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HomeMy WebLinkAbout1979-11-01-TAC-rpt.pdf • TOLZ.9 r_2pciz5for November 1, 1979 Mrs. Mary Miley, Chairman Board of Selectmen Town of Lexington Lexington, Ma 02173 Dear Mary, LEXPRESS has started off as a huge success. Ridership has been greater than predicted. Children have developed a new sense of independence and responsibility. The elderly are no longer transportation dependent There have also been problems, but they have been problems of success If the ridership was low there would be no problem of overcrowded buses or an overcrowded sidewalk The Transporation Advisory Committee would like to present a preliminary status report on the operations of LEXPRESS. In this report we will present ridership and revenue statistics to date Basic financial information will be presented, and projected through August 1980 The purpose of this is not only to inform you of the present status but to provide the Board and the Town Manager the information necessary to plan for the fiscal 1981 budget The main statistics which can be presented are ridership (or revenue) per day, ridership per time of day, ridership per route, and the various combinations of the above. We are confident of our revenue per day figures counting money is simple, straight-forward, and free of the need for interpretation. Our other figures are less certain as they depend on counts by the drivers which in many cases have been inaccurate. While we have taken steps to improve on our numbers by having the contractor speak to his drivers, and by providing mechanical counters instead of record sheets, you must realize that the present figures are prone to possible inaccuracies. In all cases the drivers figures have been lower than the ridership implied by actual fare-box revenue. % e,••k se:s APRIL q. ,.,4fJc 1625 MASSACHUSETTS AVENUE • LEXINCITON, MASSACHUSETTS 02173 • TELEPHONE (617) S62-0500 -2- Figure 1 shows the revenue per day for the first five weeks of service Monday Oct 1st was the holiday at the occasion of the Pope's visit to Boston, on which an extra bus was put onto the Burlington route as is done on Saturdays No service was provided on Columbus Day, Monday October 8th, Wednesday Oct 10th was the date of the unseasonal snowstorm, and Thursday Oct 11th was a half-day of school for all of the schools. Apart from the exceptions noted above, the figures are relatively constant on a week-to- week basis Mondays, Tuesdays, Wednesdays and Fridays average about $130 per day Thursdays average about $200 per day, reflecting the half-day at the elementary schools. Saturdays average about $225 per day On Saturdays an extra bus has been used in order to handle the ridership to Burlington, and on Monday Oct 22nd the fare to Burlington was raised to 50Q in order to pay for this extra service The average revenue per week has been almost $1000, which projected over the year translates into a total annual revenue of over $50,000 Figures 2 - 8 show the ridership per time of day for the week of October 15, 1979, which appears to be typical The ridership is relatively high during morning commuter hours, and at 3 P.M , when schools are dismissed, it sky rockets Between 9 00 and 3 00 a moderate ridership is reflected and at 6 30 p m ridership dips extremely low. Figure 4 shows a ridership increase starting after 1:00 p m due to the half day of school on Thursdays at the elementary level Saturdays show a more uniformly high ridership Statistics on ridership per route are less certain, though fare-box revenues per bus indicates less than a 10% variation between routes, except for the Saturday Burlington run. Now that LEXPRESS operations are relaxing to "normal," and problems have been solved or are being decisively addressed, we finally have the luxury to look ahead to the end of the year As mentioned above the revenue has been a little under $1000 per week Ignoring the effects on the recent Burlington fare increase, the projected annual fare revenue is about $50,000 This may be compared to the predicted revenue figure presented to the Town Meeting of $40,487 (corrected from 8 hours/day to 12 hours/day) Pass sales have been over $10,000, but have now been reduced to a dribble. Though we expect a new surge of sales in December in response to our planned Christmas promotion, we do not believe that total sales of passes will exceed $15,000. Table 1 is a copy of the expected operating budget from our original proposal as presented to Town Meeting A number of major changes have occurred, which we list chronologically i) appropriation amended to $90,000 by Town Meeting in order to increase service to 12 hours per weekday, ii) low bid much higher than expected; $15 39/vehicle-hour vs $12 00 expected, • -3- • iii) in order to make up for increased costs a pass program was started, but has not met expectations, iv) total ridership considerably higher than expected, yielding higher revenues, v) extra bus instituted to handle ridership on Saturday Burlington route. Table 2 presents the budget as amended by Town Meeting, the expected budget for this year (as can be projected-from this date) , and a proposed possible budget for next year The greatest driving force in next year's budget is the unknown vehicle per hour cost. Considering the present rate of infla- tion, we would expect the cost to rise by about 15%. We doubt that the MBTA would increase it's contribution to more than $60,000. In order to face the increased cost there are three possibilities; 1) decrease service, ii) increase the Town's contribution considerably, iii) increase revenues by raising fares and/or increasing ridership, or some combination of the above. We believe that the Town Meeting will continue- to essentially want the same level of service, and will not want to substantially increase it's appropriation. We also believe that a substantial increase in fares would decrease the total ridership. Since we are only in operation six weeks we do not have the figures necessary to accurately project figures for next year, but given our projections above, and recognizing the political factors, we recommend that the proposed budget for next year include: 1) one hour per day less service (no cut on Saturday) , ii) increase Town appropriation to $100,000, iii) increase fares to 300 (150 over 65 years old and under 6 years) We are sorry that our statistics and recommendations are so nebulous, but that is to be expected after only six weeks. Hopefully our statistics, projections, and uncertain recommendations will give you sufficient infor- mation on present operations, and enough information for you and the Town Manager to prepare a preliminary Town budget. Sincerely, Fred D. 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L : • . ..,_ .• . , , e...r,...0-•(_,,, ie,A et_t_rs II ,0; -er-e 0Y ic-y•-•-,! . • , _ ...1 ...i t/ 1-1.;cte._e.s..,(A ••ck •-q),,-, r,, ,4 it; .___41\r ,, .., .., 1,,,, ,_ ___ed t t _—_-- - -_----2._—7—--- — -r- . ___ __tit,t____ti_ . t-r _ t .t. i '1 .....--- 1 n•-3;•;;.3..-"P.A.-721 t TABLE 1 , • ORIGINAL PROPOSAL PRESENTED TO TOWN MEETING, 1979 LEXINGTON MINI-BUS BASIC OPERATING STATISTICS 4 Buses , 8 Routes , 8 hours I day, 6 days I week I Chaircar, 8 hours I week FARES I-5 free, 6-10 I0¢ , 11-64 25¢ , 65-over 10¢ chaircar 25¢ in town , $1.00 elsewhere GROSS OPERATING COSTS Buses $12.001hou r $119,808 less 7 holidays -2,632 Chaircar 3,000 Coordinator 7,500 Promotion 5,p00 Total Gross Costs $132,676 INCOME Fares - 160 000 riders per year 65% at 25¢ $26,000 35% at 10¢ 5,600 Chaircar fares 500 Advertising I ,000 Total Income $33,100 NET OPERATING COST $99,576 LEXINGTON'S COST PER YEAR $49,788 MBTA's COST PER YEAR $49,788 Table A, 1 LEXINGTON MINI-BUS Fiscal 1980 BASIC OPERATING STATISTICS as amended 12 hours/day rslday weekdays 4 Buses , 8 Routes , 8 hours Saturdays I Chaircar , 8 hours l week FARES under 6 l0¢, 6-64 25(t, over 65 IO¢ chai roar 25(1 in town , $1.00 elsewhere GROSS OPERATING COSTS Buses $12.00lhour $ 165,696 Chaircar 3,000 Coordinator 7,500 Promotion & Administration 5,000 Total Gross Costs $181 ,196 INCOME Fares - 205,000 riders per year 65% at 25$ $33,312 35% at IN 7,175 Chaircar fares 500. Advertising 1 ,000 Total Income $41 ,987 NET OPERATING COST $139,209 LEXINGTON'S COST PER YEAR $89,209 MBTA's COST PER YEAR $ 50,000 • Table ,A. LEXINGTON MINI-BUS Fiscal 1980 BASIC OPERATING STATISTICS projected as of Oct. 1979 12 hours I day weekdays 4 Buses , 8 Routes , 8 hours Saturdays I Chaircar, 8 hours I week FARES under 6 100, 6-64 250 , over 64 100 chaircar 250 in town , $1.00 elsewhere GROSS OPERATING COSTS M Buses $ 15.39lhour $ 217,110A, Chaircar 3,000 Coordinator 7,540 Promotion & Administration 5.000 Total Gross Costs $232=,610 INCOME Fares - projected - - $50,000 Passes _ 15,000 Chaircar fares 500 Advertising 2,000 Total Income $67,500 NET OPERATING COST $165,100 LEXINGTON'S COST PER YEAR ' $90,000 MBTA's COST PER YEAR ' $60,000 r includes extra Burlington bus Saturdays and 3 school holidays Table A. 3 4 LEXINGTON MINI -BUS Fiscal 1981 BASIC OPERATING STATISTICS proposed hours I day weekdays 4 Buses , 8 Routes , 8 hours Saturdays I Chaircar, 8 hours I week FARES under 6 15(t , 6-64 30$ , over 64 15¢ chaircar 25(t in town , $1.00 elsewhere GROSS OPERATING COSTS Buses $17. 70 /hour $250,526 Chaircar 3,000 Coordinator 7,500 Promotion & Administration Total Gross Costs $266,026 INCOME Fares - $78,000 C ha i rca r fares 500 Advertising 2,500 Total Income $81 ,000 NET OPERATING COST $185,026 LEXINGTON'S COST PER YEAR $100,000 MBTA's COST PER YEAR $60,000- Includes extra Burlington bus plus one extra weekday in fiscal 1981 Reduced service not factored in. -.'-- TALE 2 LEXPRESS BUDGET OPERATING COSTS 1980 as 1980 projected 1981 Amended 1-Nov-1979 Proposed Buses 165,696 217,110 250,526 Chaircar 3,000 3,000 3,000 Coordinator 7,500 7,500 7,500 Promotion & Admin 5,000 5,000 5,000 Total Gross Costs 181,196 232,610 266,026 INCOME 15,000(passes) Fares 40,487 50,000 80,000 Chaircar Fares 500 500 500 Advertising 1,000 2,000 2,500 Total Income 41,987 67,500 83,000 NET OPERATING COST 139,209 165,100 183,026 META 50,000 60,000 60,000 LEXINGTON 90,000 90,000 100,000 BALANCE 791 (15,100) (23,026) Increased Burlington fare 5,000 6,000 One hour reduced service 9,234(30 wks) 17,983 BALANCE (866) 957 I I