Bathurst Transportation Project Final Report

The City of Bathurst and Bathurst Sustainable Development embarked on a feasibility study to introduce a wider range of transportation options in their community, to learn from the experience of others, to define its unique transportation needs and to design a system that draws on that experience to meet those needs.

ENTRA Consultants was retained by the City of Bathurst to examine the feasibility of introducing a public transportation system for the City.  The objective of the study was to develop an effective transit system that provides the level and quality of transportation that the community needs in the most cost-effective manner possible. Throughout the course of the study, it became apparent that a service option that required no municipal contribution should be an objective.

ENTRA Consultants’ work plan included:

~        close consultation with Bathurst Sustainable Development (BSD), who are responsible for public consultation elements and day-to-day project management;

~        examination of current transportation conditions in Bathurst;

~        identifying opportunities and constraints for the introduction of a transit service;

~        assessing the market potential for public transit system;

~        developing goals and objectives of the transit system;

~        developing detailed transit service options and evaluations;

~        selecting a preferred  transit service option;

~        investigating fare concepts, management and operation options;

~        developing implementation costs; and

~        developing an implementation plan for the selected transit system.

A steering committee of City staff and BSD staff provided guidance throughout the process.

The approach to implementing a public transit system in Bathurst is “to start small and grow” with the incremental growth in the system based on demonstrated success and growing demand for the service.

The results of the consultation process completed by BSD show positive signs for the overall success of the system within the community.  The summaries of the sessions were examined to identify key information in three areas:

n         specific issues of concern, or features to be included;

n         potential markets for the service; and

n         specific destinations to be served.

2.1.1     Issues and Features

Fares

One of the key features of this proposed service is its need to cover on-going capital and operating costs without subsidies.  With this objective, fare levels will be required that are higher than typical local transit fares.  Preliminary calculations indicated that an average fare exceeding $2.50 would be required to make the initial base service self-supporting.  This is based on limiting service high ridership areas and corridors (the average cost per trip in small systems in 2002 was $3.11). Typically, transit agencies offer volume discounts (in the form of a multi-ride tickets and monthly passes) and concession fares to children, students and seniors.

For systems serving small communities, the relationship between the average fare paid by all riders and the basic cash fare is about 70 percent.  This means that an average fare of $2.50 would require a base fare of approximately $3.50.  Based on a review of the consultation results, it is clear that the Bathurst community could be willing to accept a higher than normal fare, but it will be necessary to restrict discounts to volume purchases in the early stages.  Concession fares for specific market group such as seniors or students would be contingent on additional funding. This issue is addressed in detail in Section

5. Accessibility

The ultimate system should operate with vehicles that are fully accessible to passengers with a variety of mobility aids, including wheelchairs.  However, the issue of accessibility to and from the stop, within the community, will need to be addressed over time.

An issue was raised during the consultation sessions with respect to system accessibility for passengers with visual impairments.  There are a variety of special considerations for this market group, not only vehicle accessibility but also communication, information and fare media.  Recognizing that this market group could be an important element of the ridership and that the desirable features to facilitate travel bring associated costs, it will be important to asses the cost implications of the service, with a view to identifying either the fare impacts of addition funding requirements.

 2.1.2     Potential Markets

Students

Students, both high school and post-secondary, often represent a significant portion of urban transit ridership.  In Bathurst, these schools serve more than 2,000 students.  While many of these trips are from outside of Bathurst, and some (in the case of NBCC) from outside of the region.

The in-town component can still represent a significant demand for ridership.  Five percent of this group using transit on 200 school days represent an annual ridership of over 60,000.

Discussions were also held with both school boards and provincial representatives, focussing on the potential to divert current “yellow bus” trips to transit.  This market would be initially limited to those students being bused from within the proposed transit service area, and excluding those that can be more effectively served by rural routes as they enter and leave the city.

Further discussions with the school boards and provincial representatives will be required to determine the potential ridership in this area.  For students currently accessing mandated transportation, it is likely that this market will be a ‘second generation’ with service and terms negotiated with the boards once the service is established.

A more immediate and potentially larger market is that of the secondary students who are not served by board-provided transport, and post-secondary students.  Students generally represent an important travel market, not merely for the school commute trip, but for the variety of other trips they make as members of the community – to jobs, after-school and weekend activities.

Tourism and Hospitality Markets

Tourism and hospitality markets are not typically transit-oriented markets, and are often only considered for ‘specialty’ services such as tours.  However, a significant component of the Bathurst tourist market is non-auto oriented, with tourists arriving by coach and snowmobile.

While not expected to be a significant portion of the stable transit ridership, this market could still be an important part of the overall service.

Another, more stable, component of the market related to the hospitality industry is employees.  Typically among the lower paid workers in a community, hospitality industry employees often depend on unreliable or inconsistent transportation options, or devote an inordinately large portion of their wage to reliable transportation.  Providing a transit option can reduce personal expense for the employee and improve attendance and productivity among staff.

Seniors

Seniors are typically considered a mainstay of transit ridership, though their important as a ridership component is often overestimated.  In the mid-day market however, for shopping, medical and recreational trips, seniors form an important market base.  In the consultation meetings, shopping centres such as Bathurst Place and Chaleur Centre were receptive both in terms of accommodating passenger amenities at stop locations and recognizing the value of their customers.

2.1.3     Key Destinations

Based on a review of the consultation summary, the key destinations in the City have been identified as:

~         NBCC;

~         hospital;

~         downtown;

~         St. Peter Avenue retail;

~         Wal-Mart; and

~         KCIC and St. Mary’s Road.

The results of the community survey completed by BSD also show favourable results, even considering that people tend to over-estimate their potential use of a service when asked on a survey.

A review of the summary data reveals that the surveys are reasonably consistent with the overall demographic profile, and differ in expected areas for a transit oriented survey.  For instance, seniors are over-represented in the data (24 percent of responses versus 19 percent in the population), and drivers are under-represented (50 percent of employees versus 76 percent in the population).

The survey data has been used to identify popular work destinations, work hours, residential service areas and ridership estimates as part of the development of routing options.

For example, the survey indicates the top 3 work destinations as:

~         Main Street (18%);

~         St. Peter Avenue (16%); and

~         Sunset Hospital (12%).

Serving these three destination areas – hospital to downtown via St. Peter Avenue would serve 56 percent of work destinations of respondents.

In examining general destinations, results are predictable and encouraging.  Major destinations include:

~         malls (St. Peter Avenue);

~         grocery stores (St. Peter Avenue);

~         downtown (includes city hall, library, etc.); and

~         hospital.

Survey responses related to work hours indicate that the majority of respondents start work at 8:00AM or later, and finish by 6:00PM or earlier.  This is very valuable information, since the initial service will need to be limited to ensure its cost-effectiveness.

Key residential areas identified in the survey include downtown, the college area, Sunset and environs, and Riverside, followed by a wide variety of streets throughout the city.  Postal codes of respondents will be used to identify prominent home locations and attempt to identify the principal home-to-work markets.

To provide additional information and corroborate the survey results, the 2001 Census Community profile for Bathurst (city).

This profile is also used to develop an estimate of the potential transit demand that forms the basis of ridership estimates.

Population		Total  - 12,920	Percent
Age
	0 – 14	1960	15
	15 – 24	1575	12
	25 – 64	7110	55
	65 +	2285	18
Full-time Students		850
	High School	500	59
	College	350	41
Employed Labour Force		5170
	at home	270	5
	out-of-home	4900	95
Travel Mode to Work		4900
	Drive	3705	76
	Passenger	575	11
	Walk or Cycle	485	10
	Other (inc. taxi)	140	3
Households		5475
	Single Person	1550	28
	Couple with children	1295	24
	Couple without children	1745	32
	Other	885	16
Average Household
	Size	2.35
	Income	$36,136

 

2.3.1     Transit Demand Estimate

Based on the community profile and industry standard parameters, an overall demand estimate was developed.  It is important to note that this is an estimate of demand, not ridership.  This represents the total potential that may be attracted to a transit system when implemented.  Actual ridership will depend on service coverage, service frequency and fares.  These ridership estimates are being developed as part of the development of alternatives.

Employment Market

Based on an employed labour force of 5,170, total daily work trips are estimated at 8,800 (2 trips per employee and 15 percent absentee and vacation).  This represents approximately 2.2 million annual work trips by the entire labour force.  Work trips by transit in small communities is typically very low, and we have estimated a maximum 2 percent demand for transit.  This equates to a demand of approximately 44,000 annual work trips by transit.

ENTRA examined work trips another way to corroborate this figure, based on travel mode to work.  Currently 3,705 employees drive their own vehicle to work and traditionally this is the most difficult market to attract to work.  We have estimated the demand from this group at 0.5 percent or 8,000 annual trips.

The auto passenger market, 575 people, is easier to attract to transit and we have estimated demand from this group at 4 percent or 9,800 annual trips.

The walk or cycle market of 585 people is difficult to gauge since it is not clear whether this choice is based on distance, environmental or health choices, or cost.

Since this market will incur a cost to use transit, but is otherwise often receptive to transit use, we have estimated the penetration at 10 percent, or 25,000 annual transit trips.

The final group, “other” includes taxi riders, and we have estimated penetration of this market at 33 percent or 20,000 annual trips.  The total of this estimate is 62,800 trips.  This gives us an estimate range of 44,000 to 62,800 annual trips for the employment market.

Students

Student trips are also very similar to work trips, but typically much easier to attract to transit since many do not have access to a car.  The total in-town full-time student population of 850 students would generate approximately 250,000 school trips (based on 15 percent absence, 200 high school days and 150 college days).  The ability to penetrate this market is not clear, since we do not have accurate data on home locations and busing eligibility.  However, from demand estimation purposes, we have established a conservative range of 10 percent to 20 percent resulting in 25,000 to 50,000 annual trips.  Combined with the employment trips, this gives an approximate total ranging from 69,000 to 110,000.

Community-based Trips

This category includes all other trips made by members of the community, typically seniors and students (without access to a personal auto) and other trips made by persons who are not employed.

A portion of this demand is estimated for persons requiring some form of accessible transportation, not including those that required specialized service such as an attendant. 

This estimate is based on an observed trip rate model developed for the Canadian Urban Transit Association, and is based on a variety of community functions and the proportion of the seniors population.  Based on this market, demand for trips to medical, facilities, seniors recreation and shopping and such, is estimated at 25,000 annual trips.

Other community-based trips are based on the market population without access to a vehicle, estimated at approximately 2,500 people.  This includes groups not already accounted for including youth aged 11 to 14 years, and a portion of the adult population.

This group would generate approximately 5,000 daily non-work trips, or 1.5 million annual trips. Estimating a 10 to 20 percent demand for transit gives a demand range of 150,000 to 300,000 trips.

This results in a total potential demand range of 244,000 to 435,000 annual trips.  This demand does not represent a ridership estimate but is used as the basis of ridership projections and cross-checks in the service design.

The following goals for transit service in Bathurst were developed based on the review of the consultation and survey results, and direction from the Steering Committee.

ENTRA Consultants recommends the Service Goals for transit service in Bathurst as:

Developing a public transit system that:

~        is an innovative, integrated transit network offering convenient, reliable, cost-effective public transit service for the residents of Bathurst, at minimal cost to the Bathurst taxpayer;

~        is a basic system, cost-effective to implement and providing opportunity for services to grow and expand and;

~        has the capacity to attract a range of riders for a variety of trip purposes (seniors, students, tourists, workers, shopping, medical appointments).

The following objectives were then derived and used in the development and assessment of service options. These objectives should also guide the future development and growth of transit services in the community:

~        provide cost-effective alternative to private transportation services;

~        provide direct access to major destinations, including: schools, places of employment, major retail, hospitals, and recreation, particularly in the St. Peter Avenue corridor and downtown;

~        develop routes or service areas to provide direct access to major destinations with minimal transfers;

~        locate transfer hubs at major destination points; and

~        provide greater choice in service options to reach destinations in a timely fashion.

The economic goal for this service is to be self-supporting to the highest degree possible, without contributions from the Bathurst taxpayer. This is to be accomplished by establishing a fare structure and identifying external funding sources that can support the service.

It is important to note that current federal or provincial programs do not support transit operating costs, but are available for infrastructure support only. For this reason, the on-going operating costs of the service have been identified as the farebox revenue target for the system. This means developing a basic low-cost service that does not serve low-demand geographical areas or operating periods, combined with an average fare designed to cover those costs.

System start-up costs, including some initial operating deficit identified as a pilot project, will be sought to support the introduction of the service.

As a practical means of introducing transit service to the Bathurst area, ENTRA Consultants has applied these financial objectives in the development and design of the recommended service and fares. However, it is important to stress that, in our opinion, services should be supported by those that benefit from them, and the user is not the sole beneficiary of transit service in any community. Entire communities benefit from:

~       improved mobility;

~       access to employees for industry and commerce;

~       improved customer access for commercial and retail operations; and

~       reduced environmental costs (recognized by the GMEF funding in this project).

ENTRA believes that these community benefits warrant support from the community, in the form of tax subsidies to support a broader range of services than those recommended in this study.

The development of service alternatives began with the development of individual route options. Route options were identified that:

~       served important corridors or destinations, as defined in the service objectives; and

~       could be covered in either 30 or 60 minutes, permitting logical schedules and permitting effective combinations of routes.

These individual 30-minute route options are illustrated in Appendix A. A further set of options was developed on the basis of proposals from a local resident.  These are shown in Appendix B.

The next step in the development of alternatives was the combination of two or more routes into service alternatives that maximized the potential ridership and service area coverage. These alternatives included single route options, and combinations of 2 and 3 routes. Each route was also examined using the geo-coded survey results to estimate the potential demand within the catchment area of the route. For this purpose, the industry-standard 400-metre buffer zone was used, representing a walk length of approximately 5 minutes.

4.1.1     Single Route

Option 1

The single route option was developed to cover the major-corridor of the city, from the hospital in the north-west to East Bathurst. Illustrated in Figure 1, Option 1 consists of one route running from the hospital to the industrial park in east Bathurst primarily via St. Peter Avenue.  The entire round trip is 17.82 km with stops at the hospital, the Bathurst Place Mall, the Super Mall, the Info Centre and the industrial park.  When traveling southeast, the route uses Cunard, Main and Murray through the downtown core, and travels via York, King, St. George and Douglas as it returns northwest to maximize the area covered throughout the downtown.

4.1.2     Two-Route Options

Option 2A

Option 2A consists of the mainline route used in Option 1 plus a local route serving northwest Bathurst.  The local route is the 30-minute Route 5b (shown separately in Appendix A) and it connects with the express route at the hospital, the Info Centre, the Super Mall and the Bathurst Place Mall. This option is illustrated in Figure 2.

Option 2B

This option consists of the northwest local route seen in Option 2A but the mainline route is replaced by a local route serving downtown and southeast Bathurst.  The southeast route is the 30-minute Route 6 (shown separately in Appendix A) and it connects with the northwest route at the Info Centre. This option is illustrated in Figure 3.
 

Three-Route Options

Option 3A

Option 3A is similar to Option 2A, as it consists of the same mainline and northwest local routes, but has an additional local route serving the downtown and south Bathurst.  The south route begins at the Walmart just south of Hwy 11 and travels north along King through the downtown core to the Info Centre via St. Andrew and Douglas.  The route then returns to Walmart via Canard, Main, Murray and King.  The entire round trip is 9.13 km and could be completed in 20 minutes.  It connects with the northwest and express routes at the Info Centre. This option is illustrated in Figure 4.

Option 3B

Option 3B is similar to Option 3A but has a local route to the north instead of the south, with the express and northwest routes remaining the same.  The north route begins at the Bathurst Place Mall, travels north along St. Peter Avenue and east along Youghall and through the residential neighborhood around Gowan and Brae.  The route then continues north along St. Peter as it becomes Principale towards Beresford and loops around Jacques, Francois and Foulem.  The route then returns to its only connection with the northwest and express routes, the Bathurst Place Mall. The entire round trip is 18.86 km in length. As a route using a number of higher speed links, this would be allocated 30 minutes to complete. This option is illustrated in Figure 5.

Given the financial objective of full cost-recovery, cost and revenue considerations became the principal evaluation criteria for the services. This process included:

~       identifying the ridership within the route’s catchment area based on the survey results

~       factoring this ridership to reflect initial ridership estimates;

~       calculating projected costs, excluding start-up costs; and

~       calculating the resulting R/C ratio

Figure 6 shows the result of this evaluation. Based on these results, the two-bus options were the only ones considered to meet the criteria, with the potential to meet full cost recovery in a mature state. Option 1 does not provide enough coverage, while the 3-bus options are too expensive, with insufficient ridership to cover the additional costs. 

Option	Projected Ridership	Projected Revenue	Projected Costs	R/C ratio
Option 1	58,000	$156,500	$226,800	70%
Option 2A	149,500	$403,650	$412,395	98%
Option 2B	155,000	$418,500	$426,360	99%
Option 3A	161,500	$436,000	$544,320	80%
Option 3B	165,000	$445,000	$529,200	84%

A further evaluation step was taken to identify a single recommended route, by examining the remainder of the service objectives. On this basis, Option 2b was eliminated, since it requires all passengers to transfer between the two routes. Even though this transfer could be eliminated by interlining the routes (essentially combining them into one route), this would create much longer travel time for longer distance passengers, and limit the system’s ability to attract more ridership in the longer term.

Based on the evaluation parameters, the need to accomplish full-cost recovery within a reasonable start-up period, Option 2A is recommended (posted at the end of this page). It is important to note that this route system can be expected to meet the required cost recovery targets, where most other systems do not,  for two principal reasons:

~       a higher than average fare, achievable because the fares are being introduced at that level, rather than being increased from traditional lower levels; and

~       a significant portion of the City’s population within the catchment area of the two routes. To accomplish this in other communities, which to not have the same linear character as Bathurst, typically requires at least 3 or 4 buses, and similar to the evaluation of the 3-route options, the additional ridership typically does not compensate for the direct increase in operating costs.

To determine the specific economic performance for the preferred alternative, a more detailed review was completed, estimating the ridership over a period of maturation, as well as initial start-up costs.

4.4.1     Cost Structure

Operating Costs

Operating costs include amount for transportation operations (drivers and related costs), maintenance, fuel, plant (facilities and equipment) and administration. Costs were established based on hourly rates, per vehicle rates, or unit costs, depending on the cost item, and identified separately for costs to be incurred by the City or the contractor. For the basic operation of the transit service, these costs amount to approximately $328, 000 as shown in Figure 7.

 

 

 

 

Lease Costs

Lease costs were also included at a cost of $2000 per bus per month, for two buses plus one spare. Depending on the actual vehicle leased, individual bus costs may be slightly higher or lower than this rate, but the average is achievable.

Start-up Costs

Start-up costs are estimated at approximately $60,000, over and above the allowance of approximately $30,000 in staff time allocated to the operating costs.

4.4.2     Ridership and Revenue

Ridership Scenario

Ridership was based on the survey results from the community survey, identified with origins and destinations within the catchment area of the proposed routes. These results indicated a total of approximately 55,000 annual trips from survey respondents. If the survey is representative of the population at large, the sample size would factor these results to approximately 375,000 annual trips.

Because of the propensity of survey respondents to over-estimate their actual use of transit, and to account for some error in the randomness of the sample, this value was reduced by a conservative 60 percent, for an estimated ridership of approximately 150,000. Recall from the community profile section that the total estimate form these factored survey results is within the projected potential demand of 244,000 to 435,000. The 60 percent reduction therefore represents a reasonably conservative ridership estimate.

This ridership level represents a rate of approximately 11.5 rides per capita, compared to the Canadian average for small systems of 14.5 trips per capita. To further ensure reasonable estimates, it was assumed that this rate would not be achieved until the third year of operation, with initial trip rates as low as the lowest rate in the country (6.6 trips per capita), and that mature rates would reach  the 11.5 trips per capita rate, approximately 80 per cent of the Canadian average. In the second year, a middle rate of 9.1 trips per capita was assumed. These values give the annual ridership numbers as shown in the budget summary in Figure 8, Average Fare Scenario

The average fare required to achieve sustainability at the mature ridership levels is approximately $2.70 per trip. Based on recommended cash fare of $3.00, this average fare can be achieved with approximately 50 percent of riders using cash, 25 percent using 10-ride tickets, and %25 percent using monthly passes.

If discount tickets and passes are sold at rates considerably higher than these rates, it would have the effect of reducing the average fare, however, this scenario would also provide higher than expected ridership from this higher number of volume rides, with an offsetting effect on total revenue.

4.4.3     Subsidy Requirements

As shown in the budget summary in , the increasing ridership scenario creates a declining subsidy over the first three years. When start-up costs are included in the first year, the Year 1 deficit is approximately $225,000. In Year two, the operating deficit declines to approximately $85,000 an in Year 3 the deficit is projected at less than $10,000, for a total over the three years of approximately $320,000.

 

 

 

An important element of transit service in Bathurst is the potential environmental and community benefits.  With an estimated ridership in the mature system of approximately 150,000 trips, the potential reduction in GHG and other pollutants can be estimated.

Assuming that the average trip length in Bathurst to be accommodated by transit is approximately 5 kilometres. With an average fuel consumption of 10 litres/100 kilometres, each trip, if taken by car would require .5 litres of gasoline. Based on standard emission rates, each trip, if taken by auto, would then emit approximately 1.2 kilograms of carbon dioxide, 0.12 kilograms of carbon monoxide, 0.012 kilograms of nitrous oxide and 0.006 kilograms of volatile organic compounds. If we assume that all 150,000 transit trips were taken by auto, with a vehicle occupancy of 1.2 passengers per vehicle, the result is approximately 125,000 diverted auto trips annually.

Since a new transit service is being provided, the effect of these vehicles must also be accounted for.  Assuming small buses, approximately one-third of the benefit of using transit vehicles will be ‘given back’ by introducing new vehicles to the system.  Applying the per trip rates of the various pollutants as described above, this results in reductions of:

~       100,000 kilograms of carbon dioxide;

~       10,000 kilograms of carbon monoxide;

~       1,000 kilograms of NOx; and

~       500 kilograms of VOCs.

Individual riders who use the service every day, travelling the average trip length, will accomplish 40 percent to 50 percent of the “personal tonne challenge”, the Kyoto Protocol target for each Canadian to reduce their personal emissions by one tonne annually.

Hours of Service

The primary hours of the fixed route service will be Monday to Friday from 7:00 a.m. through 7:00 p.m.  Hourly service will be provided during all operating periods.

Transit Hubs

Transit hubs are located at major destinations to facilitate transfers between routes. The proposed transit hub for the introductory service is the downtown Tourist Information Centre. Amenities at the transit hubs would include shelters, schedule information, kiosks, phones and passenger seating.

Vehicles

The goal of the public transit system must meet the transportation needs of the total cross-section of Bathurst residents including the elderly and physically challenged.  The vehicle selected to provide this service will be fully accessible, such as low-floor buses and lift-equipped vans. 

Small low-floor buses (less than 30 feet long) will be used to provide the regular transit service as they are able to negotiate the street network of older residential areas and are perceived as non-intrusive in most residential communities.

During the implementation period, non-accessible buses may be used as a cost-saving measure to facilitate the establishment of the service, but accessibility shall be a short-term goal.

Fare Structure

In the City of Bathurst, a flat fare is proposed within the city boundary. The cash fare is recommended at $3.00 per trip, and incentive fares are offered through discounts obtained when purchasing tickets or passes.

Multi-ride passes are recommended in the form of a 10-ride ticket book or punch pass. It is recommended that the 10-ride passes be discounted 10 percent off the cash fare, thus costing $27.00.

A monthly pass should also be available for the Bathurst transit system at a cost of $100.00 per month. This would allow unlimited rides during the month.

5.2.1     Features and Prices

The public transit system will be called upon to meet the transportation needs of the full cross-section of Bathurst residents, including the elderly and physically challenged, as well as those living in the older, more compact residential neighbourhoods. The vehicles ultimately used to provide this service most appropriately should be fully accessible and easy to navigate on narrow streets even those without curb and sidewalks. Therefore, vehicles must be small, low floor, accessible buses for the fixed route and zone bus component of the service.

When acquiring transit vehicles, smaller buses (less than 30 feet long) should be considered as they are able to negotiate the street network of residential areas and are deemed non-intrusive in most residential communities. In transit use, these vehicles are powered by either diesel or natural gas engines and are expected to be operational for twelve to fifteen years if purchased new. The cost of these vehicles new, range from $250,000 to $350,000 although used equipment is frequently found offered for sale at much lower prices. Some estimates of available used vehicles have been found to be in the order of $100,000. Life-cycle costs of new versus used vehicles often favour used vehicles, but need to be evaluated on a case-by-case basis.

Vans have a much shorter life span, ranging three to five years, and costs for new vehicles are between $20,000 to $70,000, depending on the intended use for the vehicles. Vans required to transport those individuals with physical and mobility disabilities, are subject to Federal regulations. These regulations would require that the vehicle meet Federal safety standards for lifts, wheelchair tie downs and van bodies mounted on heavy-duty chassis.

5.2.2     Ownership versus Lease

Vehicles can be purchased or leased within the current supply industry. Also, leases are available both as an alternative financing option for new vehicles (lease to own), and as a long-term rental option. In this latter alternative, the lessee must select from available supply of used vehicles, but the costs are typically much lower than lease financing rates.

The City, if it owns the vehicles and allows the private sector contractor to use and maintain the vehicles to specific standards, will have greater control over the performance and monitoring of the service delivery. As well, there is the opportunity to attract funding, from community sources and particularly from the other levels of government for infrastructure that currently includes vehicles.

However, even used vehicles require a considerable capital investment, which may not be affordable in the current scenario, and may not be appropriate for a pilot-type project as proposed. Leasing permits improved cash flow by eliminating the capital investment requirement and operationalizing vehicle costs. If a private sector contractor were to supply the vehicles, the opportunity to attract funding would likely be lost and the costs for the acquisition of the vehicles and capital equipment would certainly be included in the contractor’s higher operating costs.

In this case, it is recommended that Bathurst lease used vehicles for the introductory phase of this assignment. A longer-term decision to buy or lease vehicles should be based on the availability of subsidy support from upper levels of government that may be available at the time.

Fares have been established based on the results of the community survey, with a view to achieving as close to 100 percent cost recovery as possible, within the context of the recommended service levels. Based on ridership estimates for the recommended service, a break-even fare that averages approximately $2.70 is required. Details of this calculation are included in the budget details in Appendix D.

Different fare structures can be created to provide different fares to different socio-demographic groups or rider classifications, while resulting in the required average fare.  These fares are usually based on the undiscounted cash fare, which is the base level fare, usually reserved for single-ride adult fare. Derived from this base level, transit systems typically provide a structure of concession fares and incentive fares.

Concession Fares

Concession fares are discounted fares based on percentage discount from the base cash fare. Concessions are typically offered by other systems to:

~         seniors (65+);

~         children (up to 14); and

~         secondary students.

Discounts typically range from 25 percent to 40 percent, with the largest percentage discount often reserved for seniors and children. In most systems, post-secondary student fares are not discounted, except as part of a U-Pass system (see incentive fares).

Incentive Fares

Incentive fares are discounts offered for high-volume travel, or travel in off-peak periods when marginal costs are lower. Typical incentive fares offered by other systems include:

~         monthly passes, providing unlimited rides in a one-month period, with a pass price ranging from 20x to 80x the ticket price;

~         multi-ride passes, providing a lower discount than the monthly pass, but available in smaller increments, such as 10-ride passes;

~         day passes, allowing unlimited rides during the off-peak periods, typically priced at 1.5x to 2.0 x the cash fare;

~         extended period passes, usually offered to seniors (annual) or students (semester), allowing unlimited rides for the period. Seniors annual passes are sometimes offered at substantial discounts (e.g. $50-$100 annually);

~         U-pass (U for Universal and University), are sold to university/college students as part of their student activity fees. Implemented only after a student referendum, these passes are a mandatory increment to the activity fee, and offer substantial discounts based on the volume of sales; and

~         specialty passes, offering free service to specialty groups, or through contract sales. Examples include Canada Post, CNIB clients, downtown merchants.

5.3.1     Recommended Fare Structure for Bathurst

The cash fare is recommended at $3.00 per trip, and incentive fares are offered through discounts obtained when purchasing passes. Since the initial target market is expected to be primarily seniors and students, and the objective is to provide as close to 100 percent cost recovery as possible, concession fares based on age are not appropriate, but should be monitored over time. 

Multi-ride passes are recommended in the form of a 10-ride ticket book or punch pass. It is recommended that the 10-ride passes be discounted 10 percent off the cash fare, thus costing $27.00 for a book of 10 ($2.70 per trip).

A monthly pass should also be available for the transit system at a cost of $100.00 per month. This would allow unlimited rides during the month. This equates to the cost of 40 rides at a discount of approximately 15 percent. It would also permit unlimited rides, recognizing that the potential for significant additional ridership in the introductory system is limited.

Based on the projected ridership and fare classifications, this will result in an average fare between $2.70 and $2.80, as required to meet the cost recovery targets.

5.3.2     Recommended Fare Collection System for Bathurst

For the proposed public transit service in Bathurst, and given a relatively small fleet, the mechanical fareboxes are recommended. The primary function of the mechanical farebox is to provide a secure environment for the depositing of fare media while the vehicle is in the revenue service. In the short-term, these are the essential functions that are needed.

The organization supporting delivery of transit services in Bathurst can be selected from a variety of options independent of the nature and types of service operated, although some structures are more suited to certain delivery schemes than others.

The range of options falls on a continuum of varying city involvement, intervention and control.

5.4.1     Corporate Concepts

Corporate structures for transit services range from complete privatization to complete operation and contract management.

At one extreme is complete privatization, where the City has absolutely no involvement.  In its absolute form, this format is non-existent in the public transportation and transit industry today.

Regulation

The first element of municipal control comes with regulation.  This would be similar to the existing taxi system, where operators are completely private ventures, but subject to some degree of municipal control though the regulation of the taxi by-law.  Similar to deregulated privatization, no municipal funding is involved at this stage.  Again, the absence of funding makes this model non-existent in the transit industry.

Brokerage

Operating a brokerage is a variation of active involvement, where the City contracts different aspects of the service to different operators, and has a pool of operators under contract to provide service on demand.  In the Bathurst setting, given the limited amount of service to be provided, this option is not practical.

Partial Operation

The next step in the continuum sees the City getting involved in the actual operation of the system.  At the partial level, this creates a hybrid system where the city contracts out some of the service and takes full responsibility for the operation of other elements.  In a service delivery system that included fixed route buses and demand-responsive sedans or vans, for example, the City could take responsibility for operating the fixed route component and contract out the other demand-responsive components of the service.  This is a popular model throughout the transit industry, with many cities operating their own conventional systems and contracting out paratransit services.  In other cases, cities operate conventional services in some geographical parts of their service area, and contract out the services in other areas.

Complete Operation

The other extreme of the continuum is complete operation of the system.  In this context, the City takes full responsibility for all aspects of the system.  In some settings, external funding may still be acquired, for example, from the Province.  In these cases, conditions may be set by the funding agency on the use of those funds.  Beyond these conditions, however, the City has full control of all aspects of the service.

Contract Management

Similar to the current arrangement with the transit operator, contract management involves complete private operation of the services, but under contract to the City.  Within this option, there is also a range of applications, involving different levels of intervention by the city.  As in the current case, city involvement in managing the service through contract management and monitoring could be quite passive.  In other applications, the city could have considerable active involvement in the non-operating aspects of the service, including planning, complaints handling, revenue management and such.  In these cases, responsibility for the management of the system could be delegate to a municipal department, or delegated to a newly formed commission, whose mandate is the effective delivery of transit services.  This is a model with some precedent in Bathurst, including the operation of the airport and recreation centre.  In the transit industry, contract management is a common model in small systems, particularly in Ontario.

5.4.2     Recommended Corporate Option

Our recommendation is that the City maintain responsibility to interface with the public and the planning and monitoring role, and provide vehicle support functions through a separate commission.  This group should contract the rest of the service delivery and operation to the private contractors in the municipality.

 This provides for the following benefits to Bathurst:

~        maintains city accountability through the commission and responsibility to the public for the delivery of an effective transit system according to stated goals and objectives;

~        provides more responsive to growth pressures and service demands;

~        maintains control over expenditures, performance, policy, direction, resources, fares, and standards;

~        continues to support private sector involvement in service delivery;

~        minimizes costs associated with maintenance, storage and repair of vehicles and related equipment;

~        eliminates long-term commitments beyond contract;

~        minimizes ongoing municipal staff commitment; and

~        allows better monitoring control and service development.

Within a contracted management system, both the Commission and the contractor are responsible for various aspects of the system.

Commission Responsibility

The Commission should be responsible for:

~        coordinating marketing and public relations;

~        monitoring progress;

~        leasing, storing, maintaining and repairing vehicles (using City resources under a fee-for-service agreement);

~        administering service delivery contract; and

~        planning and service modifications.

With the introduction of a public transit system in Bathurst, there will be a need for Commission staff to assume a role in the development of both a marketing initiative and a public relations program; both endeavors are essential to the success of the transit service.

The Commission will need to identify a staff person to administer the system, reporting directly to the Commission, to oversee the implementation of the new transit system and to ensure that the project is proceeding according to the Commission’s direction. In the early stages of implementation, it is likely that implementation will require dedication of close to a full-time equivalent with some access to external transit services expertise for guidance. With available start-up funding, this portion of the implementation could be managed through Bathurst Sustainable Development, or similar group.

This group, together with the Commission Administrator would develop a detailed work plan for the implementation plan. The work plan would outline the tasks and activities required to launch the new transit service.  Also, the work plan would need to be coordinated with city staff and stakeholders and would identify the available resources through programs offered by city departments with the aim to use these programs if they can benefit transit or the city as a whole.

For example, the Economic Development department could contact the local business community to inform them about the new transit service and obtain commitments to advertise on the new route guide or support the launch of the new service as identified by the Transit Administrator. Similarly, the presence of a transit system in a municipality frequently helps the economic development branch sell potential clients on the idea of locating their business in a municipality.

Similarly, the City’s purchasing department could participate in preparing and issuing service contracts for the transit system with the direction of the Commission Administrator.

The other departments of the City can also be called upon to help establish monitoring processes to gauge the support for transit and to assess service delivery and economic impacts of the system as well as plan future directions for service expansion. All services provided by City departments to the Commission would be on a fee-for-service basis.

As the system progresses past the initial launch and implementation stage, the work and costs required to manage the system will be reduced considerably, as will the involvement of other city departments who will have been called upon to provide services to assist in the launching of the new transit system.  Costs associated for the City and Commission have been incorporated into the budget, and are part of the on-going cost-recovery scheme. The higher start-up costs have also been identified, and are the subject of separate requests for funding from outside sources.

Municipal Responsibility

Drawing on the Commission experiences in the delivery of City services, Bathurst will be responsible for:

~         establishing the Commission membership and staff, in accordance with City practice and legal requirements; and

~         generating the financial viability of the Commission operation through various financial means such as low- or no-interest loans, in accordance with City practice and legal requirements.

Contracted Services

Within this framework, the Commission of Bathurst should contract the following services for the transit systems:

~        scheduling and dispatching;

~        operation of bus services, including all personnel-related tasks associated with drivers such as hiring, training and monitoring, payroll and such; and

~        revenue-reporting and control.

Contract terms should include the budgeted number of trips, cost and price structure, reporting requirements and service standards such as customer service and vehicle standards.

5.4.3     Marketing and Public Relations

The introduction of an innovative public transit system in Bathurst will require an investment in a marketing program aimed at attracting potential riders onto public transit. It was evident from the community surveys that there is sufficient interest in the community for public transit. However, it is imperative that all the potential market segments identified be made aware of the new service and how to use it.

It is essential that the marketing program penetrate the different markets and create an upscale image of the new transit service. The program should identify the advantages to be gained by supporting the service including features such as accessibility, frequency, convenience, riding comfort, affordability as well as achieving social objectives such as support for the environment, reducing green house gases, etc. will also have to be incorporated into the marketing plan.

One of the first tasks the transit marketing plan will be to get support and commitment for the service concept from the City, the business community and the area community and social agencies. A transit route guide is a vital component of an effective marketing plan for the transit system should be developed as a primary component. Flyers, public service announcements on TV and radio, media reports on the progress towards launch, speeches at local gatherings, “name the bus” campaigns, are other examples of low cost, effective marketing components of the overall plan.

For the general public, presenting the new transit system as being simple to understand and to use will require the printing and distribution of easy-to-read ride guides which provide rider information on routings, schedules and fares, and policy information.  These guides will need to be accessible to many people with special needs, particularly those with low visual abilities and individuals with developmental disabilities. The guides will also need to be available in various formats, including printed materials, electronic, and web pages. This will encourage potential riders across the whole age spectrum to consider using the new service.

The route guide should also include how to request service, hours of service, frequency of service, a map outlining routes and areas of service, fares, stop locations, location of transit hubs, general information and contact numbers. Advertising on the route guides could also be a generator of revenue for the transit system and could help to offset costs of the marketing initiatives.

Although its most important contribution to service success will be noted during the introductory phase of the service, a transit marketing program and budget for a less intense program should still be maintained and administered by the Commission. Although the route guide would be available to the general public, it will still be necessary to target specific market groups to make and keep transit in the forefront.

In Bathurst, specific target markets would include:

~        seniors homes and social activity centres and agencies;

~        educational institutions both staff and students at the colleges and high schools;

~        the hospital for both employees, volunteers, students, and patients;

~        St. Peter Avenue and Downtown merchants; and

~        tourism would be targeted through the hospitality, entertainment and accommodation organizations.

In each case, information programs will be tailored to the target market and refined through consultation with the respective interest groups.

For example, a marketing plan aimed at seniors would include site visits to seniors homes, seniors recreation centres and other locations convenient to these groups. The aim of the targeted marketing is to familiarize seniors with the vehicles and equipment as well as providing instruction on how to read and understand bus schedules and fares, how to get information and how to get around.

Secondary school marketing should emphasize service frequency, flexibility, mobility and offer fares passes particularly to a market without access to personal transportation.

Post-secondary school marketing would emphasize similar features as well as additional benefits to college students by reducing the need for private transportation and the resulting savings in maintenance and insurance for automobiles.

Federal Infrastructure Program

The 2004 federal budget formalized the Municipal and Rural Infrastructure program (MRIF), intensifying the previously-announced funding program over 5-years. The goal of this program is to provide some balance to the range of large funding announcements for large cities, by establishing a fund specifically for small cities and rural areas to support programs in transit, clean water and waste management.  Specific details for this program are still pending.

Federal Tax rebates

In the 2004 Budget, the federal government confirmed its commitment to the complete rebate of the current GST (currently 3 percent of municipal purchases), with the intent that these funds be used “for improved roads, better transit, clean water and expanded local services.”

The budget also reiterated the government’s commitment to “working with the provinces to share with municipalities a portion of gas tax revenues or to determine other fiscal mechanisms which achieve the same goals.” While the timing of these provisions are far from certain, additional funding in this form could be used to finance the expansion of the Bathurst system in the future.

Green Municipal Enabling Fund

This feasibility study was funded through the City of Bathurst in partnership with the Green Municipal Enabling Fund (GMEF). This fund, funded through Infrastructure Canada and administered by the Federation of Canadian municipalities, is designed to give municipalities the opportunity to explore opportunities prior to making investment decisions on elements of sustainable communities. Grants cover up to 50 per cent of eligible costs to a maximum grant of $100,000.

GMEF is open to Canadian municipalities and their public-sector or private-sector partners. Applications are accepted each spring and autumn.

Green Municipal Investment Fund

The Green Municipal Investment Fund (GMIF) is a permanent revolving fund that supports the implementation of innovative environmental projects. Through GMIF, a municipal government can borrow at a preferred interest rate. Public and private-sector partners of municipal governments are also eligible for loans. GMIF finances up to 15 percent of the capital costs of a qualifying project. GMIF can also provide loan guarantees. Loan payback periods may range from four to ten years.

GMIF also provides grant funding for pilot environmental projects that are highly innovative, but have a loan payback period in excess of 10 years. Pilot projects with the potential for significant impact and replication on a regional or national basis are considered. Grant funding permits these projects to be structured in ways that offer acceptable payback periods and levels of risk.

Projects must improve air, water or soil quality, protect the climate or promote the use of renewable resources. They must also significantly  improve environmental performance or energy efficiency in these areas of municipal infrastructure:

~        energy and energy services;

~        water;

~        solid waste management;

~        sustainable transportation services and technologies; and

~        integrated community projects.

 

6.1.1     Provincial Partnership

In the absence of provincial transit funding, efforts should be made to partner with for provincial welfare and health care agencies, to support transportation services for their clients. Also, in concert with federal plans for gasoline tax rebates, cooperation of the provinces will be sought in these programs, opening up the possibility for future funding in this area.

6.1.2     Private Sector Partnership

Private sector opportunities can be explored through involvement with the BIA, Chamber of Commerce, visitor and convention bureau and other local agencies. Opportunities such as funding for Rider’s Guide production in return for advertising space or commitments to long-term advertising contracts to ensure revenue streams are possibilities. The potential for community funding of the capital cost of public transit equipment such as ticket dispensers, shelters, passenger should also be explored.

Vehicle sponsorship for innovative technologies may be available through Sustainable Development Technology Canada, a group whose mandate includes supporting the introduction of hybrid bus technology in Canadian cities. However, given the costs of the vehicles involved, even with shared contributions, this is likely an avenue that should be reserved for the longer-term stable system.

The process developing and introducing the proposed transit system is multi-faceted and although there are distinct sections in the process, there is also considerable overlap of functions, all of which blend into the making of the final product.

Approval and acceptance of the recommendations is the last step of examining the feasibility of an innovative public transit service and the first step of the implementation.

In the development of the implementation plan commitments must be made by Council in the Commission as they involve funding and support. Thus from the outset it is imperative that council endorse the concept of providing a public transit system and commit to supporting the establishment of the Commission.

6.2.1     Organizational responsibility

A first consideration for the Commission in the implementation is defining organizational responsibilities and governance structures, staffing, resource requirements and such:

~        Hire/appoint a staff person responsible for the implementation and monitoring of the transit system – provide some training; develop a job description.

~        Establish launch date (could take place as early as 2 months from the time of Council approval); then establish the timelines.

~        Establish a resource to access expert transit planning and delivery expertise on an as needed basis.

~        Orient the senior and management staff of new transit responsibilities and their role in ensuring the success of transit in the community.

6.2.2     Service Delivery

Preparation for service delivery includes:

n         finalizing routes and schedules;

~        refine the routes and develop the complete schedules; run the routes; refine stop locations;

~        adjust and finalize service standards if required;

~        prepare separate tender specifications and bid documents for the contracted service. Specifications should consider:

~        scope and purpose of tender;

~        pre-qualifications of prospective bidders;

~        appropriate tendering period;

~        length of contract;

~        contract and monitoring adherence stipulations;

~        method of payment;

~        the need for and applicability of performance bonds;

~        training requirements – drivers, communications;

~        reporting requirements, formats and frequency;

6.2.3     Marketing and Advertising

Marketing and advertising the system is another step in the implementation plan.  A marketing strategy should be developed along with an advertising campaign designed to create public awareness of the system.  Included in this process will be an identification of the system, information and point of contact locations.

~        Launch a “name the service” campaign, with prizes for most innovative name or logo.  Ensure media coverage of the event and solicit community sponsors for prizes and advertising.

~        Develop a public transit map and guide, showing ALL transportation services within the community.  Advertising space on this guide can be sold to local business to defray the cost of production.

~        Organize a launch party to raise the profile of the system at start-up. Include local, provincial and federal representatives and FCM.  Include free transit, vehicle tours and information distribution at the launch site and throughout the city.

~        Develop a familiarization program for key stakeholders, demonstrating how they can help in the marketing and orientation for the new service.  Include groups such as:

~        hospital/senior centres, schools/colleges;

~        Visitor Convention Bureau;

~        Chamber of Commerce; and

~        BIA.

Work with the stakeholders and community groups to hold site visits for orientation, tailored marketing materials for each group and develop cooperative training and orientation for those individuals with special needs.

Plan an effective media campaign with radio, TV, local newspapers, electronic media and web.  Ensure a variety of information distribution methods to area residents.

6.2.4     Equipment

It is assumed that the buses, fareboxes and radio communication equipment for the bus service will be leased by the municipality in which case the city will determine the number and type of equipment to be used in the operation of the transit service, based on availability.

The acquisition of used buses should include a review of available vehicles across Canada and US to ensure best value for vehicles. Ensuring accessible, low-floor vehicles is a vital component in the delivery of successful transit, but in the initial step, vehicles may not  be accessible, based on lease availability. In this case, it will be important to assure residents that the long-term goal of the service is to provide an accessible system.

Facilities

Ensure that adequate facilities are provided for at municipal or contractor locations.

Bus Stop and Stop Furniture

Bus stop sign and shelters will need to be provided by the city regardless of who operates the system.  The implementation step includes determining the number of bus stop signs and parts required. Fixed-route stops should be located at major intersections and in front of major origins and destinations such as seniors centres, plazas and such. Other steps include:

~        determine number and size of transit shelters and accessories required;

~        develop system identification (logos, colour scheme) on buses, shelters, and signage;

~        design and print fare media; and

~        define distribution system.

6.2.5     System Launch

Specific activities related to the system launch include:

~        pre-service system testing;

~        information system deployment;

~        conducting test runs for familiarization;

~        testing communication equipment;

~        launching publicity campaign for start-up, including free transit days; and 

~        high profile publicity at launch event.

6.2.6     Monitoring – Report Card

Monitoring is a crucial component of the operation, both from proper management, as well as reporting to agencies such as GMEF.  The monitoring program should include:

~        monitoring routes and schedules, for schedule adherence and appropriate timing;

~        monitoring complaints and complain resolution; and

~        monitoring ridership and diversity of ridership, as well as other objective indicators.

A detailed follow-up review after one year should be conducted to ensure that the system is operating as intended.  This would include:

~        measuring the system performance against objectives and measurement criteria developed;

~        involving the public in developing the assessment process; and

~        make recommendations for improvements.

ENTRA Consultants, on behalf of the City of Bathurst and Bathurst Sustainable Development, has investigated the feasibility introducing a public transit system for the City.

As a result of this study, ENTRA Consultants has concluded that an innovative public transit system is feasible and recommends that the City of Bathurst Council proceed with the introduction of the public transit service. 

It is recommended that Council approve:

1.       The implementation of an public transit system using based on Option 2A as described in this report.

2.       That management of the system be delegated to a municipal Commission established by the City in accordance with City practice ad legal requirements.

3.       The Service Goals for an innovative public transit system for Bathurst to be:

Developing a public transit system that:

~        is an innovative, integrated transit network offering convenient, reliable, cost-effective public transit service for the residents of Bathurst, at minimal cost to the Bathurst taxpayer;

~        is a basic system, cost-effective to implement and providing opportunity for services to grow and expand and;

~         has the capacity to attract a range of riders for a variety of trip purposes (seniors, students, tourists, workers, shopping, medical appointments).

4.       The Service Features as follows:

~        Hours of Service:

~        7 am through 7 pm; Monday through Friday;

~        9:30 am through 6:30 pm on Saturday;

~        Frequency of Service:

~        60 minute service during all operating periods (Note: the design of the routes is such that 30-minute service is provided in the common area of the 2 routes, in the St. Peter corridor;

~        the lease of 3 (including one spare) accessible previously owned buses. In the short-term, buses may not be accessible, depending on availability;

~        Locate Transit Hub at the downtown Information Centre for  passenger transfer and transit information

~        Fare Structure as follows:

~        $3.00 cash fare;

~        $27.00 for 10 rides (tickets or passes); and

~        $100.00 monthly (unlimited use pass).

5.       Preparation and tender of the following public transit services from the private sector:

~        scheduling and dispatching for all of the public transit services;

~        the service delivery of the fixed route services.

6.       Appointment of a Commission Administrator, to oversee the implementation of the transit service based on the implementation plan in the previous section.

7.       Implementation of an aggressive marketing campaign to support public transit and that a first step in this process be a “name the transit system” contest for all area residents to enter.

8.       The startup costs and ongoing costs and revenues as shown in Figure 8.

Budget Details