COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

July 12, 2002

BOARD MEETING DATE:

August 6, 2002

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Changes in the County Commute Alternatives Programs - East Bay Shuttle and Vanpool Program

Recommendation

Adopt a resolution authorizing the Director of Public Works to:

a)

discontinue the "trial" employee East Bay Shuttle Service effective August 30, 2002;

b)

transition the County operated vanpool program to a program operated and maintained directly by program participants by July 1, 2003; and

c)

expand the transit subsidy to County workers participating in vanpool programs that are directly operated by the participants.

Previous Board Action

*

Established the Commute Alternatives Program in 1992 and authorized a subsidy of $20 per month for County employees who purchase transit tickets through the County's centralized program.

*

Approved subsequent resolutions in 1995, 2001 and 2002, which increased the subsidy to $75 and expanded the program to include a $20 per month subsidy for County employees who walk, bike, carpool, or vanpool to and from work.

*

Authorized the Director of Public Works to initiate a "trial" East Bay Shuttle Service.

Key Facts

Extending the trial East Bay Shuttle is not warranted given the cost of operating the shuttle coupled with the low number of employees using the service.

The County Vanpool Program is not cost competitive when compared to our other commute alternative options the County finances; and other vanpool options are available which can draw from a larger pool of riders and which can provide more flexibility for the employee.

Discussion

East Bay Shuttle

Your Board authorized, in December of 2001, the implementation of a free shuttle service from the San Leandro (Bayfair) BART Station for County employees working in the San Mateo Health Center and the Redwood City Government Center. This trial program was approved to determine if there was enough interest to implement a shuttle on a long-term basis or to generate interest in SamTrans taking over the service as a regularly scheduled route. Ridership on the shuttle has been very disappointing since its inception with generally less than ten (10) individuals in a bus on any given trip. The cost of operating the shuttle is also prohibitive as it costs approximately $700 per month per rider or approximately $32.50 per round trip per rider. The cost would still exceed $300 per month per round trip per rider even if the current size buses were fully occupied. Therefore it is recommended that the service be discontinued effective August 30, 2002. This should give the shuttle users time to find other commute alternatives.

Current Vanpool Program

The Vanpool Program was started in 1995 through a grant from the Bay Area Air Quality Management District for the purchase of the first van. Thirteen (13) employees participated in the first vanpool. The program gradually expanded to its current size as additional vans were acquired through grants or by using reconditioned vans from the County Motor Pool. There are currently 77 employees participating with round trips ranging from 29 miles to 194 miles per day. The original cost to the employee was $32.80 per month and the County cost per employee was $18.35 per month. Replacement costs were not included in the initial cost allocation methodology as the van was paid for by the Air District grant.

The per rider fee for each of the vanpools has generally not been increased since its inception; however the cost for operating the program has increased. In addition, the vehicles will need to be replaced as they reach the end of their serviceable life. Based on the current cost of the program and factoring in a vehicle replacement fee, the net County cost for the twelve (12) vans is $10,283.10 per month; an average of $133.55 per employee per month or $69.40 per employee per month excluding van replacement costs. The employee monthly fee ranges from $33.25 to $66.78 per month.

This program also involves the most staff time of the Commute Alternatives Program to administer on a per user basis and is becoming more difficult as the program has grown. Staff has to follow-up with individuals that are delinquent with their monthly payments, there are disagreements among the riders that must be mediated, it is difficult to ensure that there are qualified drivers, and staff has to also monitor the vanpools to ensure that there are no abuses (i.e. unauthorized use of the vehicles) or violation of the vanpool program rules.

We also researched other programs and the County is the only employer that we are aware of which owns, maintains, and runs a vanpool program for its employees. Other companies that offer this program do so through assisting employees to privately establish and operate vanpools.

Vanpool Transition Plan

We are proposing that the current program be phased out by July 1, 2003. In the interim, we will work with a qualified Transportation Demand Management (TDM) organization such as the Peninsula Congestion Relief Alliance, to arrange meetings for existing and interested vanpool users where they can receive information and training on forming a vanpool and hear presentations from vendors that lease vehicles and provide insurance, maintenance and emergency break down assistance as part of the vanpool lease.

TDM organizations in some instances also provide cash incentives for vanpool drivers and users. Under this plan, the potential vanpool groups can also access "Rides for Bay Area Commuters" to assist in the formation of vanpools by using their extensive database to match the location and working schedules of individuals interested in forming vanpools or simply carpooling. In private vanpools, the passengers are not limited to only employees of the County.

We will also provide periodic meetings in the future to make other employees aware of the vanpool option.

Vanpool Subsidy

We are also recommending that the existing $75 maximum per month subsidy that your Board authorized on July 9, 2002, for transit riders, be extended to vanpool riders who participate in non-County operated vanpools. Vanpools are generally designed to connect locations that are not served by transit and the subsidies can qualify as a tax exempt fringe benefit as long as the vanpool meets the federal guidelines (i.e. the vehicle used for vanpooling must have seating capacity of at least 6 (excluding driver) and be used at least 80 percent [80%] of the time for the intended purpose). We also propose that the subsidy would become effective September 1, 2002, for those individuals who transition to a privately run vanpool that meets federal guidelines.

Comparison of Costs

The following is a cost comparison summary of the vanpool program based on the costs "At Inception," the "Current" costs, and the proposed "Rideshare" costs if the transit subsidy is extended to the vanpool users. "At Inception" and "Current" costs are based on actual data; "Rideshare" costs are based on the information attached from one of the vendors and assumes 11 eight passenger vans and one 12 passenger van; average fuel consumption of 15 miles per gallon; fuel at $1.70 per gallon and the existing mileage of 13,971 miles traveled per month.

Vanpool Monthly Cost Comparison

At Inception in 1995

Current

Rideshare (Future)

Total Employees

13

77

100

Drivers / Vans

1

12

12

Capacity

15

103

100

Miles Per Month

1,290

13,971

13,971

Cost Per Mile

$0.49

$0.57

N/A

Fuel Cost Per Month

N/A

N/A

$1,585

Lease Cost Per Month

N/A

N/A

$11,640

Mileage Cost Per Month

$632.10

$7,963.47

N/A

Replacement Cost Per Month

$0.00

$4,939.50

N/A

Total Cost

$632.10

$12,902.97

$13,225

Total Employee Payment (Less Subsidy)

$393.60

$2,619.87

$5,725

County Subsidy

$238.50

$10,283.10

$7,500

County Cost Per Employee Per Month

$18.35

$133.50

$75

Employee Cost Per Month

$32.80

$33.25 - 66.78

$57.25

Vision Alignment

We believe this recommendation is consistent with the Shared Commitment to "redesign our urban environment to increase vitality, expand variety, and reduce congestion," and Goal Number 10, "residents have public transportation choices that are convenient, affordable, accessible and safe," as these changes to the County's Commute Alternatives Program will hopefully result in leveraging County funds to allow more employees to use alternatives rather than commuting in the single occupant vehicle.

Fiscal Impact

The cost of the employee shuttle service is currently $14,704.20 per month. The full cost of the service was included in the Half Cent Transportation Fund budget for fiscal year 2002-03. Therefore eliminating this service by August 30, 2002, will result in a $147,042 being available to subsidize other employees in the Commute Alternative Program or fund other programs for fiscal year 2002-03.

The cost of the vanpool program excluding administration is anticipated to be $130,000 for fiscal year 2003-04, and is proposed to be funded by the Half Cent Transportation Fund . The cost of providing a $75 per month subsidy for the current 77-vanpool users that may form private vanpools will be $69,300 per year, or $90,000 per year for 100 employees in the Rideshare example shown above. Therefore transitioning this program can result in approximately $40,000 to $61,000 being available to subsidize other employees in the Commute Alternative Program or to fund other programs for fiscal year 2003-04. Some of these savings will likely occur in fiscal year 2002-03 as we anticipate some employees transitioning to the non-County vanpools before the end of the current fiscal year.

There is no impact to the General Fund.

A form of the resolution has been approved by County Counsel.

A copy of this report has been sent to all the riders of the East Bay Shuttle and to the vanpool users. We will report to your Board any comments that we receive.