October 2019
TABLE OF CONTENTS
Section I ...... 1
Introduction ...... 1
Overview of the Transit System ...... 1
Section II ...... 9
Operator Compliance Requirements ...... 9
Section III ...... 17
Prior Triennial Performance Recommendations ...... 17
Section IV ...... 21
TDA Performance Indicators ...... 21
Section V ...... 34
Review of Operator Functions ...... 34
Operations ...... 34 Maintenance ...... 39 Planning...... 40 Marketing ...... 41 General Administration and Management ...... 42
Section VI ...... 45
Results and Recommendations ...... 45
Triennial Performance Audit Santa Maria Area Transit (SMAT)
Section I
Introduction
California’s Transportation Development Act (TDA) requires that a triennial performance audit be conducted of public transit entities that receive TDA revenues. The performance audit serves to ensure accountability in the use of public transportation revenue.
The Santa Barbara County Association of Governments (SBCAG) engaged Michael Baker International to conduct the TDA triennial performance audit of the public transit operators under its jurisdiction in Santa Barbara County. This performance audit is conducted for the City of Santa Maria’s transit system, Santa Maria Area Transit (SMAT) covering the most recent triennial period, fiscal years (FY) 2015-16 through 2017-18.
The purpose of the performance audit is to evaluate SMAT’s effectiveness and efficiency in its use of TDA funds to provide public transportation in its service area. This evaluation is required as a condition for continued receipt of these funds for public transportation purposes. In addition, the audit evaluates SMAT’s compliance with the conditions specified in the California Public Utilities Code (PUC). This task involves ascertaining whether SMAT is meeting the PUC’s reporting requirements. Moreover, the audit includes calculations of transit service performance indicators and a detailed review of the transit administrative functions. From the analysis that has been undertaken, a set of recommendations has been made which is intended to improve the performance of transit operations.
In summary, this TDA audit affords the opportunity for an independent, constructive, and objective evaluation of the organization and its operations that otherwise might not be available. The methodology for the audit included in-person interviews with management, collection and review of agency documents, data analysis, and on-site observations. The Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities published by the California Department of Transportation (Caltrans) was used to guide in the development and conduct of the audit.
Overview of the Transit System
Background
Transit service in Santa Maria began in 1975, when the City contracted with the Santa Maria Organization of Transportation Helpers (SMOOTH) to develop and operate a public transit system. In January 1978, a fixed-route service was introduced along the Broadway corridor. A second fixed route was added in 1981 and Saturday service was added in 1982. SMOOTH operated the service until 2004, when the City retained another contractor to operate the service. The City of Santa Maria Public Works Department, Public Transit Services Division provides system administration, planning, and oversight while enlisting the services of private contractors for bus operations, maintenance,
Triennial Performance Audit 1 Santa Maria Area Transit (SMAT) janitorial services, marketing, and advertising. The current total local service area is approximately 34 square miles, encompassing primarily the City of Santa Maria and the adjacent unincorporated communities of Orcutt and Tanglewood.
Santa Maria, which was incorporated in 1906, is located at the junction of US Highway 101 and State Routes (SR) 135 and 166 in the northern part of the county. Santa Maria has a total land area of approximately 23 square miles. The 2010 US Census data showed a population of 99,553 with 9.4 percent of total residents aged 65 and older. Compared with the 2000 Census figures of 77,423, the population increased by over 28 percent. Based on the 2019 California Department of Finance estimate, Santa Maria’s population has since grown to 107,356 residents and is the largest city by population in the county.
The city serves as the administrative and commercial hub for northern Santa Barbara and southern San Luis Obispo counties. The local economy is supported by a productive agricultural sector characterized by wine grapes, vegetable crops, and cattle ranching. In addition, the region is known for its aerospace, communications, high-tech research and development, energy production, military operations, and manufacturing. Vandenberg Air Force Base, located 20 miles southwest of Santa Maria, plays an important role in the city's economic engine as being a major employer in the area.
System Characteristics
Santa Maria’s transit system currently operates intracity and regional commuter service as well as an Americans with Disabilities Act (ADA) complementary demand-response service. The local fixed- route service operates under the name of Santa Maria Area Transit, or SMAT. The regional commuter service provided by the City in conjunction with several local agency partners is called the Breeze and offers commuter-based general public transit connecting Santa Maria with various areas in the north county and the Santa Ynez Valley.
SMAT operates seven days a week, with abbreviated schedules on the weekends. The system does not operate on New Year’s Day, Easter Sunday, Independence Day, Thanksgiving Day, and Christmas Day. The weekend service schedule is operated on the following holidays: Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Labor Day, Veterans Day, the Wednesday before Thanksgiving, the Friday after Thanksgiving, Christmas Eve, the day after Christmas, and New Year’s Eve.
Service changes were implemented on February 13, 2017, which involved eliminating Routes 61 and 62 as well as extending the hours of operation of Routes 1, 2, 3, 5, 6, and 7 until 9:30-9:45 p.m.
Fixed-Route Service: SMAT’s current fixed-route service comprises eight main routes that operate on weekdays and weekends. Weekday hours are from 5:30 a.m. to 9:30-9:45 p.m., with limited service on Saturdays and Sundays from 7:00 a.m. to 7:11 p.m. Weekday tripper services are also available. The principal transfer point is the Santa Maria Transit Center, located at the southeast corner of East Boone and South Miller Streets. The facility opened in June 2011 and replaced the transfer location at the Town Center Mall. The downtown transit center enables passengers to more easily transfer among local and regional routes. Triennial Performance Audit 2 Santa Maria Area Transit (SMAT)
Other transfer options are available throughout the system including key points at the County Government Center, Town Center Mall, and Miller at Orange. Service frequencies for local routes generally range from 30- to 60-minute headways on weekdays, 40- to 90 minutes on weekends, and 40- to 45 minutes on weekday evenings. SMAT has been working to reduce interlining of routes with more direct service. A summary of routes, frequencies, and destinations is presented in Table I-1.
Table I-1 SMAT Fixed-Route Services Route Number Frequency/Operation Major Destinations 1 Weekdays ▪ Transit Center 5:35 a.m. to 8:49 p.m. ▪ Broadway and Alvin 40-minute frequencies ▪ Taylor and Casa Grande Weekend ▪ Railroad and Hidden Pines 7:40 a.m. to 6:38 p.m. ▪ Broadway and Orchard 40-minute frequencies 2 Weekdays ▪ Transit Center 6:30 a.m. to 9:27 p.m. ▪ Western and Harding 30-minute frequencies ▪ Railroad and Alvin Weekend ▪ Mussel Senior Center 8:30 a.m. to 5:57 p.m. ▪ Miller and Battles 60-minute frequencies ▪ County Government Center ▪ McCoy (FoodMaxx) 3 Weekdays ▪ Transit Center 6:00 a.m. to 9:37 p.m. ▪ Main and College 30-minute frequencies ▪ Marian Medical Center Weekend ▪ Suey Road and Alvin 9:00 a.m. to 5:53 p.m. ▪ Merrill Gardens 60-minute frequencies ▪ Allan Hancock College 4 Weekdays ▪ Transit Center 6:00 a.m. to 6:27 p.m. ▪ Pioneer Valley and Santa 30-minute frequencies Maria High Schools Weekend ▪ Edwards Community Center 9:00 a.m. to 5:56 p.m. ▪ Town Center Mall 45-minute frequencies ▪ Vocational Training Center ▪ Airport 5 Weekdays ▪ Transit Center 5:30 a.m. to 9:33 p.m. ▪ South Broadway 90-minute frequencies ▪ County Government Center Weekend ▪ McCoy 8:15 a.m. to 7:52 p.m. ▪ Foster Road 90-minute frequencies ▪ Oak Knolls Shopping Center ▪ Righetti and Santa Maria High Schools
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Route Number Frequency/Operation Major Destinations 6 Weekdays ▪ Transit Center 6:04 a.m. to 6:26 p.m. ▪ South Broadway 90-minute frequencies ▪ County Government Center Weeknights ▪ McCoy 6:33 a.m. to 9:34 p.m. ▪ Righetti High School 40-minute frequencies ▪ Oak Knolls Shopping Center Weekend ▪ Airport Mobile Home Park 7:30 a.m. to 7:11 p.m. ▪ Evergreen Shopping Center 90-minute frequencies 7 Weekdays ▪ Transit Center 6:30 a.m. to 9:25 p.m. ▪ Allan Hancock College 30-minute frequencies ▪ Edwards Cinema Weekend ▪ Walmart Shopping Center 8:00 a.m. to 5:55 p.m. ▪ McCoy 60-minute frequencies ▪ Evergreen Shopping Center 8 Weekdays ▪ McCoy – Albertsons 7:00 a.m. to 5:25 p.m. ▪ McCoy and Sandpiper 60-180-minute frequencies ▪ McCoy and Westgate Weekend ▪ Sandalwood and Black Rd 7:00 a.m. to 5:25 p.m. ▪ Betteravia and Blosser 60-120-minute frequencies ▪ Betteravia and Broadway 61 Weekday Evenings ▪ Transit Center (Discontinued 7:30 p.m. to 10:27 p.m. ▪ North Broadway and Alvin in February 45-minute frequencies ▪ North Broadway and Taylor 2017) ▪ Hidden Pines and Preisker Park ▪ Broadway and Stowell ▪ Kmart Center ▪ Righetti High School ▪ Orcutt and Clark ▪ Evergreen Shopping Center 62 Weekday Evenings ▪ Transit Center (Discontinued 7:15 p.m. to 10:15 p.m. ▪ Marian Medical Center in February 45-minute frequencies ▪ Edwards Community Center 2017) ▪ Taylor and Casa Grande ▪ Greyhound ▪ Minami Center ▪ Vocational Training Center ▪ Airport Tripper Weekdays, limited times ▪ Transit Center within the service span ▪ Western 7:13 a.m. to 4:13 p.m. ▪ Railroad ▪ Taylor
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Route Number Frequency/Operation Major Destinations ▪ North Broadway ▪ Pioneer Valley High School Source: SMAT
The Santa Maria Transit Center provides convenient convergence of SMAT with several other public transit services including the Guadalupe Flyer, Cuyama Transit, Clean Air Express, Breeze, and San Luis Obispo Regional Transit Authority (SLORTA) Route 10. Nearby private transportation carriers include Greyhound and Amtrak Thruway Bus stations. Schedule coordination between SMAT and the SLORTA route in Santa Maria is undertaken to the extent possible but has been difficult due to the trip length of Route 10, which runs through multiple jurisdictions in San Luis Obispo County. Schedule coordination is improved between SMAT and the Guadalupe Flyer with extended evening service on the Flyer. Also, there are limited opportunities for connections to the outbound Clean Air Express commuter buses in the morning due to their early departures.
Breeze Intercommunity Service: Santa Maria, under two memorandums of understanding (MOUs), operates the Breeze intercommunity service, which has two separate routes. The Breeze 100 began in May 2005 and provides general public transit connecting Santa Maria, Vandenberg Air Force Base, and Lompoc along the SR 1 corridor. The service was extended for at least another five-year period from July 2014 through June 2019. This service is provided under a MOU between the City of Santa Maria, City of Lompoc, the County of Santa Barbara, and SBCAG.
Under a second MOU, Santa Maria operates Breeze service (Breeze 200) from Santa Maria to Los Alamos, Buellton, and Solvang in the Santa Ynez Valley. The MOU is between the Cities of Santa Maria, Buellton, and Solvang, the County of Santa Barbara, and SBCAG. Santa Maria administers both services with TDA funding support from each of the local jurisdictions. The service began in January 2013 and was extended for another five-year period from July 2014 through June 2019.
There are 13 designated stops along the Breeze 100 route: The Transit Center, Broadway and Stowell, County Government Center, McCoy and Broadway, McCoy and Skyway, Santa Maria Airport, Foster Road, Clark Park and Ride, Vandenberg Air Force Base (Main Gate), Vandenberg Village, Allan Hancock College in Lompoc, Mission Plaza, and DenMat (Cordoba Ave). Service frequencies on the Breeze 100 consist of three to four morning and five afternoon/early evening trips from Santa Maria with the first departure scheduled at 5:05 a.m. and the last arrival scheduled at 6:13 p.m. Service from Lompoc consists of four morning and three afternoon/early evening trips with the first departure scheduled at 6:10 a.m.
There are five different stops along the Breeze 200: the Santa Maria Transit Center, Ferrini Park in Los Alamos, Albertson’s Center in Buellton, Freear Drive and Mission Drive (SR 246) in Buellton, and Solvang Park. The Breeze 200 consists of three round trips spread throughout the day, the earliest departing the Santa Maria Transit Center at 5:35 a.m. and the last arriving at 7:13 p.m.
ADA Paratransit: SMAT ADA Paratransit service offers curb-to-curb transportation for disabled persons. The service hours match the regular SMAT fixed-route service hours and are based on the fixed-route service hours serving the particular origin/destination of the passenger. Trips are by Triennial Performance Audit 5 Santa Maria Area Transit (SMAT)
advance reservation up to 14 days with next day service available. Service is available to qualified applicants under a certification process governed by the ADA. Eligible conditions include those of a mental or physical nature that would prevent a person from using the regular fixed-route service. Applicants must obtain an approved health care professional’s statement and signature verifying the disability.
Fares
SMAT and Breeze fares are structured according to passenger category and fare media. The fare structure during the audit period is shown in Table I-2. SMAT offers its customers the opportunity to purchase daily, monthly, and punch passes. Transfers are free with the purchase of a one-way fare and are good for 30 minutes when transferring to another SMAT route in the same direction. Breeze passengers can also receive free transfers to SMAT and City of Lompoc Transit (COLT) buses. A separate fare is required for SLORTA Route 10 and Guadalupe Flyer.
The City Council approved a fare increase on August 2, 2016, which became effective February 17, 2017, based upon recommendations made in the Short-Range Transit Plan update. The increase is the first implemented since 2005. The regular and student fares increased $0.25, and senior and disabled fixed-route fare increased $0.15. The ADA demand-response fare increase was phased in gradually over three years, with the first increase from $1.25 to $2.00, then to $2.50 on February 13, 2018, then to $3.00 in February 2019. Monthly passes were converted from a time-based media to a stored-value media during the audit period.
Table I-2 SMAT Fare Schedule Fares Prior to Fares Effective Fixed Route 2/17/2017 2/17/2017 Regular $1.25 $1.50 Student $1.00 $1.25 Seniors (Age 60 and older) & Medicare Card Holders $0.60 $0.75 Persons with Disabilities (with ID) $0.60 $0.75 Children (Under Age 6 up to a maximum of three children) Free Free Transfers Free Free ADA Demand Response $2.00-$2.50- ADA Certified $1.25 $3.00 Punch Pass (8 rides) $10.00 Not Applicable Passes Regular Daily Pass $3.00 Not Applicable Student Daily Pass $2.50 Not Applicable Senior/Disabled Daily Pass $2.00 Not Applicable Regular Monthly Pass (31-Day Unlimited Rides) $40.00 $48.00 Student Monthly Pass (31-Day Unlimited Rides) $25.00 $31.00 Senior/Disabled Monthly Pass (31-Day Unlimited Rides) $20.00 $24.00
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$10.00 Value Pass (Regular/Student/Senior/Disabled) $10.00 $10.00 $20.00 Value Pass (Regular/Student/Senior/Disabled) $10.00 $20.00 The Breeze Regular One Way $2.00 No Change Student $2.00 No Change Seniors (Over Age 60)/Medicare Card Holders/ADA-Certified Persons $1.00 No Change Regular Monthly Pass $75.00 No Change Monthly Discounted Pass (Seniors/Medicare Card Holders/ADA- Certified Persons) $37.50 No Change $10.00 Value Pass (Regular/Student/Senior/Disabled) $10.00 No Change $20.00 Value Pass (Regular/Student/Senior/Disabled) $20.00 No Change Children under 46 inches tall Free No Change Transfers to COLT, SMAT, Santa Ynez Valley Transit & Wine Country Express buses from Breeze Free No Change Source: SMAT
Fleet
SMAT has 46 vehicles in its revenue fleet for local, ADA, and interregional service. All vehicles in the SMAT fleet conform to ADA requirements. The local fixed-route vehicles are equipped with front- mounted bike racks designed to transport two bicycles, with all Breeze vehicles offering front- mounted bike racks for up to three bicycles. Table I-3 summarizes the vehicle fleet for all revenue services.
The MCI buses summarized in the fleet inventory are not technically part of the SMAT system. The City is the federal grantee and provides federal oversight for these buses, which are operated on the Clean Air Express by SBCAG.
Table I-3 SMAT Fleet Inventory
Wheelchair Year Vehicle Make Quantity Seats Stations Fuel Service Mode Type 2004 Gillig DDCS40 3 32 2 Diesel Fixed Route 2008 Gillig LFR40 3 38 2 Diesel Fixed Route 2008 Starcraft 2 18 2 Diesel ADA Paratransit 2008 Starcraft E450 1 18 2 Unleaded Fixed Route 2009 Gillig LFR40 3 38 2 Diesel Fixed Route 2010 El Dorado Aerotech 6 18 2 Unleaded ADA Paratransit 2010 Gillig LFRBRT40 1 38 2 Diesel Fixed Route 2011 Gillig LFR40 2 38 2 Diesel Fixed Route 2013 Starcraft Allstar 25 2 18 4 Unleaded ADA Paratransit 2014 Hometown Trolley 2 26 1 Unleaded Trolley
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Wheelchair Year Vehicle Make Quantity Seats Stations Fuel Service Mode Type 2014 Gillig LFR40 9 41 2 Diesel Fixed Route 2014 Gillig BRT 1 40 2 Diesel Fixed Route 2015 Starcraft E450 1 18 2 Unleaded Fixed Route 2017 Starcraft Allstar 25 8 18 2 Unleaded ADA Paratransit 2017 Gillig BRT 2 41 2 Diesel Fixed Route Total 46
2003* MCI 7 57 2 Diesel Interregional 2010* MCI 1 57 2 Diesel Interregional 2011* MCI 3 57 2 Diesel Interregional 2017* MCI 3 57 2 Diesel Interregional Total 14 * The City is the federal grantee and provides federal oversight for these buses, which are operated on the Clean Air Express by SBCAG. Source: Form A-30, Revenue Vehicle Inventory, FY 2018 National Transit Database
Triennial Performance Audit 8 Santa Maria Area Transit (SMAT)
Section II
Operator Compliance Requirements
This section of the audit report contains the analysis of the City of Santa Maria’s ability to comply with state requirements for continued receipt of TDA funds. The evaluation uses the guidebook Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Agencies, which contains a checklist of 11 measures taken from relevant sections of the PUC and the California Code of Regulations. Each of these requirements is discussed in the table below, including a description of the system’s efforts to comply with the requirements. In addition, the findings from the compliance review are described in the text following the table.
TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements The transit operator submitted Public Utilities Code, Completion/submittal dates annual reports to the RTPA Section 99243 (Internet filing): based upon the Uniform System of Accounts and General Public Service: Records established by the State Controller. Report is due FY 2016: October 12, 2016 90 days after end of fiscal year FY 2017: March 12, 2018* (Sept. 28/29), or 110 days FY 2018: March 25, 2019* (Oct. 19/20) if filed electronically (Internet). Specialized Service:
FY 2016: October 12, 2016 FY 2017: March 12, 2018* FY 2018: March 25, 2019*
*Note: New state legislation was passed (AB 1113, Bloom) on July 21, 2017, that changes the timeline to submit the annual Transit Operators Financial Transaction Reports to the State Controller effective reporting year FY 2017. The submittal date has been extended from within 110 days after fiscal year end to 7 months after fiscal year end, or
Triennial Performance Audit 9 Santa Maria Area Transit (SMAT)
TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements end of January. This is an extension of about 100 days from the original deadline. With the change in dates, these reports are required to contain underlying data from audited financial statements.
Conclusion: Partial Compliance
The operator has submitted Public Utilities Code, Completion/submittal dates: annual fiscal and compliance Section 99245 audits to the RTPA and to the FY 2016: April 11, 2017 State Controller within 180 FY 2017: June 29, 2018 days following the end of the FY 2018: August 8, 2019 fiscal year (Dec. 27), or has received the appropriate 90- The fiscal and compliance audits day extension by the RTPA were submitted beyond the 90- allowed by law. day extension granted by SBCAG as allowed by the TDA statute for audit submittal.
Conclusion: Not in Compliance
The CHP has, within the 13 Public Utilities Code, Through its contract operator, months prior to each TDA Section 99251 B Santa Maria participates in the claim submitted by an CHP Transit Operator Compliance operator, certified the Program in which the CHP has operator’s compliance with conducted inspections within the Vehicle Code Section 1808.1 13 months prior to each TDA following a CHP inspection of claim. the operator’s terminal. Inspections were conducted at the SMAT operations facility located at 1303 Fairway Drive in Santa Maria. Inspection dates applicable to the audit period were:
Triennial Performance Audit 10 Santa Maria Area Transit (SMAT)
TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements December 3 & 4, 2015; January 13, 17 & 18, 2017; and February 14 & 27, 2018.
Terminal inspections were rated satisfactory with minor violations.
Conclusion: Complied
The operator’s claim for TDA Public Utilities Code, As a condition of approval, Santa funds is submitted in Section 99261 Maria’s annual claim for Local compliance with rules and Transportation Funds (LTF) is regulations adopted by the submitted in compliance with RTPA for such claims. rules and regulations adopted by SBCAG. SBCAG staff provides assistance and communication as needed in completing the claim.
Conclusion: Complied
If an operator serves Public Utilities Code, Santa Maria’s transit system is urbanized and non-urbanized Section 99270.1 subject to the urbanized area areas, it has maintained a ratio fare recovery ratio. of fare revenues to operating costs at least equal to the ratio Conclusion: Not Applicable determined by the rules and regulations adopted by the RTPA.
The operator’s operating Public Utilities Code, Percentage change in Santa budget has not increased by Sections 99266 Maria’s public transit operating more than 15% over the budget: preceding year, nor is there a substantial increase or FY 2016: -11.6% decrease in the scope of FY 2017: +7.7% operations or capital budget FY 2018: +21.9% provisions for major new fixed facilities unless the operator The increase in the FY 2018 operating budget is attributed to
Triennial Performance Audit 11 Santa Maria Area Transit (SMAT)
TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements has reasonably supported and higher transit contract costs, substantiated the change(s). increased service hours, and holiday service. The TDA claim submitted by City of Santa Maria for FY 2017-18 includes signoff in the standard assurances list that reasonable support is provided in the claim to explain the change in operating cost above 15 percent from the prior year.
There was a 21.9 percent increase in the FY 2018 budget. Although the City attached a copy of its FY 2018 transit budget to the claim, it did not explicitly substantiate the increase.
The average annual increase of the SMAT operating budget during the audit period is 6 percent.
Source: FY 2015-2018 Santa Maria TDA Claims.
Conclusion: Partial Compliance
The operator’s definitions of Public Utilities Code, SMAT’s definition of performance measures are Section 99247 performance measures is consistent with Public Utilities consistent with PUC Section Code Section 99247, including 99247. (a) operating cost, (b) operating cost per passenger, Conclusion: Complied (c) operating cost per vehicle service hour, (d) passengers per vehicle service hour, (e) passengers per vehicle service mile, (f) total passengers, (g) transit vehicle, (h) vehicle
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TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements service hours, (i) vehicle service miles, and (j) vehicle service hours per employee.
If the operator serves an Public Utilities Code, According to the farebox urbanized area, it has Sections 99268.2, 99268.3, recovery requirements described maintained a ratio of fare 99268.1 in the SBCAG LTF Manual, SMAT revenues to operating costs at is subject to either a system-wide least equal to one-fifth (20 ratio of 20 percent, or individual percent), unless it is in a modal ratios of 20 percent for county with a population of fixed route and 10 percent for less than 500,000, in which specialized services. case it must maintain a ratio of fare revenues to operating In light of farebox recovery issues costs of at least equal to for SMAT identified in past three-twentieths (15 percent), audits, SBCAG approved a if so determined by the RTPA. temporary reduction of the farebox recovery from 20 percent to 15 percent (for fixed route or system-wide) in FY 2014-15 (Resolution 14-02, January 2014). The temporary reduction was extended through FY 2015-16 (Resolution 14-35, January 2015).
The audited system-wide fare ratios are as follows:
System-wide (with local support – Measure A)
FY 2016: 23.61% FY 2017: 21.28% FY 2018: 23.19%
Fare ratios on a modal basis are as follows:
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TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements Fixed route (local service and Breeze) -
FY 2016: 25.36% FY 2017: 20.57% FY 2018: 22.58%
ADA Paratransit (with Measure A)–
FY 2016: 13.86% FY 2017: 14.87% FY 2018: 15.89%
Source: FY 2016–2018 Annual Financial Statements for system- wide data, and National Transit Database (NTD) for modal data.
Conclusion: Complied
If the operator serves a rural Public Utilities Code, Santa Maria’s transit system area, it has maintained a ratio Sections 99268.2, 99268.4, does not serve a rural area. of fare revenues to operating 99268.5 costs at least equal to one- Conclusion: Not Applicable tenth (10 percent).
The current cost of the Public Utilities Code, The City of Santa Maria provides operator’s retirement system Section 99271 retirement benefits to its is fully funded with respect to employees through the California the officers and employees of Public Employees Retirement its public transportation System (CalPERS). This statement system, or the operator is is contained in the City’s implementing a plan approved Comprehensive Annual Financial by the RTPA which will fully Report (CAFR). fund the retirement system within 40 years. Conclusion: Complied
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TABLE II-1 Operator Compliance Requirements Matrix Operator Compliance Reference Compliance Efforts Requirements If the operator receives state California Code of As a recipient of State Transit transit assistance funds, the Regulations, Section Assistance Funds, Santa Maria operator makes full use of 6754(a)(3) makes use of federal funds. funds available to it under the Urban Mass Transportation FY 2016: $1,033,207 (Operations) Act of 1964 before TDA claims $1,606,688 (Capital) are granted. FY 2017: $2,321,088 (Operations) $2,411,585 (Capital) FY 2018: $2,808,782 (Operations)
Source: Transit Operators Financial Transactions Reports for General Public and Specialized Service
Conclusion: Complied
Findings and Observations from Operator Compliance Requirements Matrix
1. Of the compliance requirements pertaining to Santa Maria Area Transit, the system fully complied with six of the nine requirements. Two additional compliance requirements did not apply to Santa Maria (i.e., rural/intermediate farebox recovery ratios). The City was in partial compliance with the timely submittal of its State Controller Reports and substantiating an increase to its operating budget. The City accounts for the late submittal due to the financial close-out procedures needed to generate the financial information required in the Controller’s Report. This in turn also impacts the timely submittal of its fiscal and compliance audits, which cannot be completed until the financial close-out by the City.
2. Based on data from the annual financial statements and the NTD, the farebox recovery ratios were in compliance over the three-year period. The system-wide ratio of 20 percent was met throughout the audit period with local Measure A support revenues. On a modal basis, the fixed- route ratio of 20 percent was met during the period, while for ADA Paratransit, the mode’s farebox ratio of 10 percent was met each year with inclusion of local support revenue.
It is noted that Santa Maria utilizes the Federal Transit Administration (FTA) “Capital Cost of Contracting,” which allows a certain portion of contracted costs relating to maintenance to be capitalized and is thus eligible for FTA Section 5307 urban grants. This usage is planned in the Federal Program of Projects and is listed as a project in an FTA capital grant. The effect of this
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usage is that operating costs attributed to the contractor are reduced, which raises the farebox recovery ratio. According to Note 8 in the Public Transit Fund audited financial statements, Santa Maria used capital cost of contracting in the amount of $1,476,298 in FY 2015-16, $1,728,469 in FY 2016-17, and $1,147,148 in FY 2017-18.
3. Santa Maria participates in the CHP Transit Operator Compliance Program in which the CHP has conducted inspections within the 13 months prior to each TDA claim. The CHP inspection reports submitted for review were rated satisfactory. First Transit Inc. provides maintenance of the City- owned transit vehicles. According to the CHP, by definition of the California Vehicle Code Section 408, the contract operator is the motor carrier.
4. The operating budget saw notable fluctuations and exceeded the TDA threshold of 15 percent in FY 2018. After a decrease of 11.6 percent in FY 2016, the budget increased 7.7 percent in FY 2017. The budget increased significantly in FY 2018 by 21.9 percent, attributed to higher transit contract costs, increased service hours, and holiday service operations. The average annual increase of the SMAT operating budget during the audit period is 6.0 percent.
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Section III
Prior Triennial Performance Recommendations
Santa Maria’s efforts to implement the recommendations made in the prior triennial audit are examined in this section of the report. For this purpose, each prior recommendation for the agency is described, followed by a discussion of the agency’s efforts to implement the recommendation. Conclusions concerning the extent to which the recommendations have been adopted by the agency are then presented.
Prior Recommendation 1
Continue to improve upon the consistent reporting of performance data to the State Controller.
Background: This recommendation was carried over from the prior audit and was prompted for full implementation due to discrepancies found in the operational data elements contained in the reports to external agencies such as the State Controller. For example, the prior audit noted repeat performance data for ridership and revenue hours and miles in the State Controller Report for FYs 2014 and 2015, in particular for demand response. This duplicative data resulted in greater discrepancies between NTD and State Controller data in FY 2015. Also, for fixed-route full-time equivalents (FTEs) in the State Controller Report, the number of FTEs remained constant each year for the three-year period despite differing annual FTE figures calculated in a worksheet provided by the City. It was recommended that the City’s transit management continue coordinating with the City treasurer and Finance Department in the preparation and review of the State Controller Report prior to submittal by the statutory timeline.
Actions taken by SMAT
The Transit Operator Financial Transactions Reports submitted annually to the State Controller are prepared by a management analyst in the City’s finance department and signed off by the finance director. Transit management provides the operating data for inclusion in the reports. Based on the data consistency comparison between the NTD and State Controller Reports contained in Section IV of this audit report, there were both data consistencies and discrepancies between the two external reports. Ridership data for both modes are consistent for the audit period. The discrepancies occur in vehicle service hours for both fixed route and ADA paratransit service modes. Very minor discrepancies are noted for vehicle service miles for fixed route and vehicle service hours for ADA paratransit. It is suggested that the transit management staff continue efforts at ensuring the data reported in external reports is consistent.
FTE figures for FYs 2016 and 2017 calculated in worksheets provided by the City show differing employee counts for fixed-route services (59) compared to those in the State Controller Report (52). The City’s worksheets use employee pay hours and properly divides the total hours by 2,000 hours to arrive at the FTE.
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Conclusion
This recommendation has been partially implemented.
Prior Recommendation 2
Fill key transit administrative positions.
Background: For much of the audit period, the Public Transit Services Division was lean with the transit services manager fulfilling most roles and duties in the administration and management of SMAT. A part-time transit technician position was budgeted but remained vacant for most of the period and would be responsible for many aspects of the service under the supervision of the transit services manager. The transit coordinator position was filled after the audit period and during the drafting of the audit report. According to a job posting for this position, the transit technician performs SMAT and Breeze ride checks and assists in the preparation and development of bus schedules, routes, run-cuts, survey data, community events, marketing, and graphic presentations, and performs other work as assigned. While the transit coordinator position is filled, the hiring of a transit technician will provide additional technical and administrative support for existing service and future growth. With foreseen service growth in SMAT, additional support would be needed, including converting the transit technician position to full time and creating a specialized full-time position for an experienced transit marketing and planning professional. As responsibilities are transferred, the transit services manager could focus on other important tasks including grants and capital project management, contractor performance, financial reporting, and transit visioning.
Actions taken by SMAT
During the audit period, the City’s Public Transit Services budget included two-full time positions, the transit services manager and transit coordinator, and one part-time transit technician position. However, the hiring of a part-time transit technician was postponed. The transit technician was budgeted for 32 hours a week. In lieu of filling the transit technician position permanently, the City has hired a part-time temporary employee to assist with various duties and outreach to the community.
Conclusion
This recommendation has been implemented.
Prior Recommendation 3
Include additional locally generated revenue in the farebox recovery.
Background: SMAT is taking measures to improve farebox recovery including a combination of service adjustments and fare increases. New state legislation (SB 508, October 2015) allows for other locally generated revenues in the farebox ratio. Examples of possible other local support revenues may include interest earnings, gains on the sale of capital assets, lease revenues generated
Triennial Performance Audit 18 Santa Maria Area Transit (SMAT) by transit-owned property, alternative fueling services, and advertising revenues. SMAT generates advertising revenue which could be included in the farebox ratio. The annual TDA fiscal audit of the public transit fund should calculate the farebox ratio inclusive of applicable additional revenue. The City’s Transit Services Division should work with the City Finance Department to identify locally generated revenue from transit, and then account for all revenue sources in the calculation of farebox recovery allowable under the provisions of the new TDA law, consistent with the SBCAG TDA manual.
Actions taken by SMAT
The City has been applying advertising revenue and other local revenues to improve the farebox recovery ratio. The farebox ratio calculations contained in the fiscal and compliance audits for SMAT show local support revenues under Note 7 – Farebox Ratio. Such support revenues include local Measure A, advertising, theft recoveries, interest (and GASB 31), and rents. The inclusion of local revenues has enabled the City to attain its farebox recovery ratio standard.
Conclusion
This recommendation has been implemented.
Prior Recommendation 4
Plan and budget for additional technology systems to improve service.
Background: The prior audit noted how SMAT had been moving toward application of technology to improve service efficiency and customer enhancement. Examples included upgraded electronic fareboxes, advancement in dispatch and scheduling software, and automated call-back reminders for scheduled ADA paratransit trips. The City also expressed interest in transitioning to smart card fare media. The Santa Maria Bus Stop Improvement Plan developed several years ago for the Transit Services Division recommended an automated vehicle locator (AVL) system which would help the transit system in many ways, from tracking bus performance to better customer management and ridership data collection. As one of the larger transit systems in the county, SMAT would benefit from technology integration in its transit service and developing the means to achieve greater efficiencies. The transit services manager expressed a desire to fund transit technology. According to the TDA audited financial statements, the City had a sizable LTF balance which is flexible for operations and capital projects. Another example of ITS application in the county has been Santa Barbara Metropolitan Transit District, which entered into an 18-month contract with a technology provider to provide a turnkey AVL & ITS Management System, including time of arrival information, route and schedule adherence, and on-board video surveillance.
Actions taken by SMAT
Santa Maria has moved toward implementation of several transit technologies. SMAT implemented Ecolane dispatching software for its demand-response services. The GFI Oddessy fareboxes have been upgraded to accommodate smart card readers and two smart card vending machines have
Triennial Performance Audit 19 Santa Maria Area Transit (SMAT) been installed at the transit center. The smart card media will be branded as the Coastal Super Pass. SMAT has also been looking at implementing Wi-fi service on a pilot basis. However, the implementation of an AVL system has been placed on hold.
Conclusion
This recommendation is in the process of implementation.
Triennial Performance Audit 20 Santa Maria Area Transit (SMAT)
Section IV
TDA Performance Indicators
This section reviews Santa Maria’s performance in providing transit service in an efficient and effective manner. TDA requires that at least five specific performance indicators be reported, which are contained in the following tables. Farebox is not one of the five specific indicators but is a requirement for continued TDA funding. Therefore, farebox calculation is also included for each mode. As described in Section II, the financial data draws from the fiscal audits which factor in the capital cost of contracting and exempted service extensions. In this section, fixed-route tables are developed for SMAT local service and Breeze, both in a combined table and separately. System- wide figures included fixed route and ADA Paratransit. Graphics are contained in the section following the tables, followed by the analysis.
Triennial Performance Audit 21 Santa Maria Area Transit (SMAT)
Table IV-1 SMAT System-wide Performance Indicators Audit Period
% Change FY 2015- Performance Data and Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost(1) $3,572,053 $3,389,625 $3,962,708 $3,880,356 8.6% Total Passengers 908,114 846,440 732,086 711,774 -21.6% Vehicle Service Hours 67,024 69,392 68,491 65,629 -2.1% Vehicle Service Miles 1,025,262 1,032,307 995,243 977,990 -4.6% Employee FTEs 68 61 61 61 -10.3% Passenger Fare Revenues $824,344 $740,857 $728,100 $781,644 -5.2% Local Support (Measure A) $58,358 $59,478 $115,236 $118,355 102.8% Total Fare Revenues $882,702 $800,335 $843,336 $899,999 2.0%
Operating Cost per Passenger $3.93 $4.00 $5.41 $5.45 38.6% Operating Cost per Vehicle Service Hour $53.30 $48.85 $57.86 $59.13 10.9% Operating Cost per Vehicle Service Mile $3.48 $3.28 $3.98 $3.97 13.9% Passengers per Vehicle Service Hour 13.5 12.2 10.7 10.8 -20.0% Passengers per Vehicle Service Mile 0.89 0.82 0.74 0.73 -17.8% Vehicle Service Hours per Employee 985.6 1,137.6 1,122.8 1,075.9 9.2% Average Fare per Passenger $0.91 $0.88 $0.99 $1.10 21.0% Fare Recovery Ratio 23.08% 21.86% 18.37% 20.14% -12.7% Fare Recovery Ratio with Local Support(2) 24.71% 23.61% 21.28% 23.19% -6.1% (1) Audited system-wide operating costs deducted for capital cost of contracting, exemption of new services, and depreciation. (2) Audited system-wide farebox ratios are based on Note 7 in annual fiscal and compliance audits. The audited farebox ratios account for exemption of new services and capital cost of contracting in addition to depreciation. Measure A revenues are used to support transit service for seniors and the disabled as reflected in the ADA Paratransit performance data table. Source: Annual TDA Fiscal Audit, National Transit Database, and SMAT internal annual performance reports.
Triennial Performance Audit 22 Santa Maria Area Transit (SMAT)
Table IV-2 Fixed-Route Performance Indicators SMAT Local Service and Breeze Intercommunity Audit Period
% Change FY 2015- Performance Data and Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost $4,529,235 $4,985,349 $3,520,558 $3,360,951 -25.8% Total Passengers 878,796 814,979 704,287 685,563 -22.0% Vehicle Service Hours 56,668 58,050 59,694 57,262 1.0% Vehicle Service Miles 871,799 873,684 866,767 850,678 -2.4% Employee FTEs 59 52 52 52 -11.9% Passenger Fare Revenues $775,376 $1,193,619 $715,987 $766,489 -1.1%
Operating Cost per Passenger $5.15 $6.12 $5.00 $4.90 -4.9% Operating Cost per Vehicle Service Hour $79.93 $85.88 $58.98 $58.69 -26.6% Operating Cost per Vehicle Service Mile $5.20 $5.71 $4.06 $3.95 -24.0% Passengers per Vehicle Service Hour 15.5 14.0 11.8 12.0 -22.8% Passengers per Vehicle Service Mile 1.01 0.93 0.81 0.81 -20.1% Vehicle Service Hours per Employee 960.5 1,116.3 1,148.0 1,101.2 14.7% Average Fare per Passenger $0.88 $1.46 $1.02 $1.12 26.7% Fare Recovery Ratio 17.12% 23.94% 20.34% 22.81% 33.2% Source: Annual TDA Fiscal Audit and SMAT internal annual performance reports.
Triennial Performance Audit 23 Santa Maria Area Transit (SMAT)
Table IV-3 SMAT Local Fixed-Route Performance Indicators Audit Period
% Change FY 2015- Performance Data and Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost(1) $2,672,452 $2,243,548 $2,973,556 $2,826,091 5.7% Total Passengers 800,753 753,697 657,184 637,757 -20.4% Vehicle Service Hours 51,952 52,392 53,625 50,927 -2.0% Vehicle Service Miles 697,772 703,854 689,515 668,570 -4.2% Employee FTEs 59 52 52 52 -11.9% Passenger Fare Revenues $680,151 $622,312 $622,700 $672,290 -1.2%
Operating Cost per Passenger $3.34 $2.98 $4.52 $4.43 32.8% Operating Cost per Vehicle Service Hour $51.44 $42.82 $55.45 $55.49 7.9% Operating Cost per Vehicle Service Mile $3.83 $3.19 $4.31 $4.23 10.4% Passengers per Vehicle Service Hour 15.4 14.4 12.3 12.5 -18.8% Passengers per Vehicle Service Mile 1.15 1.07 0.95 0.95 -16.9% Vehicle Service Hours per Employee 880.5 1,007.5 1,031.3 979.4 11.2% Average Fare per Passenger $0.85 $0.83 $0.95 $1.05 24.1% Fare Recovery Ratio(2) 25.45% 27.74% 20.94% 23.79% -6.5% (1) Operating costs for local fixed route derived by subtracting ADA Paratransit operating costs from audited public transit costs (and excluding Breeze) in the fiscal audit. (2) Fare revenue for local fixed route derived by subtracting ADA Paratransit fare revenue from audited public transit passenger fare (and excluding Breeze) in the fiscal audit. Source: Annual TDA Fiscal Audit and SMAT internal annual performance reports.
Triennial Performance Audit 24 Santa Maria Area Transit (SMAT)
Table IV-4 SMAT ADA Paratransit Performance Indicators Audit Period
% Change FY 2015- Performance Data and Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost $761,214 $742,189 $442,150 $519,405 -31.8% Total Passengers 32,513 31,461 27,799 26,211 -19.4% Vehicle Service Hours 11,938 11,342 8,797 8,367 -29.9% Vehicle Service Miles 207,099 158,623 128,476 127,312 -38.5% Employee FTEs 9 9 9 9 0.0% Passenger Fare Revenues $13,696 $11,612 $12,113 $15,155 10.7%
Operating Cost per Passenger $23.41 $23.59 $15.91 $19.82 -15.4% Operating Cost per Vehicle Service Hour $63.76 $65.44 $50.26 $62.08 -2.6% Operating Cost per Vehicle Service Mile $3.68 $4.68 $3.44 $4.08 11.0% Passengers per Vehicle Service Hour 2.7 2.8 3.2 3.1 15.0% Passengers per Vehicle Service Mile 0.16 0.20 0.22 0.21 31.1% Vehicle Service Hours per Employee 1,326.4 1,260.2 977.4 929.7 -29.9% Average Fare per Passenger $0.42 $0.37 $0.44 $0.58 37.3% Fare Recovery Ratio(1) 1.80% 1.56% 2.74% 2.92% 62.2% (1) Fare recovery ratio is the sum of passenger fares plus local Measure A transit revenues divided by operating cost. Source: National Transit Database and State Controller Operator's Reports.
Triennial Performance Audit 25 Santa Maria Area Transit (SMAT)
Table IV-5 Breeze Performance Indicators Audit Period
% Change FY 2015- Performance Data and Indicators FY 2015 FY 2016 FY 2017 FY 2018 2018 Operating Cost $488,410 $438,936 $547,002 $534,860 9.5% Total Passengers 65,934 61,282 47,103 47,806 -27.5% Vehicle Service Hours 5,612 5,658 6,069 6,335 12.9% Vehicle Service Miles 169,114 169,830 177,252 182,108 7.7% Passenger Fare Revenues $130,602 $107,249 $93,287 $94,199 -27.9%
Operating Cost per Passenger $7.41 $7.16 $11.61 $11.19 51.0% Operating Cost per Vehicle Service Hour $87.03 $77.58 $90.13 $84.43 -3.0% Operating Cost per Vehicle Service Mile $2.89 $2.58 $3.09 $2.94 1.7% Passengers per Vehicle Service Hour 11.7 10.8 7.8 7.5 -35.8% Passengers per Vehicle Service Mile 0.39 0.36 0.27 0.26 -32.7% Average Fare per Passenger $1.98 $1.75 $1.98 $1.97 -0.5% Fare Recovery Ratio 26.74% 24.43% 17.05% 17.61% -34.1% Source: Annual TDA Fiscal Audit and SMAT internal annual performance reports.
Column graphs on the following pages are used to depict the trends for select performance indicators (Graphs IV-1 through IV-6).
Triennial Performance Audit 26 Santa Maria Area Transit (SMAT)
Graph IV-1 Operating Costs System-wide, Fixed-Route (Local & Breeze), & ADA Paratransit $4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$- FY 2015 FY 2016 FY 2017 FY 2018
Systemwide Fixed Route Demand Response
Graph IV-2 Ridership System-wide, Fixed-Route (Local & Breeze), & ADA Paratransit 1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
- FY 2015 FY 2016 FY 2017 FY 2018
Systemwide Fixed Route Demand Response
Triennial Performance Audit 27 Santa Maria Area Transit (SMAT)
Graph IV-3 Operating Cost per Passenger System-wide, Fixed-Route (Local & Breeze), & ADA Paratransit $25.00
$20.00
$15.00
$10.00
$5.00
$- FY 2015 FY 2016 FY 2017 FY 2018
Systemwide Fixed Route Demand Response
Graph IV-4 Operating Cost per Vehicle Service Hour System-wide, Fixed Route (Local & Breeze), & ADA Paratransit $100.00
$90.00
$80.00
$70.00
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
$- FY 2015 FY 2016 FY 2017 FY 2018
Systemwide Fixed Route Demand Response
Triennial Performance Audit 28 Santa Maria Area Transit (SMAT)
Graph IV-5 Passengers per Vehicle Service Hour System-wide, Fixed-Route (Local & Breeze), & ADA Paratransit 18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0 FY 2015 FY 2016 FY 2017 FY 2018
Systemwide Fixed Route Demand Response
Graph IV-6 Fare Recovery Ratio System-wide, Fixed-Route (Local & Breeze), & ADA Paratransit 30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00% FY 2015 FY 2016 FY 2017 FY 2018
Systemwide Fixed Route Demand Response
Triennial Performance Audit 29 Santa Maria Area Transit (SMAT)
Findings from Verification of TDA Performance Indicators
1. Operating cost per vehicle service hour, an indicator of cost efficiency, increased 10.9 percent system-wide during the audit period, from $53.30 in the FY 2015 base year to $59.13 in FY 2018. System-wide vehicle service hours experienced a decrease of 2.1 percent during the reporting period, while operating costs increased system-wide 8.6 percent. This increase was registered primarily in fixed-route operations with a 7.9 percent increase in costs per vehicle service hour. Demand-response operations decreased by 2.6 percent in operating cost per vehicle service hour from $63.76 to $62.08 as operating costs decreased 31.8 percent, from $761,214 in the FY 2015 base year to $519,405 in FY 2018, and vehicle service hours decreased about 30 percent, from 11,938 in FY 2015 to 8,367 in FY 2018. The decrease in demand-response operating costs is primarily attributed to the new payment method negotiated by the City with the contractor (based on vehicle revenue hours).
2. Operating cost per passenger, an indicator of cost effectiveness, increased 38.6 percent system-wide from $3.93 in the FY 2015 base year to $5.45 in FY 2018 as operating costs increased while overall ridership decreased. Local fixed-route services also increased by 32.8 percent in operating costs per passenger, from $3.34 in FY 2015 to $4.43 in FY 2018. Demand-response services cost per passenger decreased by 15.4 percent from $23.41 in FY 2015 to $19.82 in FY 2018 due to operating costs decreasing at a higher rate than in ridership. Local fixed-route ridership declined by 20.4 percent for the three-year period, which is a greater decline than the ridership decrease during the prior performance audit period. The modified transit network requires fewer transfers but results in an artificial decrease in ridership relative to past data, as passengers are counted each time a rider boards a bus. More direct routing, which is beneficial to the customer, resulted in fewer transfers and hence fewer boarding counts on the transit vehicles.
3. Passengers per vehicle service hour, which measures the effectiveness of the service delivered, decreased 20 percent between FY 2015 and FY 2018 system-wide from 13.5 to 10.8 passengers per hour. Fixed-route operations reflected a similar rate of decrease of 18.8 percent over the same period, from 15.4 to 12.5 passengers per hour as ridership declined, and vehicle service hours remained essentially constant with only a 2 percent decrease. Demand-response operations increased by 15 percent in passengers per vehicle service hour, from 2.7 to 3.1 passengers per hour.
4. Passengers per vehicle service mile, another indicator of service effectiveness, decreased 17.8 percent between FY 2015 and FY 2018 from 0.89 in FY 2015 to 0.73 in FY 2018. For fixed-route operations, the number of passengers per service mile decreased 16.9 percent from 1.15 to 0.95. Demand-response services increased 31.1 percent from 0.16 passengers per service mile to 0.21 as vehicle service miles decreased at a higher rate than did ridership during the triennial period.
5. Vehicle service hours per employee increased marginally for the three-year period. Full- time equivalents (FTE) for fixed-route and paratransit during the triennial period remained the same each year at 61 as shown in the Transit Operators Financial Transactions Reports, Triennial Performance Audit 30 Santa Maria Area Transit (SMAT)
while system-wide vehicle service hours decreased. FTE figures for FYs 2016 and 2017 calculated in worksheets provided by the City show differing employee counts for fixed route services (59) compared to those in the State Controller Report (52). The City’s worksheets use employee pay hours and properly divides the total hours by 2,000 hours to arrive at the FTE. The City should improve upon the consistent reporting of performance data to the State Controller and verify that FTEs were reported correctly.
6. Farebox recovery for SMAT is analyzed in several ways. System-wide and demand-response farebox recovery data reflect local revenues from Measure A, the countywide one-half cent sales tax measure. The system-wide farebox recovery ratio of 20 percent was met in two of three audit years.
The farebox ratio for fixed-route service (combined local and Breeze) met the standard of 20 percent in all three audit years (FY 2016-FY 2018). The SMAT fixed-route and Breeze farebox recovery ratios are not inclusive of local Measure A revenues. The purpose of Measure A is to provide an operating subsidy for paratransit service improvements and expansion. The measure has enabled ADA Paratransit to meet the minimum 10 percent farebox standard in each of the three years.
As described in Section II, farebox recovery standards were met from adjustments to operating costs including depreciation, exempted service extensions, and the capital cost of contracting.
Conclusion from the Verification of TDA Performance Indicators
SMAT’s transit indicators show a general trend toward higher operating costs, which result in reduced cost efficiency and effectiveness as measured by operating cost per vehicle revenue hour and by vehicle revenue mile and increased operating cost per passenger in all the services except ADA paratransit, which exhibited a 15.4 percent reduction between FY 2015 and FY 2018. A small reduction in contractor costs for the triennial period was more than offset by increased maintenance expense. The reconfigured transit network using the Transit Center as the main hub requires fewer transfers compared to the previous network, which is better for the customer but artificially decreases ridership compared to past ridership counts. Further modifications to the service in response to driver and customer feedback did not increase ridership.
Triennial Performance Audit 31 Santa Maria Area Transit (SMAT)
Data Consistency
In a review of data consistency among external reports, fiscal year-end performance data was compared between the annual State Controller Report and the annual NTD. Performance data reviewed included ridership, vehicle revenue service hours, and vehicle revenue service miles. Table IV-6 shows the side-by-side comparison during the audit period. It is noted that the NTD data is from year-end close-out in which data could differ from the original NTD submitted to the FTA. Year-end close out of NTD is finalized much later in the fiscal year after the State Controller Report is submitted and is subjected to additional scrutiny by the FTA; therefore, the NTD data is not final.
There are both performance data consistencies and discrepancies between the two external reports. Ridership data for both modes are consistent for the audit period. The discrepancies occur in vehicle service hours for both fixed route and ADA paratransit service modes. Very minor discrepancies are noted for vehicle service miles for fixed route and vehicle service hours for ADA paratransit. A difference of exactly 2,000 is noted in 2016 ADA paratransit vehicle miles, indicating a possible data entry error.
Table IV-6 Data Consistency Review
Data Consistency – Fixed Route Audit Review Period TDA Statistic Source FY 2016 FY 2017 FY 2018 Unlinked FTA National Transit Passengers Database 814,979 704,287 685,563 State Controller Report 814,979 704,287 685,563
Vehicle Service FTA National Transit Hours Database 58,049 59,694 57,262 State Controller Report 59,033 59,391 61,188
Vehicle Service FTA National Transit Miles Database 873,683 866,768 850,680 State Controller Report 873,685 866,768 850,680
Triennial Performance Audit 32 Santa Maria Area Transit (SMAT)
Data Consistency – ADA Paratransit Audit Review Period TDA Statistic Source FY 2016 FY 2017 FY 2018 Unlinked FTA National Transit Passengers Database 31,461 27,799 26,211 State Controller Report 31,466 27,799 26,211
Vehicle Service FTA National Transit Hours Database 11,342 8,797 8,367 State Controller Report 11,343 8,709 8,169
Vehicle Service FTA National Transit Miles Database 158,623 128,476 127,312 State Controller Report 156,623 128,476 127,312
Triennial Performance Audit 33 Santa Maria Area Transit (SMAT)
Section V
Review of Operator Functions
This section provides an in-depth review of various functions within SMAT. The review highlights accomplishments, issues, and/or challenges that were determined during the audit period. The following departments and functions were reviewed at the City’s transit offices:
• Operations • Maintenance • Planning • Marketing • General Administration and Management
Operations
The City’s objective is to provide a safe, efficient, reliable, and comfortable local transit service for the public, which includes the elderly and those with disabilities. Santa Maria’s local transit system has been adapting to service structured around the Santa Maria Transit Center, which opened in June 2011 and serves as the primary transit hub for local SMAT buses with enhanced convergence with other public transit services including the Breeze, Guadalupe Flyer, Cuyama Transit, and SLORTA Route 10, as well as Greyhound and Amtrak Thruway. The transit center is situated on nearly 4 acres of City-owned land featuring 16 bus bays and incorporates a number of customer amenities such as an indoor waiting area with snack bar and restrooms, bicycle racks, an information kiosk, and a park-and-ride area. SMAT service comprises about 250 service stops. All service stops are designated stops with signs and poles.
SMAT currently provides transit service so that 90 percent of all residents of Santa Maria are within a 0.25-mile walk of bus service. Service changes implemented during the audit period were prompted by the 2015 Short Range Transit Plan (SRTP) Update Summary Report, which recommended service adjustments such as later service in the evenings, holiday schedules, and fare restructuring. Evening service hours were later reduced due to lower than expected demand.
On August 2, 2016, the Santa Maria City Council approved fare increases and schedule changes to the SMAT system. The fare increases were implemented on February 13, 2017. Regular general public fares were raised from $1.25 to $1.50 per trip. Student fares were raised from $1.00 to $1.25 per trip and senior and disabled fares were raised from $0.60 to $0.75 per trip. The ADA demand- response fare increase was phased in gradually over three years, with the first increase from $1.25 to $2.00, then to $2.50 on February 13, 2018, then to $3.00 in February 2019. Routes were streamlined and reconfigured which had an effect of reducing ridership as more direct routing, which is beneficial to the customer, resulted in fewer transfers and hence fewer boarding counts on the transit vehicles. Triennial Performance Audit 34 Santa Maria Area Transit (SMAT)
Evening service hours were extended on Routes 1, 2, 3, 5, 6 and 7 from 6:30 p.m. to 9:30 p.m. In addition, dedicated evening Routes 61 and 62 , which were scheduled between 7:15 p.m. and 10:15 p.m., were discontinued due to low ridership. Evening service now mirrors the daytime service but on a reduced scale. Weekend service hours were extended to select holidays: Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Labor Day, Veterans Day, day before Thanksgiving, day after Thanksgiving, Christmas Eve, the day after Christmas, and New Year’s Eve.
Prior to the implementation of these changes, SMAT surveyed the ridership and conducted workshops at Allan Hancock College. The City did not receive much opposition to the fare increases. Although the service changes were expected to reverse the declining trend, local fixed-route ridership continued to drop, according to the SMAT annual operations report. Continued population growth in the SMAT service area and meeting a goal of improved customer experience through reduced bus transfers factored into the route changes.
First Transit has been the contract operator since July 1, 2009. The contract was for three years plus seven one-year options (10 years total). The change in payment terms that began in FY 2014-15 is in line with industry norms and better aligns payment with the highest cost of operations, which is typically driver labor whose costs are incurred on an hourly basis.
The City exercised all the contract extension options. The City enforced contract provisions through service performance standards contained in the contract. City transit management has the ability to impose penalties for noncompliance as well as provide incentive payments for meeting baseline performance standards.
The City’s philosophy to financial incentives is to first identify a problem, then determine a plan of action to remedy, and assess a penalty if the contractor does not show improvement and/or implementation of a plan. A financial incentive is provided for maintaining a low ratio of preventable accidents, while liquidated damages are assessed for a number of performance standards including vehicle cleanliness, on-time performance, late pull-outs, and missed runs and stops. The contract contained 23 such standards that the City uses to assess performance against liquidated damages. A review of sample contractor invoices shows liquidated damages assessed by the City which are subtracted from the total invoice amount.
Toward the end of the contract term, City decided to release a Request for Proposals for a new operations and maintenance contract. The transit services manager cited dissatisfaction with First Transit’s performance. There were frequent changes in staffing regarding the operations and resident manager, poor on-time performance, and drivers taking unscheduled breaks. The City employed ride checkers as part of its secret rider initiative to gauge performance and customer service standards. In an effort to improve on-time performance, the City had First Transit re-time the routes and create relief schedules for the drivers. Route profiles were created that detailed stops en route and average operating speeds.
Non-exempt First Transit employees were represented by Teamsters Local 986. Two labor agreements between First Transit and the Teamsters Union were in place during the audit period. Triennial Performance Audit 35 Santa Maria Area Transit (SMAT)
The first labor agreement with Teamsters Local 986 was in effect from July 1, 2013, through June 30, 2016, and also covered all drivers and utility persons. The second labor agreement instituted during the audit period was in effect from July 1, 2016 through June 30, 2019. Full-time and part- time positions are available including split shifts.
Drivers receive ongoing monthly safety training covering a variety of topics such as bus evacuation, proper wheelchair securement, hazard communications, daily vehicle inspection sheets, air brakes, radio codes, and public communication skills. Incentives such as Employee of the Year award reinforce a culture of awareness and safety.
First Transit provided very detailed summary operations reports for SMAT local fixed route, ADA Paratransit, and the Breeze. The spreadsheet-based report consisted of numerous tabs with financial and operations data separated by mode (fixed route and paratransit), and by service and route. Performance measures were calculated in the contractor reports to enable SMAT transit management to review operations on a regular basis. The contractor’s monthly invoice contained detailed financial and performance data sheets that formed the basis for the summary quarterly and annual reports.
Fare reconciliation between actual fare revenue collected and deposits is made with variances determined daily. The reconciliation is made of deposits against the probed GFI data that is uploaded by maintenance staff. Local SMAT buses utilize Odyssey GFI electronic fareboxes. Pre-paid fare media are also quantified with totals for the month. Cameras are installed in the count room with windows for viewing. Two people are present to count the fares and are required to sign in prior to entering. City transit management is notified of variances. City transit management staff have a responsibility to conduct fare reconciliation for accurate accounting of passenger revenue. In this regard, the City developed and implemented strict cash management procedures for the contract operator to adhere.
During the audit period, the GFI fareboxes were upgraded to accommodate smart card readers. Two smart card vending machines were placed at the transit center. SMAT is transitioning to an account- based system for its GFI fare processing. This would allow passengers to recharge their smart card by phone or online.
For fixed-route operations, SMAT utilizes The Master Scheduler Windows-based transit scheduling system developed by Schedule Masters. The Master Scheduler integrates MapInfo geocode software with Crystal Reports, which allows for the generation of run-cuts and blocking. Driver manifests for ADA Paratransit are computer-generated, utilizing Ecolane scheduling software. The driver manually records his run start time and the corresponding odometer reading, along with the first pickup time, last drop-off, and run end time. The time and odometer reading are recorded for each passenger pickup and drop-off. The City integrates Ecolane dispatch software where passengers can schedule their own trip. Also, a new dispatch module provides a call-back feature to remind passengers of their scheduled trips the day before and a half hour before.
Triennial Performance Audit 36 Santa Maria Area Transit (SMAT)
ADA Paratransit no-shows exhibited wide fluctuations over the three-year period. Passenger no- shows at their pickup locations adversely impact paratransit service and efficiencies. Table V-1 summarizes the no-shows and cancellations reported:
Table V-1 ADA Paratransit No-shows & Cancellations FY 2016 FY 2017 FY 2018 No-shows 741 1,853 912 Cancellations 2,225 1,076 486 Source: Annual Operations Report
According to data from the annual operations report, the number of no-shows increased from 741 in FY 2016 to 1,853 in FY 2017 and decreased to 912 in FY 2015. These figures, when compared to total SMAT ADA ridership, comprise no-show rates of between 2 and 7 percent, which are approximate to industry norms. SMAT publishes ADA Paratransit reservation rules that outline the procedures for making reservations, cancellations, and potential penalties for no-shows. A more comprehensive SMAT ADA guide is also available.
Certain types of missed trips are also excluded. Dispatch conducts progressive tracking for a pattern, and the City works with the particular ADA customer. Cancellations of ride reservations by customers exhibited a marked decrease during the audit period, from 2,225 in FY 2016 to 1,076 in FY 2017, and to 486 in FY 2018. This trend is in line with the decline in ridership and demand on paratransit. In addition, the implementation of the interactive voice response feature reminding passengers of their scheduled trips has also been a factor.
Among the most important service metrics is on-time performance or adherence to published schedules. A vehicle is considered on time if it departs a scheduled time point no more than two minutes early and no more than five minutes late. SMAT’s on-time performance standard is 95 percent or higher. On-time performance is tracked through several methods including through Ecolane for ADA Paratransit, and a secret rider on fixed route. The City enforces liquidated damages on the contractor for on-time performance issues and recognizes that this performance measure provides a snapshot of service for better planning and scheduling.
On the City’s website and in the SMAT ADA ride brochure, the vehicle could arrive within a 60- minute window on either side of the requested time, or 2 hours total, to be considered on-time. The Ecolane software measures early and late arrivals in 5-minute increments up to 30 minutes, which indicates that the early/late measurement is taken from the exact scheduled time, not from the 60-minute window. If this is the case, then the on-time rate for ADA Paratransit would be higher. A review of a sample of ADA driver manifests shows that most pickups are made within the 60- minute window on either side of the scheduled time. ADA Paratransit on-time performance averaged 95 percent during the audit period.
Customer complaints are entered into an Access database. The method of processing complaints has been revised to hold the contractor more accountable in recording and handling complaints.
Triennial Performance Audit 37 Santa Maria Area Transit (SMAT)
Complaints are received by the contract operator and recorded onto an enumerated passenger call sheet for further investigation.
Trolley Service
SMAT implemented a downtown trolley service in August 2015. The trolley service made a brief debut during the prior holiday season and was first considered in 2006 prior to the 2008 Great Recession. The holiday shopping trolley became the impetus for a regular downtown trolley service that would service lunchtime riders and the Downtown Fridays event. The City also created a Rider Rewards program, which provided a 10 percent discount at downtown restaurants for trolley riders. The hours of operation were from 11:30 a.m. to 1:30 p.m. on weekdays; from 5:30 p.m. to 8:00 p.m. on weeknights; and from 11:00 a.m. to 3:00 p.m. on weekends. During the first two weeks of operation, riders rode for free. Afterward, general public fares were $1.00 and senior and disabled fares were $0.50 cents. Children under the age of 5 rode for free. The trolley operated for a six- week period.
The trolley service was repositioned in 2017 as the Santa Maria Wine Trolley in partnership with the Santa Maria Chamber of Commerce and the Santa Maria Valley Visitor and Convention Bureau. The wine trolley operates on Saturday and Sunday between mid-May and mid-October including Memorial Day and Labor Day weekends. The route takes about 60 minutes and makes stops at four local wineries: Old Orcutt (near CORE Winery), Presqu’ile Winery, Cottonwood Canyon Winery, and Costa de Oro Winery. Advanced tickets are $10.00 per person and $18.00 per person purchased on the trolley.
The Breeze
Santa Maria continued its administration of the Breeze intercommunity commuter service composed of Routes 100 and 200. The City has expressed the need to streamline the administrative process of the MOU that created the Breeze service. The Breeze Route 200 operates three weekday runs between Santa Maria, Los Alamos, Buellton, and Solvang. This route follows Breeze Route 100, operating since 1995, which provides weekday service between the Santa Maria Transit Center, Vandenberg Air Force Base, and Lompoc. MOUs between the funding partners for each Breeze service provide the terms of service, with Santa Maria serving as lead agency responsible for administration, operations, management, and reporting of the Breeze.
The Breeze runs are scheduled with more recovery time built in. A timed transfer with the City of Lompoc COLT system was implemented and scheduling was adjusted for service to the new Lompoc Transit Center. A new bus stop at Vandenberg Air Force Base was also created. A Saturday pilot service was implemented on both Breeze routes in December 2016. The Saturday Breeze operated with three trips on each route composed of morning, noontime, and late afternoon runs. Low Carbon Transit Operations Program (LCTOP) funding was used toward the service. Low ridership levels on the Saturday Breeze eventually led to the service being discontinued toward the end FY 2019.
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Maintenance
Santa Maria’s transit maintenance and operations facility is located at 1303 Fairway Drive near the Santa Maria Airport. The facility has two service bays with electric lifts and a wash bay where vehicles are hand-washed. The contract operator conducts all three functions (operations, maintenance, and tires) under its single contract with the City. In addition, the contract operator completes light repairs and solicits quotes from vendors for other vehicle repairs. CHP terminal inspections have rated the facility satisfactory with minor violations, including some maintenance inspections not conducted within the scheduled intervals, and two vehicles taken out of service for minor mechanical issues that were corrected.
Vehicles are subject to the CHP preventive maintenance inspection protocol. Fixed-route vehicles are serviced every 45 days or 5,000 miles, and ADA Paratransit vehicles are serviced every 30 days or 3,000 miles. As SMAT’s vehicle fleet runs primarily on diesel fuel, preventive maintenance practices are standard. Bus stop and shelter janitorial maintenance continues to be contracted to PathPoint, the local vocational training center. The contract operator maintains a limited supply of vehicle parts and has established local vendors from which to procure parts as needed.
The Bus Operations and Maintenance Facility does not have a fueling island. The City supplies fuel for the revenue and City-owned support vehicles for the operation and maintenance contractor at the Public Works Corporation Yard and compressed natural gas (slow fill) at the bus yard.
In anticipation of electric vehicle implementation, the City has embarked on capital improvements to its operations facility. LCTOP funds have been applied toward a study to assess infrastructure needs. The transit services manager visited transit properties that have already implemented electric bus infrastructure, such as Antelope Valley Transit Authority, as well as electric vehicle manufacturer BYD. The City is in the process of deciding whether to utilize federal or local funding for the procurement of two electric buses under consideration. The SRTP, which is currently being updated, will address electrification.
Revenue vehicle failures pertain to mechanical and other operational failures while the transit vehicles are in service. Data reported in the NTD for the audit period shows the following number of vehicle failures in Table V-2:
Table V-2 Vehicle Failures Fixed Route ADA Demand Response Major Other Total % Change Major Other Total % Change FY 2015 34 0 34 5 0 5 FY 2016 34 0 34 0.0% 5 0 5 0.0% FY 2017 17 0 17 -50.0% 5 0 5 0.0% FY 2018 16 0 16 -5.9% 1 0 1 -80.0% Source: National Transit Database Triennial Performance Audit 39 Santa Maria Area Transit (SMAT)
The number of road calls increased, then decreased, for fixed route during the audit period, while increasing for ADA Paratransit. Improved maintenance of the vehicles by First Transit, along with recent large vehicle procurements, have helped to replace older vehicles in the fleet.
Planning
Through the detailed operator reports received on a regular basis, SMAT transit management reviews performance of the current system. On a larger scale, SMAT completed the SRTP Update Summary Report in June 2015, which focused on meeting two goals: 1) evaluate the efficiency and effectiveness of evening service through a detailed ride check and passenger survey with the intent of improving productivity and better meeting the changing needs of existing and future evening riders; and 2) develop a plan to improve the farebox recovery ratio and identify options and recommendations for a fare structure designed to increase passenger revenues, while minimizing the impact on passengers. The SRTP included a demographic analysis, ride check and onboard surveys, peer review, and recommended service and fare changes.
The preferred alternative results in a decrease of approximately 3 percent in annual service hours and a 28 percent decline in annual service miles, which will improve cost efficiency. The SRTP further described steps for SMAT to consider developing a pilot program for a college university pass with Allan Hancock College in Santa Maria, with possible expansion to other transit providers serving Santa Maria. The City implemented fare restructuring and schedule changes in February 2017.
The City released an RFP to update the 2015 SRTP Summary Report in April 2018 and selected a consultant in October 2018. The SRTP update scope of work includes updates of operating data and existing services; the financial and capital plans; goals and objectives; and service recommendations. Also included in the scope of work is a marketing plan containing strategies to regain and attract new riders; service changes that would address first mile/last mile connectivity and the use of transportation network companies; and an analysis of fleet electrification and associated infrastructure requirements.
In the area of regional planning, the North County Transit Plan was updated and adopted in September 2016 by SBCAG. The 2016 update was a three-year effort that built on the progress made since the adoption of the 2006 plan by identifying outstanding recommendations and offering proposals for increased service collaboration and improved governance. The 2016 plan recommended voluntary consolidation of transit operations in several key service areas including between Guadalupe and Santa Maria.
Input from other agencies and funding partners is also received by SMAT. Planning for transit services in the unincorporated areas of the service area such as Orcutt and Tanglewood involve the County Public Works staff. The County of Santa Barbara contributes a relatively significant amount of TDA funds to the operation of the SMAT transit service. The County is able to comment on existing service and provide input on the planning of services through various working groups with Santa Maria and participating with the City on the unmet transit needs hearings. The County has a good
Triennial Performance Audit 40 Santa Maria Area Transit (SMAT) working relationship with City transit staff and supports transit service currently operated outside Santa Maria’s boundaries.
Additional input is provided at meetings of the Santa Barbara County Transit Advisory Committee where all the County transit operators meet with SBCAG and other stakeholders to discuss unmet transit needs. SBCAG rotates members to serve on the committee, with Santa Maria transit staff rotating its membership between the two full-time Transit Services Division employees. As needed, staff-level meetings are held to review and discuss the technical aspects of service. Further, the working groups formed per the agreements for the Breeze 100 and 200 intercity transit services provide venues for input on service by the funding partners.
Marketing
Santa Maria has employed various marketing tools and strategies toward the promotion of its various transit services. The City’s primary objective in this area is to continue an aggressive marketing program and the operational actions necessary to meet the basic mobility needs of the residents within the service area and explore the potential commuter market. The City retains San Luis Obispo-based Tom Jones Associates Advertising and Public Relations to develop the creative marketing strategy and manage contract advertising for SMAT. Transit management meets with Tom Jones Associates at least three times a year. The City has recently retained Moore & Associates to assess other types of media outreach, such as social media.
The City publishes a color route map and schedules for its local service. A separate color Breeze Ride Guide is also published. The schedules are published for each individual route as well as in a combined format. The schedule prints information in English and Spanish and is updated and reprinted when there are service changes. A color bilingual brochure specific to SMAT ADA was also developed by the advertising consultant, which provides all pertinent information and rules in using the service in a user-friendly format.
SMAT maintains an Internet presence through its website within the Santa Maria home site (https://www.cityofsantamaria.org/city-government/departments/public-works-services/public- transit-services-2499). Transit information can also be accessed via an alternative web address (www.ridesmat.com), which directs to the main site. The website contains similar information to the printed schedules, such as bus and ADA Paratransit fare and pass information, but also provides a Google Transit trip planner, rider alerts, and links to separate websites for the Breeze, Clean Air Express, Guadalupe Flyer, and SLORTA Route 10. The SMAT website includes links for ADA-certified passengers to download forms for a disability identification card, ADA certification form, and paratransit reservation rules. There is also a YouTube video embedded in the website highlighting SMAT services and the Transit Center.
As mentioned previously, the Odyssey GFI electronic fareboxes on SMAT fixed-route vehicles were upgraded during the audit period in order to accommodate the Coastal Super Pass, a stored-value reloadable smart card for use on any SMAT or Breeze route. There are two vending machines at the transit center with security personnel on site. The City is evaluating possible expansion of the
Triennial Performance Audit 41 Santa Maria Area Transit (SMAT)
Coastal Super Pass program in coordination with neighboring transit providers such as the San Luis Obispo Regional Transit Authority.
The City has been in discussions with the assistant dean at Allan Hancock College about the establishment of a student pass program. The City admitted to not having enough time and resources to adequately pursue such a program. SMAT has also been looking into operating an employee shuttle between Orcutt and the Marian Regional Medical Center. The City could receive an annual subsidy from the medical center to cover the costs of the shuttle.
Given the large Hispanic population in the service area, a significant effort has been made to reach that market through newspaper ads, radio stations 105.1 FM “La Buena” and 1600 AM “Radio Ranchito,” and concert promotions. Other radio and television spots are also produced and aired on local broadcast media to the broader general public. Sample 60-second radio spots tout SMAT’s convenience and cost savings of using transit, plus the new downtown trolley service. Marketing flyers were developed for the downtown trolley, holiday shuttle, and associated rider rewards ticket card. SMAT also sets up a manned booth and advertising banners for SMAT and Breeze at local community events, including the Downtown Friday event, Marian Regional Medical Center health fair, and concerts.
Pursuant to the federal Civil Rights Act of 1964, the City has an adopted Title VI Program. Title VI of the Civil Rights Act of 1964 requires that no person in the United States, on the grounds of race, color, or national origin, be excluded from, be denied the benefits of, or be subjected to discrimination, under any program or activity receiving federal financial assistance. In July 2018, the City Council reviewed and provided input to the SMAT Title VI Program Update. The content of the program was approved and adopted by the City Council on July 17, 2018. The Title VI Program Update compliance includes Title VI notices posted on the website, in all transit vehicles, and at the City offices. The City has provided this notice in English and Spanish. Complaint forms are available on the website.
General Administration and Management
The City of Santa Maria operates as a charter city under a council-manager form of government. The City Council is the City’s principal policy-making body comprising five members: one mayor and four council members. The mayor and the four members of the City Council are elected for four terms by the electorate. The Council meets the first and third Tuesday of the month in the City Hall Council Chambers located at 110 East Cook Street, Santa Maria. The City Council provides policy direction to the City manager, who is responsible for administering city operations. All other department heads in the City serve under the direction of the City manager.
The City’s Public Transit Services division is administered by the Public Works Department and overseen by a transit services manager with management support from the director of Public Works and financial administration support from the Administrative Services and Finance Department. In the Public Transit Services division, a transit coordinator and a part-time temporary transit technician support the transit services manager. Transit administration includes grants application
Triennial Performance Audit 42 Santa Maria Area Transit (SMAT) and monitoring, management of capital projects, marketing, planning, operations, and monitoring of the contractor. The transit services manager meets with the operations contractor weekly.
The City Council reviews the State Controller Reports and the City’s TDA claim submittals. The City treasurer is responsible for compiling data for the annual fiscal and compliance audits as well as the State Controller Reports. The City operates on a biennial budget cycle.
The City’s operations and maintenance contract with First Transit has been in effect since July 2009 from the initial 3-year base period. The City exercised most of the option extensions that encompassed a 10-year period but was not satisfied with First Transit’s management with regard to on-time performance, changes in managers, and personnel issues (i.e., drivers taking unscheduled breaks).
The City released a Request for Proposals in December 2017 for a new contract service provider to operate and maintain SMAT and its associated service modes for a base term of three years with seven additional one-year options. After reviewing the proposals, the City authorized the execution of a service contract with RATP Dev USA effective July 1, 2018. The new contract has one rate for all service modes. Bus stop and shelter janitorial services are also included in the new contract as well as operations and maintenance. RATP has subcontracted with PathPoint, a local nonprofit organization, for janitorial services.
Santa Maria’s most recent FTA triennial review was conducted in 2017 and included site visits on April 25 and 26, 2017. The review examined compliance in 17 areas. No deficiencies were found with FTA requirements in 16 areas; however, deficiencies were found in one area pertaining to Disadvantaged Business Enterprise (DBE). After the site visit, the City provided enough documentation to address the corrective actions and close the deficiencies related to the DBE functional area. All deficiencies were addressed, and corrections were made by May 2017.
The principal source of funding for operations during the audit period has been LTF. According to the annual SMAT financial audits, the transit system received $3.6 million in LTF for operations in FY 2016, $5.2 million in FY 2017, and $4.9 million in FY 2018. LTF capital funds received were $1.1 million in FY 2016, $3.7 million in FY 2017, and $2.5 million in FY 2018. From TDA claims, State Transit Assistance capital revenues for the City were $707,678 in FY 2016, $543,135 in FY 2017, and $36,750 in FY 2018. STA funds have been used with federal funding to purchase buses.
Grant Administration and Funding
Grant funding allocated toward supporting transit services has been derived from local, state, and federal sources. Local support revenues for transit have continued under the auspices of Measure A, a 30-year extension of the Measure D one-half cent local transportation sales tax in the county. The funds are allocated to public paratransit operators to reduce fares and improve door-to-door transit service for seniors and the disabled.
SMAT transit management maintains detailed grant tracking spreadsheets of the status of outstanding federal grants and drawdowns. Federal Program of Projects, federal award budget
Triennial Performance Audit 43 Santa Maria Area Transit (SMAT) amounts, and local match requirements are shown for each separate grant, including an identification of each project and costs. Detailed worksheets are also kept for Proposition 1B grants for each funding cycle including on-time documentation, investment documentation, programming, semiannual performance reports, close-out reports, and audit requirements.
The financial statements of the public transit fund show a year-end balance of $20.7 million in operating and capital LTF at the end of FY 2018 (Note 6 in financial statements). The balance has grown in part due to TDA law prohibiting urban areas with a population over 100,000 from claiming LTF for streets and roads. The funds can only be used for transit purposes. It is noted by the fiscal auditor that credits may be used by SBCAG to reduce future allocations. The City’s annual claims are generally amended accordingly.
Santa Maria also received Proposition 1B Public Transportation Modernization, Improvement & Service Enhancement (PTMISEA) funds for various capital projects, in particular for the development of the transit center. According to the audited financial statements, in FY 2016, the City received $3.2 million for a variety of projects including a bus washer, bus stop amenities and improvements, vehicle lift, revenue collection equipment and upgrade, ADA van cameras, information technology enhancements and upgrades at transit facilities, electronic pass printer and encoder, and Breeze Route 100 improvements. In FY 2017, the City received $2.5 million for fiber optic network upgrade, radio core system upgrade, bus stop surveillance and security, and vehicle staging area expansion. Some of the funds were expended in this period, with an unexpended balance of $2.3 million in PTMISEA remaining at the end of FY 2018 (Note 9 in financial statements).
In addition, the City received $180,417 during FY 2016 in LCTOP funding for transit stop enhancements and $82,455 in LCTOP funding for regional Connect Card program during FY 2018. Following expenditures in FY 2018, a balance of $179,315 in unspent LCTOP funds (and related interest) remained for transit stop enhancements.
Transit-related federal grants are derived from several funding sources. As a designated grantee, the City of Santa Maria receives federal funding through the FTA Section 5307 urbanized grant program for capital and operating expenses. SBCAG is the federally designated recipient of FTA Section 5307 funding in Santa Barbara County and is required by federal regulation to adopt procedures for selecting projects to be funded with FTA Section 5307 funding. According to the Transit Operators Financial Transactions Reports, SMAT received $1,033,207 in FTA Section 5307 for operations in FY 2016, $2,321,088 in FY 2017, and $2,808,782 in FY 2018. FTA Section 5307 capital funds were $1,606,688 in FY 2016, $2,411,585 in FY 2017, and $0 in FY 2018. In addition, the City received $958,053 in FTA Section 5311(f) rural intercity assistance funds in FY 2016 and $45,212 in FY 2017.
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Section VI
Results and Recommendations
The following material summarizes the information obtained from this triennial audit covering FYs 2016 through 2018. A set of recommendations is then provided.
Triennial Audit Results
1. Of the compliance requirements pertaining to Santa Maria Area Transit, the system fully complied with six of the nine requirements. Two additional compliance requirements did not apply to Santa Maria (i.e., rural/intermediate farebox recovery ratios). The City was in partial compliance with the timely submittal of its State Controller Reports and substantiating an increase to its operating budget. The City accounts for the late submittal due to the financial close-out procedures needed to generate the financial information required in the Controller’s Report. In addition, the City was not in compliance with the timely submittal of its fiscal and compliance audits.
2. Based on data from the annual financial statements and the NTD, the farebox recovery ratios were in compliance over the three-year period. The system-wide ratio of 20 percent was met throughout the audit period with local Measure A support revenues. On a modal basis, the fixed- route ratio of 20 percent was met during the period, while for ADA Paratransit, the mode’s farebox ratio of 10 percent was met each year with inclusion of local support revenue.
3. It is noted that Santa Maria utilizes the Federal Transit Administration (FTA) “Capital Cost of Contracting,” which allows a certain portion of contracted costs relating to maintenance to be capitalized and is thus eligible for FTA Section 5307 urban grants. This usage is planned in the Federal Program of Projects and is listed as a project in an FTA capital grant. The effect of this usage is that operating costs attributed to the contractor are reduced, which raises the farebox recovery ratio. According to Note 8 in the Public Transit Fund audited financial statements, Santa Maria used capital cost of contracting in the amount of $1,476,298 in FY 2015-16, $1,728,469 in FY 2016-17, and $1,147,148 in FY 2017-18.
4. Santa Maria participates in the CHP Transit Operator Compliance Program in which the CHP has conducted inspections within the 13 months prior to each TDA claim. The CHP inspection reports submitted for review were rated satisfactory. First Transit Inc. provides maintenance of the City- owned transit vehicles. According to the CHP, by definition of the California Vehicle Code Section 408, contract operator is the motor carrier.
5. The operating budget saw notable fluctuations and exceeded the TDA threshold of 15 percent in FY 2018. After a decrease of 11.6 percent in FY 2016, the budget increased 7.7 percent in FY 2017. The budget increased significantly in FY 2018 by 21.9 percent, attributed to higher transit contract costs, increased service hours, and holiday service operations.
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6. Of the four prior audit recommendations, Santa Maria satisfactorily implemented two recommendations with one recommendation in the process of implementation. One recommendation, which pertained to consistent reporting of performance data to the State Controller, was partially implemented and is being carried forward for full implementation.
7. Operating cost per vehicle service hour, an indicator of cost efficiency, increased 10.9 percent system-wide during the audit period, from $53.30 in the FY 2015 base year to $59.13 in FY 2018. System-wide vehicle service hours experienced a decrease of 2.1 percent during the reporting period, while operating costs increased system-wide 8.6 percent. This increase was registered primarily in fixed-route operations with a 7.9 percent increase in costs per vehicle service hour. Demand-response operations decreased by 2.6 percent in operating cost per vehicle service hour from $63.76 to $62.08 as operating costs decreased 31.8 percent, from $761,214 in the FY 2015 base year to $519,405 in FY 2018, and vehicle service hours decreased about 30 percent, from 11,938 in FY 2015 to 8,367 in FY 2018. The decrease in demand-response operating costs is primarily attributed to the new payment method negotiated by the City with the contractor (based on vehicle revenue hours).
8. Operating cost per passenger, an indicator of cost effectiveness, increased 38.6 percent system- wide from $3.93 in the FY 2015 base year to $5.45 in FY 2018 as operating costs increased while overall ridership decreased. Local fixed-route services also increased by 32.8 percent in operating costs per passenger, from $3.34 in FY 2015 to $4.43 in FY 2018. Demand-response services cost per passenger decreased by 15.4 percent from $23.41 in FY 2015 to $19.82 in FY 2018 due to operating costs decreasing at a higher rate than in ridership. Local fixed-route ridership declined by 20.4 percent for the three-year period, which is a greater decline than the ridership decrease during the prior performance audit period. The modified transit network requires fewer transfers but results in an artificial decrease in ridership relative to past data, as passengers are counted each time a rider boards a bus. More direct routing, which is beneficial to the customer, resulted in fewer transfers and hence fewer boarding counts on the transit vehicles.
9. Passengers per vehicle service hour, which measures the effectiveness of the service delivered, decreased 20 percent between FY 2015 and FY 2018 system-wide from 13.5 to 10.8 passengers per hour. Fixed-route operations reflected a similar rate of decrease of 18.8 percent over the same period, from 15.4 to 12.5 passengers per hour as ridership declined, and vehicle service hours remained essentially constant with only a 2 percent decrease. Demand-response operations increased by 15 percent in passengers per vehicle service hour from 2.7 to 3.1 passengers per hour.
10. On August 2, 2016, the Santa Maria City Council approved fare increases and schedule changes to the SMAT system. The fare increases were implemented on February 13, 2017. Evening service hours were extended on Routes 1, 2, 3, 5, 6 and 7 from 6:30 p.m. to 9:30 p.m. In addition, dedicated evening Routes 61 and 62 , which were scheduled between 7:15 p.m. and 10:15 p.m., were discontinued due to low ridership.
Triennial Performance Audit 46 Santa Maria Area Transit (SMAT)
11. A Saturday pilot service was implemented on both Breeze routes in December 2016. The Saturday Breeze operated with three trips on each route composed of morning, noontime, and late afternoon runs. LCTOP funding was used toward the service. Low ridership levels on the Saturday Breeze eventually led to the service being discontinued toward the end FY 2019.
12. The City released an RFP to update the 2015 SRTP Summary Report in April 2018 and selected a consultant in October 2018. The SRTP update scope of work includes updates of operating data and existing services; the financial and capital plans; goals and objectives; and service recommendations.
13. Santa Maria has employed various marketing tools and strategies toward the promotion of its various transit services. The City retains San Luis Obispo-based Tom Jones Associates Advertising and Public Relations to develop the creative marketing strategy and manage contract advertising for SMAT.
14. The City’s operations and maintenance contract with First Transit has been in effect since July 2009 from the initial 3-year base period. The City exercised most of the option extensions that encompassed a 10-year period but was not satisfied with First Transit’s management with regard to on-time performance, changes in managers, and personnel issues.
15. The City released a Request for Proposals in December 2017 for a new contract service provider to operate and maintain SMAT and its associated service modes for a base term of three years with seven additional one-year options. After reviewing the proposals, the City authorized the execution of a service contract with RATP Dev USA, effective July 1, 2018. The new contract has one rate for all service modes.
16. Santa Maria’s most recent FTA triennial review was conducted in 2017 and included site visits on April 25 and 26, 2017. The review examined compliance in 17 areas. No deficiencies were found with FTA requirements in 16 areas with only one deficiency found in one area pertaining DBE policies.
Triennial Performance Audit 47 Santa Maria Area Transit (SMAT)
Triennial Audit Recommendations
1. Continue to improve upon the consistent reporting of performance data to the State Controller. (Compliance Requirement)
This recommendation is carried over from the prior audit and is prompted for full implementation due to discrepancies found in the operational data elements contained in the reports to external agencies such as the State Controller. Based on the data consistency comparison between the National Transit Database and State Controller Reports, there were both performance data consistencies and discrepancies between the two external reports. Ridership data for both modes are consistent for the audit period. The discrepancies occur in vehicle service hours for both fixed route and ADA paratransit service modes. Very minor discrepancies are noted for vehicle service miles for fixed route and vehicle service hours for ADA paratransit. Full-time equivalent (FTE) figures for FYs 2016 and 2017 calculated in worksheets provided by the City show differing employee counts for fixed-route services (59) compared to those in the State Controller Report (52). The City’s worksheets use employee pay hours and properly divides the total hours by 2,000 hours to arrive at the FTE. It is suggested that the transit management staff continue efforts at ensuring the data reported in external reports is consistent.
2. Ensure timely completion and submittal of external TDA financial reports. (Compliance Requirement)
The City was not in compliance with the timely completion and submittal of its annual State Controller transit reports as well as the fiscal and compliance audits. The City accounts for the late submittal due to the financial close-out procedures needed to generate the financial information required in the Controller’s Report. This in turn also impacts the timely submittal of its fiscal and compliance audits which cannot be completed until the financial close-out by the City. The TDA statute provides the submittal timelines and allowable extensions granted by SBCAG. Although City financial close-out procedures are not within the scope of this performance audit, it is suggested that a schedule be coordinated between the City’s finance department, TDA fiscal auditor, and SBCAG that anticipates financial close-out by the City and completion of the external TDA financial reports. The financial close-out triggers the undertaking of the TDA financial reports, and close tracking of the timeliness of the close-out could advance some aspects and earlier preparation of the TDA reports.
3. Pursue local partnerships with Allan Hancock College and the Marian Regional Medical Center to enhance farebox revenue. (Auditor Suggestion)
The City has been in discussions with administrators at Allan Hancock College about the establishment of a student pass program. However, time constraints and resource limitations have delayed further pursuit of such a program by City transit management. Nevertheless, the college has been involved in key capital projects that would enhance its trip-generating capacity. Triennial Performance Audit 48 Santa Maria Area Transit (SMAT)
The college campus has recently undergone expansion with the completion of a new administration building as well as a planned fine arts complex. The college also has expressed interest in becoming a transportation hub. Electric charging stations have recently been installed. Students could be assessed a transportation fee as part of their annual student fee when they enroll at the college, which would allow for unlimited transit rides on any SMAT bus. It is suggested that the City continue to pursue a fare revenue agreement with Allan Hancock College whereby the City receives a share of the revenues generated from student fees for transit service in and around the college. SMAT has also been looking into operating an employee shuttle between Orcutt and the Marian Regional Medical Center. The City could negotiate to receive an annual subsidy from the medical center to cover the costs of the shuttle. These revenue strategies could enhance farebox recovery through local support funding.
Triennial Performance Audit 49 Santa Maria Area Transit (SMAT)