FACT Book

OF THE REGIONAL’98 TRANSPORTATION AUTHORITY

Issued September 1998 Regional Transportation Authority

September 1998

To the Taxpayers and Riders of the RTA System:

Welcome to RTA Factbook ’98, the official index of noteworthy RTA information.

As the preeminent stakeholders of our vitally important system of public transportation, you deserve to know how the system operates and where it is headed. Let this publication be your first step in learning the dimensions of our activities on your behalf.

Congestion robs us of mobility, productivity and time. Public transportation is a crucial element in our regional effort to maintain competitiveness and quality of life. Our system is strong and performs admirably. However, its capital needs are significantly unfunded, its operating costs are too high and ridership has declined alarmingly from post-war peaks.

If we are to overcome these challenges it will be based on an informed public making business-like decisions. Such decisions will be grounded in facts, like those compiled here.

Respectfully,

Thomas J. McCracken, Jr. Chairman Regional Transportation Authority TABLE OF CONTENTS

A Section I: Regional ...... I-1— I-16

Section II: CTA ...... II-1— II-18

Section III: Metra ...... III-1— III-14

Section IV: Pace ...... IV-1— IV-16

RTA BOARD OF DIRECTORS

Chairman City of Chicago Thomas J. McCracken, Jr. Armando Gomez, Sr. Thomas H. Reece Michael Rosenberg Rev. Addie L. Wyatt Chicago Transit Authority Valerie B. Jarrett Suburban Cook County Herbert E. Gardner Mary M. McDonald Donald L. Totten Douglas M. Troiani DuPage County Arthur W. Angrist Kane, Lake, Duane E. Carter McHenry & Will Counties Frank R. Miller Section IREGIONAL

REGIONAL

Regional The Regional Transportation Authority was created in December 1973 through an act of the Illinois General Assembly and approved in a Transportation March 1974 referendum in the northeastern Illinois counties of Authority Cook, DuPage, Kane, Lake, McHenry and Will. The RTA’s mandate was to ensure the development of a comprehensive and coordinated mass transportation system in the six-county region. Among its responsibilities, which at the time included the operation of some • The RTA was created in 1973 transit lines, the RTA was to provide financial support for the regional and ratified by the region’s voters public transit system. in 1974. In 1981, growing financial difficulties resulted in the fiscal collapse of • Under the 1983 amendment to the RTA. The State Legislature reorganized the RTA in 1983 to protect the Act, the RTA must recover the system from future financial crises. The amended RTA Act includes 50 percent of its operating expenses three key provisions: from system-generated revenues. • All day-to-day operating responsibility was decentralized into three • The RTA is a policy and financial distinct service boards - The Chicago Transit Authority (CTA), oversight agency, with day-to-day Metra commuter rail and Pace suburban bus. operating responsibilities resting • A formula was established for allocating 85 percent of the RTA with three service boards. sales tax receipts directly to individual service boards, and a new state funding source equal to 25 percent of the sales tax receipts was provided to the RTA for discretionary allocation to the service boards.

• As a condition for receipt of additional state funds, the regional transit system, when taken as a whole, must recover at least 50 percent of its total operating expenses from system-generated revenues. This includes the state’s reimbursement to the service boards for carrying children, students, senior citizens and riders with disabilities at a reduced fare.

I-1 REGIONAL

History Chicago’s transit history began with the development of the horse car, cable car, and finally the electric streetcar by the late 19th century. The region’s natural setting and geography had already made it the cross- roads of our growing country. By 1892, Chicago’s first elevated line was built. Five years later the Loop “L” opened and quickly became a vital transportation artery for thousands of commuters. Private transit companies financed and built the system at a time when Chicago was one of the world’s fastest-growing cities. In the decades before the automobile, most Chicagoans depended on mass transit, and this enabled financiers to pay for new streetcar tracks and elevated lines from the farebox. By the early 20th century, Chicago’s transit system entered a phase of consolidation, resulting in three companies control- ling the city’s streetcar, elevated, and bus lines. These companies were regulated by the state as public utilities.

The Depression of the 1930s undermined the finances of the elevated and streetcar companies, depriving them of the capital needed to renew their operations. By the end of World War II, the city’s transit providers were straining to carry record numbers of riders on equipment that had seen a minimum of maintenance and renewal. The General Assembly, due to the importance of Chicago’s transit system, passed the Metropoli- tan Transit Authority Act in 1945, creating the Chicago Transit Author- ity (CTA) and empowering it to acquire and operate public transporta- tion in the city and nearby suburbs. The legislation freed the CTA from regulation as a utility, and gave it the power to set its fares and routes. In 1947, the CTA acquired the bankrupt streetcar and elevated lines, and five years later bought Chicago Motor Coach, thus bringing all of the city’s local transit lines into a single organization. Using bonds backed by future farebox revenues, the CTA replaced worn-out street- cars with new buses, and wood-bodied “L” cars with steel equipment. The CTA also revamped its “L” service by closing dozens of stations and several branches that no longer attracted enough riders to justify operation. Meanwhile, in the suburbs, several of Chicago’s commuter railroads began to replace their old coaches with modern bilevel cars. The law required CTA to fund all operating costs from its farebox, but this became increasingly difficult by the 1960s. The CTA maintained financial stability through the 1960s by deferring maintenance and equipment replacement. Despite these measures, in 1970, the CTA started to lose for the first time. The losses forced the state, city and county to step in with a succession of short-term subsidies. Financial problems were also affecting the suburbs, as commuter railroads raised fares and suburban bus companies approached bankruptcy.

Over the next few years, political leaders, led by Governor Richard B. Ogilvie and Mayor Richard J. Daley, realized that northeastern Illinois needed a coordinated framework for managing and financing transit in the city and suburbs. The result was the creation of the Regional Transportation Authority (RTA) in December 1973 through an act of

I-2 REGIONAL

the Illinois General Assembly. The RTA Act was approved by the citizens of the six northeastern Illinois counties of Cook, DuPage, Kane, Lake, McHenry, and Will in a March 1974 referendum. Support for the creation of the RTA was split, with a majority of voters in the City of Chicago favoring the RTA and a majority in the suburbs opposed. These results largely reflected voters’ views of their immediate interests as users or non-users of mass transit. Although the divisions of the 1974 referendum were reflected in the politics of regional transit over the next decade, the RTA made impor- tant contributions during the 1970s. RTA subsidies and capital grants helped stabilize the CTA, the suburban bus systems and the region’s commuter railroads. The RTA also stepped in to continue service when several suburban bus companies went bankrupt during the 1970s, and two commuter rail operations followed suit in the 1980s.

However, a prominent weakness of the original RTA was fiscal over- sight. From 1980 through 1982, growing financial difficulties brought the RTA to the brink of collapse. During 1982, CTA fares went up by 50 percent, commuter rail fares doubled, and some suburban bus routes were temporarily suspended because the RTA could no longer provide subsidies. The state legislature again stepped in and reorganized the RTA in 1983 to protect the system from future financial crises. The amended RTA Act decentralized operating responsibilities into three distinct service boards: the Chicago Transit Authority (CTA), Metra commuter rail, and Pace suburban bus. Metra and Pace were created by the 1983 legislation to relieve the RTA of all responsibility for transit operations, permitting the RTA to focus on its core missions of financial oversight and regional planning. The amended RTA Act also established a formula for allocating RTA Sales Tax receipts and required that at least 50 percent of operating expenses be recovered from system- generated revenues. The RTA also serves the region through its administration of reduced- fare and paratransit eligibility programs as well as its support of the development of new transportation technologies such as personal rapid transit, alternative fuel buses and itinerary planning systems. The 1983 reform legislation also helped build a constituency for mass transit in the suburbs as well as the city. The creation of Metra and Pace made the suburbs into stakeholders who shared a key interest in the future of the region’s transit system.

While RTA oversight has provided financial stability for the region’s transit system for more than a decade, the system faces significant challenges as it moves into the next century. A continuing lack of capital funding, escalating operating costs, and declines in ridership threaten CTA, Metra and Pace’s very viability.

I-3 REGIONAL

Regional Population 1990 Regional Population Distribution

DuPage 11%

Kane, Lake, Will & McHenry Chicago 19% 38%

Suburban Cook 32%

Population Change in Northeastern Illinois (in thousands) ○○○○○○○○○○○○○○○ Area 1980 1990○○○○○○ 2020a pop % of pop % of pop % of total total total Chicago 3,005 42.3 2,784 38.4 3,005 33.2 ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ Sub Cook 2,248 31.6 2,321 32.0 2,587 28.6 Cook Cty 5,253 73.9 5,105 70.4 5,592 61.8 DuPage 658 9.3 782 10.8 986 10.9 Kane 278 3.9 318 4.3 555 6.1 Lake 440 6.2 516 7.1 827 9.1 ○○○○○○○○○○○○○○○○○○○○○○○○○○○○ McHenry 148 2.1 183 2.5 361 4.0 Will 325 4.6 357 4.9 723 8.0 Suburb Total 4,097 57.7 4,477 61.6 6,039 66.8 NE Illinois 7,102 100.0 7,261 100.0 9,044 100.0 2020b Chicago 2,917 32.3 Sub Cook 2,629 29.1 Cook Cty 5,547 61.3 DuPage 986 10.9 Kane 552 6.1 Lake 801 8.9 McHenry 353 3.9 Will 806 8.9 Suburb Total 6,127 67.7 NE Illinois 9,044 100.0

2020a - Population projections with existing airports. 2020b - Population projections with the addition of a south suburban airport. Source: U.S. Census 1980 & 1990; Northeastern Illinois Planning Commission I-4 REGIONAL

Regional Population Changes (in thousands)

10,000 9,044 9,044 6,039 6,127 8,000 7,102 7,261 4,097 4,477 6,000 Suburbs

4,000 City of Chicago

3,005 2,784 3,005 2,917 2,000

0 1980 1990 2020a 2020b

2020a - Population projections with existing airports. 2020b - Population projections with the addition of a south suburban airport Source: U.S. Census 1980 & 1990; Northeastern Illinois Planning Commission

• Based on the 1990 census, the The six-county area served by the RTA covers 3,700 square miles. population of the six-county region Based on the 1990 census, the region has 7.3 million residents. The is 7.3 million. City of Chicago has a population of 2.8 million, or 38 percent of the regional total. Suburban Cook County accounts for 2.3 million resi- • The region’s population split is dents. Of the collar counties, the largest is DuPage with 0.8 million 38 percent City of Chicago and residents. Lake, Kane, McHenry and Will counties have a combined 62 percent suburban, with population of 1.4 million. 52 percent of the suburban Between 1980 and 1990, the suburban population grew by 9 percent population concentrated in while the City of Chicago experienced a net population decline of Cook County. 7 percent. By 2020, the regional population is projected to be 9.0 • The region’s population is million. The city’s declining population trend is forecast to reverse in the 1990s. Suburban population is also projected to grow, but at a expected to grow by 19.7 percent slower rate than historical trends. to 9.0 million in 2020.

I-5 REGIONAL

Regional Employment Employment Change in Northeastern Illinois (in thousands) ○○○○○○○○○○○○○○ Area 1980 1990○○○○○○ 2020a Emp % of Emp % of Emp % of total total total Chicago 1,583 46.5 1,482 39.9 1,745 33.0 ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ Sub Cook 1,114 32.7 1,294 32.3 1,775 33.6 Cook County 2,697 79.2 2,776 72.2 3,520 66.7 DuPage 285 8.4 530 13.2 815 15.4 Kane 119 3.5 145 3.8 223 4.2

Lake 162 4.8○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ 229 6.3 392 7.4 McHenry 47 1.4 66 1.8 106 2.0 Will 92 2.7 99 2.7 223 4.2 Suburban total 1,819 53.5 2,363 61.0 3,534 67.0 N.E. Illinois 3,402 100.0 3,845 100.0 5,280 100.0 2020b Chicago 1,705 32.3 Sub Cook 1,771 33.5 Cook Cty 3,476 65.8 DuPage 815 15.4 Kane 213 4.0 Lake 353 6.7 McHenry 89 1.7 Will 332 6.3 Suburb Total 3,573 67.7 NE Illinois 5,280 100.0

2020a - Population projections with existing airports. 2020b - Population projections with addition of south suburban airport. Source: U.S. Census 1980 & 1990; Northeastern Illinois Planning Commission

I-6 REGIONAL

1990 Regional Employment Distribution

DuPage 11%

Kane, Lake, Will & McHenry Chicago 19% 38%

Suburban Cook 32%

Source: U.S. Census 1980 & 1990; Northeastern Illinois Planning Commission

• Regional employment is projected There were 4.1 million jobs in the RTA region in 1990. Of these, to increase 23 percent from approximately 61 percent, or 2.5 million were located in the suburbs. 4.1 million in 1990 to This is an increase from the 1980 census when the suburbs accounted 5.3 million in 2020. for only 54 percent, or 1.8 million of the region’s jobs. This represents a 36 percent increase in the suburbs’ share over the last decade. In • Between 1980 and 1990, contrast, the number of jobs in the City of Chicago remained virtually suburban employment increased unchanged from 1980 to 1990. by 36 percent while the City of Regional employment is expected to increase 23 percent to 5.3 million Chicago was virtually unchanged. by 2020. This increase would be throughout the region, but, the suburbs are expected to experience faster employment growth than the city.

I-7 REGIONAL

RTA System Ridership RTA System Annual Ridership (in millions) 800

700

600

500

400

300

200

100

0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998* * budget

• RTA system ridership totaled CTA, Metra and Pace carried 529.0 million riders in 1997. CTA carried 529.0 million in 1997. 418.8 million, or 79 percent, of the region’s total riders. CTA ridership in 1997 was 8.5 million, or 2 percent, lower than budget projections. • System ridership had been level The decrease in ridership occured entirely on CTA’s bus system with a until 1988 but declined steadily 4.8 percent loss more than offsetting a 4.8 percent gain on the rapid from 1991 to 1995. transit system. This is partially attributed to the CTA’s elimination of 10 bus routes in October 1997. In 1997, Metra carried 72.3 million passengers in Illinois, representing 13.7 percent of RTA ridership. Since 1992, Metra’s ridership has stabilized in the range of 70 to 72 million trips per year. Metra’s rider- ship is projected to increase by approximately 1 million per year through the year 2000. Pace carried 37.9 million passengers in 1997, or 7 percent of RTA system ridership. Pace’s ridership declined from a high of 39.3 million in 1992 to 37.2 million in 1995. Ridership has since rebounded slightly and is expected to increase by more than 0.5 million per year through the year 2000.

I-8 REGIONAL

CTA Annual Ridership 1987-1998 (in millions) 600

500

400

300

200

100

0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998* * budget Metra Annual Ridership 1987-1998 (in millions) 80

70

60

50

40

30

20

10

0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998* * budget Pace Annual Ridership 1987-1998 (in millions) 40

30

20

10

0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998* * budget I-9 REGIONAL

RTA Revenues 1998 Budget Revenue Sources (dollars in thousands) Investment RFR Income ASA $20,000 and Other $39,500 FTA (3%) $6,855 (5%) $5,500 (1%) (1%) Total Revenues PTF $780,855 $142,000 (18%) RTA Sales Tax $567,000 (72%)

Source: RTA 1998 Annual Budget and Five-Year Program

• Operating budgets are funded The RTA’s 1998 revenues are budgeted at approximately $780 million. primarily through system-generated This does not include system-generated revenues which are used to revenues and the RTA Sales Tax. cover operating expenses. The following are the RTA’s principle sources of revenue: • Capital expenditures are funded primarily through bond proceeds, RTA Sales Tax: The sales tax is the primary source of the RTA’s FTA capital grants and sales revenue. The tax is authorized by Illinois statute and levied by the RTA tax revenues. in the six-county northeastern Illinois region. The sales tax rates are 1.0 percent in Cook County and 0.25 percent in the collar counties of DuPage, Kane, Lake, McHenry and Will. The 1.0 percent in Cook County is comprised of 1.0 percent on food and drugs and three- quarters percent from all other sales, with the State of Illinois providing a replacement amount to the RTA equivalent to one-quarter percent. The RTA retains 15 percent of the RTA Sales Tax proceeds and passes on the remaining 85 percent to CTA, Metra and Pace according to a statutory formula. Under this formula, the CTA receives 100 percent of the RTA Sales Tax collected within the Chicago city limits and 30 percent collected within the rest of Cook County. Metra receives 55 percent of the tax collected within Cook County and 70 percent of the tax collected in the RTA region’s five other counties, and Pace receives 15 percent of the Cook County tax and 30 percent from the collar counties. Public Transportation Funds (PTF): These revenues, provided by the state, are equal to one-fourth of RTA sales tax receipts. The funds are allocated to the service boards at the RTA’s discretion, and are paid only if the service board is in compliance with its annual budget.

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Federal Operating Assistance (FTA): Represents Federal Transit Administration mass transit grants for both operating and capital expenses. The RTA Board has adopted a ridership formula as the basis for distributing these funds. The fiscal year (FY) 1998 federal budget proposes ending this funding category in FY 1998.

Additional State Assistance (ASA): This revenue source is state- authorized assistance to help offset the debt service expenses of RTA Strategic Capital Improvement Program (SCIP) bonds. Subject to appropriation of funds by the state, the RTA will continue to be eligible to receive ASA payments. Reduced Fare Reimbursements (RFR): This operating assistance is partial reimbursement from the state to the service boards for discounts — mandated by law — that are provided to students, elderly and riders with disabilities. The funds are distributed to the RTA by the state and then flow directly to the service boards. Investment Income and Other: The RTA investment and other income category consists of sales tax interest, investment income and other miscellaneous grants and revenue. The state pays interest on sales tax receipts to the RTA from the period of collection until it is dis- bursed to the RTA. This money is then disbursed to the service boards.

I-11 REGIONAL

RTA Recovery Ratio Recovery Ratio Percentages 55

%

50

45 1992 1993 1994 1995 1996 1997 1998* *budget

Note: Recovery Ratio Excludes Metra Capital Farebox Financing program for budget comparison per RTA Ordinance.

• The RTA Act requires that the The RTA Act requires that system-generated revenues cover at least RTA system recover at least 50 percent of the system’s operating expenses. The regional recovery 50 percent of operating expenses ratio, which measures this performance, has been above 50 percent from farebox and related revenues. since 1985.

• The RTA has consistently The amended RTA Act provides the RTA Board with broad budgetary recovered more than 50 percent powers, which include setting system-generated recovery ratios for CTA, Metra and Pace in order to achieve a regional recovery ratio of at of operating expenses from least 50 percent. In 1997, the regional recovery ratio was 52.5 percent. farebox revenues since 1985. Individually, the service boards attained distinctly different recovery ratios. The CTA’s recovery ratio was 53.8 percent in 1997, Metra’s cost recovery ratio was 54.4 percent, and Pace’s ratio was 37.5 percent.

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RTA Capital Needs Service Board Asset Base (1997 dollars in millions) Pace $315.2 (1%)

Total $22,022.2 Metra $7,180.7* (33%) CTA $14,506.3* (66%)

Source: RTA and Pace * Based on Capital Asset Values as of June 1994. Inflated to 1997 dollars using Engineering News Record’s Construction Cost Index.

• The RTA’s capital renewal needs The RTA’s capital asset base is valued at $22 billion. For decades, the exceed $4.8 billion. region has suffered from underfunding of the capital program, resulting in a high level of deferred maintenance. In the summer of 1989, the • The RTA’s capital asset base is Illinois State Legislature responded to the RTA’s capital crisis by provid- valued at $22 billion. ing additional funding for the renewal of the transit infrastructure in northeastern Illinois. The legislature approved a bill providing $1.0 billion of additional funds and bonding authority over five years for the RTA’s capital program. The new funds increased the RTA’s 1990-1994 capital program to $2.3 billion. While this amount began to address the RTA’s total capital needs, it represented only a first step in the long process of rebuilding the RTA system.

Currently, the RTA system needs more than $4.8 billion over the next five years to maintain a state of good repair. However, existing revenue sources will provide only $1.8 billion of the money needed. This represents a gap of more than $3 billion. The fact that 75 percent of the CTA’s elevated structure is more than 80 years old and 798 Metra bridges date back 100 years illustrates the need to update the system’s infrastructure for reasons of safety as well as efficiency. Age and deferred maintenance combine to increase the day-to-day operating costs and move the RTA system closer to a decline in service.

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RTA Capital Needs The system’s current capital crisis means maintenance will continue to be deferred. For example, CTA’s rapid transit system’s Brown Line (continued) (Ravenswood) and the Douglas branch, also known as the Cermak branch, of the Blue Line are each in need of $300 to $400 million worth of work. The federal government’s recently passed six-year authorization bill, known as the Transportation Equity Act for the 21st Century, or TEA-21, did include language authorizing funding for these projects. However, the 1999 transportation funding bills being considered by both houses of Congress include only $2 million for the CTA’s Blue Line project and nothing for the Brown Line. The lack of capital funding also impacts Metra in that the replacement of century- old bridges is backlogged, and Pace, which needs to replace hundreds of buses and purchase an additional 600 vehicles for its vanpool program.

I-14 REGIONAL

Travel Information Center The RTA Travel Information Center (TIC) provides information on routes, schedules and fares to an average of 10,000 callers each day. The TIC is open every day of the year from 5 a.m. to 1 a.m. Travelers can call the TIC at 836-7000 from any area code in the six-county RTA region.

The TIC is staffed and operated by ATC Communications, which works under contract with the RTA. The TIC employs approximately 75 operators who served about 3.4 million callers in 1996.

The RTA is planning to update its TIC computer program to an itinerary planning system. The new system will help TIC operators provide callers with computerized trip planning and other transit information in a more efficient and accurate manner. It is hoped the revised database will increase customer satisfaction by decreasing hold time and increasing the accuracy of information.

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I-16 Section II CTA

CTA

System Description System: Service Area: The CTA’s service area covers 220 square miles, including all of Chicago and 38 suburbs, with a total population of approximately 3.7 million. This represents 51 percent of the RTA service area population of 7.3 million.

Service Level: The CTA operates 1,882 buses and 1,190 rail cars. Coverage: The CTA operates 24 hour service on 13 percent of the bus lines and on two of the seven rapid transit rail routes. Service levels and coverage vary by day of the week and by time of day. Ridership: In 1997, the CTA carried 1.4 million average weekday passengers. CTA bus ridership was 288.8 million, rail ridership was 130.0 million and paratransit services handled 1.2 million riders for a total of 418.8 million trips. Budget: The CTA’s operating budget for 1998 is $ 782.0 million (RTA fiscal year). Asset Value: Capital asset value is $14.5 billion. Fares: The basic fare for bus and rail at all times is $1.50 and transfers are 30 cents. Every day monthly passes are $88. Senior, student and disabled fares are at least 50 percent lower than the basic fare rate. A monthly accommodation pass for paratransit and disabled RTA Reduced Fare Card holders is $35. A one-day visitors pass is $5. In September 1997, an automated fare collection system was implemented allowing riders to store fares on a rechargeable transit card. This new collection system is projected to increase revenues by $11 million in 1998. The new system should eliminate the amount of money handled by agents, reduce lines for passengers, and decrease fare evasion.

Bus: Service Area: Grid route structure, 129 routes, 12,200 bus stops.

Service Level: 1,894 miles of bus routes, 22,500 weekday trips. Ridership: 24 million riders per month, including paratransit riders.

Rail: Service Area: 7 radial rail lines, 140 stations. Service Level: 206.3 directional route miles, 1,880 weekday trips.

Ridership: 10.8 million riders per month.

II-1 CTA

Organization Chart

CTA Transit Board

President General Counsel Chief of Staff

Management & Customer Service, Transit Operations Performance Facilities & Development

Communications Customer Service Bus Operations

Treasury/Budget/ Real Estate & Rail Operations Capital Community Development

Intergovernmental Engineering & Safety, Security & Affairs Construction Training

Employee Services Maintenance Planning

Technology Technical Training Development

Purchasing/ Administration & Warehousing Paratransit

DBE/EEOC

II-2 CTA

Organization • The CTA was created in 1945 pursuant to the Metropolitan Transportation Authority Act passed by the Illinois legislature. The Act established CTA as an Illinois municipal corporation, indepen- dent of the City of Chicago, to consolidate the city’s public and private mass transit carriers. The CTA began operations in 1947 with the acquisition of Chicago Surface Lines and Chicago Rapid Transit. CTA became the sole operator of Chicago’s transit with the purchase of Chicago Motor Coach in 1952. The CTA came under the governance of the Regional Transportation Authority (RTA) in 1974 when the RTA was approved in a referendum by the voters in the six-county region of northeastern Illinois. With the 1983 amendment of the RTA Act, transit operations became the exclusive responsibility of the three service boards, CTA, Metra commuter rail and Pace suburban bus. The RTA was given increased budget oversight powers and a responsibility to monitor the financial condition of the service boards.

• The CTA is governed by a seven-member board of directors. Three members are appointed by the Governor, subject to the approval of the State Senate and the Mayor of Chicago. Four members, including the Chairman, are appointed by the Mayor of Chicago with the consent of the City Council and the Governor. The CTA Board in turn appoints members to the CTA Citizens Advisory Board. The regular board and the advisory board meet separately each month and are required by law to meet together quarterly. The chairman of the CTA Board is also automatically a member of the RTA Board.

• According to its mission statement, the CTA’s mission is to provide high quality transit service that meets the needs of metropolitan Chicago and positively influences the region’s development.

II-3 CTA

Ridership 1992-1998 CTA System Ridership (in millions) 500

400 Rail

300 Bus 200

100

0 1992 1993 1994 1995 1996 1997 1998* *budget

• The CTA expects ridership levels Between 1987 and 1996, CTA ridership dropped by 30 percent. This to increase by a compound growth decrease is partly attributable to factors beyond the CTA’s control. rate of 0.2 percent through 2000. Some of these factors are the movement of large employers from Chicago to the outer suburbs and other states and increased automobile • The CTA operates the second ownership. However, customer dissatisfaction and service cuts have also largest public transportation contributed to ridership losses. In 1997, ridership was 418.8 million, system in the United States which was 2 percent below budget projections. Ridership is expected with an average daily ridership to increase in 1999 and 2000 as the result of a ridership campaign of 1.4 million. planned by the CTA. In addition, the CTA has introduced several initiatives to improve ridership, including the new automated fare collection equipment, station-specific time schedules on the rail system, cleaner buses and trains, a new customer hotline and a 97 percent on-time performance record.

Bus ridership accounts for approximately 69 percent of CTA’s total ridership. Rail ridership accounts for the remaining 31 percent.

II-4 CTA

Fares CTA Fares Full Reduced Cash Fare $1.50 $.75 Transit Card/Riding Permits Amount Dedicated for one ride. The first transfer use within two hours is 30 cents (15 cents reduced); Second transfer use within two hours is free. $1.50 $.75 Transfer Card Allows two or more rides within two hours on any CTA or PACE route. Not needed between CTA trains. $.30 $.15 Express Bus Surcharge only with tokens and cash. $.25 $.25 Tokens 10 for $15.00 20 for $13.50 Monthly Pass $88.00 $44.00 *Visitor Passes One-day $5.00 NA Two-day $9.00 NA Three-day $12.00 NA Five-day $18.00 NA Accomodation Monthly Pass $35.00 Link-up Pass (Sticker) Sold by Metra - use with Metra monthly ticket. $36.00 NA

Special Fare Routes Full Reduced

Rush Shuttle Fares $1.00 NA 128 Soldier Field Express $1.00 $.50

*pilot program

• The current $1.50 fare has been in The basic fare for CTA bus and rail is $1.50. Transfers are 30 cents for place since 1991. the first transfer, with no charge for a second transfer made within a two-hour period. Riders using the CTA’s new transit card receive an additional $1.50 in fare credit for each multiple of $13.50 added to the card. Tokens are available in packs of 10 for $15 and monthly passes are available for $88. There is an express bus surcharge of 25 cents for riders using tokens or cash. The fares for seniors, students, children and the disabled differ from the full adult fare and are generally one-half of the full fare. The last CTA fare increase occurred in 1991.

The CTA is currently working on a restructuring and simplification of its fares, which will take advantage of its newly-installed electronic fare collection technology. The changes are being designed to offer custom- ers more flexibility and price incentives. However, the base fare will remain $1.50.

II-5 CTA

Revenue CTA System-Generated Revenue Trends 1992-1998 (in millions) 500

395.2 394.2 397.2 393.0 401.1 407.4 404.7 400 47.1 42.0 40.9 38.3 39.5 51.2 44.1 357.7 360.3 362.7 354.3 355.9 341.8 357.0 300 $ 200

100

0 1992 1993 1994 1995 1996 1997 1998* *budget Farebox Other

• CTA system-generated revenue has Total system-generated revenues at the CTA have grown from $395.2 increased at a compound growth million in 1992 to $407.4 million in 1997, which exceeded budget by rate of 0.61 percent since 1992. $4.9 million. The 1998 budget for system-generated revenue is $404.7 million. Fares and passes represent 88.4 percent of the CTA’s total • Farebox revenues increased by a operating revenues. The reduced fare subsidy represents 4.2 percent of 0.34 percent compound growth total operating revenues while other revenues and investment income rate since 1992. account for the remaining 7.4 percent.

• The reduced fare subsidy has Farebox revenues have increased by a 0.34 percent compound growth declined from $24.6 million in rate from 1992 to 1997. Over that time period, the basic fare rate of 1992 to $17.0 million in 1997. $1.50 has remained the same; however, there have been several changes to other aspects of the fare system. The last such change occurred with the introduction of the automated fare collection system in 1997.

The CTA’s other revenue, which is part of system-generated revenues, includes rentals, advertising, concessions, parking and investment income. The reduced fare subsidy, which is received from the state to reimburse the CTA for the cost of providing reduced fares for the elderly, the disabled and students, is also included in the other revenue category of the graph above.

II-6 CTA

Expenses CTA Operating Expenses 1992-1998 (dollars in thousands)

800,000 Other 700,000 Insurance & Claims Power Fuel 600,000 Material

500,000 Labor $ 400,000

300,000

200,000

100,000

0 1992 1993 1994 1995 1996 1997 1998* *budget

• Total expenses for the 1998 budget Since 1992, the CTA’s expenses have increased at a compound annual are $782 million. growth rate of 0.68 percent.

• Total expenses have increased at Labor accounts for 73.5 percent of CTA’s operating expenses. Base a compound growth rate of wages represent two-thirds of that total and fringe benefits, which 0.68 percent since 1992. include medical insurance and pension costs, make up the remaining third of the CTA’s labor expenses. Material, used primarily for mainte- • Labor expenses have increased at a nance, is 6.5 percent of total expenses while fuel and power represent 0.25 percent compound growth rate 5 percent. Insurance and claims expenditures are 4 percent of expenses since 1992. and paratransit services, security and other expenses account for the remaining 11 percent.

II-7 CTA

Expenses/Passenger CTA 1992-1998 Expense Per Passenger (in dollars)

2.00 1.80 1.81 1.83 1.75 1.70 1.65 1.53 1.50 .86 .87 .88 .82 .83 $ .78 .73 1.00

.95 0.50 .88 .87 .92 .94 .94 .80

0.0 1992 1993 1994 1995 1996 1997 1998* *budget

Revenue Subsidy

• Revenue per passenger has increased Revenue per passenger increased from 80 cents in 1992 to 94 cents in at a 4 percent compound growth 1996. This 14 cent increase represents a compound growth rate of 4 rate between 1992 and 1996. percent over the five-year period. Expenses per passenger have also Expense per passenger increased from $1.53 in 1992 to $1.80 in 1996. increased at a compound rate of This 27 cent increase represents a compound growth rate of 4 percent 4 percent. over the five-year period.

II-8 CTA

Recovery Ratio CTA Cost Recovery Ratio 1992-1998 55

50

%

45

40 1992 1993 1994 1995 1996 1997 1998* *budget

The recovery ratio is the percentage of operating costs paid for by CTA’s system-generated revenues. The CTA’s recovery ratio has remained above 50 percent over the last five years.

II-9 CTA

Capital Asset Inventory CTA 1997 Capital Asset Value (dollars in millions) Miscellaneous Support Equipment $109.5 Total (1%) $14,506.3 Passenger Stations $2,754.1 (19%) Bridge & Structure Garages/Depots/ $4,828.6 Yards (33%) $1,404.5 (10%)

Electric/Signal/ Communications $1,499.3 Rolling Stock (10%) Track $2,280.0 $1,630.3 (16%) (11%)

Source: RTA

• Bus fleet average age is 8.0 years. The capital assets of the CTA can be classified into seven categories: (1) bridge and structure, (2) rolling stock, (3) track, (4) electric/signal/ • Rail fleet average age is 13.3 years. communications, (5) garages, depots and yards, (6) passenger stations, and (7) miscellaneous support equipment. The CTA operates 1,882 buses and 1,190 rail cars. The Federal Transit Administration (FTA) considers the useful life of a bus to be 12 years. Accordingly, using the FTA’s standard and a steady replacement sched- ule, the average age of a transit bus fleet should be 6.0 years. The average age of the CTA’s bus fleet is 8.0 years. The FTA’s standard useful life for rail cars is 25 years. Based on this standard and a steady replacement plan, a fleet average should be 12.5 years. The average age of CTA rail cars is 13.3 years.

II-10 CTA

Rail Structure Map Significant parts of the CTA rail structure were built at the turn of the century. This map shows the age of rail structures in simplified form. However, because 12 rail stations have been rebuilt in the past two decades, the structure age does not always accurately represent the station age.

In 1994, the CTA started color coding the rail lines. The following is a list of all the lines in the system and their color codes: Red Line - Howard branch, Dan Ryan branch Yellow Line - Skokie branch Orange Line - Midway branch Green Line - Lake branch, Ashland branch, East 63rd branch* Blue Line - O’Hare branch, Forest Park branch, Cermak branch** Purple Line - Evanston branch Brown Line - Ravenswood branch

* In 1996, the portion of the Green Line east of Cottage Grove along East 63rd Street was eliminated. **The Forest Park and Cermak branches of the Blue Line were formerly known as the Congress and Douglas branches respectively.

Total Stations Rebuilt: 12 Red Line (3): Addison, Washington and Roosevelt. Blue Line (2): Polk and 18th Loop (2): Quincy/Wells and Clark/Lake Brown Line (2): Kimball and Merchandise Mart Purple Line (2): Linden and Davis Yellow Line (1): Skokie

New Stations Built: 13

Blue Line (4): In 1983 the Blue Line was extended from Jefferson Park to O’Hare adding stations at Harlem, Cumberland, Rosemont and O’Hare.

Loop (2): Washington/Wells (1995) and State/VanBuren (1996)

Orange Line (7): Construction on this line was completed in 1993, adding stations at Midway, Pulaski, Kedzie, Western, 35th/Archer, Ashland and Halsted

II-11 CTA

Rail Structure Map (continued) PURPLE LINE 2 (Evanston) Linden Central Noyes 3 Foster

Davis Skokie Dempster YELLOW LINE Main Lake Michigan 3 (Skokie Swift) South Blvd Howard Jarvis

Morse 3 Loyola Granville 6 BROWN LINE Thorndale BLUE LINE (Ravenswood) Bryn Mawr (O'Hare) Berwyn Argyle Kedzie Kimball Damen Francisco Rockwell Western O'Hare Harlem Lawrence Jefferson 2 Rosemont Wilson Cumberland Park Montrose Montrose RED LINE Irving Park Sheridan Irving Park (Howard)

Addison Southport Addison Addison Paulina Belmont Belmont Wellington 5 Diversey 1 Logan Square Fullerton Fullerton Armitage California 1

Western Sedgwick 1 North/ Damen Clybourn Division 4 4 7 Chicago LOOP Cicero Ridgeland Laramie Central Austin Harlem Pulaski Oak Park Kedzie GREEN LINE (Lake) California Clinton 5 4 Ashland BLUE LINE Polk (Forest Park Branch) Racine Homan Kedzie- Pulaski Harlem

Western Roosevelt

Cicero 18th Med. Ctr. Austin 2 7

Oak Park 3 Forest Park 1 UIC/Halsted BLUE LINE Cermak-Chinatown (Cermak Branch) Hoyne Kedzie Kildare Pulaski Cicero Western California AshlandHalsted 7 54/Cermak Central Park Sox-35th 35-Bronzeville-IIT Loop Rapid Transit System 35/Archer Indiana Grand 5 43rd Illinois 7

Hubbard Kedzie Pulaski 47th 47th 4 Kinzie Western Wacker 51st

Lake ORANGE LINE Garfield Garfield Midway Randolph Midway (Midway) Washington Airport 7 GREEN LINE Madison Monroe GREEN LINE (East 63rd Branch) 1 41 63rd

Adams King (Ashland Branch) Drive Jackson 69th East 63rd-

Van Buren Halsted Ashland/63 Congress Cottage Grove 79th Harrison 5 87th Clark State Wells Canal Clinton Franklin La Salle Wabash Dearborn 95/Dan Ryan RED LINE (Dan Ryan)

II-12 CTA

1. 1982-1900 Red Line/ Wilson to Armitage Brown Line and the Loop Blue Line California to Division Polk to Western

2. 1900-1919 Purple Line Linden to Central Blue Line Western to Cicero Brown Line Kimball to Belmont

3. 1910-1925 Red Line Howard to Wilson Purple Line Central to Howard Yellow Line Skokie to Howard Blue Line Cicero to 54/Cermak

4. 1943-1960 Red Line Armitage to Harrison (State Street Subway) Blue Line Division to Forest Park (including Dearborn Street Subway)

5. 1969-1970 Green Line Harlem to Laramie Red Line Loop to 95/Dan Ryan Blue Line California to Jefferson Park

6. 1982-1984 Blue Line O’Hare to Jefferson Park

7. 1992-1996 Red Line Roosevelt (State Street Subway) to Cermak-Chinatown Orange Line Loop to Midway Green Line Reconstruction, Laramie to Loop and Loop to Ashland/63 and East 63rd-Cottage Grove

II-13 CTA

Bus Facilities Map

The CTA’s eight bus garages were built between 1907 and 1995. Each garage houses between PURPLE LINE (Evanston) 195 and 304 buses. CTA operates one heavy repair shop facility (South Shops). Another garage is YELLOW LINE used for maintenance of non- (Skokie Swift) revenue equipment. Lake Michigan Harlem Kedzie Cicero Western

BLUE LINE

(O'Hare) 2 Foster 4 Ashland Foster

BROWN LINE RED LINE (Ravenswood) (Howard) Kedzie Ashland

Harlem North

7

LOOP Cicero Western GREEN LINE (Lake) 3 BLUE LINE (Forest Park Branch)

BLUE LINE (Cermak Branch)

Pershing 1 ORANGE LINE (Midway) Ashland Midway Airport GREEN LINE GREEN LINE (East 63rd Branch)

Harlem (Ashland Branch)

8 9 5 Western 79th Kedzie 79th Cicero Cottage Grove RED LINE 95th Jeffery 95th (Dan Ryan) 103rd 6

II-14 CTA

Bus Facilities 1. Archer Avenue 2600 W. Pershing Rd. Year Built: 1948 275,000 sq. ft. Nominal Capacity: 290 (enclosed) 221 Buses Assigned 2. Forest Glen 5419 W. Armstrong Ave. Year Built: 1957 452,000 sq. ft. Nominal Capacity: 310 (outside) 229 Buses Assigned 3. Kedzie 358. S. Kedzie Ave. Year Built: 1984 473,000 sq. ft. Nominal Capacity: 250 (enclosed) 249 Buses Assigned 4. North Park 3112 W. Foster Ave. Year Built: 1950 581,000 sq. ft. Nominal Capacity: 440 (outside) 304 Buses Assigned 5. 77th* 210 W. 79th St. Year Built: 1907 731,000 sq. ft. Nominal Capacity: 470 258 Buses Assigned 6. 103rd 10201 S. Stony Island Ave. Year Built: 1988 810,000 sq. ft. Nominal Capacity: 250 (enclosed) 206 Buses Assigned 7. Chicago 4301 W. Chicago Ave. Year Built: 1993 1,232,000 sq. ft. Nominal Capacity: 250 (enclosed) 220 Buses Assigned 8. 74th 1715 - 1907 W. 74th St. Year Built: 1995 646,000 sq. ft. Nominal Capacity: 250 (enclosed) 195 Buses Assigned 9. South Shops* 7801 Vincennes Year Built: 1907 751,000 sq. ft. Major overhaul facility for entire bus system

* 77th Garage shares the 77th & Vincennes property along with South Shops and other CTA departments totaling approximately 2 million square feet.

II-15 CTA

Rail Facilities Map

CTA has 11 rail yards and repair facilities built between 1892 and 2 1993. Each rail facility is respon- PURPLE LINE sible for the maintenance of (Evanston) between 100 and 400 cars. Five of 1 the existing facilities are more than YELLOW LINE 70 years old although three of these (Skokie Swift) Lake Michigan have been rehabbed within the 3 past 20 years and the Harlem Kedzie Cicero Skokie Shops is Western currently undergoing BLUE LINE 12 renovation. The CTA’s (O'Hare) Foster Ashland Foster newest rail yard was 5 4 built at Midway in BROWN LINE RED LINE (Ravenswood) 1993. In 1996, the CTA (Howard) closed the Wilson yard,

which was built in 1900. Kedzie Ashland Although rail cars are assigned Harlem North by line, the maintenance

LOOP Cicero responsibilities are not necessarily 9 Western assigned in the same manner GREEN LINE (Lake) as different rail yards are BLUE LINE equipped to perform (Forest Park Branch) 10 varying levels of service. BLUE LINE (Cermak Branch) All component rebuild and major 11 repairs are performed at the Skokie Shops, which is the CTA’s heavy repair facility for rail cars. Pershing ORANGE LINE Number of cars assigned to each line: (Midway) Ashland Blue Line 340 cars Midway Airport GREEN LINE 6 GREEN LINE (East 63rd Branch)

Red Line 350 cars Harlem (Ashland Branch) Green Line 116 cars 7 Western Brown Line 138 cars 79th Kedzie 79th Orange Line 102 cars Cicero Cottage Grove RED LINE 95th Jeffery 95th (Dan Ryan) 8 103rd

II-16 CTA

Rail Facilities 1. Skokie Shop - All Lines 3701 W. Oakton, Skokie Year Built: 1927 (currently being rehabbed) Maintenance Type: A Yard Capacity: 100 cars 2. Linden - Purple Line Linden Avenue, Wilmette Year Built: 1912 Maintenance Type: B Yard Capacity: 76 cars 3. Howard - Red, Yellow, Purple Lines 1825 W. Juneway Terrace Year Built: 1993 Maintenance Type: B Yard Capacity: 282 cars 4. Wilson - Closed 1996 5. Kimball - Brown Line 3365 W. Lawrence Year Built: 1907 Year rehabbed: 1993 Maintenance Type: B Yard Capacity: 136 cars 6. 61st - Green Line 329 E. 61st St. Year Built: 1892 Year rehabbed: 1993 Maintenance Type: B 7. Racine - Green Line 6320 S. Racine Ave. Year Built: 1907 Rehabbed: Early 1970s Maintenance Type: B Yard Capacity: 220 cars 8. 98th - Red Line 9800 S. State St. Year Built: 1969 Year rehabbed: 1993 Maintenance Type: C Yard Capacity: 234 cars 9. Harlem - Green Line 1 S. Harlem Ave., Forest Park Year Built: 1962 Maintenance Type: CW Yard Capacity: 132 cars 10. DesPlaines - Blue Line 711 S. DesPlaines Ave., Forest Park Year Built: 1958 Rehabbed: 1964 Maintenance Type: CW Yard Capacity: 122 cars 11. 54th - Blue Line 2150 S. 54th Ave., Cicero Year Built: 1958 Year rehabbed: 1975 Maintenance Type: B Yard Capacity: 100 cars 12. Rosemont - Blue Line 5800 N. River Rd., Rosemont Year Built: 1983 Maintenance Type: CW Yard Capacity: 144 cars Facility Type: A Heavy Repair, painting, overhaul B Light or minor defects repaired C Light or minor objects repaired, change outs made, 600 mile inspection CW Same as C, plus full washing facilities II-17 CTA

Rolling Stock CTA Rolling Stock

Bus

Series Manufacturer Avg. Delivery Number Avg. Age Date 7100 American MAN Corp 1983 81 14.0 9800 Flyer Industries 1983 111 14.0 4000 American MAN Corp 1985 338 12.0 4400 TMC 1991 475 6.0 4900 TMC 1991 15 6.0 5300 Flxible Corporation 1991 467 6.0 6000 Flxible Corporation 1995 330 2.0 55800 New Flyer Industries 1995 65 2.0

TOTAL: 1,882 8.0

Rail

Series Manufacturer Avg. Delivery Number Avg. Age Date 2200 Budd 1969 142 28.0 2400 Boeing 1978 194 19.0 2600 Budd 1985 596 12.0 3200 Morrison Knudsen 1993 258 4.0

TOTAL: 1,190 13.3

Source: CTA Bus & Rail Service Planning, figures as of January 1998

The CTA’s 1998-2002 capital program calls for the purchase of 430 standard 40-foot buses and 80 articulated buses that exceed the industry standard useful life of 12 years. In 1998, the plan proposes $73.7 million for the purchase of 200 standard and 44 articulated buses, with delivery planned for 1999 or 2000.

The 1998-2002 capital program also contains $129.9 million to rehabilitate rapid transit rolling stock. Of this figure, $104.3 million will be used to complete the rehab of up to 330 rail cars in the 2600 series. This rehab will enable the cars to reach original useful life estimates.

II-18 Section III METRA

METRA

System Description Service Area: Metra serves 240 stations in more than 100 communities in the 3,700-square-mile northeastern Illinois region. Service operates on 12 separate lines which run north, west and south of Chicago’s central business district. Service Level: Metra’s 130 diesel locomotives, 747 non-electric cars and 165 self-propelled electric cars operate 697 weekday trains over 546 route miles and 1,189 miles of track. Carriers: Burlington Northern Santa Fe: 37.5 route miles and 89 weekday trains. Union Pacific: 154.7 route miles and 184 weekday trains. South Shore (CSSSB): 90.1 route miles (19 miles in Illinois) and 41 weekday trains. Electric District: 40.6 route miles and 169 weekday trains. Heritage Corridor: 37.2 route miles and 4 weekday trains. Milwaukee District: 83.9 route miles and 116 weekday trains. North Central Service: 52.8 route miles and 10 weekday trains. SouthWest Service: 28.9 route miles and 16 weekday trains. Rock Island District: 46.8 route miles and 68 weekday trains. Coverage: Daily service provided on most rail lines with limited service evenings and weekends. Ridership: In 1997, Metra carried approximately 72.3 million passengers. Average weekday ridership was 285,880. Annual Ridership by Carrier in 1997: Burlington Northern Santa Fe: 13.5 million Union Pacific: 23.9 million South Shore (CSSSB): 769,650* Electric District: 11.2 million Heritage Corridor: 348,000 Milwaukee District: 12.0 million North Central Service: 761,000 SouthWest Service: 1.5 million Rock Island District: 8.3 million * Only 21 percent of the South Shore Line, or Chicago South Shore South Bend Rail Road (CSSSB), which is owned by the Northern Indiana Commuter Transportation District (NICTD), is included in Metra’s operating data totals. Metra subsidizes 21 percent of the line’s operating expenses based on historic ridership volume. Total South Shore ridership for 1997 was 3,665,000.

Budget: Metra’s operating expenses for 1998 are budgeted at $379.3 million. Asset Value: Capital asset value is $7.2 billion (1997 dollars).

Fares: Commuter rail service provided by Metra is priced on a dis- tance-based zone fare structure. Under this system, zones are established at five-mile intervals, starting at each line’s Chicago terminus. Metra’s last fare increase occurred in February 1996. III-1 METRA

Organization Chart

Board of Directors

Executive Director

Deputy Executive Director

Assistant Sr. Director Sr. Director General Director Secretary To Corporate Planning & RE Counsel Internal The Board Administration Development Audit

Director Chief Director Director Director Legislative Media Office of Financial DBE EEO Marketing Affairs Relations Employment Officer Administration Compliance

III-2 METRA

Organization • Metra was formed in 1983 as part of the reorganization of the Regional Transportation Authority (RTA). It is governed by a seven-member board of directors. Three members are appointed by the suburban members of the Cook County Board. Two are appointed by the chairmen of the Kane, Lake and McHenry county boards. One member is appointed by the Chairman of the DuPage County Board and one member is appointed by the Mayor of Chicago, subject to city council approval.

• As an agency, Metra is responsible for coordinating and operating all commuter rail operations in the six-county RTA service area. Metra directly operates service on the the Milwaukee District, Rock Island and Metra Electric District lines, controlling all operating and support functions necessary to maintain the lines, equipment and facilities. Commuter service on the Heritage Corridor, North Central Service and SouthWest Service is operated by Metra employees; however, Metra does not own the lines themselves. Metra is also responsible for the administration of commuter rail services provided under contract by private freight carriers. The carriers under contract with Metra are the Union Pacific and Burlington Northern Santa Fe. The South Shore Line (CSSSB) is owned and operated by the Northern Indiana Commuter Transpor- tation District (NICTD), and its operations within Illinois are subsidized by Metra.

• Metra classifies the activities needed to operate the commuter rail service under the headings used in railroad regulatory reporting. They are: Transportation, which includes all functions and activities directly responsible for the operation of the commuter trains; Maintenance of Way, which includes all activities for the mainte- nance of track, structures, communications and facilities to main- tain operational safety; Maintenance of Equipment, which includes repairs, inspections and preventive maintenance of passenger equipment; and Administration, which provides general support functions for the organization including, human resources, labor management, information systems, training, and accounting.

III-3 METRA

Carrier Comparison Metra Percentage of System Revenue Car Miles 1997 Rock South Island Burlington West District Northern North Service 9.86% Santa Fe Central 1.89% 16.15% Service 1.94%

Milwaukee District 17.76%

Heritage Corridor 0.44% Union Pacific Metra 36.22% Electric District South 13.8% Shore (NICTD)* *Based on 21 percent 1.94% of revenue miles.

Metra Percentage of System Passengers 1997 Rock South Island Burlington West District Northern Service 11.5% North Santa Fe 2.0% Central 18.7% Service 1.0%

Milwaukee District 16.6%

Heritage Corridor 0.5% Union Pacific Metra 33.1% Electric District South 15.5% Shore (NICTD)* *Based on 21 percent 1.1% of revenue miles. The Milwaukee District, Rock Island and Metra Electric lines, which are owned and operated by Metra, provided 41.42 percent of the system’s revenue car miles in 1997. The Heritage Corridor, North Central Service and SouthWest lines, which are operated by Metra employees but not owned by Metra, accounted for 4.27 percent of revenue miles. Purchase of service carriers accounted for the remaining 54.3 percent of revenue miles. Similarly, purchase of service carriers carried 52.9 percent of the passengers while Metra-owned carriers accounted for 43.6 percent. Metra-operated services accounted for the remaining 3.5 percent.

The Union Pacific and Burlington Northern Santa Fe are the two largest purchase of service carriers in the system. These two carriers provided 36.2 percent and 16.15 percent of the system’s revenue car miles respectively during 1997 and carried 33.1 percent and 18.7 percent of the passengers. III-4 METRA

Ridership 1992-1998 Metra System Ridership (in millions) 75

70

65 1992 1993 1994 1995 1996 1997 1998* *budget

Metra has experienced an increase in ridership volumes from 1992 to 1997 and these increases are expected to continue. Ridership in 1997 exceeded budget by 0.6 million. Passenger loads on peak period trains have remained stable, which is believed to be a product of employment levels in downtown Chicago. Overall employment in downtown Chicago has decreased by 2.8 percent since 1991. Work-related trips currently account for 90 percent of Metra’s ridership. Metra has had success in marketing off-peak and reverse commute trips. Trains operating in the reverse peak direction, during midday and weekend periods, have shown the greatest passenger gains. Metra attributes these gains to efforts to broaden the ridership base. These efforts include: marketing the weekend ticket; targeting service promotions to suburban employers; and marketing Metra as a way to travel to various cultural and entertainment attractions.

III-5 METRA

Fares Metra Commuter Rail Fare Structure Commuter rail fares are set according to travel between fare zones, which are set at five-mile intervals beginning at each rail line’s down- town Chicago station. The zone system does not apply to the South Shore Line fares, which are set by the Northern Indiana Commuter Transportation District (NICTD). The present base fare is $1.75 for a one-way trip, with an incremental charge of 20 cents for the first zone, and 35 cents or 40 cents for each zone thereafter.

Ticket Type Period of Number Pricing Validity of Rides Basis

Monthly* Calendar Month Unlimited 27.0 times one-way fare 10-Ride* One Year 10 8.5 times one-way fare One-Way* One Year One Base fare plus increments Weekend Saturday/Sunday Unlimited Flat rate - $5

* These ticket types are offered at a reduced rate to senior citizens, persons with disabilities, children and students. Military personnel in uniform are entitled to reduced one-way ticket rates.

III-6 METRA

Revenues 1992-1998 Metra Revenue Trends (in Millions) 250 211.6 200.1 207.1 200 185.7 187.8 44.8 37.4 176.3 176.6 39.4 31.8 36.9 27.4 27.8 166.8 169.7 150 160.7 148.9 148.8 153.9 150.9 $ 100

50

0 1992 1993 1994 1995 1996 1997 1998* *budget

Passenger Revenue Other Revenue

Note: Calculations do not include proceeds from Metra’s 5 percent capital farebox financing program.

Metra’s total revenues have increased 17 percent from 1992 to 1997, reflecting fare increases along with growth in ridership. As the six- county region continues to see moderate economic expansion, Metra projects that overall passenger revenues in 1998 will grow 1.7 percent from 1997 levels to $169.7 million. Other revenues are projected to total $36.2 million in 1998. Passenger revenues in Metra’s operating budget do not include proceeds from the capital farebox financing program, instituted in 1989, which constitute 5 percent of gross passenger revenues and are used to finance capital projects. Revenues generated under the capital farebox financing program are used to fund part of Metra’s capital program. From its inception in February 1989 through December 1997, this program will have generated approximately $67.6 million. Metra projects that the capital farebox financing program will generate $8.5 million in 1998.

III-7 METRA

Expenses 1992-1998 Metra Program Area Expenses (dollars in millions)

400

350 Claims/Other 300 Fuel/Power Administration 250 $ 200 Maintenance 150

100 Operations 50

0 1992 1993 1994 1995 1996 1997 1998* *budget

• Between 1992 and 1996, Metra’s From 1992 to 1997, Metra’s total system expenses grew at a compound system expenses grew at a 4.95 annual rate of 4.95 percent. Individual areas grew at rates ranging from percent compound annual rate. 1.19 percent for administration to 4.58 percent for maintenance. Note: The increase for 1997, under the category of claims and other, reflects a one-time payment of a $25.8 million judgement in the LaSalle Street Station lawsuit. Due to the one-time nature of the payment, it was not used in the calculations of compound growth rates.

III-8 METRA

Expense/Passenger Metra 1992-1998 Expense per Passenger (in dollars)

6.00 5.44 5.05 5.15 4.83 5.00 4.40 4.51 4.50 2.52 2.22 2.34 4.00 2.16 $ 1.89 2.03 1.92 3.00 2.93 2.67 2.83 2.81 2.51 2.48 2.58 2.00

1.00

0 1992 1993 1994 1995 1996 1997 1998* *budget Revenue Subsidy

• Revenues per passenger and total Metra’s revenue per passenger has risen at a compound annual rate expenses have risen in every year of 3.14 percent from 1992 to 1997. This trend is expected to continue but 1993. through the 2002 planning period. In the same time period, Metra’s expense per passenger increased at a compound growth rate of • Per passenger expenses and subsidies 4.33 percent. have increased every year but 1994. The difference between expense per passenger and revenue per passen- ger represents the subsidy per passenger. Metra’s subsidy per passenger grew from $1.89 in 1992 to $2.52 in 1997, a compound growth rate of 5.92 percent. The 1998 budget plans for a $2.34 per passenger subsidy. In 1998, Metra is anticipating a 2 percent ridership increase and a slight increase in the average fare. Metra cites the following reasons for these increases: (1) an increase in the average length of passenger trips, (2) an increase in monthly ticket sales, and (3) an increase in the number of discretionary trips. The calculation of an increase in discretionary trips is based on a 17 percent increase in weekend ticket sales from July 1996 to June 1997.

III-9 METRA

Recovery Ratio Metra Cost Recovery Ratio 1992-1998 60

55

%

50

45 1992 1993 1994 1995 1996 1997 1998* *budget

• Since 1985, Metra has posted Metra’s cost recovery ratio equals system-generated revenues, excluding a recovery ratio well above the proceeds from Metra’s capital farebox financing program, divided by 50 percent. system expenses, less an allowable deduction for funded depreciation. Metra’s recovery ratio is expected to finish at 55 percent or greater • For 1998, Metra’s budgeted through the year 2000. recovery ratio is 55 percent.

III-10 METRA

Capital Asset Inventory Metra Capital Asset Value (1997 values in millions) Misc. Passenger Support Equipment Garages/ Stations $25.8 Depots/ $400.1 (1%) Yards (6%) $407.9 Bridges & (6%) Structures Electric/Signal/ $2,535.5 Communications (35%) $945.7 (13%) Total $7,180.7 Track $1,203.3 (17%)

Rolling Stock $1,662.6 (23%)

Based on Capital Asset Values as of June 1994. Inflated to 1997 dollars using Engineering News Record’s Construction Cost Index.

• Metra has assets with a total value The Metra system has assets with an estimated replacement cost of of $7.2 billion. about $7.2 billion, representing 36.5 percent of the total value of the RTA system’s capital assets. A portion of the assets reported under • Of this total, approximately Metra are owned by suburban transportation districts or by purchase of 52 percent may be classified under service carriers. Track & Structures and 23 percent under Rolling Stock. The Metra system operates on 1,189 miles of track and approximately 800 bridges. According to an engineering study completed in 1989 by H.W. Lochner and Co., Metra’s bridges are generally in fair to poor condition. The majority of bridges in the Metra system are nearly 100 years old. A significant portion of these bridges need to be replaced within the next 20 years. Metra’s 1998-2002 capital program will continue the major rehabilitation or replacement of bridges identified in the 1989 study. The most significant track and structure projects in the plan relate to bridges on the Union Pacific Northwest Line and on the SouthWest Service from 40th to 74th Streets in Chicago. Metra’s fleet includes 130 diesel locomotives and 747 non-electric cars and 165 self-propelled electric cars. Metra cab cars and coaches have a average age of 27.2 years. The 1998 capital program includes $26.9 million for the purchase and rehabilitation of passenger cars, including $6.5 million to purchase wheelchair accessible cars, $7.6 million to rehabilitate cars on the Rock Island Line and $7.0 million to rehabili- tate locomotives.

III-11 METRA

To Kenosha Rail System Map Antioch

Winthrop Harbor Harvard Lake Villa NCS Fox Lake Zion Round Lake Beach UP-NW MD-N Waukegan McHenry Ingleside

Long Lake North Chicago

Woodstock Round Lake Great Lakes Grayslake Prairie Crossing/ Libertyville Lake Bluff

Mundelein Libertyvile Crystal Lake Lake Forest Fort Sheridan Cary Vernon Hills Highwood Highland Park Fox River Grove Prairie View Ravinia Lake Forest Braeside Buffalo Grove

UP-N Glencoe Barrington Wheeling Deerfield Hubbard Woods Winnetka Indian Hill Palatine Prospect Kenilworth Wilmette Heights Northbrook Arlington Park Central St. Arlington Heights Davis St. Elgin Mt. Prospect Main St. GlenviewGolf Cumberland Des Plaines Morton Grove Dee Road Rogers Park Park Ridge O'Hare Transfer Bartlett Edgebrook Big Timber Road Hanover Park Schaumburg Roselle Edison Park Medinah MD-W Norwood Park Forest Glen Gladstone Park Jefferson ParkIrving Ravenswood Itasca Mayfair Park Wood Dale Grayland Bensenville Healy Mannheim FranklinRiver Park GrovePark 3 Elmwood Mars Clybourn West Chicago Winfield Mont Clare HansonParkCragin Western Galewood Hermosa Geneva Wheaton 1 2 WesternHalsted Van Buren Kedzie

UP-W Berkeley 4 Elmhurst Roosevelt Bellwood Oak Park Villa Park Maywood Cicero 18th St. Riverside 5 Lombard Melrose Park River Forest Clyde Hollywood 23rd St. La Vergne Glen Ellyn HarlemBerwyn 27th St. Ave. College Ave. Glenn 47th BNSF Naperville Summit 6 53rd Brookfield 57th 59th Stony IslandBryn Mawr

Stone Ave. 63rd Highlands Hinsdale Congress Park

Lisle South Shore

La Grange Rd. 75th Windsor Park Westmont 79th 79th

Belmont Wrightwood Western Springs Gresham 83rd Aurora West Hinsdale Brainerd 83rd

Fairview Ave. Ashburn Clarendon Hills 87th 87th 91st 91st Downers Grove 91st Oak Lawn 95th 95th Willow Springs 99th 103rd Chicago Ridge 103rd 107th 107th 111th 111th State St. Worth 115th Stewart Ridge 115th 119th Lemont 123rd

Palos Park Hegewisch HC Prairie 7 Vernont St. SS

SWS Racine 137th

143rd St. Robbins W. Pullman

Burr Oak 144th (Orland Park)Midlothian Ashland Ave. Blue Island 147th 153rd St. Oak Forest (Orland Park) Harvey Lockport LEGEND Hazel Crest Tinley Park 179th St. RI Calumet (Orland Park) Homewood Metra Rail Lines Flossmoor

80th Ave. ME County Border Joliet Tinley Park Olympia Fields

Mokena 211th Matteson City of Chicago Border New Lenox Richton Park University Park

Grand Illinois Hubbard Kinzie Wacker

Lake Randolph 8 Washington 10 Madison Monroe Adams 11 Jackson 12 Van Buren 9 Congress Harrison Clark State Wells Canal Clinton Wacker Franklin La Salle Wabash Michigan Jefferson Dearborn

III-12 METRA

Rail Facilities 1. M19A 400 N. Pulaski Year Built: 1948 Daytime Storage/running repair UP locomotives 2. California Ave. Yard 423 N. Sacramento Year Built: 1926 Daytime Storage/running Rehab ongoing repair UP diesel coaches 3. Western Ave. Yard 2801 W. Grand Avenue Year Built: 1926 Locomotive repair, servicing, New Facilities: 1990 and daytime storage 4. 14th St. Yard 432 W. 15th Street Year Built: 1920s Daytime Storage/running New Facilities: 1989 repair BNSF locomotives New Track: 1990 & coaches

5. 18th Street Yard 16th St., E. of Indiana Ave. Year Built: 1925 Daytime Storage/running repair Metra Electric MU cars

6. 47th St. Yard 147 W. 47th Street Year Built: 1950 Daytime Storage/running Heavy repair repair RI locomotives Currently being upgraded & coaches 7. KYD Yard 124th Street Year Built: 1993 Maintenance of Way and Heavy repair facility 8. Randolph Street Station CSSSB, Metra Electric Rehabilitation in progress

9. LaSalle Street Station Rock Island District (RI) Reconstruction near completion 10. Ogilvie Transportation Center Union Pacific (UP) UP (CNW) Rehabilitated in 1996 11. Union Station BNSF, Metra Southwest, Renovated in 1988 Mil. Rd., Metra Heritage 12. Metra Headquarters 547 W. Jackson Blvd. Chicago, IL 60661

III-13 METRA

Rolling Stock Metra Rolling Stock Inventory

Carrier Line Locomotives Trailer Cars Cab Cars Electric

Burlington Northern 23 115 28 0 Santa Fe

Union Pacific 52 232 73 0

South Shore (CSSSB)* 0 0 0 58

Metra Electric 0 0 0 165

Heritage Corridor 2 0 6 0

Milwaukee District 28 81 61 0

North Central Service 3 10 13 0

Southwest Service 4 11 10 0

Rock Island District 18 64 45 0

TOTALS 130 513 234 223

Average active fleet age 27.2**

* The South Shore South Bend Rail Road (CSSSB) is owned and operated by the Northern Indiana Commuter Transportation District (NICTD).

**APTA 1997 Transit Vehicle Data Book

III-14 Section IVPACE

PACE

System Description System: Service Area: The population of Pace’s service area is approximately 4.5 million. The service area includes suburban Cook County, and DuPage, Kane, Lake, McHenry and Will counties covering 3,446 square miles.

Service Level: Pace operates on 234 fixed routes with 638 buses. Pace’s paratransit operations serve 210 communities with 374 vehicles. Coverage: Service levels and coverage vary by day of week and time of day for both fixed route and paratransit service. Peak hour service includes local feeder service to CTA and Metra stations, express service to major employment centers and reverse commuter services which serve Chicago residents. Ridership: In 1997, Pace fixed route ridership was 34.8 million, paratransit and dial-a-ride ridership was 1.6 million and vanpools yielded 1.5 million riders. Pace’s overall system ridership in 1997 was 37.9 million. Budget: Pace’s operating budget for 1998 is $109.6 million.

Asset Value: Pace’s capital asset value is $315.2 million. Fares: Full base fare is $1.15. Monthly Pace Commuter Club Cards are $39 and ten-ride plus tickets are $11.50. Pace’s last fare increase was effective in January 1994.

Fixed Route: Service Area: Inner suburban grid network, rail feeder, local community and express service to major employment centers operating on 234 routes.

Service Level: Nearly 36.8 million annual vehicle miles in 1997. Ridership: Pace fixed route services carry an average of 131,000 weekday passengers.

Paratransit: Service Level: More than 8 million vehicle miles of service provided via 53 local and multi-township dial-a-ride services, including six contracts with private carriers. These services cover the six-county northeast Illinois region.

Ridership: Paratransit services carry an average of 6,373 weekday passengers, 18.9 percent of whom are mobility limited.

IV-1 PACE

Organization Chart

Chairman & Board of Directors

Executive Director

Intergovernmental General Internal Board Affairs Counsel Audit Secretary

Deputy Exec. Facilities Materials Human Chief Deputy Exec. Director, Maintenance Management Resources Financial Director, Operations Officer Planning & Administration

IV-2 PACE

Organization Pace was formed in 1983 as part of the reorganization of the Regional Transportation Authority (RTA), and began service in 1984. Pace is governed by a 12-member Board of Directors made up of current and former suburban village presidents and city mayors. The Executive Director reports directly to the Board. Six operating and/or administra- tive departments report directly to the Executive Director. The depart- ments are as follows:

Bus Operations This department includes operating and centralized support divisions. The nine operating divisions are responsible for the operation of the 11 garages owned by Pace.

Planning & Administration This department is responsible for budget development, financial analysis, capital planning, grant administration, strategic planning, marketing, communications, paratransit services and administration.

Finance This department handles accounting, cash management and manage- ment information services and other financial functions.

Human Resources This department is responsible for all personnel-related services, including benefit and pension plans.

Materials Management This department has controlling responsibility for material purchasing, handling and inventory control.

Facilities Maintenance This department has responsibility for the maintenance of Pace- owned facilities.

IV-3 PACE

Ridership Trends 1992-1998 Pace System Ridership (in millions) 45

40

Vanpool Paratransit 35 Fixed Route

30

25 1992 1993 1994 1995 1996 1997 1998* *budget

Pace ridership for 1997 ended the year 0.9 percent, or nearly 400,000 trips, over the 1996 level of 37.5 million riders. This increase in rider- ship is largely due to the expansion of the vanpool program. In 1998, Pace projects ridership of 38.9 million, which is a 1 percent increase over 1997. This forecast is based on projected increases in base system ridership, vanpool ridership and ADA paratransit ridership. Pace recently completed a comprehensive market survey which indi- cated that work commute trips comprise 80 percent of its ridership. The survey also showed the shift from the suburb-to-city commute to the suburb-to-suburb commute. Because of this shift, Pace forecasts ridership of 40.7 million by the year 2000. This represents a growth of more than 8 percent from 1995 levels, or a compound annual growth rate of 1.5 percent.

Pace plans to concentrate on extending and developing suburb-to- suburb commute options such as vanpools to meet the changing needs of commuters. Pace also hopes to attract reverse commuters by identify- ing additional service opportunities such as express buses, subscription buses, vanpools and reverse connections to CTA buses and trains.

IV-4 PACE

Ridership Analysis Fixed Route Ridership 1997 Public Contract Private Carriers Contract 3% Carriers 8%

Pace-Owned Carriers 89%

• Pace provides funding for Fixed Route Services - Pace currently provides funding for 234 fixed 234 fixed bus routes. bus routes. Ridership for 1996 is distributed as follows: Pace-owned carriers 89 percent, private contract carriers 8 percent and public • Pace-operated carriers contract carriers 3 percent. These services combined carried a total of accounted for 89 percent of 34.7 million riders in 1997. fixed route passengers. Paratransit Services - Pace provides paratransit services to the entire six-county RTA region, excluding CTA’s service area, through 60 local and multi-township dial-a-ride services and six regional mobility limited services. In 1997, Pace paratransit and dial-a-ride services carried 1.6 million riders. Of this total, 80 percent used the dial-a-ride service while the remaining 20 percent use the mobility limited services.

IV-5 PACE

Ridership Changes 1992-1996 Ridership Changes 800

700 626 600

500

400 % 300

200

100 57 4.1 0 -6.4 -6 -31 -100 Pace- Public Private Paratransit Subscription Vanpools owned Contract Contract Bus Carriers Carriers* Carriers

* In 1992, the Wilmette routes were included under public contract carriers. Wilmette routes began operating as the Pace North Shore service in 1993. From that time, the former Wilmette routes’ ridership numbers have been included under Pace-owned carriers.

• Since 1992, Pace vanpools have Pace-owned carriers operate fixed route service throughout the six- experienced the greatest amount county region and account for nearly 82 percent of total system rider- of growth. ship. The Pace service network also includes public contract carriers, which operate under contract with the municipalities of Highland Park, • Pace-owned carriers account for Niles and Melrose Park to provide fixed route bus service. In addition, 82 percent of total system ridership. Pace contracts with eight private transit carriers to provide fixed-route service for 71 communities.

Pace has experienced enormous growth in its vanpool services which have shown an 626 percent increase in ridership since 1992. The vanpool program provides passenger vans to small groups of 5 to 15 people, allowing them to commute to and from work together. Pace currently operates 269 of these vans and plans to have 310 vans in operation by the end of 1998. Pace subscription bus and paratransit services have also posted ridership gains between 1992 and 1996.

IV-6 PACE

Fares Regular Fares Full Reduced Full Fare $1.15 $.55 Transfer to Pace $.10 $.05 Transfer to CTA $.65 $.35 Passes All Times Pace/CTA Monthly Pass $88.00 $44.00 Commuter Club Card (CCC)(Pace Only) $39.00 $19.50 Link-Up Ticket (Metra only) $36.00 Plus Bus $30.00 CTA Accommodation Pass $35.00 Regular 10-Ride Plus Ticket (Pace only) $11.50 $5.50 Local Fares All Times Full Fare $1.00 $.50 Transfer to Pace* $.25 $.10 Transfer to CTA $.80 $.40 Local 10-Ride Plus Ticket $10.00 $5.00 *Local Transfers will remain free of charge Express Fares All Times Routes 210,355 & 855 $2.75 $1.35 Routes 600,606,610,616,626,636, 737,747,757 7 890 $1.35 $.65 Routes 767,877 & 888 $1.60 $.80 Routes 835,960 & 961 (Zone Fares) $3.90 $1.95 Premium 10-Ride Plus Ticket (210,355 & 855) $27.50 $13.50 Other Dial-a-Ride $1.30 $.65 ADA Paratransit Services $2.00 Special Services (Non-ADA) $5.00

Because Pace evolved from separately operated private and public transit companies, it inherited a number of different fare structures. Over the last decade, Pace has worked to implement a uniform fare structure. Most Pace services currently use a uniform fare system.

The basic full fare for Pace is $1.15. Transfers within the Pace system cost 10 cents and transfers to CTA buses or trains cost 65 cents. Routes classified as express have fares ranging from $1.35 to $3.90. Local routes, which are generally commuter rail feeder routes operating at peak hours, have a fare of $1.00. Monthly Pace/CTA passes cost $88. Dial-a-ride fares vary throughout the region. However, the amount of subsidy provided by Pace is uniform and equals 75 percent of the net cost. In most cases, dial-a-ride services are operated by local communities. Historically, fare increases at Pace have resulted in ridership losses. Fares were increased significantly in 1981 resulting in major ridership losses which were not recouped until 1985. Fare increases in 1986, 1991 and 1993 also resulted in ridership losses. However, a 1994 fare increase had little effect on ridership. The only fare increase slated in 1998 is a 4 percent hike in vanpool fares taking effect January 1. IV-7 PACE

Revenue 1992-1998 Revenue Trends (dollars in thousands) 50000

40,789 40,728 40000 36,816 37,957 34,930 6,144 5,714 33,634 3,589 32,325 3,292 2,160 2,672 34,645 35,014 2,052 33,524 34,368 31,474 32,258 30000 30,273 $ 20000

10000

0 1992 1993 1994 1995 1996 1997 1998* *budget

Farebox Other

• 1997 revenues were $40.8 million; Pace revenues were $40.8 million in 1997. Of this total, $34.6 million, 90 percent from passenger fares and or 85 percent, came from passenger fares. Another $1.9 million, or reduced fare subsidies and 10 percent 5 percent, is from the State of Illinois’ reduced fare subsidy program. from non-passenger sources. The remaining $4.3 million, or 10 percent, came from non-passenger sources. Non-passenger revenues include investment income, advertising and miscellaneous revenues. Passenger revenues are budgeted at $40.7 million in 1998.

IV-8 PACE

Expenses 1992-1998 Pace Program Area Expenses (dollars in thousands)

120000

100000 Insurance/Other Administration 80000 Fuel $ Maintenance 60000 Maintenance

40000 Operations

20000

0 1992 1993 1994 1995 1996 1997 1998* *budget

• Pace’s expenses have grown at a Operations account for 61 percent of Pace’s expenses, while mainte- 4.1 percent compound rate nance accounts for 15.5 percent, administration 16.6 percent, fuel 3 between 1992 and 1997. percent and insurance/other 4.2 percent. In 1998, Pace expenses are expected to increase by approximately $3.5 million over 1997 levels, from $108.7 million to $112.2 million, a 3 percent increase. According to Pace, the increase in expenses is tied to the growth of its vanpool services and the addition of fixed route services through grants from the federal government’s Congestion Mitigation/Air Quality (CMAQ) program as well as labor and fuel cost increases.

Pace’s current financial plan projects vanpool expenses to increase at an annual rate of 17.9 percent until the year 2000. CMAQ program expenses are projected to increase at a 48.9 percent annual growth rate by the year 2000.

IV-9 PACE

Expense/Passenger 1992-1998 Pace Expense Per Passenger 2.88 $3.00 2.81 2.87 2.74 2.49 2.41 2.50 2.26

1.79 1.83 2.00 1.76 1.80 1.53 1.59 1.44 1.50

1.00 1.08 1.05 .98 1.01 .82 .88 .90 0.50

0.0 1992 1993 1994 1995 1996 1997 1998* *budget Revenue Subsidy

• The 1998 budgeted expense per Both revenues per passenger and subsidy per passenger have shown passenger is $2.88. increases between 1992 and 1998. Revenues increased from 82 cents in 1992 per passenger to $1.05 in the 1998 budget, for an average of 3.8 • Since 1992, the expense per cents per year. Subsidies increased from $1.44 per passenger in 1992 to passenger has grown at a compound $1.83 in 1998, an average of about 6.5 cents a year. annual rate of 4.89 percent. Between 1992 and 1998, expense per passenger grew at a compound annual rate of 4.89 percent. Revenues increased at a faster rate than subsidies growing at a compound rate of 5.66 percent and 4.91 percent respectively.

IV-10 PACE

Recovery Ratio Pace Cost Recovery Ratio 1992-1998

40

%

35

30 1992 1993 1994 1995 1996 1997 1998* *budget

• Pace’s recovery ratio has Since the 1983 restructuring of the RTA, Pace’s recovery ratio has remained above 36 percent for improved from 29.6 percent in 1985 to 37.5 percent in 1997. One the last seven years. of the key reasons for this increase is the State of Illinois’ reduced fare subsidy program. Under this program, which began in the latter half • The 1998 budgeted recovery ratio of 1989, the state reimburses CTA, Metra and Pace for revenue is 36.30 percent. loss associated with offering reduced fares to students, the elderly and disabled. Initially, the reduced fare subsidy’s impact on Pace’s recovery ratio was dramatic, pushing it up to a high of 38 percent in 1990. However, since 1990, the state has reduced the amount of subsidy under this program. Pace’s recovery ratio has in turn declined, but remains above 36 percent. Also, Pace cites the expansion of paratransit services required under the Americans with Disabilities Act (ADA) as serving to depress its recovery ratio. Paratransit services typically recover less than 10 percent of their cost from passenger fares.

IV-11 PACE

Capital Assets 1997 Pace Capital Asset Value (millions of dollars)

Miscellaneous Support Equipment $35.6

Rolling Stock $130.5

Total $315.2 Garages/ Facilities $181.1

Source: Pace

• Pace’s capital assets are valued Pace capital assets are primarily support facilities and rolling stock. The at $315.2 million and are support facilities are located throughout the service area, consisting of primarily rolling stock and 11 garages, 19 passenger facilities and eight park-and-ride centers. More garage support facilities. than $181.1 million has been spent on the design and engineering and the renovation/replacement of these facilities. In the category of rolling • Buses have an average age of six stock, Pace has a current investment of $130.5 million in the active fleet years, paratransit vehicles have an of 638 fixed route buses, 374 paratransit buses and 321 vanpool average age of 2.4 years and vehicles. Pace has also invested $35.6 million in fareboxes, radio vanpool vehicles average 2.1 years. systems, computer equipment, garage equipment and other miscella- neous support equipment. The 1998 Pace capital program contains $10.6 million for the purchase of rolling stock as well as extended warranties for paratransit vehicles and bus overhaul/maintenance. The program also provides $80,000 to purchase equipment for the paratransit operation’s radio system, $7.0 million for support facilities and equipment, $1.5 million for contingencies and administration and $1.4 million for stations and passenger facilities. Pace continues to work to maintain a steady replacement of its rolling stock. The current average age of the bus fleet is six years, the average age of the paratransit fleet is 2.4 years and the vanpool is 2.1 years. In 1998, Pace plans to replace 27 paratransit buses and 71 vanpool vehicles. The purchase of 62 additional vanpool vehicles is also planned.

IV-12 PACE

Rolling Stock Pace Rolling Stock Active Fleet Fixed Route Manufacturer Year No. of Age Length Lift Vehicles Equipped Gillig 1986 20 11 35' Yes Orion I 1988 100 9 40' No Orion I 1989 71 8 40' No Orion I 1990 50 7 40' No Orion I 1990 84 7 35' Yes Orion I 1990 43 7 40' Yes Ikarus 1992 71 5 40' Yes Orion I 1993 20 4 35' Yes Orion I 1993 86 4 40' Yes Chance 1995 15 2 26' Yes Nova 1996 22 1 40' Yes Eldorado 1997 56 0 29' Yes Total: 638 Average Age: 6.0 Years

Paratransit Manufacturer Year No. of Age Length Lift Vehicles Equipped Ford/Goshen Buses 1990 17 7 23' Yes Ford/Goshen Buses 1991 20 6 23' Yes Ford/Braun Vans 1993 4 4 19' Yes Ford/Eldorado Buses 1994 110 3 23' Yes Chance Buses 1995 3 2 26' Yes Eldorado Vans 1995 73 2 19' Yes Eldorado Buses 1995 30 2 23' Yes Eldorado Vans 1996 45 1 19' Yes Eldorado Buses 1996 70 1 23' Yes Eldorado Buses 1997 2 0 19' Yes Total: 374 Average Age: 2.4 Years Vanpool Manufacturer Year No. of Age Length Accessible Vehicles Vans 1992 56 5 Various 1 Vans 1993 13 4 Various 1 Vans 1994 58 3 Various 1 Vans 1995 57 2 Various 0 Vans 1996 68 1 Various 6 Vans 1997 69 0 Various 0 Total: 321 Average Age: 2.1 Years Total Rolling Stock: 1,333 IV-13 PACE

Bus Facilities Map

To Kenosha Antioch

Harvard Fox Lake NCS

UP-NW MD-N McHenry

D

J UP-N

Elgin N A H L M

MD-W K E Geneva UP-W

BNSF B Aurora F O HC SWS SS G

LEGEND 179th St. RI (Orland Park) Metra Rail Lines C

County Border Joliet ME

City of Chicago Border University Park

IV-14 PACE

Bus Facilities A. Pace River Division M. Pace North Shore Division 975 S. State, Elgin 2330 Oakton St., Evanston 63,000 square feet, 1989 81,500 square feet, 1995

B. Pace Fox Valley Division N. Pace Administrative 400 Overland Dr., Aurora Headquarters 56,800 square feet, 1994 550 W. Algonquin Rd., Arlington Heights C. Pace Heritage Division 46,500 square feet 9 Osgood St., Joliet 55,000 square feet, 1985 O. Pace South Holland Acceptance Facility D. Pace North Division 405 W. Taft Dr., 1400 W. Tenth St., Waukegan South Holland 57,800 square feet, 1987 44,700 square feet, 1984

E. Pace West Division 3500 W. Lake St., Melrose Park 222,700 square feet, 1986

F. Pace Southwest Division 9889 Industrial Dr., Bridgeview 81,500 square feet, 1994

G. Pace South Division 2101 W. 163rd Place, Markham 191,000 square feet, 1988

H. Pace Northwest Division 900 E. Northwest Hwy., Des Plaines 82,700 square feet, 1962

J. City of Highland Park* 1150 Half Day Road, Highland Park

K. Village of Melrose Park* 1000 N. 25th Ave., Melrose Park

L. Village of Niles* 7104 Touhy Ave., Niles

* Municipal Garages not owned by Pace.

IV-15 PACE

IV-16