Lessons Learned in Transit Efficiencies, Revenue Generation, and Cost Reductions Presented by: Joel Volinski, Director, National Center for Transit Research, University of South Florida Over the years, transit systems have responded to budget challenges by becoming more diligent and creative in developing ways to generate non-traditional revenues and to reduce costs without raising fares or cutting service. Mr. Volinski will discuss a project, first reported on in 1996, whose objective was to collect innovative ideas from transit agencies throughout the country. The ideas collected were then synthesized and redistributed to transit agencies throughout the nation, allowing all agencies to have the potential to replicate successful techniques. Mr. Volinski will also provide a sampling of the 200 successful ideas that have been put in place in dozens of transit agencies across the country.

1. MANAGING DURING HARD TIMES –
LESSONS LEARNED IN TRANSIT
EFFICIENCIES AND REVENUE
GENERATION
Joel Volinski, Director
National Center for Transit Research
University of South Florida

2. Study Objective
 Identify cost saving and revenue generation
techniques that produce the least harm to
passengers
 Share the information gained with the entire
transit industry
 “People seldom improve when they have no
other mode but themselves to copy after.”

3. Methodology
 Direct emails sent to 600 managers using
APTA’s electronic directory
 Follow up phone calls and emails
 Literature/Internet Research

4. Results of Surveys
 Responses received from 94 agencies
 Over 200 techniques were reported
 Some were significant, and others minor, but all
are evidence of systems trying to do their best.

5. Painful Recession-Driven
Choices
 Layoffs
 Hiring Freezes
 Wage Freezes
 Furloughs
 Elimination of Vacancies
 Reduced training and professional development
 Deferred Maintenance/Reduced Capital

6. Impacts to Customers and
Personnel
 84% of agencies reported they are considering
raising fares or cutting service
 59% already had done so by April 2010
 70% predict budget shortfalls for FY2011
 CTA and NYCT laying off over 1,000 employees
each
 MARTA planning for a 25% cut in service

7. Managing Resources is Critical
 Creativity/desperation is still alive and well.
 The structural problem is huge, but agencies
can still help themselves.
 These techniques might not bridge the budget
gap, but they demonstrate the agency is doing
all it can with what it has.

8. Customer Suggestions on How to
Bring in New Revenue
 Put snowplows and salt spreaders on buses for
snow removal and charge the city
 Allow furniture companies to demonstrate their
wares inside transit stations
 For a fee and after a little training, let people
experience what it is like to drive a bus
 Reserve a train car for singles who want to
mingle sponsored by match.com

9. Marketing and Advertising
 New York, Chicago, and Santa Monica are
exploring digital LED advertising on the sides of
buses.

10. Marketing and Advertising
 Phoenix/Denver now wrap light rail trains and
expect $350,000 /$1.1M in revenue annually


11. Marketing and Advertising
 Star Metro is buying its own vinyl wrap printer
for $30,000 and will print their own ads and
produce wraps and banners for others

12. Audio Advertising on Buses
 Dayton, Champaign-Urbana, TARTA, and
KCATA now have audio ads timed to promote
businesses along routes
 Partnership of Continental radio/GPS system
and Commuter Advertising developed on-board
messaging
 KCATA gets 40% of revenue, expects $60,000
in the first year (no start up costs)
 Agency announcements have priority

13. Marketing and Advertising
 Metro in Minneapolis has sold the naming rights
for its rail station (Target)
 NYCT gives exclusive rights to advertisers at
stations (station domination)
 Cleveland sold the naming rights to BRT

14. Purchasing/Procurement
 NJT purchases all fuel for its contracted
services to lower cost and avoid tax
saving $250,000.
 Red Rose Transit reduced banking
services by $25,000 by seeking bids.
 Tri-Met reduced printed schedule costs
by $30,000 by printing only when
needed.
 UTA contracted out for cleaning services

15. Purchasing/Procurement (continued)
 88 vendors voluntarily participate in an
SFRTA Deficit Reduction Plan. 88
vendors have reduced their prices
between 3 and 10% resulting in $3
million in savings per year (CTA saves
$2 million)
 NCTD purchased 28’ Star Tran buses
saving fuel costs and capital dollars.

16. Revenues/Savings from Facilities
 Lynx and CTA leased empty office space in their
facilities to earn $155K and $1 million.
 Long Beach Transit has audited their electric, water,
and waste procedures and cut costs by 15%.
 TARC reported cost reductions of 55% in HVAC of
their bus garage.

17. More Revenue from Facilities
 Rockford Mass Transit built a body shop
and reduced cost of body work by 50%
through lower hourly cost and no mark
up on parts.
 Red Rose Transit earns $20,000 a year
from leasing its radio tower to cell phone
companies
 MBTA will earn $1 million a year from
billboards they will have erected on their

18. Controlling Health Care Costs
 Chittendon County switched from a premium
based co-pay to a high deductible plan saving
hundreds of thousands
 Akron Metro outsourced FMLA management
and had a 15% drop in FMLA usage

19. Controlling Health Care Costs
 Stark Area Regional Transit instituted FSA
savings plans for pre-tax payment of health care
costs and established a self-insured layer to
hospitalization care, saved $350,000 a year.
 BART provides a medical opt-out for those with
access to other insurance.
 AC Transit hired a consultant to monitor workers
comp and review medical billing and saved
$930,000; KAT had WC agent speak to
operators to show impact.

20. Better Management Processes
 GCRTA established “Transit Stat” for data driven
management decisions based on team review
of performance to save $15 M over two years.
 MDT used the Six Sigma process to reduce
warranty cycle time from 96 days to 55 days
and reduce percentage of buses down due to
parts from 10% to 2.6%.
 MARTA’s improved attendance analysis saves
the agency $4M.

21. Greater Use of Partners
 Rochester-Genesee’s Business Development
Program works with education, non-profit, and
private companies to subsidize service.
Video

22. Greater Use of Partners
 Monterey TD partners with local military
installations that use the Federal Transportation
Incentive Program-Mass Transit Benefit to pay
for 11 new routes and earn $2 million (10% of
total revenue and 16% of total boardings.
 Nashville’s Easy Ride program works with
colleges and State and County offices to
subsidize transit for their employees.

23. VRT performs vehicle emission
inspection services for State DMV
for $28 per test

24. VRT earns fees for administering DMV
vehicle registration (3% for first $500K, 5% for
everything above)

25. Savings in Operations
 SW Transit in Minneapolis reached an
agreement to park their express buses at
fairgrounds on the edge of downtown to save
$100K.
 NCTD contracted out the operations of their
entire bus system and avoided a 25% service
reduction at same cost.

26. Savings in Operations
 San Joaquin replaced fixed route and
paratransit services with route deviation to
reduce costs per trip from $50 to $19
 SARTA saves $200K by reduced idling
 MUNI can save $3M consolidating stops

27. Savings in Paratransit
 TARC uses Yellow Cabs to fill in only when
needed to carry paratransit trips, saving
$300,000 through reduced trip costs, better fuel
mileage, and smaller fleet
 CCCTA’s Community Connection program
provides vans to non-profits who provide ADA-
eligible trips saving $350,000, reducing trip
costs from $26 to $.79 and adding 4.6% more
trips at no extra cost

28. Savings from Better Planning
 Rochester Genesee’s formalized route
productivity evaluation program has saved
millions
 LAMTA route restructuring eliminated 145,000
hours of duplicative or non-productive service
 MDT utilized data from automated fare
collection system that saved $12 million with
little effect on ridership

29. Technology
 Server virtualization allows Omnitrans to
consolidate servers from 75 to 57 and eventually to
12 to save $100K on replacement; web-based data
warehouse consolidates various applications
saving $400K and lots of time.
 RTD is using “thin clients” rather than PCs
(eliminating hard drives) saving all information to
main servers. This reduces set up and
maintenance time, uses .10% of energy, lasts three
times longer and is 90% recyclable.

30. Technology in Facilities
 Akron’s new transit center is LEEDS certified
and will achieve ROI in less than ten years
through solar panels and geothermal wells.

31. Other Techniques
 Boca Raton has developers and businesses
make one-time or annual “voluntary
contributions” based on square footage and/or
traffic impacts
 Miami-Dade’s Managed Lanes are working as
intended and bringing in sufficient revenue to
fund transit services in the corridor.

32. EMP Engine Cooling System
 Replacing hydraulically-driven cooling fans with
8 smaller electric fans saves 700 gallons of
diesel a year - payback is 3 to 5 years

33. Other Maintenance Techniques
 Rebuilding friction plates in Voith transmissions
rather than buying new saved Tri-Met $250,000
 Indygo reduced overtime in their maintenance
shop from 20% to 9% with an Ellipse planning
and scheduling package saving $500,000

34. Low-Tech Grounds Maintenance

35. Joel Volinski, Director
National Center for Transit Research
University of South Florida
volinski@cutr.usf.edu
813.974.9847
CONTACT