December 2014 Dear Mayor and Members of Council:

On behalf ofall of us here at BC Transit, congratulations on your recent elections.

BC Transit is a Crown corporation established by the provincial government to support local investment in transit services across the province (excluding the Metro area served byTranslink). To do this, we work in partnership with 59 local governments, like yours, across .

As a result of this partnership, 130 communities around the province are able to provide a public transportation system for their residents. In addition to the mobility benefits, transit service also reduces environmental impacts and infrastructure costs for your community. Your local government and the Province, through BC Transit, share funding for transit services in your community.

We would very much appreciate the opportunity to share more information and discuss the benefits of our partnership with you. We are writing to offer a presentation to your Council or a committee of Council.

If you are interested in receiving a presentation, please contact me personally by phone, 250-995-5680 or email, [email protected], and I will arrange for a Regional Transit Manager to follow up with you.

I also want to inform you of an exciting opportunity for you to get to know BC Transit better. Each year, BC Transit hosts an Annual Workshop and invites representatives from our local governments and operating partners to meet with us to share ideas, consult on major transit initiatives and develop solutions to address challenges facing public transit. This year's event is April 27-29, 2015 in Agassiz-Harrison. We will send you an invitation soon and hope you will consider joining us.

For general information, I have enclosed a copy of the BC Transit Advantage which summarizes the many benefits of public transit. You can also visit our website at www.bctransit.com Thank you for your consideration of this request and for your service to your community. ---~ Sincerely, RECEIVl'l@ DEC O~ 2014 Cn'V MANAGER'S C>ffa Manuel Achadinha CITY OF PRINCEGeottae President and Chief Executive Officer <, ~, )BCO-ans/, ~ Connecting People and Communities

BCTransitAdvantage BC Transit's shared services model allows us to achieve operational and financial efficiencies though economies ofscale, while delivering affordable quality transportation to the people of British Columbia. Efficiencies gained through the shared services model deliver value for money, positioning BC Transit as a leader ofsafe, effective and efficient customer-focused transit services.

BC Transit Scope BC Transit Legislated Mandate BC Transit connects people, communities, and businesses across The British Columbia Transit Act requires us to: the province through cost-effective, sustainable public transit. Plan, acquire, construct or cause to be constructed The scope of BC Transit's programs as of March 31 , 2014: public passenger transportation systems and rail systems that Provides services to over 130 communities across B.C. in support regional growth strategies, official community plans, collaboration with 59 local government partners, including and the economic development of transit service areas. the Victoria Regional Transit Commission and regional To provide for the maintenance and operation of those health authorities systems and, Contracts with 18 private management companies, 6 public To enter into commercial revenue opportunities operating organizations and 13 non-profit agencies in respect of the authority's assets and resources. Provided 51 million passenger trips in 2013/14 Serves more than 1.6 million people in B.C. Owns a fleet of 1,052 conventional and double-deck buses and minibuses Total operating expenditures in 2013/14 of $222.3 million Total capital expenditures in 2013/14 of $79.4 million Shared Services Model

- 59Local 9 ---Governments BC Transit Independent Review Set Priorities, Routes& Rates In 2012, BC Transit's operations, governance, communications and funding relationship with local government partners was BC Transit reviewed by an independent panel. The report confirmed BC Tra BC Transit nsit compares very favourably to peer transit systems Shared Services across the country, "particularly in terms of ridership, s Model upply of service, and efficiency of service provided" and that "the level of provincial support for public transit in British Columbia is 1 unmatched in the rest of " • These advantages keep the BC Transit provides a wide range of management services t hat contributions from local governments in B.C. comparatively low. benefit all of the transit systems in the province. The shared services model: Pr. ir ,cial O~~r:itir.9 Contributi~n for Tnn;it i:-~ r :apiu ~ m~------Pool expertise in areas such as planning, scheduling, SSl.13 ----~ operations, safety programs, marketing, communications, $,41.72 IT, financial management and fleet support; Provides an opportunity to lower costs through bulk purchases of supplies and assets, such as fuel and vehicles; s,o.oo Provides a framework to oversee and invest in transit on a provincial scale; ---- -=~·-· ... ·~ •·j.,,."(,21 · • --- Provides efficiencies in contract management for public transit operators and, S0.00 $0,14 $0.o.J $J).OO $0.00 NL A8 NB NS Te1rhodts Manages the distribution of provincial government funding. ,. wil -,,,. - ~ourc c ... 1Jl1Uf ,,,T!aMII • 1 ,.on fKt \2012

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!! r "i,1. ~,fJ;.,__,.# ~~~1~ =· Performance Advantage Purchasing Advantage -

BC Transit carries more passengers, using less service hours, at a Discount & Bulk Procurement lower cost than comparable transit systems across Canada. Our BC Transit achieves economies of scale in fuel and capital performance is benchmarked against transit statistics of similar purchasing that result in an overall financial benefit to all of size population groups, collected by the Canadian Urban Transit our transit systems and our funding partners. For example Association (CUTA)2. The measures compare overall service BC Transit saves approximately 20 per cent on fuel costs effectiveness and efficiency and are the statistics most universally through bulk purchases, and 8 per cent on vehicle purchases used by the North American transit industry to track performance. due to volume discounts.

CUTA Performance Victoria vs CUTA Regional Systems vs CUTA Cost management of fuel is fundamental to achieving financial Benchmark (150,000 - 540,000) (50,000 - 150,000) efficiencies in transit operations as fuel accounts for approximately Passengers 11 per cent of the total expenditures. As the shared service model 66.26 (29% higher) 29.46 (70%higher) ✓ /Capita ✓ allows fuel to be purchased centrally, BC Transit is able to enter Passengers into targeted fixed price supply agreements on a portion offuel 30.59 (4% higher) 27.30 (13% higher) ✓ /Hour ✓ consumption to contain cost volatility and m itigate fuel price risk. Operating Cost $103.48 (6% lower) $94.86 (6% lower) /Service Hour ✓ ✓

Operating Cost $3.38 (9% lower) $3.47 (19%lower) /Passenger ✓ ✓

Even though labour rates are similar across the CUTA comparators, the BC Transit Advantage drives economies through bulk procurement, fleet and fixed asset management, and administrative efficiencies. Customer & Partner Satisfaction

Contracted Service

BC Transit's approach to contracting transit operations enables systems to take advantage of a w ide range of transit operating expertise, including t hose provided by world-class transit management companies. Leveraging the experience of private transit operating companies contributes to BC Transit's favourable performance.

When asked to rate their transit experience, BC Transit customers 3 consistently rate their overall satisfaction level above average • BC Transit satisfaction levels are surveyed annually by a contracted research company.

Civic Info BC4 surveys BC Transit partners each year to measure the performance of BC Transit. The local government & operating company surveys show strong results and improvements year over year. This marks a favourable trend and reflects on BC Transit's commitment to collaboration and cultivation of strong partnerships.

The Funding Pa rtner Survey included in the Report of the Independent Review Panel' also returned positive results for BC Transit. It rated overall relationships, communication and value for money as good or fair by 90%, 86% and 73% of respondents respectively.

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------~ Environmental Sustainability British Columbia Today, the provision of transit service is central to enabling more Com muter Modes sustainable communities: optimizing land use and facilitating people's mobility by walking, cycling and transit. All of these actions reduce traffic, smog and GHG emissions by reducing the use of single- occupancy vehicles. (iiiHiiil} " \liiidiiii} (iiidiiii '- ~ """"""" '- """(jiii}"(jiii}" (;j A full city bus takes 40 vehicles off the road. ""~(jiii}""(li>"~""""""" ~ "' {ii) {ii) {ii) {ii) {ii) {ii) {ii) {ii) ~

In one year, that saves 10,646 litres of fuel Source· .r cisties Can, "'· ·.•111, N•n·,1a1Ho u~,•hold •Jr : , 1 ·ille 6rlti!,h(olumtn,rtx1 ::: : ofTran!.p::>rtalion and 25 tonnes of greenhouse gas emissions. Source:2004RWDlforTranslinkData Fleet Innovation

Th e centralized shared services model of fleet acquisition fosters The benefits of transit to our regional economies is demonstrated innovation. We are proud of our history and our leadership by increased personal connections to employment, school, role in testing and implementing new lower-carbon vehicles shopping, healthcare and recreation; by reduced pressure and technologies. on t raffic congestion and transportation infrastructure; by cleaner, more efficient energy use; and through the stable local • 1992 - Fi rst low-floor buses in North America employment opportunities offered in the transit industry. • 2000 - First low-floor double-decker buses in North America • 2005 - Fi rst production hybrid buses in Canada Since 2008, all public sector organizations, including BC Transit • 2010 - La rgest demonstration hydrogen fuel-cell fleet globally must provide Carbon Neutral Action Reports to outline actions • 2011 - First hybrid double-deck bus in North America taken to reduce energy use and greenhouse gas (GHG) emissions. Read online at www.bctransit.com • 2014 - Introduced CNG (Compressed Natural Gas) buses In support of the opportunities and benefits of the natural gas industries abundant in British Columbia, BC Transit has introduced CNG buses in revenue service in the Regional District of and plans to launch a new CNG fleet of buses in in early 2015.

BC Transit is also the first company in North America to test and purchase medium-duty buses which offer substantial advances in fuel efficiency and long-term cost savings in comparison to conventional buses.

Shaping Livable Communities

Transit Future looks at how you can work with BC Transit to meet the needs of your community now and for future generations. Planning that future can come in a number of forms: a 25 year plan; a service review; or, infrastructure or major projects. Compressed Natural Gas (CNG) Bus

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... t '-"\ . ·~-> ,_, .•• .,<:J,.,!, Funding Funding for transit services is generated from three main sources. The BC Transit Advantage Provincial contributions through various forms for the most recent year accounted for 53.2 per cent of total funding; local v/ Administrative Advantage government transfers from property taxation accounted for 24.5 per cent; and, the remaining 22.3 per cent was generated through Shared Services Model operations (customer fares, advertising and investments). Economies of Scale Operational Advantage BC Transit 2013/14 (Millions) Bulk Purchasing Volume Discounts Cost Control Management Entrepreneurial Advantage , -Operations $60.2 Lower Operating Costs 20.5% Customer & Stakeholder Commitment Provincial Revenue Transfers Fleet Innovation $5.2 $134.2 Revenue Opportunities 1.8% 45.7% Jurisdictions from across Canada look to the BC Transit model as a best practice for the provision of transit services. Delegations from Alberta, Ontario, Quebec, and most recently Sweden, have investigated opportunities to \ ----BC Bus Pass leverage the BC Transit Advantage. Fuel Tax Provincial $9.0 $11.7 Health 3. 100 4.0% Authority $1.2 0.4%

Governance The corporat ion is governed by a seven-member Board of Directors appointed by the Province according to the British Columbia Transit Act. The Act requires four board members to be locally-elected representatives. The Board of Directors, through the Cha ir, reports to the Minister ofTransportation and Infrastructure.

References

1. http://www.th.gov.bc.ca/BC _T r ansit_Review/documents/Report_ BCTransit_lndependent_Review_Panel_Aug2012.pdf

2. Canadian Urban Transit Association (CUTA) Fact Book 2012 3. http://www.bctransit.com/corporate/resou rces/pdf/res -perf-86.pdf

4. http://www.civicinfo.bc.ca/81_ver2.asp

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