Support Material Agenda Item No. 16 Board of Directors October 3, 2018 10:15 a.m. Location: San Bernardino County Transportation Authority Santa Fe Depot, First Floor Lobby 1170 W. 3rd Street, San Bernardino, CA 92410 CONSENT Transportation Programming and Fund Administration 16. Omnitrans Transportation Development Act Triennial Performance Audit for Fiscal Years 2014/2015 - 2016/2017 Receive the Transportation Development Act Triennial Performance Audit Report for Fiscal Years 2014/2015 through 2016/2017 for Omnitrans. Attached is the Omnitrans 2014/15 – 2016/17 Transportation Development Act Performance Audit Report. July 2018 TABLE OF CONTENTS Executive Summary ........................................................................................................................ i Section I ......................................................................................................................................... 1 Introduction .............................................................................................................................. 1 Overview of the Transit System ................................................................................................ 1 Section II ........................................................................................................................................ 9 Operator Compliance Requirements ............................................................................................ 9 Section III ..................................................................................................................................... 17 Prior Triennial Performance Audit Recommendations ............................................................... 17 Section IV ..................................................................................................................................... 19 TDA Performance Indicators ....................................................................................................... 19 Section V ...................................................................................................................................... 32 Review of Operator Functions ..................................................................................................... 32 Operations .............................................................................................................................. 32 Maintenance ........................................................................................................................... 40 Administration and Management........................................................................................... 42 Marketing & Planning ............................................................................................................. 47 Human Resources & Safety and Security ................................................................................ 50 Finance .............................................................................................................. 52 Procurement ........................................................................................................................... 53 Information Technology (IT) ................................................................................................... 53 Section VI ..................................................................................................................................... 55 Findings ........................................................................................................................................ 55 Recommendations....................................................................................................................... 58 List of Figures, Tables & Graphs Figure I-1 Omnitrans Service Area Map ........................................................................................ 3 Figure V-1 Organization Chart ..................................................................................................... 44 Table I-1 Omnitrans Service Area Demographics .......................................................................... 2 Table I-2 Omnitrans Fixed Route Summary .................................................................................. 4 Table I-3 Omnitrans Fare Structure ............................................................................................... 6 Table I-4 Access Fare Structure ..................................................................................................... 6 Table I-5 Vehicle Fleet ................................................................................................................... 7 Table II-1 Operator Compliance Requirements Matrix ................................................................. 9 Table IV-1 TDA Performance Indicators - Systemwide ............................................................... 20 Table IV-2 TDA Performance Indicators - General Public Services (Direct/Contracted) ............. 21 Table IV-3 TDA Performance Indicators - Fixed Route, Directly-Operated ................................. 22 Table IV-4 TDA Performance Indicators - Fixed Route, Contracted (OmniGo) ........................... 23 Table IV-5 TDA Performance Indicators – Demand Response .................................................... 24 Table IV-6 TDA Performance Indicators - Access ADA Service .................................................... 25 Table IV-7 TDA Performance Indicators - OmniLink .................................................................... 25 Table V-1 Vehicle Operations Performance Indicators - Directly Operated Fixed Route ........... 36 Table V-2 Vehicle Operations Performance Indicators - Contracted Fixed Route ...................... 37 Table V-3 Vehicle Operations Performance Indicators - Demand Response .............................. 38 Table V-4 Maintenance Performance Indicators - Directly Operated Fixed Route .................... 41 Table V-5 Maintenance Performance Indicators - Demand Response ....................................... 41 Table V-6 Administration Performance Indicators - Directly Operated Fixed Route.................. 46 Table V-7 Administration Performance Indicators - Demand Response .................................... 46 Table V-8 Customer Complaints .................................................................................................. 48 Graph IV-1 Operating Costs - Systemwide, General Public (Direct & Contracted) and Demand Response ................................................................................................................................. 27 Graph IV-2 Ridership - Systemwide, General Public (Direct & Contracted) and Demand Response ................................................................................................................................................. 27 Graph IV-3 Operating Cost per Passenger - Systemwide, General Public (Direct & Contracted) and Demand Response ........................................................................................................... 28 Graph IV-4 Operating Cost per Vehicle Service Hour - Systemwide, General Public (Direct & Contracted) and Demand Response ....................................................................................... 28 Graph IV-5 Passengers per Vehicle Service Hour - Systemwide, General Public (Direct & Contracted) and Demand Response ....................................................................................... 29 Graph IV-6 Fare Recovery Ratio - Systemwide, General Public (Direct & Contracted) and Demand Response ................................................................................................................................. 29 Executive Summary Executive Summary The San Bernardino County Transportation Authority (SBCTA) engaged Michael Baker International (Michael Baker) to conduct the Transportation Development Act (TDA) triennial performance audit of the five public transit operators under its jurisdiction. The performance audit serves to ensure accountability in the use of public transportation revenue. This performance audit is conducted for Omnitrans covering the most recent triennial period, fiscal years 2014–15 through 2016–17. The audit includes a review of the following areas: • Compliance with TDA Requirements • Status of Prior Audit Recommendations • System Performance Trends • Functional Review Based on the audit review process, recommendations were developed to improve the operational efficiency and effectiveness of Omnitrans. Compliance with TDA Requirements Omnitrans fully complied with all nine applicable requirements. In addition, new state legislation was passed (AB 1113, Bloom) on July 21, 2017, that changes the timeline to submit the annual Transit Operators Financial Transaction Reports to the State Controller effective reporting year FY 2017. Two additional compliance requirements did not apply to Omnitrans (rural and blended farebox recovery ratios). Status of Prior Audit Recommendations Omnitrans implemented the two prior audit recommendations. The recommendations pertained to SAP implementation and increasing ridership on the sbX line. System Performance Trends 1. Omnitrans’ farebox recovery ratio remained above the required 20 percent standard for general public operations and 10 percent for Access ADA paratransit. The farebox recovery ratio for the general public service was 23.70 percent in FY 2015,