facilities and Fleet: We will strive to operate and maintain a modern and clean fleet and facilities that will be pleasing to our customers and a source of pride for the community and our employees. In the purchase and operation of our transit fleet, we will be a leader in achieving regional clean air goals.

Service Quality and Efficiency: We will deliver dependable, customer friendly and efficient transit services to the communities we serve. Further, we will look for opportunities to deliver innovative new services within the resources available.

Resources and Revenue: Long Beach Transit will live within its means. While providing excellent service to our customers and communities, we will do so within the financial resources available to us. The financial good health of the company will not be compromised, and we will work to deliver good value for the taxpayers' investment in LBT. Where new funds are available that allow us to bring meaningful transit improvements to our community that can be sustained over time, we will actively pursue those funds. Long Beach Transit | FY 2013‐2015 Strategic Business Plan | FY14 UPDATE 8

Customer Satisfaction: The bottom line of our business is customer and community satisfaction with the quality of service we provide. So we will actively listen to our customers and the communities we serve, respond to their concerns within the resources available to us, and encourage their involvement and feedback.

Leadership: We will strive to continue being considered one of the nation's leading transit systems. To achieve this strategic goal, we will work to maintain cooperative relationships within the industry and our community, and to develop future leaders from within our organization.

The specific standards of excellence in each of the seven strategic business areas are shown below. Some of the standards are quantitative, meaning they can be objectively measured with data and reported statistically; others are qualitative or subjective, requiring periodic assessment and analysis.

Roles and Responsibilities for Standards of Excellence

With policy guidance from the Board of Directors and input from throughout the organization, the President and CEO sets the corporate standards of excellence as detailed in this document. The Executive Committee‐‐consisting of the CEO, CAO, COO and executive directors‐‐will communicate the standards throughout the organization and direct the application of organizational resources to achieve the standards. The Executive Committee will also ensure a system of quarterly reporting of results in achieving quantitative standards and annual reporting of qualitative standards is prepared and shared with the organization. The Financial Services Department will direct the preparation of the quarterly report of quantitative standards, including the identification of what data are necessary to compile the report. Individual departments will be responsible for supplying such data as requested. Finally, it will be the responsibility of each member of the management team, including all departmental managers, to ensure that standards are actively communicated and discussed throughout individual departments, that departmental resources are applied to achievement of the standards, and that feedback on performance regarding standards is made available in a timely manner to work groups and project teams.

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Strategic Business Area ‐ HUMAN RESOURCES: Our employees are the very foundation of the organization. Long Beach Transit will support our employees in achieving excellence through training and development, teamwork building, and continuous efforts at effective communication and treating each and every employee with dignity.

Standard 1: Enable our employees to achieve excellence in serving our customers by building teamwork, enthusiasm, understanding and effective communication within the organization. Measurement: Subjective. With input and advice from throughout the organization, the Executive Committee will conduct an annual assessment of the degree of achievement of this standard and report back to the organization.

Standard 2: Recruit, promote and retain highly qualified employees to achieve LBT service standards. Measurement: Subjective. Annual assessment by Executive Committee (as in Standard 1 above).

Standard 3: Treat employees with dignity and fairness in the application of employment and labor laws, company policies and labor agreements. Measurement: Subjective. Annual assessment by Executive Committee.

Standard 4: Provide continuous development of organizational skills through ongoing training and development programs that result in personal and professional growth of employees. Measurement: Subjective. Annual assessment by Executive Committee.

Strategic Business Area ‐ SAFETY AND SECURITY: We recognize the tremendous importance of safety and security in the operation of a public transit system. Therefore, the safety and security of our customers and employees will be an organizational priority, and we will be proactive in promoting system safety. Our goal will not be mere compliance with safety regulations, but a continuous effort to operate a safe and secure transit system.

Standard 1: Establish and maintain an ongoing system security program that proactively promotes the safety and security of customers and employees on all Long Beach Transit vehicles and facilities. Measurement: Subjective. The Security Committee will provide a semiannual report to the Executive Committee on the results of LBT’s security program.

Standard 2: Total risk management costs will not exceed 8.5% of total operating costs. Measurement: Objective. Risk management costs and total operating costs will be reported quarterly by Financial Services.

Standard 3: Workers compensation claims will not exceed 11 per 100 full‐time employees annually. Measurement: Objective. Claims will be reported quarterly by Financial Services. Source of data will be Occupational Health and Safety Administration (OSHA) logs.

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Standard 4: Rate of preventable accidents will not exceed 1.7 per 100,000 miles of service. Measurement: Objective. Rate will be reported quarterly by Financial Services.

Standard 5: Customer and community perception of system safety will be at least 90% favorable. Measurement: Objective. Communication & Customer Services Department will conduct an annual survey of customers and community residents within generally accepted statistical confidence levels and report results to the organization.

Strategic Business Area ‐ FACILITIES AND FLEET: We will strive to operate and maintain a modern and clean fleet and facilities that will be pleasing to our customers and a source of pride for the community and our employees. In the purchase and operation of our transit fleet, we will be a leader in supporting regional clean air goals.

Standard 1: Replace or retire 100% of all revenue vehicles within one year of their useful life (buses 12 years, minibuses 7 years, minivans 3 years) Measurement: Objective. Will be reported quarterly by Financial Services.

Standard 2: Maintenance costs will not exceed 28% of total operating costs. Measurement: Objective. Will be reported quarterly by Financial Services.

Standard 3: Achieve a 90% favorable perception of fleet appearance by customers and the community. Measurement: Objective. As measured in the annual Community Evaluation conducted by Marketing.

Standard 4: Maintain the cleanest, best looking urban transit maintenance facilities in the nation. Measurement: Subjective. With input from throughout the organization, the Executive Committee will assess this standard annually.

Standard 5: Achieve an 80% favorable perception of bus stops appearance by customers and community. Measurement: Objective. As measured in the annual Community Evaluation conducted by Marketing.

Standard 6: Achieve all federal and state‐mandated maintenance practices (such as on‐time preventative maintenance inspections, state‐mandated record keeping, etc.) Measurement: Objective. Any negative FTA or state (including CHP) audit findings will be reported by the Executive Director of Maintenance to the Executive Committee.

Standard 7: Achieve 7000 average miles between revenue vehicle road calls. Measurement: Objective. Will be reported quarterly by Financial Services.

Standard 8: Establish and maintain fleet procurement and maintenance practices that support regional clean air goals without compromising system reliability. Measurement: Subjective. Reviewed annually by Executive Team. Long Beach Transit | FY 2013‐2015 Strategic Business Plan | FY14 UPDATE 11

Strategic Business Area ‐ SERVICE QUALITY AND EFFICIENCY: We will deliver dependable, customer friendly and efficient transit services to the communities we serve. Further, we will look for opportunities to deliver innovative new services within the resources available.

Standard 1: Fixed route passengers per vehicle service hour will be 41 or greater system‐wide. Measurement: Objective. Reported quarterly by Financial Services.

Standard 2: Service delivery rate shall be 99.8% or greater. Measurement: Objective. Reported quarterly by Financial Services based on TransitMaster.

Standard 3: System‐wide on‐time performance will be 90% or greater. Measurement: Objective. Reported quarterly by Financial Serviced based on TransitMaster.

Standard 4: Dial‐A‐Lift passengers per service hour will be 5.0 or greater. Measurement: Objective. Reported quarterly by Financial Services.

Standard 5: Dial‐A‐Lift on time performance will be 95% or greater. Measurement: Objective. Reported quarterly by Financial Services.

Standard 6: Ferryboat load factor, a measure of occupancy on an average service day, will be 40% for AquaBus and 35% for AquaLink. Measurement: Objective. Reported quarterly by Financial Services.

Standard 7: Ferryboat on‐time performance will be 90% or greater. Measurement: Objective. Reported quarterly by Financial Services.

Standard 8: LBT will make a consistent effort to explore new service and service delivery options. Measurement: Subjective. Will be reviewed by the Executive Committee annually.

Strategic Business Area ‐ RESOURCES AND REVENUE: Long Beach Transit will live within its means. While providing excellent service to our customers and communities, we will do so within the resources available to us. The financial good health of the company will not be compromised, and we will work to deliver good value for the taxpayers’ investment in LBT. Where new funds are available that allow us to bring meaningful improvements to our community that can be sustained over time, we will actively pursue them.

Standard 1: Cost per vehicle service hour will not exceed 95% of like operators’ average. Measurement: Objective. Using survey data, Financial Services will compare and report LBT’s performance to peer operators and report annually.

Standard 2: Cost per vehicle service hour will not exceed 100% of budget. Measurement: Objective. Using financial statement data, Financial Services will calculate CVSH for the quarter and compare to the annual budget CVSH. Long Beach Transit | FY 2013‐2015 Strategic Business Plan | FY14 UPDATE 12

Standard 3: Total operating costs will not exceed the budget approved by the Board of Directors. Measurement: Objective. Will be reported in monthly financial statements to Board.

Standard 4: Total operating and non‐operating revenue will be at least 1% above budget. Measurement: Objective. Will be reported quarterly by Financial Services.

Standard 5: Grants and accounts receivable collections will average 95% within 60 days, and 99% within 180 days. Measurement: Objective. Will be reported quarterly by Financial Services.

Standard 6: No significant negative financial audit findings. Measurement: Objective. Financial Services will report any negative audit findings to the Executive Committee immediately.

Standard 7: Ensure that all capital procurements provide good value to taxpayers and customers. Measurement: Subjective. The Executive Committee, under the direction of the CEO, will review the fiscal year capital budget to ensure this standard is being met. All capital purchase requisitions over $50,000 will be reviewed by the CAO or CEO.

Standard 8: Promote productive and respectful relationships with our suppliers. Measurement: Subjective. Annual review by Executive Committee.

Strategic Business Area ‐ CUSTOMER SATISFACTION: The bottom line of our business is customer satisfaction. So we will actively listen to our customers and the communities we serve, respond to their concerns within the resources available to us, and encourage their involvement and feedback.

Standard 1: Achieve a 90% level of overall customer satisfaction with Long Beach Transit service quality.

Measurement: Objective. The “Customer Satisfaction Index” will be reported by Marketing & Customer Services annually as part of the Community Evaluation.

Standard 2: Information about LBT services will be readily and easily available to customers.

Measurement: Subjective. Marketing & Customer Services will make an annual report to the Executive Committee assessing the results of activities in support of this standard.

Standard 3: Ensure there is an effective system of listening and responding to customer complaints and concerns. Measurement: Subjective. Will be reviewed annually by the Executive Committee.

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Standard 4: We will actively seek community and customer input for our route, schedule, and service planning. Measurement: Subjective. Will be reviewed annually by the Executive Committee.

Strategic Business Area ‐ LEADERSHIP: We will strive to continue being considered one of the nation's leading transit systems. To achieve this strategic goal, we will work to maintain cooperative relationships within the industry and our community, and to develop future leaders from within our organization.

Standard 1: Maintain cooperative and influential relationships with funding agencies. Measurement: Subjective. Will be reviewed annually by the Executive Committee.

Standard 2: Develop coalition partnerships with community leaders and decision makers, keeping them well informed of the integral role and contributions of transit. Measurement: Subjective. Will be reviewed annually by the Executive Committee.

Standard 3: Provide effective leadership for Los Angeles County transit operators. Measurement: Subjective. Will be reviewed annually by the Executive Committee.

Standard 4: Undertake ongoing efforts to develop internal leaders at LBT. Measurement: Subjective. Will be reviewed annually by the Executive Committee.

Standard 5: Promote effective internal communications and promote the values of the organization within LBT. Measurement: Subjective: Will be reviewed annually by the Executive Committee

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APPENDIX 2: Unemployment Rates

UNITED STATES

7.6%

Month

CALIFORNIA

9.4%

Month

Source: Bureau of Labor Statistics

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APPENDIX 3: Consumer Confidence

‐ 68.1

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APPENDIX 4: 2012 Long Beach Transit Rider Demographics

1.2 8.2

Ridership Demographics 36.7

Ethnicity: 34.2 Asian 8.2% African American 34.2% Caucasian 19.6% Hispanic 36.7% Other 1.2%

19.6 7.6%

2.7 11.0

34.8 6.9

Employment Status: Employed 34.8% Student 43.4% Unemployed 6.9% Retired 11.0% At Home Parents 2.7% 43.4

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10.0 Age: <24 49.0% <24 25‐44 26.0% 45‐61 15.0% 62+ 10.0% 49.0 15.0

26.0

2.0 0.7 6.6 Income Levels: <15,000 39.3% 6.6 39.3 15,000 – 19,999 15.8% 20,000 – 29,999 18.5% 30,000 – 39,999 10.6% 40,000 – 49,999 6.6% 50,000 – 74,999 6.6% 10.6 75,000 – 99,999 2.0% 100,000+ 0.7%

18.5 15.8

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Trip Purpose: 11.5 Work 30.4%

School 44.1% 4.2 Medical 7.6% 30.4

Shopping 2.2% 2.2 Recreation/social 4.2% Personal business 11.5%

7.6 Ridership by Zip Code: Zip Code: Percent: 90746 0.5% 90747 0.3% 90749 0.3%

90755 2.1% 44.1 90801 1.3% 90802 9.0% 90803 4.5% 90804 11.9% 90805 7.7% 90806 10.3% 90807 2.6% 90808 1.6% 90809 0.3% 90810 5.0% 90813 13.8% 90814 1.1% 90815 3.7% 90840 0.5% 90845 0.3% Other 23.3% Total 100%

FY Total Annual Ridership: 28,183,414 Source: Long Beach Transit 2012 Rider Survey

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APPENDIX 5: Aging Population in Long Beach

Source: 2010 U.S. Census

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APPENDIX 6: Population Density

Source: 2010 U.S. Census

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APPENDIX 7: Population Age

Source: 2010 U.S. Census

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APPENDIX 8: California and U.S. Gasoline Prices

Source: California Gas Prices.com

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APPENDIX 9: LBT Fleet Funding Plan as of 5/20/2013

2000's (18 Total) (2012-2013 Eligible for Replacement) ELECTRIC & CNG

2000's (8) CNG BUDGET Fully Funded $5,702,700

2000's (10) Electric Bus Fully Funded $11,028,571

Total 2000's $16,731,271

2200's (39 Total) (2014-2015 Eligible for Replacement) ALTERNATIVE FUEL Fully Funded $28,368,452

2300's Articulated (13) (2015 Eligible for Replacement) CNG Fully Funded $15,115,950

2400's-2500's (47 Total) (2017 Eligible Replacement) Note: ALTERNATIVE FUEL 2015 Bond 1B $0 2015 Bridge 1B $0 2016 Measure R $554,386 MTA Call 2016 -CNG $2,024,983 5307 15% FY 15 $0 5307 15% FY 16 $0 $2,579,369 Amount Needed $38,244,498 Current Funding Gap -$35,665,129

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