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An evaluation of a transit supply program : the case of British Columbia Chan, Eugenia Kam-Yung 1980

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AN EVALUATION OF A TRANSIT SUPPLY PROGRAM -THE CASE OF BRITISH COLUMBIA by Eugenia Kam-Yung Chan M.Sc, The Univ e r s i t y of Hawaii, 1971 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION i n THE FACULTY OF GRADUATE STUDIES ( Commerce and Business Administration) We accept t h i s thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA December, 1979 Eugenia Kam-Yung Chan, 1979 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of Brit ish Columbia, I agree that the Library shall make i t freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the Head of my Department or by his representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department The University of Brit ish Columbia 2075 Wesbrook Place Vancouver, Canada V6T 1W5 > E - 6 B P 7 5 - 5 1 1 E ABSTRACT This thesis examines and evaluates the supply of t r a n s i t service to small c i t i e s i n the Province of B r i t i s h Columbia. A l l l e v e l s of supply are investigated: the government funding program, the Public Marketing Agency which implements the program, the organization of services and actual services supplied. P r o v i n c i a l Government involvement i n the provision of t r a n s i t i n small c i t i e s was predicated p r i m a r i l y on providing a minimum l e v e l of mobility for those people who are without access to an automobile and secondarily to provide an a l t e r n a t i v e to auto use for choice r i d e r s and to provide an a l t e r a n t i v e to expenditure on private transportation. The t r a n s i t industry i n small c i t i e s i n B. C. was s u f f e r i n g from increasing costs, decreasing r i d e r s h i p , reduced and stagnant service l e v e l s which did not meet minimum national service guidelines, a shortage of managerial personnel f a m i l i a r with planning, managing and operating t r a n s i t systems and the low p r o d u c t i v i t i e s of the systems. After f i v e years of government involvement t h i r t y percent of the people i n small c i t i e s i n B. C. were provided with t r a n s i t services that were up to the n a t i o n a l l y accepted guidelines and the Province was subsidizing h a l f of the operating losses and 100% of c a p i t a l for v e h i c l e s . The P r o v i n c i a l share of the d e f i c i t increased from $103,000 i n 1972 to $1,336,300 i n 1977 while the r i d e r s h i p has also increased from 854,400 to 5,595,700 during the same period. This study was undertaken for the following reasons: ( i ) to document costs and benefits i n order to determine whether the program was worthwhile; i i i . ( i i ) to examine the performance of the Public Marketing Agency which implemented the supply program; and ( i i i ) to search for possible remedies for s t a b i l i z i n g t r a n s i t d e f i c i t s . The supply of t r a n s i t services i n small c i t i e s was documented which included funding, planning, marketing and some operating aspects df the program. An important feature of the supply program i s also documented. This i s the Public Marketing Agency which embodies the concept of separation of functions and r e s p o n s i b i l i t i e s . Marketing and planning decisions are assigned to the Agency while actual operations of the service i s executed by a p r i v a t e l y or p u b l i c l y owned c a r r i e r , under a contractual arrangement. This concept was adopted bacause i t was thought to be an e f f e c t i v e means of c o n t r o l l i n g the t r a n s i t subsidy program. The l e v e l s of service supplied and the f i n a n c i a l c h a r a c t e r i s t i c s of the systems are documented. The P r o v i n c i a l Government through the Public Marketing Agency ('p.m.a.') i n conjunction with the l o c a l m u n i c i p a l i t i e s plans and markets t r a n s i t i n small c i t i e s . The two l e v e l s of government work together so that l o c a l and regional goals can be considered i n the planning and running of systems. In order to determine how well the supply program was performing the demand for t r a n s i t for several small c i t i e s i n B. C. was also examined. The c h a r a c t e r i s t i c s of t r a n s i t users, t h e i r demands and u t i l i z a t i o n of the service and the c h a r a c t e r i s t i c s of the community within which the service operates are documented. On board passenger surveys and household a t t i t u d i n a l surveys were undertaken a f t e r service improvements to obtain t h i s information. F i n a l l y , an evaluation of the t r a n s i t program i s presented. This involves i v . m e a s uring how w e l l g o a l s have been a c h i e v e d and d e t e r m i n i n g the economic e f f i c i e n c y o f the program and the e f f e c t i v e n e s s of the f u n d i n g arrangement. The e f f e c t i v e n e s s of the 'p.m.a.' i n a c h i e v i n g what i t was s e t up to a c c o m p l i s h e d i s d i s c u s s e d . S e v e r a l s o c i a l and economic c r i t e r i a were adopted t o e v a l u a t e the program and the f u n d i n g arrangement. I n g e n e r a l , i t can be s a i d t h a t the t r a n s i t s u p p l y program has been s u c c e s s f u l a t i n c r e a s i n g the m o b i l i t y o f s m a l l c i t y r e s i d e n t s and r e d u c i n g t h e i r dependence on the aut o . However, t h e approach t o d i s t r i b u t i o n o f r e s o u r c e s among c i t i e s r a i s e s q u e s t i o n s about e q u i t y . The l a c k of measureable o b j e c t i v e s , t h e p r o p e r c r i t e r i a f o r a l l o c a t i n g f u n d s , a program t o measure performance and a u n i f o r m r e p o r t i n g system a r e found t o be r e s p o n s i b l e f o r t h e i n e q u i t a b l e f u n d i n g arrangement. The p i t f a l l s of the 'p.m.a.' approach a r e p r e s e n t e d . I t was found t h a t i t had l i t t l e c o n t r o l over c o s t s because o f l a c k o f c o m p e t i t i o n on the b e h a l f of p r i v a t e o p e r a t o r s and due t o t h e u n w i l l i n g n e s s of t h e 'p.m.a.' to a u d i t o p e r a t o r s . V. TABLE OF CONTENTS Page LIST OF TABLES v i i i LIST OF FIGURES x i ACKNOWLEDGEMENTS x i i CHAPTER ONE: INTRODUCTION 1 1.0 Background 1 1.1 Purpose of Study 3 1.2 Reasons for the Study 3 1.3 Approach 4 CHAPTER TWO: PUBLIC TRANSPORT IN SMALL CITIES IN BRITISH 8 COLUMBIA 2.0 Introduction 8 2.1 Transit i n Small B. C. C i t i e s p r i o r to 9 P r o v i n c i a l Government Involvement 2.2 C h a r a c t e r i s t i c s of Transit Users p r i o r to 12 Government Involvement 2.3 P r o v i n c i a l Government Involvement 16 2.4 P r o v i n c i a l L e g i s l a t i o n and Its Intent 19 CHAPTER THREE: THE SUPPLY OF PUBLIC TRANSPORT SERVICES IN 23 SMALL CITIES IN BRITISH COLUMBIA 3.0 Introduction 23 3.1 Roles and R e s p o n s i b i l i t i e s of the Par t i e s 24 Involved 3.1.1 Planning and Marketing R e s p o n s i b i l i t i e s and 26 Arrangements 3.1.2 Cost Sharing R e s p o n s i b i l i t i e s and Arrangements 30 3.2 The I n s t i t u t i o n a l Arrangement Adopted i n 33 B. C. - 'The Public Marketing Agency' 3.3 Management of Transit Operations 41 3.3.1 ' P r i v a t e l y Operated Transit Services 43 3.3.2 Government Operated Services 46 3.4 Levels of Service Supplied 48 3.5 F i n a n c i a l C h a r a c t e r i s t i c s and Performance i n 55 Small C i t i e s 3.6 Summary 63 v i . TABLE OF CONTENTS (continued) Page CHAPTER FOUR: THE DEMAND FOR TRANSIT 66 4.0 Introduction 66 4.1 C h a r a c t e r i s t i c s of Transit Usage i n Small 67 C i t i e s i n B. C. 4.1.1 Socio-Economic C h a r a c t e r i s t i c s of Transit 69 Riders i n Small C i t i e s 4.1.2 Purpose of Trip 72 4.1.3 Transit Users and A l t e r n a t i v e Means of Travel 72 4.1.4 Transit U t i l i z a t i o n of Systems i n Small 77 C i t i e s i n B. C. 4.2 The Transit Market i n Small C i t i e s 89 4.2.1 The Sector of Community Be n e f i t t i n g from 95 the Program 4.2.2 The Adequacy of the Level of Service Provided 98 4.2.3 General Opinion and Local Acceptance of 105 Public Transit 4.2.4 The Effectiveness of Transit i n Reducing 116 Residents' Dependence on Automobile 4.2.5 Impact of Marketing 119 4.2.6 Requirements for Transit i n Small C i t i e s and 134 What Transit Can and Cannot Do 4.3 Summary 138 CHAPTER FIVE: PROGRAM EVALUATION 142 5.0 Introduction 142 5.1 Program Goals.and Objectives 143 5.2 C r i t e r i a for Evaluation of the Transit Program 145 5.3 Achievement of Goals 147 5.3.1 M o b i l i t y Objective 149 5.3.2 'Conserving Land and L i v a b i l i t y ' Objective 151 5.3.3 "Reducing Dependence on Auto' Objective 154 5.4 Economic E f f i c i e n c y of the Supply Program 156 and the Effectiveness of Its Funding Arrangement 5.4.1 Evaluation of E f f i c i e n c y and Effectiveness 158 5.4.2 Recommendations 165 v i i . TABLE OF CONTENTS (continued) Page 5.5 The Effectiveness of the Public Marketing 167 Agency 5.5.1 The Control Objective 170 5.5.2 The Co-ordination Objective 182 5.5.3 The Integration Objective 184 CHAPTER SIX: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 188 6.0 Conclusion 188 6.1 The Transit Program 190 6.2 The Public Marketing Agency 194 BIBLIOGRAPHY 198 APPENDIX A l : THE HOUSEHOLD SURVEY QUESTIONNAIRE 204 APPENDIX A2: BACKGROUND INFORMATION OF THE THREE CITIES 213 SELECTED FOR THE SURVEY AND THE HISTORICAL DEVELOPMENT OF THEIR BUS SERVICE APPENDIX A3: PROVINCIAL RAPID TRANSIT SUBSIDY ACT 231 APPENDIX A4: TRANSIT SERVICES ACT 234 v i i i . LIST OF TABLES Page 2.1 System Performance and Population 11 2.2 Breakdown of Passengers (residents) by Family Income 13 2.3 Service C h a r a c t e r i s t i c s of Four Smaller B. C. C i t i e s 15 2.4 Proportions of Households Without Automobiles i n Selected B. C. Centres 17 2.5 Transit Program i n B r i t i s h Columbia 21 3.1 Some Public Marketing Agencies for Transportation i n North America and Western Europe 37 3.2 R e s p o n s i b i l i t i e s for Marketing Functions for GO Transit Services 40 3.3 Organization of Transit Operations i n Small C i t i e s i n B. C. 42 3.4 Frequency of Service (Headway) 50 3.5 Duration of Service 51 3.6 System Average Speed ( i n miles per hour) 53 3.7 1979 Fare Structures 56 3.8 1977 - Average Cost Per Bus Hour and Per Bus Mile 58 3.9 F i n a n c i a l Performance - 1977 60 3.10 1973 - 1977 Cost Recovery Ratio 61 4.1 Service and Performance C h a r a c t e r i s t i c s of Four Small C i t y Systems (Before and Af t e r Improvements) 68 4.2a Socio-Economic C h a r a c t e r i s t i c s of Transit Riders and the Population 70 4.2b Auto-ownership and Driver's Licence 73 4.3 Purpose of T r i p 74 4.4 Transportation A l t e r n a t i v e s to Bus Travel 75 4.5 Ridership by Time of Day 82 4.6 Transit U t i l i z a t i o n - 1977 S t a t i s t i c s 84 LIST OF TABLES (continued) 4.7 Ridership Versus Levels of Service (1977 data) 4.8 Demographic C h a r a c t e r i s t i c s 4.9 Age Breakdown of Respondents 4.10 M a r i t a l Status 4.11 Schooling (Education) 4.12 House Values (Assessed Values) 4.13 Years i n Community 4.14 Breakdown of Users and Non-users by Sex 4.15 Age Composition of Users and Non-users 4.16 Transit Usage Versus Choice of Mode for Work Trips 4.17 Transit Usage Versus Choice of Mode for Non-commute Trips 4.18a Reasons f or Not Using Bus Service 4.18b Non-users and Occasional Users Reasons For Not Using Transit 4.19 Extent of A c c e s s i b i l i t y by Transit to Work 4.20 Problems Encountered with Bus Service 4.21 Means and Standard Deviations of Attitude Items 4.22 Means and Standard Deviations of Perception Measures 4.23 Mean Scores for Attitude Items by Transit Usage 4.24 Association Between Transit Usage and Attitude Factor 4.25 Mean Scores for Perception Items by Transit Usage 4.26 Does Transit A f f e c t Car Ownership 4.27 W i l l Car-ownership Level be Reduced In Future 4.28 Knowledge About Bus Service i n Community 4.29 Sources of Information on Bus Service X. LIST OF TABLES (continued) Page 4.30 Seen or Heard Advertising 125 4.31 When? Seen Advertising 125 4.32 Knowledge of Transit Versus Ci t y 126 4.33 Impact of Advertising on Knowledge (Kitimat versus T r a i l and Penticton) 128 4.34 Bus Travel Ratings by Transit Usage Class And By Area 129 4.35 Knowledge of Transit Services by Degree of Usage 131 4.36 Frequency of Use of Timetable Versus Transit Usage 133 4.37a A v a i l a b i l i t y of Car for Personal Use 135 4.37b Transit Usage Versus Car-Ownership 136 5.1 Transit Systems Performance Data 160 5.2 Performance C h a r a c t e r i s t i c s for B. C. C i t i e s ' Systems (1977) 162 5.3 Cost Comparisons Between D i f f e r e n t Types of Systems 179 A . l Operating Performance 1976/1977/1978 - Penticton Summary Sheet 218 A.2 Operating Performance - Penticton (Index Method) 220 A.3 Operating Performance 1977 - T r a i l Summary Sheet 224 A.4 Operating Performance 1975/1976/1977 - Kitimat Summary Sheet 230 x i . LIST OF FIGURES Page 4.1 Ridership P r o f i l e of Five Selected Small Ci t y Systems 79 4.2 Transit U t i l i z a t i o n by Time of Day for a Weekday and a Saturday 81 4.3 Rides Per Capita Versus Ci t y Population 85 4.4 Rides Per Capita Versus Transit U t i l i z a t i o n Per Mile and Levels of Service 87 4.5 Mean Scores of Perception Measures By C i t y 109 4.6 Ratings of Bus Travel By Regular Users Served i n (A) Marketing Oriented Areas and (B) Non-Marketing Oriented Areas 130 x i i . ACKNOWLEDGEMENTS I wish to express my gratitude and thanks to Professor Waters and Navin for t h e i r guidance throughout t h i s t h e s i s . Without t h e i r help and thoughtful suggestions and c r i t i c i s m the project could not have been s u c c e s s f u l l y accomplished. 1. CHAPTER ONE  INTRODUCTION 1.0 BACKGROUND Since the end of World War Two the volume of t r a v e l by private automobile i n Canada has grown r a p i d l y and, u n t i l recently, public transportation r i d e r s h i p has declined. Government spending on urban transportation during the early postwar, period was directed to r e l i e v i n g congestion i n urban areas by expanding highway systems. However, i n the early 1970's i t became apparent that an expanded highway system did not n e c e s s a r i l y solve the congestion problems of c i t i e s and brought with i t a host of other problems such as p o l l u t i o n and the loss of valuable inner c i t y land to the automobile. The response was a s h i f t i n government spending towards public transportation modes to ameliorate some of the problems brought on by the automobile. In the early 1970's the general goal of the B r i t i s h Columbia Government and other governments was to achieve a 'balance' of resource a l l o c a t i o n and support to both the public and private modes. Since the i n i t i a l goal of achieving a balance between the modes, the d i r e c t i o n of spending i n the public transportation sector has s h i f t e d several times. F i r s t , an emphasis was placed on providing adequate mobility for the earless and handicapped. . In times of economic r e s t r a i n t and l i m i t e d f u e l supplies, t r a n s i t goals and objectives have s h i f t e d to measuring t r a n s i t performance, j u s t i f y i n g expenditures and promoting t r a n s i t as a means to conserve f u e l . The important objective today i s to achieve an e f f i c i e n t workable transportation system"*". Hand i n hand with the change i n concepts of what t r a n s i t was supposed to 2. achieve, the a t t i t u d e towards funding of t r a n s i t has a l s o changed. The idea that t r a n s i t "must pay i t s way" has given way to the view that t r a n s i t operating costs cannot and should not be covered by farebox revenues. The l e v e l of government a s s i s t a n c e to the p r i v a t e mode and the l e v e l of e x t e r n a l i t i e s a s s o ciated w i t h the p u b l i c mode were and s t i l l are c i t e d as j u s t i f i c a t i o n s f o r government support. This change i n o r i e n t a t i o n has r e s u l t e d i n the f o l l o w i n g problems: 1) d e c i s i o n making was removed f u r t h e r from the l e v e l of the user (that i s , d e c i s i o n making was c e n t r a l i z e d to a degree); 2) the success of t r a n s i t was more d i f f i c u l t to evaluate because i t had to s a t i s f y more c r i t e r i a (that i s , n o n - f i n a n c i a l ) ; 3) the c r i t e r i a which t r a n s i t were to s a t i s f y were more d i f f i c u l t to d e f i n e p r e c i s e l y and even more d i f f i c u l t to measure. These problems became apparent over a period of time and as a r e s u l t the a d m i n i s t r a t i o n of government funding programs has a l s o changed. I n i t i a l l y i n many instances support f o r p u b l i c t r a n s p o r t was provided because there was wide discrepancy between support f o r the p r i v a t e and p u b l i c mode. No measureable o b j e c t i v e s or goals were given. No s u b s i d i e s were s p e c i f i c a l l y a l l o c a t e d to t r a n s i t . Monies were g e n e r a l l y made a v a i l a b l e from other programs and were spent i n an ad hoc manner. Recently, funds and budgets have been s p e c i f i c a l l y set aside f o r t r a n s i t and organized means of implementing and a d m i n i s t e r i n g programs have been formulated.-The supply of t r a n s i t s e r v i c e s has changed over the post-war p e r i o d : i t s purpose, source and ways of funding and the o r g a n i z a t i o n of funding or supply programs have a l l changed. 3 . 1 . 1 PURPOSE OF STUDY The purpose of t h i s study i s to examine and evaluate the supply of t r a n s i t service to small c i t i e s i n the Province of B r i t i s h Columbia. Since 1972, the P r o v i n c i a l government i n B. C. has been a c t i v e l y involved i n the supply of t r a n s i t . In general, i t has set p o l i c i e s and goals, provided funding, planning and marketing and contracted private and public l o c a l operators to provide service. Of p a r t i c u l a r i n t e r e s t was the implementation of the program which has been c a r r i e d out by a P r o v i n c i a l body, the Public Marketing Agency. It embodies the concept of separation of functions and r e s p o n s i b i l i t i e s . Marketing and planning decisions are assigned to the Agency while actual operations of the service i s executed by a p r i v a t e l y or p u b l i c l y owned c a r r i e r . This study examines a l l l e v e l s of supply which include: the government funding program, the Public Marketing Agency which implements the program, the organization of services and actual services supplied. 1.2 REASONS FOR THE STUDY 1) The small c i t y t r a n s i t supply program i n B ..:;€.; .is„newtand:has_.thel -p o t e n t i a l to become an expensive s o c i a l program. For t h i s reason, i t i s important to document the benefits and costs to determine whether the program i s worthwhile, and whether i t has accomplished what i t was set up to do. Further more, the trend towards account-a b i l i t y of public f i n a n c i a l support of t r a n s i t makes the B. C. Transit 4. Program an i d e a l candidate for evaluation of the value of t r a n s i t funding. 2) The public marketing agency concept i s a r e l a t i v e l y new approach to the implementation of a t r a n s i t supply program. The experience of several years of operation from 1972 to 1977 make B. C. an in t e r e s t i n g area for in v e s t i g a t i o n . In order to determine whether the implementation of the concept has achieved the desired r e s u l t s and to i d e n t i f y possible improve-ments, documentation and evaluation of the public marketing agency and the funding arrangement are necessary. I f the concept i s proved to be e f f e c t i v e i t can be adopted to si t u a t i o n s elsewhere. 3) This paper i s also an attempt to search f o r possible remedies for s t a b i l i z i n g t r a n s i t d e f i c i t s . Instead of examining cost measures and r i d e r s h i p figures the actual organization and supply of services are reviewed to determine whether economies can be achieved through the management of the supply of services and resource allocation... 1.3 APPROACH In order to provide the background for the evaluation of the Transit Supply Program, three topics are addressed. The f i r s t i s t r a n s i t i n B. C. pr i o r to government involvement. The second i s the supply of public t r a n s i t under the Program, and the t h i r d i s the demand for t r a n s i t i n small c i t i e s . An overview i s given regarding the supply of t r a n s i t and the character-i s t i c s of users p r i o r to government involvement. This provides the 5. background to reasons f o r government involvement. The aspects of t r a n s i t supply under the government program are examined. They include: ( i ) the roles and r e s p o n s i b i l i t i e s of the Province, the municipality and the t r a n s i t operator; (xi) the i n s t i t u t i o n a l arrangement, the public marketing agency, which implements the program; ( i i i ) the types of organization which operate the t r a n s i t services; (iv) the l e v e l of service supplied; and (v) the f i n a n c i a l performance of the service supplied. The demand for t r a n s i t services and the environment i n which services are supplied are examined. On board bus surveys were used to determine the c h a r a c t e r i s t i c s of t r a n s i t usage (that i s , who uses t r a n s i t , why they use i t , when they use i t and how much i t i s used). Household surveys were conducted to; (i) gather d e t a i l s regarding b e n e f i c i a r i e s of the service; ( i i ) determine the adequacy of the service from the point of view of the user; ( i i i ) examine the attitudes and perceptions of the community towards t r a n s i t ; (iv) estimate the effectiveness of t r a n s i t i n reducing dependence on the auto; (v) estimate the impact of marketing on informing people of t r a n s i t and changing t h e i r a t t i t u d e to t r a n s i t . Following the documentation of conditions before and a f t e r government 6. i n v o l v e m e n t ' i n t r a n s i t , an e v a l u a t i o n of the program i s u n d e r t a k e n . The e v a l u a t i o n uses as i n p u t s the d a t a d e s c r i b e d above i n examining the f o l l o w i n g t o p i c s : ( i ) the g o a l s and o b j e c t i v e s of the program; ( i i ) achievement of the g o a l s ^ ( i i i ) s u c c e s s of the f u n d i n g program; ( i v ) e f f e c t i v e n e s s of the p u b l i c m a r k e t i n g agency concept; (v) who pays and who b e n e f i t s . FOOTNOTE Urban Transportation Economics, Special Report 181, Proceedings of Five Workshops i n P r i c i n g A l t e r n a t i v e s , Labour Issues, Marketing and Government Financing R e s p o n s i b i l i t i e s . Transportation Research Board, Commission on S o c i a l Technical System, Washington, D. C , 1978. 8. CHAPTER TWO PUBLIC TRANSPORT IN SMALL CITIES IN BRITISH COLUMBIA 2.0 INTRODUCTION This chapter outlines the condition of the t r a n s i t industry and the c h a r a c t e r i s t i c s of t r a n s i t users p r i o r to the commencement of P r o v i n c i a l assistance i n 1972. This information serves as background to the discussion on why the B r i t i s h Columbia Government became involved. F i n a l l y , a b r i e f d e s c r i p t i o n of the l e g i s l a t i o n and the extent of i t s e f f e c t on the industry and users i s given. 9. 2.1 TRANSIT IN SMALL B. C. CITIES PRIOR TO PROVINCIAL GOVERNMENT  INVOLVEMENT Pr i o r to P r o v i n c i a l involvement, the t r a n s i t industry i n small B. C. c i t i e s was characterized by p r i v a t e l y operated systems which were experiencing increasing costs and d e c l i n i n g r i d e r s h i p . Under these conditions private operations became unprofitable and m u n i c i p a l i t i e s began subsidizing systems on an ad hoc basis. The subsidies were s u f f i c i e n t to maintain e x i s t i n g or reduced service l e v e l s . Some t r a n s i t systems were completely taken over by the m u n i c i p a l i t i e s . These systems were operated as departments of the c i t y - an arrangement which resulted i n several problems: (i) public employees had li m i t e d knowledge or experience i n the t r a n s i t business; ( i i ) s a l a r i e s were comparable to those paid to other c i v i l employees, therefore the costs f o r d r i v e r s and other support s t a f f were generally higher than i n the industry e s p e c i a l l y those for managerial s t a f f . By 1972, nine of fo r t y - f o u r small c i t i e s i n B r i t i s h Columbia with population between 5,000 and 70,000 had some t r a n s i t service. Of these, three were p u b l i c l y owned and the remainder were p r i v a t e l y owned. There were also problems with the service provided by both p u b l i c l y and p r i v a t e l y operated systems. In a survey of four c i t i e s i n 1974 and 1975 (before service improvements), service l e v e l s were found to be well below commonly accepted standards (that i s , eighty percent of residents within a quarter mile of walking distance to bus stop; and half-hourly 10 . day-time service"*") . Prince George, Kamloops and Nanaimo, three of the c i t i e s surveyed, had hourly service during the day while Kelowna, the fourth, had l e s s than hourly service. These same c i t i e s showed lower p r o d u c t i v i t i e s compared to c i t i e s of s i m i l a r sizes elsewhere (such as Alberta and Ontario). This can be explained by the marginal l e v e l s of service i n a l l four systems. However, the u t i l i z a t i o n was above average when r i d e r s h i p per bus hour i s used as an i n d i c a t o r . Table 2.1 provides a summary of performances of the four systems i n B. C. and the ones i n Alberta and Ontario. To r e i t e r a t e b r i e f l y , the t r a n s i t industry i n small c i t i e s i n B. C. p r i o r to P r o v i n c i a l Government involvement was s u f f e r i n g from the following problems: (i) increasing costs; ( i i ) decreasing r i d e r s h i p ; ( i i i ) reduced or stagnant service l e v e l s i n growing c i t i e s ; (iv) service l e v e l s which did not meet minimum national standards; (v) a shortage of managerial personnel f a m i l i a r with planning, managing and operating t r a n s i t systems; (vi) low p r o d u c t i v i t i e s of the systems. TABLE 2.1 SYSTEM PERFORMANCE AND POPULATION Prince George Kelowna Kamloops Nanaimo Population 65,000 51,000 55,000 40,000 Rides per Capita 11.45(1975) 2.76(1975) 8.00(1975) 17.17(1975) Rides per Bus 48 21 27 27 Hour Rides per Capita Kingston, Ontario B e l l i v i l l e , Ontario Gait, Ontario Medicine Hat, Alberta Leithbridge, Alberta Red Deer, Alberta 39CU971) 32 (1971) 28 (1971) 47 (1975) 43 (1975) 31 (1975) 12. 2.2 ; CHARACTERISTICS OF TRANSIT USERS PRIOR TO GOVERNMENT INVOLVEMENT The surveys from Prince George, Kelowna, Kamloops and Nanaimo provided data on t r a n s i t user c h a r a c t e r i s t i c s . It was found that v i r t u a l l y a l l of the t r a n s i t users had no access to the use of an automobile and were therefore .'captive' r i d e r s . The young (under 17 years of age) comprised the largest group of t r a n s i t users followed by young adults (18 to 29) and the e l d e r l y . Female passengers outnumbered males on these services two to one. As might be expected, t r a n s i t users tended to come from the lower income groups i n society. Table 2.2 shows that from 78% to 95% of t r a n s i t r i d e r s came from households where family income per year was $15,000 or l e s s . What was unexpected however, was that the income bias was not great. A compar-ison of the proportion of t r a n s i t r i d e r s having household incomes $10,000 or le s s with the proportion of the en t i r e community i n that income class showed an average discrepancy of about seven percentage points. This i s probably a good r e f l e c t i o n of the 'captive' market which i s usually com-posed not e n t i r e l y of the lower-income population such as housewives i n one car households who are l e f t stranded during the day-time when shopping and medical t r i p s are made. S i m i l a r l y c h i l d r e n and members of a car-owning household who do not have d r i v i n g licences are completely r e l i a n t on others for transport. Most people used the t r a n s i t system i n these four c i t i e s to go shopping (32% to 46%) or to go to work (26% to 41%). As a l l of these systems were c i t y centre oriented, they did not o f f e r very s a t i s f a c t o r y service for dispersed, non-central business d i s t r i c t t r a v e l - t y p i c a l of recreation or s o c i a l t r i p s . Furthermore, most did not o f f e r regular evening service and none ran on Sundays, which further hindered system use for recreation TABLE 2.2 BREAKDOWN OF PASSENGERS (RESIDENTS) BY FAMILY INCOME Prince George Kelowna Kamloops Nanaimo Transit r i d e r s , $15,000 or les s 83.5% 95.4% 85.6% 78.0% Transit r i d e r s , $10,000 or les s 57.4% 79.3% 63.1% 57.1% Enti r e population, $10,000 or les s 49.5% 66.5% 52.8% 61.8% Source: Census Canada 1971; Prince George, Kelowna, Kamloops, Nanaimo Passenger Surveys, 1974 to 1975, Bureau of Transit Services, Province of B r i t i s h Columbia. or s o c i a l purposes. (Refer to Table 2.3) In summary, p r i o r to government involvement, t r a n s i t i n small c i t i e s ( i n those places where t r a n s i t existed .'.at a l l ) - s e r v e d those "per sons who did not have access to the use of a car. Included i n t h i s group of t r a n s i t users were the e l d e r l y , the young, the poor and spouses i n one-car f a m i l i e s . Transit was used p r i m a r i l y to get to work or shop. Recreational t r i p s were not prominent because service was not a v a i l a b l e on Sundays or evenings. TABLE 2.3 SERVICE CHARACTERISTICS OF FOUR SMALLER B.C. CITIES Day and F u l l Service Evening at Normal F u l l Generally 30 min Coverage* Direct Daytime Service Commute Hours of Area Routing Timed Interconnection Frequency of Routes  Nanaimo Kelowna Kamloops Prince George Yes No No No No No Yes No Yes No No No No No Yes No No No No No Yes No Yes P a r t i a l * 80 per cent of the households are within a quarter-mile walk of a t r a n s i t route. Source: system timetables 16. 2.3 PROVINCIAL GOVERNMENT INVOLVEMENT Previous discussions d e t a i l e d the general state of decline of the t r a n s i t industry i n small c i t i e s i n B. C . It was t h i s decline and the desire to provide a basic l e v e l of mobility for B r i t i s h Columbians without other means of transportation that became the prime reason for P r o v i n c i a l Government involvement i n the small c i t y t r a n s i t industry. S t a t i s t i c s on the earless and one car households i n B. C. give a good i n d i c a t i o n of the p o t e n t i a l benefit of improved t r a n s i t i n small c i t i e s . Approximately one family i n f i v e i n B. C. does not have access to an automobile at any time, and i n approximately three f a m i l i e s out of four the husband or wife does not have access to an automobile during normal weekday working hours (see Table 2.4). Two secondary reasons for P r o v i n c i a l involvement i n the r e v i t a l i z a t i o n 2 of small c i t y t r a n s i t were : to provide an a l t e r n a t i v e to auto use for choice r i d e r s ; and to provide an a l t e r n a t i v e to expenditures on p r i v a t e transportation thereby conserving land and l i v a b i l i t y . There e x i s t s some p o t e n t i a l to provide an a l t e r n a t i v e to auto use and provide an a l t e r n a t i v e to expenditures on private transportation i n small c i t i e s although i t i s not as pronounced as i n large c i t i e s . For example, i t i s generally thought that people w i l l switch from auto use to t r a n s i t i f a r e l a t i v e l y high q u a l i t y of t r a n s i t service i s provided. Experience i n the Coquitlam area showed that a f t e r an improvement i n 3 service an appreciable increase i n choice r i d e r s occurred . I t was found that 53% of the r i d e r s on the improved service had previously t r a v e l l e d by automobile. TABLE 2.4 PROPORTIONS OF HOUSEHOLDS WITHOUT AUTOMOBILES IN SELECTED B.C. CENTRES No Auto One Auto Multi-Auto No Auto One Auto Multi-Auto CANADA 22% 58% 20% GREATER* PRINCE GEORGE 10% 53% 38% B.C. 19% 51% 30% PRINCE GEORGE CITY 10% 53% 37% GREATER* VICTORIA 23% 50% 27% GREATER* NANAIMO 16% 51% 33% VICTORIA CITY 36% 49% 15% NANAIMO CITY 19% 52% 29% GREATER * VANCOUVER-22% 50% 28% GREATER* CHILLIWACK 15% 52% 33% VANCOUVER CITY 31% 50% 19% CHILLIWACK CITY 22% 52% 26% PORT ALBERNI 15% 55% 30% SOURCE: S t a t i s t i c s Canada, "Housing-Household F a c i l i t i e s " , 1971 Census of Canada, Cat.93-737, Vol. I I , Part 4, 1973, Ottawa *"Greater" i s defined i n terms of the p h y s i c a l l y built-up area, which i s not necessarily the same as the p o l i t i c a l d e s c r i p t i o n . 18. The s u b s t i t u t i o n of t r a n s i t for road construction i s considered mainly when there i s a problem of, congestion. This i s usually n o t i a concern i n small c i t i e s of les s than 20,000 inhabitants. This t r a n s i t s u b s t i t u t i o n for roads could benefit urban areas with more than 20,000 persons. For example, i n Prince George, the 1972 cost estimates for new urban a r t e r i a l s for the c i t y ' s general plan came to $42 m i l l i o n and involved 14 new lanes of roadway for the benchlands to the West. The opportunities to substitute t r a n s i t f o r roadways could be considerable (although was not included i n the c i t y ' s a n a l y s i s ) . S i m i l a r l y , i n Kamloops, Kelowna and Nanaimo, area population, and hence auto use, i s s u f f i c i e n t l y great for there to be numerous s u b s t i t u t i o n opportunities. At present, bottle-neck s i t u a t i o n s occur at both the Nechako River Crossing i n Prince George and the Thompson River Crossing i n Kamloops. To summarize, P r o v i n c i a l Government involvement i n the provision of t r a n s i t i n small c i t i e s was predicated on: (i) providing a minimum l e v e l of mobility for those without access to an automobile; ( i i ) to provide an a l t e r n a t i v e to auto use for choice r i d e r s ; ( i i i ) and to provide an a l t e r n a t i v e to expenditures on private transportation. 19. 2.4 PROVINCIAL LEGISLATION AND ITS INTENT P r o v i n c i a l assistance for t r a n s i t commenced i n 1972 with a new l e g i s l a t i o n - the Rapid Transit Subsidy Act. Subsequently, a far reaching l e g i s l a t i o n for t r a n s i t was passed i n 1974 which formed the basis for the Transit Program which i s being evaluated i n t h i s report. The functions of these two Acts are as follows. Rapid Transit Subsidy Act (1972) This Act of the P r o v i n c i a l l e g i s l a t u r e provides for P r o v i n c i a l assistance of a f i f t y percent subsidy of operating losses i n the M u n i c i p a l i t i e s and Regional D i s t r i c t s . The provisions of the Act only benefit those municipa-l i t i e s and regional d i s t r i c t s which have been involved i n owning and operating public t r a n s i t services. This Act has not been used by l o c a l governments to pursue a l o c a l t r a n s i t service because of the problems of i n i t i a l c a p i t a l investment. In the years of 1973 and 1974, the P r o v i n c i a l Rapid Transit Subsidy Act provided f i n a n c i a l support of l o c a l t r a n s i t services i n the four communities of Nelson, Powell River, West Vancouver and Nanaimo. Kitimat came into t h i s program i n 1974. Due to the l i m i t e d support for c a p i t a l funding, the Transit Services Act of 1974 was established to cover selected c a p i t a l expenditures. Transit Services Act (1974) The Transit Services Act provided for 100% c a p i t a l financing of buses and involved the P r o v i n c i a l Government i n the marketing and planning of t r a n s i t i n conjunction with l o c a l M u n i c i p a l i t i e s and Regional D i s t r i c t s . 20. The provisions of the Act are being applied i n conjunction with the Municipal U t i l i t y provisions, Section 561, of the Municipal Act. A l o c a l M u n i c i p a l i t y or Regional D i s t r i c t having resident approval f o r a t r a n s i t service i s required to enter into an agreement whereby the Province would e s t a b l i s h and operate the l o c a l t r a n s i t system and services. The services would be planned by the Province i n conjunction with the be n e f i t i n g area. Table 2.5 displays the impact of P r o v i n c i a l assistance i n t r a n s i t since 1972. Since the implementation of the Rapid Transit Subsidy Act which provided the basis for d i r e c t P r o v i n c i a l involvement i n the t r a n s i t industry, both the number of systems and population served by t r a n s i t have increased. Therefore, the r i d e r s h i p has also increased. As Table 2.5 shows, the number of systems with P r o v i n c i a l support has increased from three i n 1972 to twelve i n 1977. A few of these systems had to be planned and implemented from the beginning. In 1977, 342,000 people i n small c i t i e s were provided with t r a n s i t service that was subsidized by the Province. The P r o v i n c i a l share of the d e f i c i t was $1,336,300 i n 1977 versus $103,000 i n 1972, an increase of th i r t e e n times. Ridership has also increased from 854,400 to 5,595,700, a s i x f o l d increase i n the same f i v e years. The above shows the extent of the P r o v i n c i a l involvement i n t r a n s i t funding support i n small c i t i e s . There i s no i n d i c a t i o n of the effectiveness or the e f f i c i e n c y of the approach. In order to determine how e f f e c t i v e and e f f i c i e n t the program has been, the goals and objectives of the government must be known and compared to the achievements. The evaluation i s c a r r i e d out i n Chapter Five. TABLE 2.5  TRANSIT PROGRAMME IN BRITISH COLUMBIA SMALL CITIES 1972 1973 1974 1975 1976 1977 Number of systems 3 3 4 9 12 12 i n small c i t i e s P r o v i n c i a l subsidy $103,000 $150,000 $284,200 $660,400 $832,700 $1,336,300 payment Popul a t i o n served 63,400 63,400 75,900 292,700 342,000 342,000 Subsidy per c a p i t a $1.63 $2.37 $3.74 $2.26 $2.43 $3.91 served T o t a l r i d e r s h i p 854,400 5,595,^700 JL. GREATER VANCOUVER AND GREATER VICTORIA AREAS" T o t a l s u b s i d i e s $6.09 m i l l . $11.15 m i l l . $20.98 m i l l . $29.81 m i l l $36.53 m i l l . $44.92 Subsidy per c a p i t a $22.85 $28.00 $34.44 served Note: * i n c l u d i n g West Vancouver 22. FOOTNOTES 1. Procedure Manual 8A, Recommended Standards, Warrants, and Objectives  for T ransit Service and F a c i l i t i e s , National Committee on Urban Transportation, Public Administration Service, Chicago, I l l i n o i s , 1958. 2. Rapid Transit Subsidy Act, 1972, Province of B r i t i s h Columbia. 3. B r i t i s h Columbia, Province of, Coquitlam Bus Service Impact Study, Bureau of Transit Services, 1975. 23. CHAPTER THREE THE SUPPLY OF PUBLIC TRANSPORT SERVICES IN SMALL CITIES IN BRITISH COLUMBIA 3.0 INTRODUCTION The supply of t r a n s i t service involves more than simply operating buses on the st r e e t . Aside from operations, t r a n s i t supply requires funding, planning and marketing. The nature of supply of t r a n s i t i s dictated by the interested p a r t i e s , who i n B. C. are the P r o v i n c i a l Government and the M u n i c i p a l i t i e s . These partie s define the goals and objectives which : t r a n s i t i s supposed to achieve. In B. C , a t h i r d party representing the Province i s responsible for the administration and implementation of the programme which i s to r e a l i z e the goals set out by the pa r t i e s mentioned above. F i n a l l y a fourth party, the t r a n s i t operator a c t u a l l y makes sure that the buses do indeed run as planned. This chapter documents the following: i ) the roles and r e s p o n s i b i l i t i e s of the pa r t i e s involved i n the small c i t y Transit Programme; i i ) the i n s t i t u t i o n a l arrangement, referred to here as the public marketing agency', which implements the programme; i i i ) the types of organization which operate the t r a n s i t service; iv) the l e v e l of service supplied i n small c i t i e s ; v) the f i n a n c i a l performance of the service supplied i n small c i t i e s . 24 . 3.1 ROLES AND RESPONSIBILITIES OF THE PARTIES INVOLVED Three partie s are involved i n the supply of t r a n s i t to small BI;C. c i t i e s . They are the Province, the Mun i c i p a l i t y and the t r a n s i t operator. Each have a defined set of roles and r e s p o n s i b i l i t i e s . A cost sharing arrange-ment was set out by the P r o v i n c i a l Statutes and has been the basis for the j o i n t e f f o r t i n the planning, marketing, determination of acceptable service l e v e l s and costs for l o c a l bus services. Under the arrangement the P r o v i n c i a l and municipal governments share the r e s p o n s i b i l i t y of determining the f i n a n c i a l and planning aspects of supplying t r a n s i t . Local i n t e r e s t s are incorporated through the involvement of elected o f f i c i a l s of the municipal council or the Regional Board. The P r o v i n c i a l Agency provides s t a f f to work with the municipal s t a f f and elected o f f i c i a l s . The working r e l a t i o n s h i p between the two l e v e l s of government provides an understanding between both parti e s of the l o c a l and P r o v i n c i a l goals of the Transit Programme. The operation of the actual services and many of the de t a i l e d t echnical decisions regarding t r a n s i t operations and v e h i c l e maintenance are l e f t to the operating company and the Proving c i a l Agency. The operating company may be a private sector contractor, a publicly-owned company, a municipal department or a company owned by . the Crown. The following provides a d e s c r i p t i o n of the decision-making s e t t i n g ( i . e . decisions related to the l e v e l s of service to provide, the fare l e v e l s and where services should be provided) and a summary of respon-s i b i l i t i e s by tasks. The designations of PROVINCE, MUNICIPALITY and OPERATING COMPANY r e f l e c t the general s i t u a t i o n and are intended to r e f l e c t such v a r i a t i o n s as a P r o v i n c i a l Crown Agency r e p r e s e n t i n g the PROVINCE, e i t h e r a l o c a l m u n i c i p a l government or R e g i o n a l D i s t r i c t by the term MUNICIPALITY, and a p r i v a t e c o n t r a c t o r , m u n i c i p a l department or Crown T r a n s i t Company by the term OPERATING COMPANY. 26. 3.1.1 Planning and Marketing R e s p o n s i b i l i t i e s and Arrangements  Service Planning The planning process leading up to the introduction of t r a n s i t services and the ongoing review of the service l e v e l s i s one that involves both the MUNICIPALITY and the PROVINCE. These two groups j o i n t l y deal with the decisions on the service planning guidelines, amounts of service, fare structure and a l l other items that a f f e c t the operating d e f i c i t . A committee of representatives from both the MUNICIPALITY and the PROVINCE i s established to co-ordinate the planning a c t i v i t i e s and the review process. This Committee has the r e s p o n s i b i l i t y f or conducting a subjective analysis of the community needs for mobility by a l l modes and for reviewing long range community development patterns. Part of the Committee's work involves s o l i c i t i n g and reviewing b r i e f s and l e t t e r s from the general public on the topic of public t r a n s i t . A summary report i s usually prepared by the Committee and forwarded to the Municipal Council for approval. No c r i t e r i a have been used for defining needs for services at the l o c a l l e v e l . Judgements of l o c a l o f f i c i a l s are usually the dominant forces guiding service design. The l i k e l y concerns of l o c a l p o l i t i c i a n s and o f f i c i a l s are: to provide parking r e l i e f ; - to provide services to senior c i t i z e n complexes and recreation centres; - to serve major employment centres; and to serve shopping centres as well as the c e n t r a l business d i s t r i c t . The following i s an example of the types of planning guidelines used i n small c i t i e s . This example i s extracted from the background report on needs for t r a n s i t services i n Penticton. Example: "The committee recommended the following service planning guidelines: i n i t i a l phases of t r a n s i t service should serve the built-up areas of the c i t y ; - should supply a basic l e v e l of m o b i l i t y to the e l d e r l y , shoppers, workers, and young people; - major a c t i v i t y centres such as the h o s p i t a l , shopping areas, Downtown business centre and recreation complexes should be served; - hours of operations should be suited to the hours of a c t i v i t i e s i n Penticton; - service frequency and r e l i a b i l i t y are both important elements i n a t t r a c t i n g r i d e r s h i p . " The approved set of planning guidelines forms the basis of the Concept Plan, prepared by the PROVINCE and forwarded to the MUNICIPALITY for considerat-ion. Following the adoption of an approved Concept Plan, the PROVINCE prepares a Service Plan. The Service Plan i d e n t i f i e s a p o t e n t i a l route structure and proposes a general l e v e l of service i n t e n s i t y (that i s , the P r o v i n c i a l minimum standards). This Service Plan w i l l then be submitted to the Committee for amendments and approval by the Council. Preparation of the documents necessary for s o l i c i t i n g submissions for a purchase of service contract i s performed by the Transit Committee. P r i o r to awarding the contract to an operator both the MUNICIPALITY acting as the Transit Authority and the PROVINCE review the submissions and concur with the choice. 28. Merchandising The areas of merchandising l o c a l t r a n s i t services are generally divided into three categories. These are: (a) items that are related to changes i n the Service S p e c i f i c a t i o n ; (b) i n s t i t u t i o n a l advertising; and (c)' operations changes of a temporary nature. A l l these are the responsibi-l i t i e s of the PROVINCE. Service S p e c i f i c a t i o n s The major j o i n t r e s p o n s i b i l i t y of the l o c a l and P r o v i n c i a l members of each Transit Committee i s the establishment of a service s p e c i f i c a t i o n . Inherent i n the production of a service s p e c i f i c a t i o n i s the determination of costs and service l e v e l s . This means that the l e v e l s of service, route structure, fare l e v e l s , the marketing program, terminal arrangement, locations of bus stops and the s e l e c t i o n of an operating company are deter-mined and dealt with i n a j o i n t decision making process. No o f f i c i a l P r o v i n c i a l guidelines or standards are set up but industry rules-of-thumb are applied. Operations Planning Operations planning i s usually a shared r e s p o n s i b i l i t y of the OPERATING COMPANY and the PROVINCE. The basic elements of the operations plan are l a i d out i n the Service S p e c i f i c a t i o n s which form a part of the service contract. Items such as the timing point, destination b l i n d exposures and basic schedule are produced by the PROVINCE. As required, operations planning s t a f f from the P r o v i n c i a l Agency are usually a v a i l a b l e to a s s i s t the OPERATING COMPANY i n areas such as schedule b u i l d i n g and so on. A l l aspects of the Operations Plan are checked and confirmed with the OPERAT-29. ING COMPANY. Bus A l l o c a t i o n The PROVINCE assumes r e s p o n s i b i l i t y for the provision of t r a n s i t vehicles unless otherwise s p e c i f i e d by agreement with the MUNICIPALITY. The vehi c l e s are allocated from the P r o v i n c i a l f l e e t of buses and leased for a nominal fee to the OPERATING COMPANY. Vehicle Maintenance The d a i l y maintenance and se r v i c i n g of the t r a n s i t vehicles i s the respon-s i b i l i t y of the OPERATING COMPANY under the terms of the v e h i c l e lease agreement. The PROVINCE supplys maintenance record forms that must be kept up-to-date by the OPERATING COMPANY. 30. 3.1.2 Cost sharing R e s p o n s i b i l i t i e s and Arrangements As was stated e a r l i e r , P r o v i n c i a l l e g i s l a t i o n provides for equal sharing of the operating d e f i c i t s . These l e v e l s of d e f i c i t s are usually a function of the amount of services provided. The most important aspect from a municipal standpoint i s that v e h i c l e f l e e t s are e n t i r e l y owned by the Pro-vince and leased to operators or m u n i c i p a l i t i e s for a nominal fee of one d o l l a r per bus. There are no charges to the l o c a l government for c a p i t a l depreciation of the f l e e t . (This arrangement was changed >by the Urban Transit Authority Act (1978) and lease fees are now included i n a l l 'purchase of service' agreements.) In addition, bus stop signs (one design for a l l small c i t i e s i n the Province) are provided by the Province to each l o c a l area to ensure c e r t a i n economies of scale and other marketing advantages"*". Municipal r e s p o n s i b i l i t i e s cover a l l expenses on bus stop placement and maintenance, l o c a l street repairs including construction of bus bays, sidewalks and pedestrian areas, the costs incurred i n the con-s t r u c t i o n of terminals and bus shelters as well as a l l costs related to accounting for farebox revenues. Ongoing costs for system advertising and public information (e.g. time-tables) are shared equally by the Province and the M u n i c i p a l i t i e s . I n i t i a l costs for advertising and timetables at the time of the start-up of a l o c a l system are borne e n t i r e l y by the Province as part of the marketing program of the P r o v i n c i a l Transit Agency. The following provides a summary of the breakdown of various start-up and operating costs and t h e i r sharing arrangements. The arrangements are b a s i c a l l y r e s u l t s from both the Rapid Transit Subsidy Act (1972) and the Transit Services Act (1974). 31. 50 - 50 Share of Operating D e f i c i t The Province shares equally with the M u n i c i p a l i t y or Regional D i s t r i c t the annual operating d e f i c i t , not including depreciation but including any amortized debt charges or sinking fund payments i n the year that r e l a t e s s o l e l y to the construction or operation of the public transport-a t i o n system. Operating d e f i c i t here i s defined as a l l operating expenses minus a l l operating revenues. Revenues include those from scheduled services, charter and s p e c i a l services, rent revenues and advertising revenues. Operating expenses include a l l d i r e c t and i n d i r e c t operating costs (that i s , transportation expenses, administrative and management expenses, garage and equipment maintenance expenses, advertising expenses, insurance expenses, li c e n s e s and taxes, general expenses, such as p r i n t i n g of time-tables, bus d r i v e r uniforms). The exclusions are: i n s t a l l a t i o n and maintenance of bus stop signs; i n s t a l l a t i o n and maintenance of bus s h e l t e r s . Start-up Costs The Province pays 100% of the following start-up expenditures: system advertising; - bus stop signs (not poles or i n s t a l l a t i o n ) ; timetables; public timetable d i s t r i b u t i o n . C a p i t a l Expenditures Necessary replacements of equipment other than buses are shareable under 32. the c o n d i t i o n of the g r a n t p r o v i d e d t h a t the M i n i s t e r of F i n a n c e approve, i n advance, of (a) the terms of debt a m o r t i z a t i o n , and (b) any c a p i t a l , or e x t r a o r d i n a r y , e x p e n d i t u r e s , as d e f i n e d by the M i n i s t e r of F i n a n c e . 33. 3.2 THE INSTITUTIONAL ARRANGEMENT ADOPTED IN B. C. - 'THE PUBLIC MARKETING AGENCY' The previous section discussed the roles of the parties involved i n supplying t r a n s i t . The roles and r e s p o n s i b i l i t i e s ascribed to the Province were i n fact implemented through an i n s t i t u t i o n a l arrangement c a l l e d the 'public marketing agency' (p.m.a.). The following provides a d e f i n i t i o n of the public marketing agency concept and outlines the reasons ' why i t was adopted i n B r i t i s h Columbia. The basic p r i n c i p l e of the public marketing agency approach i s to separate the r e s p o n s i b i l i t i e s and functions for planning and marketing from those of operation. The r e s p o n s i b i l i t i e s for planning and marketing decisions are assigned to a government body while the actual operation of a service was executed by a p r i v a t e l y or p u b l i c l y owned c a r r i e r , under a contractual arrangement. The government body answers questions as to 'what' should be provided, 'where' and at 'what p r i c e ' and the 'how' question i s l e f t to each i n d i v i d u a l operator (public or private;) to determine. This organ-i z a t i o n a l structure follows c l o s e l y what the private sector uses for i t s production and marketing functions. In the private realm the marketing department i s responsible for the research, planning, design and promotion functions while the actual production i s l e f t to the operations or production department. The s p e c i f i c a t i o n s for q u a l i t y control and cost control i s normally done by the marketing/design group. The 'public marketing agency' (p.m.a.) concept recognizes the advantages of such a d i v i s i o n of r e s p o n s i b i l i t i e s and the p.m.a. i s mainly what can be c a l l e d a marketing/design department i n the private sector. Objectives 34. for the two departments are usually d i f f e r e n t . Government objectives i n t r a n s i t are usually related to maximizing s o c i a l welfare of the people i t serves. For t r a n s i t operators however, the objectives are usually those of minimizing cost (monetary cost) and maximizing revenues. Therefore, routes that might be s o c i a l l y desirable (such as those serving senior c i t i z e n complexes) might not be considered desirable by the operator when c a l c u l a t i n g actual monetary returns. In order for government to r e a l i z e the s o c i a l benefits of the services i t subsidizes, c e r t a i n c o n t r o l over what i s being produced i s necessary. The 'p.m.a.' d e l i v e r s t h i s type of co n t r o l . The approach i s l a r g e l y marketing-oriented emphasizing the design of services around consumer needs. Detailed d e s c r i p t i o n of the method can be found i n a Canadian Transport Commission p u b l i c a t i o n t i t l e d : "New Methods of Public Transport Administration: The Public Marketing Agency" 2 by Brian E. S u l l i v a n . Reasons for Adopting the P.M.A. Concept The main reason for the development of most public marketing agencies was based on the control argument. Governments want to i n i t i a t e and not ju s t react to the services that they subsidized. They want to see that subsidy programs achieve t h e i r maximum bene f i t s . With the 'p.m.a.' concept, govern-ments do not have to purchase c a r r i e r s outright i n order to gain c o n t r o l of marketing and planning decisions. The underlying reasons for the adoption of the 'p.m.a.' are the following: (I) to provide means of e f f i c i e n t l y administering government-funded services, monitoring performances and measuring benefi t s ; ( i i ) to achieve co-ordination of transport modes and c a r r i e r s ; and 3 5 . ( i i i ) to enable the closer i n t e g r a t i o n of public transportation and l o c a l land use planning. Under t h i s arrangement the P r o v i n c i a l Transit Agency functions as a planning, marketing, management consulting and brokerage firm. The c e n t r a l i z a t i o n of planning and marketing i n t h i s manner has i t s advantages. It provides the type of expertise i n t r a n s i t management, planning and administration that would otherwise not be attainable i f each i n d i v i d u a l c i t y were to go at i t on i t s own. I t also provides possible economies of scale since common functions among systems are assigned to a ce n t r a l agency. For example, market research and demand analysis can be conducted using s i m i l a r methodologies and findings can be shared so that a l l systems can ben e f i t . Newspaper advertising can also be developed for twelve common markets with minor modifications. The u t i l i z a t i o n of P r o v i n c i a l standard bus stop signs and public timetable encourages recognition and f a m i l i a r i t y amongst residents of centres anywhere i n the Province. The advantages that have been i d e n t i f i e d under the 'p.m.a.' arrangement go beyond the cost advantages of sharing technical expertise necessary to carry out the detai l e d planning and marketing functions. The 'p.m.a.' (that i s , the Transit Agency) can also ensure that each l o c a l system i s integrated with other l o c a l and regional c a r r i e r s . For example, l o c a l school bus services can be integrated into the o v e r a l l t r a n s i t network so that cost savings are r e a l i z e d . Also the inter-governmental approach can f a c i l i t a t e the in t e g r a t i o n of land use and transportation. The c e n t r a l agency i s also able to provide p o l i c y advice to l o c a l p o l i t i -cians and o f f i c i a l s as r e s u l t of i t s r o l e and expertise i n planning, financing and other operations aspects of the business. This inter-govern-36. mental approach avoids i n e f f i c i e n c i e s that are common with c e n t r a l i z e d planning agencies because l o c a l government inputs normally preceeds P r o v i n c i a l inputs. I t i s generally understood by the Transit Agency that l o c a l government and residents appreciate l o c a l conditions and p e c u l i a r -i t i e s better than a c e n t r a l i z e d planning body. The performance and achievements of the t r a n s i t public marketing agency i n B. C. w i l l be addressed l a t e r i n the t h e s i s . A few variants of the 'public marketing agency' concept are provided i n the following section to i l l u s t r a t e how the approach i s applied i n d i f f e r e n t areas and for d i f f e r e n t purposes. Examples of Public Marketing Agencies (See also Table 3.1.) 1) VIA R a i l Canada The newly formed VIA R a i l Canada i s the most recent example of a public marketing agency. The Canadian government was face with having to either provide d i r e c t subsidies to the unprofitable i n t e r c i t y passenger r a i l services operated by both Canadian National and Canadian P a c i f i c or face a gradual d e t e r i o r a t i o n of the passenger r a i l services or abandonment of the s o c i a l l y desirable passenger services i n Canada. Based on the same reasons by which most public marketing agencies were formed, the Canadian government decided to fund and consolidate a l l i n t e r c i t y passenger r a i l services from the two operators and form a new Crown company c a l l e d VIA R a i l Canada i n 1978. VIA i s responsible for funding the d e f i c i t s of a l l services under i t s administration and i s also i n : charge of planning and marketing functions. The actual operation of the services are s t i l l run by the two separate c a r r i e r s CN and CP under TABLE 3 .1 37. Some Public Marketing Agencies for Transportation i n North America  and Western Europe Name Location Services Hamburg Verkehrsverbund Hamburg, Germany urban and regional r a i l and bus Der Munchner Verkehrsvebund Tarifverbund Munich, Germany urban and regional r a i l and bus Swiss Post, Telephone, Telegraph New Jersey Commuter Operating Authority Throughout Switzerland New Jersey r u r a l buses (also does some of i t s own operating) commuter, r u r a l and i n t e r c i t y buses and t r a i n s Sough Eastern Pennsylvania Transit Authority Massachusettes Bay Transportation Authority New York Metropolitan Transportation Authority Amtrak GO Transit Philadelphia region Boston region New York region throughout U.S.A. Toronto, Ontario commuter r a i l (operates i t s own urban bus and r a i l ) commuter r a i l (operates i t s own urban bus and r a i l ) commuter r a i l (operates i t s own urban bus and r a i l ) i n t e r c i t y r a i l r egional r a i l and bus VIA R a i l Canada throughout Canada i n t e r c i t y passenger r a i l services Source: S u l l i v a n , Brian E., An Analysis of Demand for and Supply of  Rural Public Transportation: The Case of Alberta, Ph.D. d i s s e r t a t i o n , Stanford U n i v e r s i t y , 1974. 38. contractual agreement with VIA. 2) Hamburg Verkehrsverbund This i s the most often c i t e d experience of a public marketing agency i n the passenger transport f i e l d . In the mid-nineteen-sixties the c i t y of Hamburg, Germany was faced with the problem of co-ordinating the d i f f e r e n t transport services provided by a number of p r i v a t e l y and p u b l i c l y owned c a r r i e r s . To purchase the c a r r i e r s outright to achieve co-ordination was not possible. In 1965, the Hamburg Verkehrsverbund was formed as a c a r r i e r for route planning and design, establishment of fares and schedules and promotion of bus, tram, subway, suburban railway and f e r r y services. A common t a r i f f was established and interchange points for various modes were improved. Revenues c o l l e c t e d by the Verkehrsverbund were d i s t r i b u t e d to the c a r r i e r s based on a formula using passenger miles. 3) Munchener Tarif-und Verkehrsverbund (MVV) This organization was formed i n Munich, Germany i n 1971 on the same basis as the 'p.m.a.' established i n Hamburg. Several state and c i t y governments are involved i n t h i s case to achieve the twin goals of j o i n t planning for public transport service and j o i n t r e s p o n s i b i l i t i e s for financing the services. 4) GO Transit During the mid-nineteen-sixties the Ontario Government (Ministry of Trans-port and Communications, i . e . , Highways) i n Canada was t r y i n g to improve the capacity along the Toronto Lakeshore c o r r i d o r . A passenger r a i l service making use of the CN right-of-way was thought to be more c o s t - e f f e c t i v e 39. than building extra highway lanes. The Ontario Government decided to set the specifications for the service and assume the responsibility for i t s financing and contracted CN to run the service. A few months later, the r a i l service was shown to be very popular and the government agency decided to feed the end r a i l station with buses. The same arrangement for planning and financing of the bus services was made. Gray Coach Lines was contracted to run the service. A l l functions related to planning and marketing belonged to the government agency while the operators were only responsible for running the services according to specifications. The following is a table summarizing the responsibilities for marketing functions for the GO services. For more information on different types of public marketing agencies readers can refer to Sullivan's report. No example of the 'p.m.a.' can be found in the area of supplying transit services to small c i t i e s . The experience in B. C. is unique in a sense that urban transit services in small cit i e s are provided province-wide under one arrangement and one funding formula with similar service designs. Besides the commonly cited merits of the concept, the most vi s i b l e are expected benefits resulting from certain scale economies in both the planning and marketing functions. The following sections of .this chapter document the approach taken in B. C. and the detailed implementation process. Recommendations and assessments are given in a later chapter. TABLE 3.2 RESPONSIBILITY FOR MARKETING FUNCTIONS FOR GO TRANSIT SERVICES FUNCTION CARRIER Canadian National Gray Coach Trailways of Canada Market Research Product Design: schedules routes equipment terminals P r i c i n g : . fare l e v e l s GO j o i n t j o i n t i n i t i a l l y CN CN GO fare c o l l e c t i o n system j o i n t Promotion GO Channels GO Packaging GO G O j o i n t j o i n t ^ GO/GC ' GO/GC GO GO GO GO GO/GC GO j o i n t j o i n t T of C j o i n t GO GO GO GO T of C (primarily) * " j o i n t " means that GO and the c a r r i e r worked together. "GO/carrier" means that i n some si t u a t i o n s the c a r r i e r does t h i s function while i n others, the marketing agency does. Source: S u l l i v a n , Brian E., An Analysis of Demand for and Supply  of Rural Public Transportation: The Case of Alberta, Ph.D. Dis s e r t a t i o n , Stanford University, 1974. 41. . 3 . 3 MANAGEMENT OF TRANSIT OPERATIONS -The Public Marketing Agency by i t s nature must function i n conjunction with the operators of the t r a n s i t systems'• In general, there are several 3 types of organizations of t r a n s i t operators i n existence. Perara gives a good description of the d i f f e r e n t types of organizations i n Ontario. They include Transit Commissions, Public U t i l i t y Commissions, Municipal or Regional Government and Private operators. In B r i t i s h Columbia there are three types of organizations which are shown in Table 3 . 3 . There i s l o c a l t r a n s i t service i n f i f t e e n of the small c i t i e s i n the Province. Of these f i f t e e n systems, twelve are subsidized by the Province. This section describes i n d e t a i l the functions which each of the Public Marketing Agency, the municipality and the operator must carry out i n order to provide t r a n s i t service. TABLE 3.3 ORGANIZATION OF TRANSIT OPERATIONS IN SMALL CITIES IN B. C. TYPES NUMBER OF SYSTEMS MUNICIPALITY/REGIONAL OWNED AND 4 OPERATED ( T r a i l , Nanaimo, Nelson, Powell River) PRIVATE OWNED AND OPERATED 10' (Kelowna, Penticton, Prince Rupert, Kitimat, Maple Ridge,^Port Alberni.,.^ Prince George, Vernon , Chilliwack , Mission ) CROWN OWNED AND OPERATED 1 (Kamloops) TOTAL: 15 * Three of these ten systems, namely Chilliwack, Vernon, and Mission are not, at present, under the cost-sharing arrangement with the Province. They a l l received subsidies from the l o c a l government. Chilliwack and Mission are now negotiating a contract with the Province to share the subsidies for t r a n s i t while Vernon's t r a n s i t system i s s t i l l owned and operated by Vernon Bus Lines Ltd. with subsidies from the Cit y of Vernon. 43. 3.3.1 P r i v a t e l y Operated Transit Services The most common arrangement i n B.C. i s one which involves the purchase of service contract between the municipality (as the t r a n s i t authority under the terms of the Municipal Act) and a private bus company. The steps involved are as follows: 1) Local government has to go to the Province f o r t r a n s i t subsidy. 2) P r o v i n c i a l government would provide a conceptual plan. 3) City approves conceptual plan. 4) The Province produces a f u n c t i o n a l plan based on the approved i conceptual plan .and costs. 5) The C i t y approves the plan and costs ( i . e . number of bus miles and bus hours). 6) The plan i s then sent out for b i d . The prospective operating company i s responsible f o r providing services as s p e c i f i e d i n the "purchase of service agreement". This r e s p o n s i b i l i t y usually includes: 1) A l l aspects of personnel such as d r i v e r s e l e c t i o n , and t r a i n i n g , and union negotiations. 2) Daily s e r v i c i n g of vehicles including washing or cleaning, o i l changes etc. 3) Purchase of insurance. The monthly contract rate pays for these services, including such items as f u e l and t i r e s , and the contract rate i s based on a v a r i a b l e cost per mile and hour. Provisions are also given f o r additions and deletions of services based on the same f i n a n c i a l formula. 4 4 . The contractor i s supplied with vehicles from the P r o v i n c i a l f l e e t on the basis of the need for c e r t a i n v e h i c l e types or configurations as determined i n the planning phase. The buses are leased to the successful contractor of l o c a l government by the Province for a nominal fee of one d o l l a r per bus. This amounts to 100% c a p i t a l financing on ve h i c l e s . Leases fun for a sim i l a r length of time as the municipal purchase of service contract. The cost of major maintenance items i s also covered by the Province. I t i s the r e s p o n s i b i l i t y of the municipality to provide accounting, to set fares (that i s , no r e s t r i c t i o n s on cost-recovery targets) and to advertise services. The d i v i s i o n of r e s p o n s i b i l i t i e s outlined above has eliminated several elements of r i s k f o r the contractor. He does not have to be concerned with major maintenance items, c a p i t a l investment i n vehicles nor estimating fares, revenues and income. Once the municipality and the Province have decided to purchase t r a n s i t services, public tenders are c a l l e d on the basis of an approved service plan and submissions are reviewed by the Joi n t Provincial-Municipal Committee. The recommendation of the Committee i s taken to the Municipal Council who awards the contract. The awarding of the contract adds another member to the administrative committee. Although not a partner i n the decision-making process regarding fares and le v e l s of service (that i s , expansions or abandonments), the operating company representative provides valuable i n s i g h t s into the day-to-day operational problems and opportunities. Many of the issues related to the d a i l y operations can be resolved by the municipal represnetatives of the 45. Committee since the P r o v i n c i a l representatives are usually not i n l o c a t i o n when problems occur. Issues: related to changes i n l e v e l s of service and those which have c e r t a i n cost implications (both s o c i a l and f i n a n c i a l ) are usually : •-resolved during the quarterly review sections between the representatives from the two l e v e l s of government and the representative from the operate ing company. 46. 3.3.2 , Government Operated Services Governments, both M u n i c i p a l and P r o v i n c i a l have been i n v o l v e d i n operation of t r a n s i t s e r v i c e s because p r i v a t e i n t e r e s t s were u n a v a i l a b l e or unable to provide s e r v i c e s at acceptable cost l e v e l s . Generally the M u n i c i p a l governments became in v o l v e d i n t r a n s i t operations before 1972,while si n c e then the Province has become involved. The Nanaimo, Nelson, Powell R i v e r and T r a i l systems are operated by m u n i c i p a l i t i e s , a n d r e g i o n a l d i s t r i c t s . T h e s e operations are c a r r i e d out as an extension of the c i t y ' s a d m i n i s t r a t i v e f u n c t i o n s . T r a i l i s the only c i t y which came under muni c i p a l ownership a f t e r 1972 as an i n t e r i m measure before the Province was to take over. The T r a n s i t Services Act provides f o r the occasion when a s u i t a b l e p r i v a t e operator cannot be found by enabling the Province to e s t a b l i s h a Crown bus operating company. Two instances of t h i s occurred when no competent low-cost con t r a c t o r s were found to operate the i n t e r c i t y s e r v i c e s on the I s l a n d and the l o c a l bus s e r v i c e i n Kamloops. The Thompson Okanagan T r a n s i t L t d . , a Crown company , operates the s e r v i c e s i n Kamloops. As there i s no s e r v i c e contract agreement* the Province c a r r i e s a l l the costs i n c u r r e d i n running the company and s e r v i c e s and b i l l s the m u n i c i p a l i t y ( i . e . Kamloops) on a q u a r t e r l y b a s i s . The manager f o r the company i s provided by the P r o v i n c i a l T r a n s i t •Agency and i s given .the r e s p o n s i b i l i t i e s of the o v e r a l l operation and a d m i n i s t r a t i o n of the company. A l l r e s p o n s i b i l i t i e s and f u n c t i o n s that belonged to an operating company apply to t h i s Crown company as w e l l . A l l f a c i l i t i e s , buses, equipment and garage f a c i l i t i e s are 47. owned by the Province. In Summary, of the twelve systems i n small c i t i e s i n B. C , seven are operated under contract to the municipality by a private company and four are municipal or regional owned and operated and there i s only one operation that i s operated by a Crown-owned company. Since management, planning and marketing expertise can be provided by the Public Marketing Agency contractual arrangements with private operators appear to be the most convenient option. With t h i s arrangement, the Province does not have to purchase operators out-right or set up necessary f a c i l i t i e s for the operations. In the case of Kamloops, the Province had to purchase the two private operations i n order to consolidate the services. The long-term cost outlook for the 'purchase of servi c e ' contract arrangement may not be as e f f e c t i v e as the 'government-operated' option. The reasons for t h i s assertion w i l l be discussed i n Chapter Five on 'Program Evaluation'. 48. 3. 4 .LEVEL OF SERVICE SUPPLIED, Service c h a r a c t e r i s t i c s are usually dictated by the a v a i l a b i l i t y of equipment and cost of running the service. The minimum l e v e l s of services are determined by the P r o v i n c i a l Transit Agency on the basis of a simple set of service standards. The P r o v i n c i a l standards are: (i) a bus route should be within ten minutes walk of every house to be served or one-quarter mile whichever i s l e s s ; ( i i ) bus service should be no le s s frequent than half-hourly i n continuously built-up areas during the day-time and hourly during the evening and Saturday; and ( i i i ) fares should be able to cover f i f t y percent ( i t should be reviewed yearly) or more of the cost of providing the service; (iv) standards of service can be adjusted upwards or downwards from t h i s stated average s i t u a t i o n depending on resident r i d e r s h i p patterns, density of settlement, general pattern of a c t i v i t y centre i n the community. The minimum cost recovery stated by the Agency has never been implemented or adhered to due to the reluctance of p o l i t i c i a n s (both P r o v i n c i a l and municipal) to increase fares or l i m i t the areas served by t r a n s i t . The majority of the decisions on costs and l e v e l s of service have been made by l o c a l demand provided that the half-hourly frequency and one-quarter mile minimums are met. The following tables document the amount of services provided i n the twelve subsidized systems. 49. 1) Frequency of Service The most common headway during the peak periods on any weekday i s 30 minutes with the shortest headway being 20 minutes for some of the runs to major i n d u s t r i a l centres or employment centres. The base headway for most systems i s 30 minutes except for those systems which have not been improved. The most common headway during the evening and Saturday i s 60 minutes which meets the requirements c a l l e d f o r by the Transit Agency. Table 3.4 summarizes the service frequencies f or a l l twelve systems by time of day and day of week. 2) Duration of Service Table 3.5 provides a summary of service hours i n these twelve systems. Most systems provide evening service during the weekdays which usually coincide with shopping hours. Only two systems have Sunday service. The decision regarding service hours are made by l o c a l public o f f i c i a l s . The only recommendation given by the Transit Agency i s the provision of t r a n s i t service for shopping nights f or both the workers and shoppers. 3) Days of Service Most systems operate s i x days of the week with no service on Sunday and o f f i c i a l holidays except i n two cases where the l o c a l demand overrode economic reasons. Services were provided on Sundays and holidays for both Kamloops and Kitimat. I t was generally f e l t that Sunday r i d e r s h i p i s usually not high enough to j u s t i f y service. 4) Route C h a r a c t e r i s t i c s Most of the systems are r a d i a l systems with routes focussing on the TABLE 3.4 FREQUENCY OF SERVICE (HEADWAY) SYSTEM .BEAK WEEKDAY BASE ;EVENING SATURDAY '" AND/OR I SUNDAY Prince George 30,60 30,60 60 30,60 Kamloops 25-30 30-35 30 30,60 Kelowna 30 30 65 60 Nanaimo 60 60 60 60 Penticton 30 30 60 30 Port Alberni 30 30,60 30,60 30,60 Prince Rupert 30 30 45 30 Powell River 30,60 60 75 60-120 Kitimat 20-25 30,60 45,60 60-80 T r a i l 20-30 30 60 30 Maple Ridge 30-35 60-120 - 60-120 Nelson 25-30 30-60 50-60 30 TABLE 3 . 5 DURATION OF SERVICE* SYSTEM WEEKDAYS SATURDAYS SUNDAYS OPERATING DAYS Prince George 7am-11pm 7am-11pm - Mon--Sat Kamloops 7am-12am 7am-12am 9 am-•8pm A l l Week Kelowna 6am-1Opm 8am-10pm - Mon--Sat Nanaimo 7am-11pm 7am-11pm - Mon--Sat Penticton 6am-10pm 9am-7pm - Mon--Sat Port A l b e r n i 7 am-1 Opm'(11 pm )7am-10pm - Mon--Sat Prince Rupert 7am-7pm(10pm) 9am-7pm - Mon--Sat Kitimat 6am-11pm 6am-11pm 6 am-•11pm A l l Week T r a i l 7am-7pm'(llpm) 9am-6pm - Mon--Sat Maple Ridge 6am-7pm 8am-6pm - Mon--Sat Nelson 6am-12am 10am-8pm - Mon--Sat Powell River 7am-10pm 8am-9pm - Mon--Sat * E a r l i e s t and l a t e s t s t a r t and f i n i s h times of a l l routes i n the concerned city., expressed i n nearest hours. Times i n parenthesis represent Friday evening service only. 52. c e n t r a l business d i s t r i c t and major business and shopping centres with timed-transfer-connections. For Prince George and Kelowna where the land use patterns i n the community required other major timed-transfer points other than the c i t y centre, these points were established i n major shopping centres to provide the type of t r a n s i t o r i e n t a t i o n required. There i s only one route i n Prince George among a l l twelve systems which i s not oriented towards the c i t y centre. The timed-transfer o r i e n t a t i o n of service i s supposed to provide the l e v e l s of service needed with minimum cost (Thompson, 1976)^. The timed-transfer-focal-point ( S u l l i v a n , 1974) concept i s widely used i n the stru c t u r i n g of routes i n a l l the systems planned by the P r o v i n c i a l Agency to guarantee the concept of 'multi-destinations'. Thompson believed and showed that t r a n s i t o r i e n t a t -ion (that i s , providing other t r a v e l needs within the community which are not c i t y centre oriented) i s one of the major factors for a t t r a c t i n g r i d e r s h i p . 5) T y p i c a l Operating Speeds and Length of Routes There i s considerable v a r i a t i o n i n the average system operating speeds. (Refer to Table 3.6.) The operating speed ranges from 12.0 mph to 16.9 mph. The mean and median speeds are 13.8 and 14.5 re s p e c t i v e l y . There i s also a v a r i a t i o n of route speeds among d i f f e r e n t routes i n the system. The low speeds are generally associated with routes with short route lengths and/or through areas with h i l l y t e r r a i n while the high speeds are usually associated with express services to outlying r e s i d e n t i a l areas or i n d u s t r i a l areas with r e l a t i v e l y fewer stops per route mile. Length of routes ranges from 3 miles to 20 miles with a mean and median TABLE 3.6 SYSTEM AVERAGE SPEED ( i n miles per hour) NELSON 12.5 NANAIMO 16.0 POWELL RIVER 13.3 KITIMAT 14.0 PRINCE GEORGE 14.1 PORT ALBERNI 12.9 KAMLOOPS 13.1 KELOWNA 14.0 PENTICTON 13.3 PRINCE RUPERT 14.0 TRAIL 12.0 MAPLE RIDGE 16.9 mean: 13.8 median: 14.5 standard deviation: 1.4 route length of 7 and 6 miles r e s p e c t i v e l y . 55. 3.5 FINANCIAL CHARACTERISTICS AND PERFORMANCE IN SMALL CITIES This section examines the f i n a n c i a l implications of the small c i t y t r a n s i t program i n B. C. . As was mentioned e a r l i e r i n the report r i d e r -ship has increased from 854,400 i n 1972 to 5,595,700 i n 1977 (6.55 times). During t h i s period, the rate of esc a l a t i o n of subsidies was greater than the rate of increase i n r i d e r s h i p (Table 2.5 )• The P r o v i n c i a l subsidy for small c i t y t r a n s i t systems went from $103,600 i n 1972 to $1,336,300 i n 1977, almost a t h i r t e e n - f o l d increase over a five-year period. The worsening of the f i n a n c i a l performance of t r a n s i t - from 12c P r o v i n c i a l subsidy per r i d e i n 1972 to 24c P r o v i n c i a l subsidy per r i d e i n 1977 - i s la r g e l y due to the increases i n the costs of operating services, increases i n the q u a l i t y or quantity of service and the r e l a t i v e l y stable fare structures over the time period from 1972 to 1977. The following provides an examination of the differences i n fare structures and average operating costs f o r the twelve systems. I t i s generally believed that low fares and high operating costs are responsible for most of the escalating d e f i c i t s . 1) Fare Structures As Table 3.7 shows, the fare l e v e l s i n small c i t i e s are s u b s t a n t i a l l y lower than those i n larger urban areas. When Vancouver and V i c t o r i a and other areas i n the rest of the country were paying 50c for an adult fare i n 1978, nine of the systems were s t i l l charging 250 for an adult bus r i d e . Decisions r e l a t i n g to se t t i n g fare l e v e l s or increases have been made j o i n t l y by the m u n i c i p a l i t i e s and the P r o v i n c i a l Agency. As shown i n Table 3.7 both the c i t y of Kamloops and Prince Rupert do not charge t h e i r senior c i t i z e n s f o r using the bus services. Concessions or free .fares for senior c i t i z e n s and other minority groups such as the TABLE 3.7 1979 FARE STRUCTURES ADULT ONE-ZONE FARE ADULT TWO-ZONE FARE SENIOR ONE-ZONE FARE NELSON 25C no zones 15C NANAIMO 350 (250) 50C (40C) 25C (15C) POWELL RIVER 25C no zones 15C KITIMAT 25C 40c 15C PRINCE GEORGE 35C (25c) 50C (40C) 25C (15C) PORT ALBERNI 25C no zones 15C KAMLOOPS 35C (25c) no zones free (free) KELOWNA 35c 50C 25C PENTICTON 35C no zones 25C PRINCE RUPERT 35c no zones free TRAIL 35c (25C) no zones 25C (15C) MAPLE RIDGE 250 40C 15C Note: ( ) 1977 fares 57. young or the handicapped are also determined at the municipality l e v e l . While some places have increased t h e i r fares from 25C to 35c i n 1979, f i v e of the twelve systems s t i l l charge only 250 for an adult r i d e . Most increases were implemented along with the introduction of hew or improved services. There was s t i l l reluctance on the part of p o l i t i c i a n s to increase fares. Transit i s no longer priced on the basis of willingness-to-pay p r i n c i p l e . It i s being priced at a l e v e l subject to minimizing p o l i t i c a l r i s k and l o c a l budget guidelines. The P r o v i n c i a l Agency usually provides guidance as to what the fare l e v e l s should be but the f i n a l decision i s usually made on the basis of municipality's willingness-to-subsidize, a c r i t e r i a that any funding arrangement should take into consideration. 2) Average Costs Another complication to the analysis of f i n a n c i a l performance, besides the discrepancies i n fare l e v e l s , i s the difference i n contract rates. Since seven of the twelve systems i n the P r o v i n c i a l Program are operated by private operators under contract to the m u n i c i p a l i t i e s , the t o t a l operating costs of these systems are l a r g e l y governed by these contract rates. These rates vary from $17.00 per bus hour to approximately $23.00 per bus hour i n 1977. Table 3.8 provides a summary of the average cost per bus hour and per bus mile for the twelve systems. In general, the p u b l i c l y owned and operated systems appear to be les s cost e f f e c t i v e than the p r i v a t e l y run systems. The Crown owned system appears to be s l i g h t l y more cost e f f e c t i v e but the sample i s too small (only one) to judge whether the effectiveness i s due to the type of administration structure or other f a c t o r s . The absence of a p r o f i t margin i s l a r g e l y TABLE 3.8 1977 - AVERAGE COST PER BUS HOUR AND PER BUS MILE 58. 1 NELSON 1 NANAIMO POWELL RIVER 1 KITIMAT2 PRINCE GEORGE^ PORT ALBERNI 2 KAMLOOPS3 KELOWNA2 PENTICTON2 PRINCE RUPERT^ TRAIL 1 MAPLE RIDGE 2 COST PER HOUR $21.55 $27.28 $23.39 $21.98 $23.00 $19.60 $17.70 $17.94 $16.66 $22.48 $17.42 $17.18 COST PER MILE $1.72 $1.70 $1.77 $1.57 $1.63 $1.52 $1.42 $1.34 $1.25 $1.61 $1.45 $1.02 Mean: Standard Deviation: $20.52 3.28 $1.50 0.21 Note: 1 public owned and operated systems 2 owned and operated by private contractors 3 Crown owned MEAN AVERAGES Public owned private owned Crown owned PER HOUR $22.41 $19.83 $17.70 PER MILE $1.66 $1.42 $1.42 59. r e s p o n s i b l e f o r the a t t r a c t i v e n e s s of t h i s P r o v i n c i a l t r a n s i t o p e r a t i n g company^. I t i s r e a s o n a b l e to expect c e r t a i n p r o f i t s a c c r u e to p r i v a t e o p e r a t i o n s o t h e r w i s e t h e r e would be no i n c e n t i v e to e n t e r the p u b l i c passenger t r a n s p o r t b u s i n e s s . 3) Performance I n d i c a t o r s I n s p i t e of the d i s c r e p a n c i e s r e s u l t i n g from b o t h the d i f f e r e n c e s i n f a r e l e v e l s and t y p e s of o p e r a t i o n , e v a l u a t i o n of the f i n a n c i a l performance of the twelve systems can be made based on the f o l l o w i n g : ( i ) c o s t r e c o v e r y , t h a t i s , revenue ; c o s t ( i i ) d e f i c i t per r i d e , t h a t i s c o s t - revenue ; t o t a l r i d e r s h i p ( i i i ) d e f i c i t per c a p i t a , t h a t i s , c o s t - revenue t o t a l p o p u l a t i o n T a b l e 3.9 p r o v i d e s a summary o f the performances of the t w e l v e systems. The c o s t r e c o v e r y r a t i o s range from 0.18, the l o w e s t , to 0.44 which i s the h i g h e s t among a l l systems. 1977 marked the f i r s t y e a r when no system c o u l d r e c o v e r h a l f of i t s o p e r a t i n g c o s t from f a r e - b o x r e v e n u e s . Many systems have not been a b l e to a c h i e v e t h i s s t a n d a r d s i n c e 1972. The t r e n d of d e c l i n i n g f i n a n c i a l p r o d u c t i v i t y a s s o c i a t e d w i t h o t h e r t r a n s i t p r o p e r t -i e s i n o t h e r p r o v i n c e s and l a r g e r c i t i e s i s a l s o b e i n g w i t n e s s e d h e r e i n B. C . T a b l e 3.10 shows the d e c l i n i n g c o s t r e c o v e r y r a t i o f o r a number of the systems i n B. C . There i s a l s o a wide range of d e f i c i t s per r i d e among the twelve systems. I t ranges from $0.29 d e f i c i t p e r f i d e t o $1.08. Government s u b s i d i e s f o r t r a n s i t a l s o v a r y w i d e l y on a per c a p i t a b a s i s among t h e t w e l v e m u n i c i p a l i t i e s . T o t a l s u b s i d i e s ( l o c a l and P r o v i n c i a l combined) f o r 60. TABLE 3.9 FINANCIAL PERFORMANCE - 1977 COST RECOVERY DEFICIT PER DEFICIT PER RIDE CAPITA $ $ $ NELSON 0.31 0.42 11.97 NANAIMO 0.26 0.69 13.98 POWELL RIVER 0.24 0.99 11.52 KITIMAT 0.32 0.55 18.50 PRINCE GEORGE 0.41 0.29 4.29 PORT ALBERNI 0.39 0.32 5.37 KAMLOOPS 0.33 0.47 11.75 KELOWNA 0.30 0.69 6.39 PENTICTON 0.28 0.80 7.38 PRINCE RUPERT 0.44 0.40 6.71 TRAIL 0.28 0.54 12.15 MAPLE RIDGE 0.18 1.08 2.12 Mean: Stahdard Deviation: 0.31 .07 0.60 .25 9.34 4.70 TABLE 3.10 1973 - 1977 COST RECOVERY RATIO 1973 1974 1975 1976 1977 WEST VANCOUVER 0.75 0. 71 0. 62 0 .54 0 .49 POWELL RIVER 0.50 0. 43 0. 30 0 .28 0 .24 NELSON n.a. 0. 52 0. 38 0 .35 0 .31 PRINCE GEORGE n.a. n. a. 0. 73 0 .45 0 .41 62. t r a n s i t ranged from $2.12 per capita for Maple Ridge to $18.50 for Kitimat. This wide range of a l l o c a t i o n of P r o v i n c i a l resource for t r a n s i t signals c e r t a i n requirements for improved funding c r i t e r i a . The P r o v i n c i a l Agency representing the P r o v i n c i a l i n t e r e s t might argue that t r a n s i t funding i s p a r t l y determined by the amount of contributions from the l o c a l l e v e l . But i s i t v a l i d to imply that l o c a l decisions represent the desire of the ci t i z e n s ? What c r i t e r i a can be used to evaluate i f more funding should be allocated to a system l i k e Prince Rupert which achieved the highest cost recovery for the f i r s t year of service and was receiving l e s s than the average share (on a per capita basis) of P r o v i n c i a l funding for t r a n s i t . A l l these questions w i l l be addressed again i n the f i n a l evaluation of the Program. An attempt has been made to c o l l e c t more f i n a n c i a l i n d i c a t o r s aside the ones above. Two indicators that are believed to be useful for evaluat-ing system performance are: 'rat i o of dr i v e r s to other employees' and 'hourly wages for bus d r i v e r s ' . Determining a r a t i o of drive r s to other employees f or these small systems i s a d i f f i c u l t i f not impossible task. Many of the t r a n s i t systems i n B. C. employ d r i v e r s who work part-time as driver s and part-time as maintenance s t a f f or school bus d r i v e r s . For the same reasons plus d i f f e r e n t accounting practices adopted by d i f f e r e n t operators, hourly wage rates for d r i v i n g are also d i f f i c u l t or impossible to obtain. 63. 3.6 SUMMARY This chapter outlined some of the aspects of the t r a n s i t supply program i n B. C . As was pointed out i n the introduction, supply of t r a n s i t i s not simply a matter of operating buses on the s t r e e t . Funding, planning and marketing are also required. The P r o v i n c i a l government through the Public Marketing Agency i n conjunct-ion with the l o c a l m u n i c i p a l i t i e s plans and markets t r a n s i t i n small c i t i e s . The two l e v e l s of government work together so that l o c a l and regional goals can be considered i n the planning and running of the systems. The Province and the Municipality share operating d e f i c i t s equally while the Province owns the bus f l e e t s and leases them to the operators at a rate of one d o l l a r per bus „, An important feature of the supply program i s the Public Marketing Agency which embodies the concept of separation of functions and r e s p o n s i b i l i t i e s . Marketing and planning decision are assigned to the Agency while actual operations of the service i s executed by a p r i v a t e l y or p u b l i c l y owned c a r r i e r , under a contractual arrangement. This concept was adopted i n B. C. p r i m a r i l y because i t was thought to be a good means of c o n t r o l l i n g the t r a n s i t subsidy program. In B. C. there are a number of d i f f e r e n t types of t r a n s i t operators which run the service and come under the control or influence of the 'p.m.a.'. There are seven: p r i v a t e l y owned systems, four systems owned by the m u n i c i p a l i t i e s and one owned by the Crown. Service i s provided to minimum standards which are: a bus route within ten 64. minutes walk or a quarter mile of a l l areas to be served, half-hourly bus frequency (during weekdays) and 50% cost recovery r a t i o . Levels, of course can be adjusted upwards i f the demand warrants i t . The important f i n a n c i a l c h a r a c t e r i s t i c s of small c i t i e s are as follows: the subsidy per r i d e was 24c i n 197-7 and fares were 25c both of which were much lower than i n large c i t i e s . Contract rates f o r the supply of bus service range from $17.00 per bus hour to $23.00 per bus hour. Cost recovery r a t i o s range from 0.18 to 0.44 and the d e f i c i t s per r i d e range from $0.29 to $1.08. This completes the outline on t r a n s i t supply i n small c i t i e s . It remains to provide a s i m i l a r sketch of the demand for t r a n s i t and f i n a l l y evaluate the Transit Program. 65. FOOTNOTES 1. It was believed that the u t i l i z a t i o n of P r o v i n c i a l standard bus stop signs and public timetables could encourage recognition and f a m i l i a r i t y amongst residents of centres anywhere i n the Province. 2. S u l l i v a n , Brian E., "New Methods of Public Transport Administration - The Public Marketing Agency", Canadian Transport Commission  Research Publications, October, 1972. 3. Perara, Maximus H., "The Transit Systems of Small C i t i e s i n Ontario", Research Report No. 39, A p r i l , 1977, Univ e r s i t y of Toronto, York Uni v e r s i t y , Joint Program i n Transportation. 4. Thompson, Gregory, "Planning Considerations For Increasing Metropolitan Area Transit Impact", Bureau of Transit Services, Province of B r i t i s h Columbia, January, 1976. 5. S u l l i v a n , Brian E., "Timed-Transfer Focal Point Concept", Bureau of Transit Services, Province of B r i t i s h Columbia, 1974. 6. Thompson, i b i d . 7. Crown companies were not set up to make p r o f i t , therefore no p r o f i t margin. 66. CHAPTER FOUR  THE DEMAND FOR TRANSIT 4.0 INTRODUCTION The previous chapter outlined the supply of t r a n s i t services. The discuss-ion touched on the organization, ro l e s and r e s p o n s i b i l i t i e s of the parties involved i n supplying t r a n s i t . The l e v e l of service provided and the f i n a n c i a l performance of that service was de t a i l e d . In order to evaluate the P r o v i n c i a l t r a n s i t supply program i t i s necessary to examine the extent and nature of t r a n s i t use, who uses the service and c h a r a c t e r i s t i c s of the t r a n s i t market. Information concerning the extent of t r a n s i t use and the users of t r a n s i t i s provided by on board passenger surveys while t r a n s i t market information i s provided by household surveys. The r e s u l t s of the on board passenger surveys are presented i n the f i r s t part of t h i s chapter and the household survey data i s presented i n the l a s t h a l f . This data i s combined with the supply data to evaluate the Transit Program i n Chapter Five. The questionnaire used f o r the household survey can be found i n Appendix A l while the background information on the three selected c i t i e s f o r the survey, together with the h i s t o r i c a l development of t h e i r t r a n s i t service are presented i n Appendix A2. 67. 4.1 CHARACTERISTICS OF TRANSIT USAGE IN SMALL CITIES IN B. C. Who uses t r a n s i t , why they use i t , when they use i t and how much i t i s used are a l l c h a r a c t e r i s t i c s of t r a n s i t usage. These questions are answered by examining: the socio-economic c h a r a c t e r i s t i c s of users, the t r i p purpose, weekly and d a i l y v a r i a t i o n s i n demand and the u t i l i z a t i o n rates of the service. On board surveys of four t r a n s i t systems (Prince George, Kamloops, Kelowna and Nanaimo) were undertaken before and a f t e r service improve-ments. General service l e v e l s and e x i s t i n g performance of the four systems are given i n Table 4.1. As t h i s table shows, the quantity of service i n terms of bus hours or bus miles have almost doubled i n most cases while the q u a l i t y of service has also improved i n the four c i t i e s . P r i o r to the improvements the majority of users did not have access to a car and the predominant t r i p purposes were work, shopping, school and v i s i t i n g . The second set of surveys showed that the t r i p making character-i s t i c s and the demographics of r i d e r s were much the same as those found p r i o r to the service improvements. These findings i n d i c a t e that the basic usage for t r a n s i t i n small communities does not d i f f e r widely i n s p i t e of differences i n service l e v e l s . TABLE 4.1 SERVICE AND PERFORMANCE CHARACTERISTICS OF  FOUR SMALL CITY SYSTEMS  (BEFORE AND AFTER IMPROVEMENTS) Kelowna Nanaimo 1975 1979 1975 1978 1975 1977 1975 1977 P o p u l a t i o n S e rved 60,000 60,000 35,000 52,000 57,000 58,000 40,000 40,000 P a s s e n g e r s C a r r i e d Per Year ( ,000) 744 1,500 140 482 480 1,258 582 816 R i d e s Per C a p i t a 12.4 25.0 4.0 9.3 8.6 22.1 14.8 20.4 D e f i c i t s P e r C a p i t a $1.09 $5.38 $0.93 $5.60 $1.92 $11.50 $11.00 $14.00 Number Of V e h i c l e s I n S e r v i c e D u r i n g Peak Hour 6 11 2 8 5 11 6 6 Number Of Routes 7 7 4 5 6 10 8 8 Number Of Outbound T r i p s From Downtown 51 144 32 94 94 170 75 80 Number Of Bus Hours P e r Year ( ,000) 19 3 7 5 26 17 52 25 28 Number of Bus M i l e s Per y e a r ( ,000) 228 443 65 372 223 668 396 444 Pass e n g e r s P er Bus Hour. 39 41 28 19 28 24 23 29 P a s s e n g e r s P er Bus M i l e 3.3 3.4 2.2 1.3 2.2 1.9 1.5 1.8 Bus Hours Per C a p i t a 0.32 0.62 0.14 0.50 0.30 0.90 0.63 0.70 Bus M i l e s P er C a p i t a 3.8 7.4 1.9 7.2 3.9 11.5 9.9 . 11.1 69. 4.1.1 Socio-Economic C h a r a c t e r i s t i c s of Transit Riders i n Small C i t i e s The d e t a i l s of socio-economic c h a r a c t e r i s t i c s of t r a n s i t r i d e r s obtained from the surveys taken a f t e r service improvements are presented i n t h i s section. The survey r e s u l t s show that younger r i d e r s ( i . e . under 30 years of age) accounted for the major portion of r i d e r s h i p i n small c i t i e s . Senior c i t i z e n s accounted for about 2% to 17% of the t o t a l r i d e r s h i p s among these four c i t i e s . The differences were mainly due to the age composition of the o v e r a l l c i t y population. (Refer to Census s t a t i s t ^ ies i n Table 4.2(a) f o r comparison). The s l i g h t l y high proportion of young r i d e r s i n Prince George than the other three c i t i e s can also be explained by the same high proportion i n the o v e r a l l population composit-ion. (About 63% of a l l population are under 30 years of age.) The number of female to male r i d e r s i s approximately two'-to-one, the same as those found i n the e a r l i e r surveys. This r e f l e c t s the need for female members from one-car fa m i l i e s to t r a v e l to work or shopping by t r a n s i t . I t was found that most r i d e r s i n Nanaimo and Kamloops were from lower income fam i l i e s while those i n Prince George and Kelowna came from family ies with various income l e v e l s . This d i f f e r s from the r e s u l t s found i n early surveys that t r a n s i t i s mainly patronized by low income c i t i z e n s of the community. The r e s u l t s from the a t t i t u d i n a l survey conducted i n Kitimat, T r a i l and Penticton also agreed with the above findings. These findings suggest that people from various income l e v e l s would patronize t r a n s i t i f the l e v e l of service was to the industry standards. The proportion of r i d e r s from earless households ranged from 13% to 27% r e f l e c t i n g the need for these group of residents to t r a v e l by t r a n s i t . The rest of the r i d e r s are quite evenly s p l i t among one-car to multiple 70. TABLE 4.2(a) SOCIO-ECONOMIC CHARACTERISTICS OF TRANSIT RIDERS AND THE POPULATION (a) AGE OF TRANSIT RIDERS 17 or 65 & Younger 18 - 29 30 - 44 45 - 64 Over TOTAL P r i n c e George 36% 39% 15% 8% 2% 100% Kelowna 21% 32% 13% 17% 17% 100% Kamloops 4% 28% 27% 29% 12% 100% Nanaimo 41% 29% 11% 12% 7% 100% CENSUS CANADA . - 1976 - AGE OF : POPULATION 17 or 65 & Younger 18 - 29 30 - 44 45 - 64 Over TOTAL P r i n c e George 42% 21% 21% 13% 3% 100% Kelowna 33% 15% 17% 21% 14% 100% Kamloops 39% 19% 21% 16% 5% 100% Nanaimo 34% 17% 18% 21% 10% 100% (b) SEX OF TRANSIT RIDERS MALE FEMALE TOTAL P r i n c e George 37% 63% 100% Kelowna 28% 72% 100% Kamloops 26% 74% 100% Nanaimo 31% 69% 100% CENSUS CANADA - 1976 - SEX OF POPULATION MALE FEMALE TOTAL P r i n c e George 51% 49% 100% Kelowna 49% 51% 100% Kamloops 50% 50% 100% Nanaimo 50% 50% 100% 71. TABLE 4.2(a) (Continued) (c) HOUSEHOLD INCOME OF TRANSIT RIDERS L e s s Than $5,001- $10,001- $15,001 Over Don't $5,000 $10,000 $15,000 $20,000 $20,000 Know TOTAL P r i n c e George 15% 13% 11% 11% 13% 37% 100% Kelowna 10% 12% 12% 15% 20% 30% 100% Kamloops 23% 21% 22% 14% 11% 9% 100% Nanaimo 24% 16% 14% 7% 7% 33% 100% * C h i l d r e n g e n e r a l l y d i d not know t h e i r h o u s ehold income car f a m i l i e s . This can be explained by the substantial number of young r i d e r s , female r i d e r s and non-drivers who could be from any f a m i l i e s regardless of car-ownership and income which accounts for the captive r i d e r s who are young and cannot drive. (Refer to Table.4.2(b)) 4.1.2 Purpose of T r i p The r e s u l t s from these surveys do not d i f f e r much from the previous findings. 'Work' and 'shopping' t r i p s were s t i l l the predominant t r i p purposes accounting for over 60% of a l l t r i p s made. 'School' t r i p s accounted for from 12% to 14% of a l l t r i p s on a normal school day. The percentage of school t r i p s usually drop i n the Summer months (e.g. Nanaimo) but the portion for recreation and entertainment t r i p s increase as expected due to the extent of usage by young earless r i d e r s for re c r e a t i o n a l purposes. The rest of the t r i p s were d i s t r i b u t e d quite evenly among other purposes. (Refer to Table 4.3) 4.1.3 Transit Users and A l t e r n a t i v e Means of Travel Most t r a n s i t users stated that without bus service i t would be necessary to take l i f t s from friends or family, walk or hitch-hike. The portions of r i d e r s who could have driven a car for t h e i r t r i p s (choice ri d e r s ) ranged from 5% to 18% among the four c i t i e s surveyed. Between 14% to 23% of the r i d e r s would not be able to make t h e i r t r i p s or did not know what to do without the bus service (captive r i d e r s ) . The l e v e l of 'choice' r i d i n g can be interpreted as the extent of modal s h i f t from auto to t r a n s i t while the extent of usage by 'captive' r i d e r s represents the increase i n mobility that i s sought by the T r a n s i t Program. About 9% to 14% of the r i d e r s would have to resort to a more expensive way of t r a v e l , such as taking a t a x i . (Refer to Table 4.4) TABLE 4.2(b). AUTO-OWNERSHIP AND DRIVER'S LICENCE (a) TRANSIT PASSENGERS WITH DRIVER'S LICENCE % WITH LICENCE % WITHOUT LICENCE P r i n c e George 45 55 Kelowna 41 59 Kamloops 50 50 Nanaimo 32 68 (b) HOUSEHOLD CAR OWNERSHIP OF TRANSIT PASSENGERS NONE ONE MORE THAN ONE TOTAL Pr i n c e George 13% 36% 51% 100% Kelowna N.A. N.A. N.A. Kamloops 27% 42% 31% 100% Nanaimo 22% 37% .'41% 100% STATISTICS CANADA - 1973 - CITY POPULATION Pr i n c e George 10% 54% 36% 100% Kelowna 13% 49% 30% 100% Kamloops 18% 52% 30% 100% Nanaimo 16% 52% 32% 100% TABLE 4.3 PURPOSE OF TRIP Work Shopping School Entertainment/ Recreation Medical/ Dental V i s i t i n g Other TOTAI Prince George 28% 34% 14% 8% 4% 7% 6% 100% . • r . ' * ' Kelowna 29% 39% 12% 7% 7% 7% 5% 100% • - c . - ' - ^ * ' c : \ . Kamloops 36% 37% 11% 4% 6% 2% 3% 100% Nanaimo* 30% 33% 3% 12% 6% 12% 4% 100% ^Survey taken i n a Summer Month TABLE 4.4 TRANSPORTATION ALTERNATIVES TO BUS TRAVEL Prince George Kelowna Kamloops Nanaimo Ride w/Family 17% Ride w/Friends 11% Taxi 14% Walked 29% Hitch-hiked 7% Driven Car 8% Not able to make t r i p 8% Don't Know 6% 19% 14% 9% 23% 18% 11% 13% 9% 15% 17% 13% 10% 4% 18% 16% 7% 22% 11% 11% 25% 9% 5% 11% 8% TOTAL 100% 100% 100% 100% 76. By examining the p r o f i l e of t r a n s i t usage i n the four small c i t i e s above, c e r t a i n generalizations can be made on the benefits of t r a n s i t . The provision of t r a n s i t service has increased the mobility of some and given a cheaper or alternate means of t r a v e l to those who choose to use i t . The findings are not su r p r i s i n g . Transit benefits mostly the young, the non-drivers, the captive and the semi-captive (those who r e l y on l i f t s ) . The l e v e l of modal s h i f t i s low versus what can be expected i n larger urban areas. I t i s reasonable to conclude that t r a n s i t services i n small c i t i e s are consumed pr i m a r i l y by those who need them (that i s , those who are e a r l e s s ) . The costs of achieving t h i s w i l l be compared to the benefits i n the 'evaluation' chapter. 77. 4.1.4 Transit U t i l i z a t i o n of Systems i n Small C i t i e s i n B. C. Simple comparisons of r i d e r s h i p l e v e l s among d i f f e r e n t systems and among d i f f e r e n t years cannot be used to evaluate the performance of these services over time and space unless they are evaluated i n conjunct-ion with a t t r i b u t e v a r i a b l e s . There are several known sets of a t t r i b u t e s that are believed to d i r e c t l y or i n d i r e c t l y a f f e c t the demand for t r a n s i t and i t s u t i l i z a t i o n . The most commonly acknowleged sets of a t t r i b u t e s are: land use c h a r a c t e r i s t i c s of the service area and c i t y , the t r i p -maker c h a r a c t e r i s t i c s , trip-making c h a r a c t e r i s t i c s and l e v e l s or supply of service. This section examines the t r a n s i t u t i l i z a t i o n rates i n small c i t i e s and the c h a r a c t e r i s t i c s of t r a n s i t usage i n these c i t i e s . The data for the evaluation are from several s e l e c t i v e passenger counts conducted i n Kamloops, Kelowna, Prince George, Penticton and T r a i l . Information on service i n t e n s i t i e s and system p r o d u c t i v i t i e s are extracted from reports submitted by the twelve c i t i e s for P r o v i n c i a l subsidy payments. 78. Transit U t i l i z a t i o n b y Time of Day The most evident difference between the c h a r a c t e r i s t i c s of usage i n small c i t i e s versus larger c i t i e s i s the comparatively low peak-to-base r a t i o s i n small c i t i e s . The demand for t r a n s i t during the peak periods versus the day base varies from system to system and the r a t i o s are s u b s t a n t i a l l y lower than those found i n larger c i t i e s . The reasons for t h i s are: congestion i s normally not a problem i n small c i t i e s ; - t r a v e l times and t r a v e l distances are usually short; and parking i s p l e n t i f u l i n most small c i t i e s even i n the Central Business D i s t r i c t s . The commuting movements are r e a l i z e d only i n systems where supplying services to major work locations i s one of the primary objectives. For example, Kitimat, Kamloops and Prince George have developed c e r t a i n l e v e l s of peak period t r a v e l s by t r a n s i t that can be a t t r i b u t e d d i r e c t l y to the number of work places that are served by t r a n s i t . Special trippers"*" are provided i n Kitimat to provide the employees of the major employers of the D i s t r i c t , namely Alcan and Eurocan, convenient a r r i v a l and departure times for t h e i r s h i f t s . While i n the c i t y of Kamloops where most of the work places are c e n t r a l i z e d and were tapped by the old system, a c e r t a i n l e v e l of work t r i p s made by female r i d e r s already existed. As can be seen from Figure 4.1 the so c a l l e d peak-to-base r a t i o s that are r e a l i z e d in Kamloops and Prince George are v i r t u a l l y non-existent i n c i t i e s such as Kelowna and Penticton. 79, FIGURE 4.1 RIDERSHIP PROFILE OF FIVE SELECTED SMALL CITY SYSTEMS Prince George 250 _ 0600 0900 1200 1500 100 >-1800 2100 Kelowna 2400 0600 50 |_ 40 -30 -20 . 10 . 0900 1200 1500 1800 2100 Penticton 2400 4- 1 1 1 1 1 1 1 1 0600 0900 250 200 150 L _ l 1200 1500 100 \-50 |-0 1800 2100 Kamloops 2400 J 1 1 L J I L 0600 0900 1200 1800 2100 2400 0600 0900 1200 1500 1800 2100 2400 DOWNTOWN BUS CONNECTING TIME Ttime of day) 80. Figure • 4.2 shows th e . t r a n s i t u t i l i z a t i o n by time of day for a t y p i c a l weekday and a Saturday. More t r i p s are made during the mid-day on Saturday due to the amount of shopping and recreation a c t i v i t i e s which occur during the weekend. The percentages of d a i l y t r a n s i t t r i p s observed dur-ing d i f f e r e n t times on a t y p i c a l weekday and Saturday for various systems are shown i n Table .4.5. This table indicates that while most t r i p s occurred during the morning and afternoon peak periods, a large percentage of t r i p s were made during off-peak hours. The lowest l e v e l of d a i l y demand was during evening hours. The v a r i a t i o n s among systems are not very pronounced except for T r a i l where there was no evening service and the commuter market was well served. Saturday u t i l i z a t i o n patterns are quite s i m i l a r among a l l systems because shopping and recreation are the pre-dominant t r i p purposes i n a l l c i t i e s on t h i s day. SI-FIGURE 4.2 TRANSIT UTILIZATION BY TIME OF DAY FOR A WEEKDAY AND A SATURDAY KAMLOOPS WEEKDAY Pi !=> o tn i P H W P H w O > w e> W cn C/3 <tj P H P H h-l pi H Q § 1-1 <3 H O H 300 |-250 200 -150 " 100 • 50^ 0_ 300 250 200 150 100 50 0-J l opoo i l -jj J : . -t-nJ J L 1 \-0900 1200 1500 1800 KAMLOOPS - SATURDAY 2100 . 2400 4 -0600 0900 1200 1500 1800 2100 2400 .THOMPSON PARK MALL (downtown) BUS C0NNETING TIME ( Time of Day ) TABLE 4.5 RIDERSHIP BY TIME OF DAY (a) WEEKDAY DEMAND TIME PERIOD PRINCE GEORGE KELOWNA PENTICTON KAMLOOPS TRAIL Morning peak: |(start to 9:30 a.m.) 21% 17% 20% 21% 30% ,0f f-peak (9:30 a.m. to 3:00 p.m.) 37% 46% 39% 32% 25% Afternoon peak (3:00 p.m. to 6:30*p.m.) 34% 32% 32% 39% 45% Evening (6:30 p.m. to end of day) 8% 5% 9% 8% TOTAL 100% 100% 100% 100% 100% .(b) SATURDAY DEMAND Morning (start to 10:30 a.m.) 10% 8% 7% 9% 9% Mid-day (10:30 a.m. to 6:30 p.m.) 80% 84% 84% 81% 85% Evening (6:30 p.m. to end of day) 4% 8% 9% . 10% 6% TOTAL 100% 100% 100% 100% 100% 8 3 . Transit U t i l i z a t i o n of Service by System 'Rides per capita' i s widely used as a measure of service u t i l i z a t i o n by system. Many people ( F i e l d i n g and Glauthier, 1976 ; Drosdat, 1977; 2 among others) have argued that i t i s not a v a l i d measure of service usage because of the d i f f i c u l t i e s involved i n defining area of market penetration,-and as a r e s u l t , most people use the area population instead of population served. Although i n B. C. the guideline of providing a maximum walk of a quarter mile to eighty percent of t o t a l c i t y population was stated, i t was never enforced. The reason for t h i s is.'the lack .of c r i t e r i a i n defining the boundaries of the ' t r a n s i t envelope'. For the purpose of t h i s a n a l y s i s , which was to present an overview of service u t i l i z a t i o n of d i f f e r e n t c i t i e s , the area population was used. Table 4 . 6 . shows that there was considerable v a r i a t i o n i n 'rides per capita' among the systems i n B. C.. Experience elsewhere (e.g. Ontario and Alberta) indicates that rides per capita generally increase with 3 c i t y s i z e (Perara 1977 ; and Hutchinson, 1977).. Hutchinson shows that the annual number of revenue passengers and the annual revenue miles of bus t r a n s i t supplied both increase exponentially with urban area population. He further explains that t r a n s i t r i d e r s h i p tends to increase exponentially with CBD employment suggesting that the higher parking charges i n the larger c i t i e s and the greater number of non-work t r i p s contribute to t h i s increased r i d e r s h i p . This r e l a t i o n s h i p between 'rides per capita' and ' c i t y population'was not as strong for small c i t y systems i n B. C. . Figure 4 . 3 shows very weak c o r r e l a t i o n between rides per capita and c i t y population. This can be explained by the difference in the l e v e l s of service among c i t i e s r e s u l t i n g from the TABLE 4.6 TRANSIT UTILIZATION - 1977 STATISTICS SYSTEM POPULATION RIDERSHIP AVERAGE RIDES TRANSIT UTILIZATION MILES HOURS PER CAPITA BY MILE : BY HOUR PER CAPITA PER CAPITA NELSON 9,235 261,351 28. 3 2. 80 . 35. 00 10. ,10 .81 NANAIMO 40,000 816,000 20. 4 1>-•84 29. .45 11, ,11 .69 POWELL RIVER 13,694 158,851 11. 6 1. 35 17. ,95 8, ,56 .65 KITIMAT 12,500 418,750 33. 5 1. 95 27. .31 17, ,19 1.23 PRINCE GEORGE 61,290 913,221 14. 9 3. 35 47. 10 4, ,45 .32 PORT ALBERNI 20,105 333,743 16. 6 2. 91 37. .49 5. ,71 .44 KAMLOOPS 57,000 1,425,000 25. 0 2. 12 27. .64 11, ,81 .91 KELOWNA 52,000 481,768 9. 3 1. 35 18. .91 6, .86 .49 PENTICTON 21,344 187,851 9. 3 1. 14 15, .17 8, ,14 .61 PRINCE RUPERT 18,130 306,397 16. 9 2. 26 31. .60 7. ,49 ..'54 TRAIL 10,000 225,000 22. 5 1. 93 23. ,20 11. .63 .97 MAPLE RIDGE 29,462 57,746 2. 0 0. 77 13. .04 2, ,54 . 15 WEST VANCOUVER 37,380 2,119,446 56. 7 2. 86 29. .03 19, ,81 1.95 FIGURE 4.3 -40 RIDES PER CAPITA VERSUS CITY POPULATION • Kitimat 30 RIDES PER 20 CAPITA 10 Nelson T r a i l Port . Al b e r n i Powell, River f Prince Rupert » Nanaimo * Kamloops •Prince George Penticton • Kelowna Maple Ridge JL 10 20 ± 30 40 50 CITY POPULATION ( i n thousands) 60 00 86. following factors: the approach used by the P r o v i n c i a l Transit Agency for estimating the resource a l l o c a t i o n or the supply of services i s very crude; f i n a l decision on the l e v e l s of subsidy are usually made by municipal o f f i c i a l s on the basis of t h e i r 'willingness to subsidize' rather than on the needs for service; - as there i s no l i m i t on the l e v e l of P r o v i n c i a l subsidies, l o c a l m u n i c i p a l i t i e s can demand services above the minimum l e v e l s recommended by the Transit Agency. ( See Figure 4,4 and Table 4.7) Annual passengers c a r r i e d by a system divided by the revenue-miles or hours of service provided per annum i s also a common i n d i c a t o r of t r a n s i t u t i l i z a t i o n . Perera, with data-from Ontario, showed that a c o r r e l a t i o n c o e f f i c i e n t of 0.96 was found between the annual passengers c a r r i e d by a system and the annual:.revenue miles operated by the system. This signals the close r e l a t i o n s h i p between the passengers c a r r i e d and the 4 revenue miles accummulated over a year..The discrepancies i n the l e v e l s of services offered and the t r a n s i t u t i l i z a t i o n rates can be seen from the summary of bus hours, bus miles and r i d e r s h i p for the twelve systems provided i n Table 4.7 • A c o r r e l a t i o n c o e f f i c i e n t of 0.92 and 0.93 was found between the annual passengers c a r r i e d and annual revenue miles and hours respectively. This means that supply:of service ( i . e . the l e v e l of service).: . i s one of the major a t t r i b u t e s f o r t r a n s i t usage. That i s , there i s a direct, r e l a t i o n s h i p between rider-ship and the amount of service provided. FIGURE 4.4 RIDES PER CAPITA VERSUS TRANSIT UTILIZATION PER MILE AND LEVELS OF SERVICE 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 TRANSIT UTILIZATION ( : passengers ) revenue miles (I) 5 revenue miles per capita (IT). 10 revenue miles per capita (III) 15 revenue miles per capita (IV) 20 revenue miles per capita TABLE 4.7 . RIDERSHIP VS. LEVELS OF SERVICE (1977 DATA) SYSTEMS ANNUAL ANNUAL ANNUAL AVERAGE BUS MILES BUS/HOURS HOURS MILES RIDERSHIP SPEED PER CAPITA TEER. .CAPITA NELSON 7,460 93,244 261,351 12,5 10 .10 .81 NANAIMO 27,711 444,191 816,000 16.0 11 .11 .69 POWELL RIVER 8,848 117,255 158,851 13.3 8 .56 .65 KITIMAT 15,334 214,830 418,750 14.0 17 .19 1.23 PRINCE GEORGE 19,392 272,791 913,221 14.1 4 .45 .32 PORT ALBERNI 8,902 114,836 333,743 12.9 5 .71 .44 KAMLOOPS 51,554 673,352 1,425,000 13.1 11 .81 .91 KELOWNA 25,473 356,616 481,768 14.0 6 .86 .49 PENTICTON 13,041 173,770 197,851 13.3 8 .14 .61 PRINCE RUPERT 9,696 135,744 306,397 14.0 7 .49 .54 TRAIL 9,696 116,352 225,000 12.0 11 .63 .97 MAPLE RIDGE 4,427 74,745 57,746 16.9 2 .54 .15 WEST VANCOUVER 73,000 740,384 2,119,446 10.1 19 .81 1.95 CORRELATION COEFFICIENTS W/O WEST VANCOUVER WITH WEST VANCOUVER Miles vs. Ridership Hours vs. Ridership 0.92 0.93 0.94 0.97 89. 4.2 THE TRANSIT MARKET IN SMALL CITIES The previous sections i n t h i s chapter provided d e t a i l s on the character-i s t i c s of t r a n s i t users. The purpose of the following sections i s to examine the whole t r a n s i t market, that i s , both those who do and do not use t r a n s i t . A household a t t i t u d i n a l survey was conducted, the r e s u l t s of which are used i n the following manner: 1) To i d e n t i f y the sector of the community b e n e f i t t i n g from the program. 2) To determine the adequacy of the services designed according to the standards provided by the Transit Agency. 3) To determine the general opinion of t r a n s i t i n these communities, and whether the residents accept the program. 4) To determine the effectiveness of t r a n s i t i n reducing residents' dependence on the automobile. 5) To examine the impacts of marketing and whether the marketing component of the program can be improved and/or modified. 6) To examine the requirements for t r a n s i t i n small c i t i e s and to provide a better understanding of what t r a n s i t can and cannot do. Survey Design Kitimat, Penticton and T r a i l were the c i t i e s chosen for the a t t i t u d i n a l survey. The c r i t e r i a for the s e l e c t i o n process are as follows: (i ) A l l systems were planned from t h e i r inception by the Transit Agency, ( i i ) One of the c i t i e s was not i n the marketing program, ( i i i ) Each c i t y chosen received d i f f e r e n t ratings f or the following usage and supply c h a r a c t e r i s t i c s . The u t i l i z a t i o n and l e v e l of 90. service factors are intended to be used as control factors i n a modal choice model, i f the model i s needed for other studies. These supply and usage factors are: hours/miles per capita, passengers per bus mile/hour, and rides per capita. Of the three c i t i e s chosen, Kitimat rated 'high' i n a l l items, T r a i l rated 'medium' and Penticton rated 'low' i n these c r i t e r i a . A l l three systems were planned by the Transit Agency. Both T r a i l and Penticton were i n the marketing program while Kitimat did not receive any marketing e f f o r t . Having selected the c i t i e s , i t was necessary to select households for sampling. Since income was believed to be an important determinant of modal choice, i t i s necessary to reach a mixture of income l e v e l groups. As a r e s u l t , d i f f e r e n t types of neighbourhoods were surveyed. These neighbourhood were v i s i t e d personally to obtain a better f e e l for the neighbourhood and to ensure that a broad range of housing units would be included i n the sample. Blocks were then selected from d i f f e r e n t areas i n such a way as to obtain a mix of distances from t r a n s i t routes and a cross-section of types of housing u n i t s . The planned sample s i z e was b u i l t up with reference to minimum c e l l s i z e requirements for cross-tabulation analysis. The same survey methodology was employed i n a survey conducted i n the San Francisco Bay Area^. I t was found that between 70% to 75% response rates could be expected. The number of blocks selected f o r i n c l u s i o n i n the survey r e f l e c t e d the planned s i z e of the sample. In order to obtain at le a s t 300 responses from each c i t y surveyed, 500 questionnaires were d i s t r i b u t e d i n each of the three c i t i e s chosen. 91. The questionnaires were delivered by survey workers to every other house on the block. A l l members of the house were surveyed except those who were under 18 years of age and were l i k e l y to be captive t r a n s i t users. The d e l i v e r y procedures involved dropping o ff questionnaires one evening, returning two evenings l a t e r at an agreed time to pick up completed responses, and subsequently making a t h i r d v i s i t to c o l l e c t questionnaires s t i l l uncompleted on the second t r i p . Households which had not responded by the t h i r d evening were given stamped addressed envelopes and asked to mail i n t h e i r responses. If people were out when the survey workers c a l l e d , they were replaced by the housing unit to the l e f t or r i g h t of them. Less than two percent of the questionnaires were returned by mail and les s than four percent of the households v i s i t e d refused to p a r t i c i p a t e . The unusable questionnaires were discarded and these account-ed for les s than two percent of the questionnaires received. A f t e r the questionnaires were checked for gross inconsistencies, they were coded and keypunched. The data was then analysed using programs from SPSS. Survey Results and Findings The r e s u l t s and findings presented i n t h i s section were drawn from the 1,100 responses from the survey. More than 300 responses were c o l l e c t e d from each c i t y and the o v e r a l l response rate was 80% . Demographic c h a r a c t e r i s t i c s of the respondents were summarized i n order to show there were no p e c u l i a r i t i e s i n the sample. The summary i s . presented i n Table 4.8 to Table 4.13. There i s almost an equal s p l i t between male and female i n the o v e r a l l sample. Nearly 60% of respondents had no college or post-secondary THE FOLLOWING TABLES, 4.8 t o 4.1,3 GIVE CHARACTERISTICS OF RESPONDENTS TO THE HOUSEHOLD SURVEYS TABLE 4.8  DEMOGRAPHIC CHARACTERISTICS SEX Male 48% Female 52% TOTAL 100% TABLE 4.9 AGE BREAKDOWN OF RESPONDENTS AGE GROUPS (Aged 18 or Under Group I s Exc l u d e d ) 20 Or L e s s 21 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 And Over TOTAL KITIMAT (%) TRAIL (%) PENTICTON 7.9 6.9 8.3 9.5 7.2 4.8 37.1 18.3 15.5 22.3 14.0 19.0 15.3 20.9 15.0 6.8 22.9 15.8 1.1 9.7 21.4 100.0 100.0 100.0 TABLE 4.10 MARITAL STATUS S i n g l e 14% M a r r i e d 77% Other 8% TOTAL 100% * PEOPLE AGED 18 OR UNDER ARE EXCLUDED FROM THE SURVEY TABLE 4.11  SCHOOLING (EDUCATION) Post Secondary Or Bachelor 34% No Post-Secondary 66% TOTAL 100% TABLE 4.12  HOUSE VALUES (ASSESSED VALUES) Less Than $40,000 52% $41,000 - $50,000 23% $51,000 - $60,000 14% $61,000 - $70,000 4% Over $70,000 1% No Answer 6% TOTAL 100% TABLE 4.13 YEARS IN COMMUNITY 0 - 2 Years 12% 3 - 5 Years 13% 6 - 1 0 Years 18% Over 10 Years 55% No Answer 2% TOTAL 100% 94. e d u c a t i o n . The average e d u c a t i o n l e v e l of the r e s p o n d e n t s can be e x p l a i n e d by the economic base of these t h r e e c i t i e s , which happens to be a g r i c u l t -u r a l , i n d u s t r i a l and m i n i n g . Almost 70% of those surveyed a r e l o n g - t i m e r e s i d e n t s of the community, h a v i n g l i v e d t h e r e f o r s i x or more y e a r s . A p p r o x i m a t e l y 90% of a l l houses surveyed have a s s e s s e d v a l u e s of under $60,000 and s l i g h t l y more than h a l f of the r e s p o n d e n t s l i v e i n houses v a l u e d l e s s than $40,000. I t i s r e a s o n a b l e to assume t h a t the sample c o n s i s t s m a i n l y of average income f a m i l i e s . 95. 4.2.1 The Sector of Community Benefiting from the Program The on-board passenger survey i d e n t i f i e d youth t r a n s i t users as captives. Therefore i n order to i s o l a t e and i d e n t i f y adult users the youth were excluded from the survey. Table 4.14 shows the degree of use by the adult male and female population. The f i r s t observation to be made i s that women use t r a n s i t more than men. The second observation which can be drawn from these r e s u l t s i s that only 13% of the adult population are regular users of t r a n s i t , 5% of which are captive and 8% are choice r i d e r s . The use of t r a n s i t by age group i s shown i n Table 4.15 . Approximately 37% of captive regular users were over 55 years of age. These findings agree with the r e s u l t s from on .board passenger surveys which showed that women and the aged represent a larger portion of t r a n s i t users i n small communities i n B. C . The mode choice by t r a n s i t usage groups for work and non-work t r i p s are presented i n Table 4.16 and Table 4.17 . These tables show that about half of those who said they were regular bus users chose to take the bus to work while regular t r a n s i t users r e l i e d more heavily on the auto and walking for non-commute t r i p s . In summary, women and the older c i t i z e n s made up the largest group of t r a n s i t users. Half of the regular users•take the public mode for work. Only 5% of a l l respondents surveyed were captive users (other than the young who were not included i n the survey). TABLE 4.14 BREAKDOWN OF USERS AND NON-USERS BY SEX 96. DEGREE OF USE MALE FEMALE TOTAL Non-User Occasional Users Regular Choice Regular Captive 57% 42% 29% 26% 43% 58% 71% 74% 542 (100%) (49.9%) 398 (100%) (36.6%) 94 (100%) ( 8.6%) 53 (100%) ( 4.9%) (100%) 0.352 <0.0001 TABLE 4.15  AGE COMPOSITION OF USERS AND NON-USERS USAGE CLASS AGE 20 Or 21- 25- 35- 45- 55- 65 And • - -. ' Less 24 34 44 54 64 Over Tot a l Non-Users 5% 8% 27% 19% 16% 14% 10% 100% Occasional Users 11% 6% 20% 18% 20% 16% 10% 100% Regular Choice 8% 5% 25% 22% 14% 18% 8% 100% Regular Captive 9% 11% 17% 13% 11% 11% 26% 100% TABLE 4.16 TRANSIT USAGE VERSUS CHOICE OF MODE FOR WORK TRIPS MODES Drive Auto Alone Ride with: Others Bus . Walk or Bi c y c l e Others TOTAL NON-USERS 62% 23% 0% 12% 3% OCCASIONAL  USERS 39% 31% 8% 16% 6% REGULAR  CHOICE 10% 17% 49% 21% 3% REGULAR  CAPTIVE 10% 15% 49% 18% 8% 100% 100% 100% 100% TABLE 4.17 TRANSIT USAGE VERSUS CHOICE OF MODE FOR NON-COMMUTE TRIPS MODES Auto Motorcycle Bicycle Taxi Bus Walk Hitchhiked/Fr iend s NON-USERS 72% 1% 7% 1% 0% 18% 1% OCCASIONAL  USERS ;.. 57% 1% 5% : i % 10% 25% 1% REGULAR  CHOICE 34% 1% 7% 2% 31% 25% REGULAR  CAPTIVE 29% 7% 1% 36% 25% 2% TOTAL 100% 100% 100% 100% 98. 4.2.2 The Adequacy of the Level of Service Provided Transit systems i n small c i t i e s were designed j o i n t l y by the m u n i c i p a l i t i e s and the Province based on the c r i t e r i a of meeting both l o c a l and P r o v i n c i a l guidelines. The P r o v i n c i a l guidelines provided a minimum l e v e l of service for these small c i t i e s and they were: i ) Transit routes should focus on a c t i v i t y centres i n the community. i i ) Day-time service frequency i n built-up urban areas should be at l e a s t hourly, but preferably half-hourly, i i i ) A maximum walking distance to the bus stops i n a f u l l y b u ilt-up urban area should be not more than a quarter mile. iv) Local t r a n s i t services should be designed to connect with other forms of public transport serving the region. The purpose of applying these guidelines i n d i s c r i m i n a n t l y to a l l small c i t i e s was to put i n a new system or improve e x i s t i n g services i n the Province to meet n a t i o n a l l y accepted l e v e l s of service guidelines. As documented e a r l i e r , service l e v e l s varied among c i t i e s and a d d i t i o n a l services were usually allowed i f requested by l o c a l governments. In the case of Kitimat when l o c a l guidelines required that "during periods of peak demand, the fa s t e s t and most d i r e c t service route between dwelling units and places of work should be sought" ^, the Province was w i l l i n g to share the d e f i c i t s of t r i p p e r s to meet s h i f t times at ;.the D i s t r i c t ' s major employment centres. The above shows that the l e v e l s of service from the view of supplier or governments are usually measured by the number of seat-miles provided i n each community. However, from the user's point of view, the perceived 99. l e v e l of service i s determined by whether the service meets h i s needs and whether the cost i s reasonable. The cost factor includes p r i c e , t r a v e l time, waiting time and walking time etc. D i f f e r e n t i n d i v i d u a l s have d i f f e r e n t values for t h e i r time. Therefore,'.the evaluation of the adequacy of service l e v e l s i s a subjective one. The r e s u l t s from the a t t i t u d i n a l survey are used to provide the basis for the evaluation. Reasons for Not Using Transit Those who did not use t r a n s i t were asked t h e i r reasons for not using i t . Approximately 29% of the respondents did not answer t h i s question and 19% stated that they did not have any reason for not using t r a n s i t (Table 4.18 ). The most often quoted reason was that other transportation was a v a i l a b l e . Other reasons given were that bus services were inconveni-ent, impractical and that they also had d i f f i c u l t y i n reaching the bus stops becuase of physical conditions or the walking distance between home and stop. Other problems encountered were the design of bus schedules and timetables which people found d i f f i c u l t to understand. The large number of non-responses preclude any generalization concerning the lack of i n t e r e s t towards the t r a n s i t mode. It i s suspected that those who did not respond were not interested i n t r a n s i t because they did not have the need for i t or they knew nothing about the service. None of the reasons were strongly related to the adequacy of service provided. When the responses from non-users were compared to those from the occasional users, the a v a i l a b i l i t y of other transportation becomes a stronger factor for not choosing the t r a n s i t mode. (58% of non-users had other transport-ation as compared to 36% for occasional users.) 1 0 0 . TABLE 4.18(a) REASONS FOR NOT USING BUS SERVICE No Answer 29% No Reason 19% Have Other Transportation 33% Not P r a c t i c a l 5% Generally Inconvenient 5% Bus Schedule - Overall Timetable 3% Does Not Go To Rider's Destination 2% Service Too Slow 1% Others* 3% Total 100% * Others c i t e d were: Problem understanding schedule. - Stop too far from home or work. - P h y s i c a l l y incapable of getting to stop. TABLE 4.18(b) NON-USERS. AND OCCASIONAL USERS REASONS FOR NOT USING TRANSIT REASONS FOR NOT USING TRANSIT Not P r a c t i c a l Other Transportation Generally Inconvenient Bus Schedule Doesn't Go To Rider's Destination Other Reasons No Reason Total NON-USERS OCCASIONAL USERS 6% 8% 58% 36% 6% 8% 4% 6% 3% 2% 4% 6% 19% 34% 100% 100% 101. Extent of A c c e s s i b i l i t y by Transit to Work or School The r e s u l t s show that 93% of the respondents l i v e d within a quarter of a mile (walking distance) to the bus stop and 80% l i v e within 900 fe e t . According to the industry's rule-of-thumb, anyone l i v i n g within a quarter of a mile walking distance to a bus stop i s said to be l i v i n g i n the ' t r a n s i t envelop' (which i s defined by the area serviced by t r a n s i t ) . Only 23% of the workers stated that i t was impossible to take t r a n s i t to work. Half responded that they could e a s i l y take the bus to work and the r e s t , 28% thought that i t was inconvenient to do so. (Table 4.19 ) Problems Encountered With Bus Service Those who were t r a n s i t users were asked to i n d i c a t e the problems encount-ered i n using t r a n s i t . The problems perceived by a l l users were quite .-. common, (Table 4.20 ). Most were directed at the q u a l i t y of service, that i s , r e l i a b i l i t y , duration of service, proximity to bus stop, d i f f i c u l t i e s encountered with obtaining information through timetables. In summary, the l e v e l s of service provided i n small c i t i e s are adequate i n terms of coverage i n r e s i d e n t i a l o r i g i n s , but not so good i n terms of work or study destinations. 'Other transportation' (which most l i k e l y r e f e r s to the 'automobile' or the 'auto passenger' mode) i s the dominant factor for the lack of i n t e r e s t i n the t r a n s i t mode. Two marketing implications a r i s e from evaluating the problems encountered by t r a n s i t users. i ) I t i s important to have widely a v a i l a b l e timetables that are e a s i l y understood. TABLE 4.19 EXTENT OF ACCESSIBILITY BY TRANSIT TO WORK OR SCHOOL E a s i l y 49% Inconvenient 28% Impossible 16% Unsure 7% T o t a l 100% 103. - TABLE 4.20 ' PROBLEMS ENCOUNTERED WITH BUS SERVICE % Responses No Problem 57.5% Not Stated 27.0% Bus Too Late or Too Early 2.9% Timetables Do Not Coincide With Service 2.4% Yes, (But No Explanation) 2.0% Found Bus System and Schedule Confusing 1.5% Bus Schedule Should be Posted on Signs 1.0% Others* 5.7% * - Got l o s t - Had problems i n other c i t i e s Buses taken o f f route during winter at night - Problem with bus dr i v e r Roads to bus stop unsuitable f o r walking - Too f a r from residence - Unsheltered waiting areas - no benches either Having exact fare Bus d r i v e r l e t s passenger out into snow d i t c h - Buses don't run l a t e enough Other passengers - e.g. - a l c o h o l i c s , kids, overcrowded, etc. - Does not go to r i d e r ' s d e s t i n a t i o n - P h y s i c a l d i s a b i l i t y hinders - Problem obtaining bus schedule Bus doesn't s t a r t early enough i n A.M. - Buses are u n r e l i a b l e - sometimes never show up - Long waits between buses 104. i i ) Running a predictable and on time system i s a necessity f o r small c i t y systems due to long headways. 105. 4.2.3 General Opinion and Local Acceptance of Public Transit The measures regarding respondents' attitudes and perception of public t r a n s i t were used to indicate whether the residents' general opinion of t r a n s i t was favourable and whether they accepted or r e s i s t e d the idea. Both users's and non-users' points of view were presented to show whether the opinion of non-users were favourable. Lovelock, i n h i s study, found that t r a n s i t users (he considered only the choice r i d e r s ) rated g bus t r a v e l more favourable than non-users • . Therefore, i t i s important to determine whether the general p o s i t i v e a t t i t u d e and perception of public t r a n s i t found i n t h i s survey were affected by the responses from the t r a n s i t users. Analysis of Attitude Measures Table 4.21 shows the means and standard deviations for respondents' 9 scores under each of the sixteen a t t i t u d e items measured by the survey Six of these were phrased negatively towards public t r a n s i t . The scoring of these s i x items was therefore reversed, so that '1' score always represented a strongly p r o - t r a n s i t a t t i t u d e and '5' the reverse. Most of the attitudes expressed were i n favour of public transport (that i s , having a score of le s s than 3). Only 8% of the respondents completely r e s i s t e d the idea of using public t r a n s i t (Question 2) , and only 15% responded that they could not manage without a car for a few months. The majority of the respondents f e l t that there was a future for t r a n s i t (Question 12), and most had favourable attitudes about the physical a t t r i b u t e s of vehicles and the f r i e n d l y bus d r i v e r s . The response rate for a l l a t t i t u d e measures were above 85%. TABLE 4.21 MEANS AND STANDARD DEVIATIONS OF ATTITUDE ITEMS ITEMS KITIMAT TRAIL PENTICTON ALL MEAN S.D. 1) The i d e a of c a r - p o o l i n g a p p e a l s to me. 2. 63 2. 84 2. 00 2. 82 1. 32 2 ) * I would never t r a v e l r e g u l a r l y by any form o f p u b l i c t r a n s p o r t -a t i o n , no m a t t e r how much t h e y improved t h e s e r v i c e . 2. 10 1. 71 2. 29 2. 03 1. 32 3) T r a v e l l i n g by bus i s so much more r e l a x i n g than d r i v i n g . 2. 81 2. 35 2. 59 2. 59 1. 31 4) I might use th e bus s e r v i c e more o f t e n i f i n f o r m a t i o n about r o u t e s and s c h e d u l e s were e a s i e r to o b t a i n . 3. 37 3. 48 3. 35 3. 38 1. 33 5 ) * I h a t e to be t i e d to f i x e d s c h e d u l e s f o r t r a v e l l i n g . 3. 51 2. 94 3. 20 3. 22 1. 40 6) I don't e n j o y d r i v i n g v e r y much. 3. 87 3. 76 3. 78 3. 82 1. 37 7 ) * I have bad memories o f p u b l i c t r a n s p o r t a t i o n e l s e w h e r e . 2. 24 2. 05 2. 20 2. 17 1. 23 8) I t i s i m p o r t a n t to me t h a t my home s h o u l d be c l o s e to bus r o u t e s . 2. 28 2. 26 2.49 2. 38 1. 26 9 ) * I have never b o t h e r e d t o f i n d out d e t a i l s o f what p u b l i c t r a n s p o r t a t i o n s e r v i c e s a r e a v a i l a b l e around h e r e . 2. 46 2. 00 2. 76 2. 41 1. 41 10) I would use p u b l i c t r a n s p o r t a t i o n a l o t more i f f a r e s were lo w e r . 3. 62 4. 16 3. 56 3. 78 1. 23 11) I c o u l d manage w i t h o u t a c a r f o r a few months i f I had t o . 2. 15 2. 60 2. 27 2. 33 1. 48 12)* I r e a l l y c a n ' t see much of a f u t u r e f o r p u b l i c t r a n s p o r t a t i o n . 1. 88 1. 55 2. 04 1. 82 1. 16 13)* I don't t h i n k t h e r e ' s a p a r k i n g problem i n our community. 4. 02 1. 64 2. 59 2. 78 1. 63 14) I have sometimes n o t t r i e d t o use the bus because I d i d not have the e x a c t f a r e handy. 3. 36 4. 01 3. 67 3. 67 1. 33 15> The buses a r e c l e a n . 1. 91 1. 59 1. 95 1. 82 0. 97 16). The bus d r i v e r s h e r e a r e f r i e n d l y and c o u r t e o u s . 2. 11 1. 53 1. 94 1. 86 1. 01 * Order r e v e r s e d F a v o u r a b l e O p i n i o n Towards T r a n s i t 1. S t r o n g l y a g r e e 2. S l i g h t l y a g r e e 3. N e i t h e r agree nor d i s a g r e e 4. S l i g h t l y d i s a g r e e 5. S t r o n g l y d i s a g r e e 107. Analysis of Perception Measures The survey asked respondents to rate bus t r a v e l on each of nine character-i s t i c s . Table 4.22 summarizes ratings on the semantic d i f f e r e n t i a l scales, showing mean values and standard deviations on nine d i f f e r e n t a t t r i b u t e s . To f a c i l i t a t e the analysis and the comparison of rat i n g s , the mean scores were also reproduced i n graphical form i n Figure 4.5. Scores of l e s s than 2 are favourable, scores between 5 and 6 are unfavourable, while those i n between represent mean r a t i n g scores. Since the respondents were not given other modes to compare with bus t r a v e l , i t i s not su r p r i s i n g to f i n d that a l l a t t r i b u t e s rated favourable. While 'safety', ' r e l i a b i l i t y ' and 'punctuality' rated higher than others, 'speed', 'enjoyment' and 'convenience' rated lower than cot.hers. The f i r s t three r e f l e c t the actual performance of the t r a n s i t system, while the other three are inherent disadvantages of the public mode. More than 80% of the respondents rated most of these perception measures and only the two 'speed' measures had a response rate of l e s s than 80%. The non-responses (about 28%) were mainly from non-users who might not have any knowledge of t h i s q u a l i t y aspect of the t r a n s i t mode. Attitude Factors and Perception of Transit between Users and  Non-users The following i s an examination of whether users have more favourable att i t u d e s towards public transport and have better ratings for the perception measures of bus t r a v e l than non-users. Perception i n t h i s study i s defined as 'the meaning we a t t r i b u t e , on the basis of past 108. TABLE 4.22 MEANS AND STANDARD DEVIATIONS OF PERCEPTION MEASURES KITIMAT TRAIL PENTICTON ALL MEAN S.D. Safety 1.65 1.42 1.57 1.55 0.86 Comfort 2.24 1.82 2.08 2.05 1.15 Convenience 2.90 1.82 2.60 2.45 1.64 Enjoyment 3.20 2.20 2.72 2.72 1.47 R e l i a b i l i t y 2.16 1.57 1.89 1.88 1.20 Punctuality 2.31 1.59 1.93 1.95 1.19 Speed on Commute Tr i p s 3.38 2.37 2.82 2.87 1.50 Speed on Non-Commute T r i p s 3.24 2.38 2.83 2.84 1.40 Cost of Travel 2.39 1.68 2.51 2.20 1.40 FIGURE 4.5 MEAN SCORES OF PERCEPTION MEASURES BY CITY MEAN SCORES OF PERCEPTION MEASURES 110. experience, to s t i m u l i as received through our f i v e senses' 1^, and 'attitude' i s defined as 'a person's enduring favourable or unfavourable cognitive evaluations, emotional f e e l i n g s , or active tendencies towards some object or idea'''"1. Table 4.23 displays the mean scores obtained for each of the sixteen a t t i t u d e items by each of the six classes of t r a n s i t users. The scores indicate that t r a n s i t choice users (both regular and occasional users) have a more favourable attit u d e towards t r a n s i t than the non-users. However, the regular captive users rated t r a n s i t l e s s favourable than the choice users, even though the ratings were s t i l l more favourable than those given by non-users. By employing two measures of association to evaluate the r e l a t i o n s h i p between pairs of variables i n c r o s s - c l a s s i f i c a t i o n a n a l y s i s , i t i s possible to draw conclusions on whether the r e s u l t s could have arisen by chance and whether the r e l a t i o n s h i p i s strong. The two measures used are the Chi 2 Square ( 7^ ), which i s employed to test for the s i g n i f i c a n c e of the rel a t i o n s h i p and Gamma ( % ) , which tests the strength of the r e l a t i o n s h i p . Negative Gamma indicates a negative r e l a t i o n and P o s i t i v e Gamma indicates a p o s i t i v e r e l a t i o n . The r e l a t i o n s h i p between a t t i t u d e measures and t r a n s i t usage was found to be s i g n i f i c a n t for most of the sixteen items (except questions 1,7,10,and 13) but the association was not strong. However, the d i r e c t i o n of the r e l a t i o n -ships was consistently the same i n d i c a t i n g that increasing use of t r a n s i t was associated with more favourable a t t i t u d e towards i t . I t was also found that when the captive users and the occasional users were excluded, the association between usage and attitude was stronger. This means that there TABLE 4.23 MEAN SCORES FOR ATTITUDE ITEMS BY TRANSIT USAGE ITEMS TRANSIT USAGE CLASS ASSOCIATION (A) (B) (C) (D) (E) (F) r 1) The idea of car-pooling appeals to me. 2. 85 2. 71 2. 76 2. 88 2. 81 3. 40 0.008 n. s. 2)* I would never t r a v e l r e g u l a r l y by any form of public trans-portation, no matter how much they improved the service. 2. 61 2. 04 2. 16 1. 63 1.20 1. 76 0.338 <0. 0001 3) T r a v e l l i n g by bus i s so much more relaxing than d r i v i n g . 2. 95 2. 75 2. 76 2. 17 2. 93 2. 52 -0.246 *0. 0001 4) I might use the bus service more often i f information about routes and schedules were easier to obtain. 3. 63 3. 34 3. 34 3. 31 3. 24 3. 30 -0.116 *0. 06 5)* I hate to be t i e d to f i x e d schedules for t r a v e l l i n g . 3. 62 3. 51 3. 17 2. 85 2. 49 2. 87 -0.292 *0. 0001 6) I don't enjoy d r i v i n g very much. 4. 07 4. 01 3. 78 3. 69 3. 10 2. 92 -0.240 «0. 0001 7)* I have bad memories of public transportation elsewhere. 2. 37 2. 22 2. 39 1. 83 1. 79 2. 24 -0.165 n. s. 8) It i s important to me that my home should be close to bus routes. 3. 00 2. 44 2. 21 2. 18 1. 56 1. 42 -0.348 «0. 0001 9)* I have never bothered to f i n d out d e t a i l s of what public transportation services are a v a i l a b l e around here. 3. 11 2. 73 2. 46 1.68 1. 63 1. 58 -0.400 <0. 0001 10) I would use public transportation a l o t more i f fares were lower. 3. 90 3. 79 3. 53 3. 92 3. 70 3. 61 -0.035 n. s. 11) I could manage without a car for a few months i f I had to. 2. 80 2. 56 2. 26 2. 09 1. 66 2. 07 -0.218 <0. 0001 12)* I r e a l l y can't see much of a future for public trans-portation. 2. 14 1. 87 1. 99 1. 48 1. 26 1. 89 -0.282 ^0.0001 13)* I don't think there's a parking problem i n our community. 2. 91 2. 86 3. 06 2. 46 2. 43 2. 59 -0.094 n. s. 14) I have sometimes not t r i e d to use the bus because I did not have the exact fare handy. 3. 77 3. 69 3. 49 3. 71 3. 56 3. 73 -0.077 <0. 0001 15) The buses are clean. 2. 32 2. 04 1. 75 1. 45 1. 29 1. 34 -0.469 <0.0001 16) The bus d r i v e r s here are f r i e n d l y and courteous. 2. 43 2. 06 1. 82 1. 45 . 1. 38 1. 31 -0.454 <0. 0001 * Order reversed. ** These measures are based upon the e n t i r e sample of respondents (excluding captive users) and the two occasional user categories are combined. (A) Do not use, never have (B) Do not use, have (C) Occasional use, when have to (D) Occasional use, by choice (E) Regular use, by choice (F) Regular use, no a l t e r n a t i v e 112. was a d e f i n i t e d i f f e r e n c e i n a t t i t u d e between users and non-users. Even though the non-users were les s favourable about t r a n s i t they did not completely r e s i s t the idea. This can be seen from the low mean scores given by these two non-user classes to Question 2 and Question 12. Question 2 was directed to complete resistance to patronize t r a n s i t no matter how much the service was improved. Question 12 was about the future of public transport. (Refer to Table 4.24.) When comparison was made of the perception measures between the major user classes, s i m i l a r r e s u l t s were found. (Refer to Table 4.25.) On every c h a r a c t e r i s t i c s , t r a n s i t users rate bus t r a v e l more favourable than do non-users. The r e s u l t s were more sharply defined when only the regular choice users and non-users were considered. Among the c h a r a c t e r i s t i c s , where the difference i n ratings between the two user groups i s p a r t i c u l a r -l y marked, are 'convenience', 'enjoyment', ' r e l i a b i l i t y ' and 'cost of t r a v e l ' . The choice r i d e r s (both occasional and regular) gave much more favourable ratings to the three c h a r a c t e r i s t i c s which were generally rated the lowest. These three items were 'convenience', 'enjoyment' and 'speed' on both commute and non-commute t r i p s . Even though the ratings given by non-users were lower than those given by users, none of the scores given were unfavourable. In summary, one can say that t r a n s i t was accepted i n these small communi-t i e s , and only a few (8%) were completely against using t r a n s i t i n the future. Only 15% did not consider t r a n s i t as a possible a l t e r n a t i v e i f they were without the use of t h e i r cars. A l l perception a t t r i b u t e s were TABLE 4.24 ASSOCIATION BETWEEN TRANSIT USAGE AND ATTITUDE FACTORS ASSOCIATION ASSOCIATION % >•* r X4 1) The idea of car-pooling appeals to me. 0.008 n. s. 0.064 n. s. 2)* I would never travel regularly by any form of public transportation, no matter how much they improved the service. -0.338 ^ 0 . 0 0 0 1 -0.714 ^0.0001 3) Travelling by bus is so much more relaxing than driving. -0.246 *0.0001 0.518 -tO.0001 4) I might use the bus service more often i f information about routes and schedules were easier to obtain. -0.116 *0.06 -0.156 n. s. 5)* I hate to be tied to fixed schedules for travelling. -0.292 <0.0001 -0.526 *0.0001 6) I don't enjoy driving very much. -0.240 ^0.0001 -0.481 <0.0001 7)* I have bad memories of public transportation elsewhere. -0.165 n. s. -0.381 -£0.002 8) It is important to me that my home should be close to bus routes. -0.348 *0.0001 -0.644 <0.0001 9 ) * I have never bothered to find out details of what public transport-ation services are available around here. -0.400 < 0 . 0 0 0 1 -0.625 *0.0001 10) I would use public transportation a lot more i f fares were lower. -0.035 n. s. . -0.044 n. s. 11) I could manage without a car for a few months i f I had to. -0.218 <r 0.0001 -0.538 *0.0001 12)* I really can't see much of a future for public transportation. -0.282 <0.0001 -0.634 -iO.0001 13)* I don't think there's a parking problem in our community. -0.094 n. s. -0.192 n. s. 14) I have sometimes not tried to use the bus because I did not have the exact fare handy. -0.077 ^0.0001 -0.080 <0.0001 15) The buses are clean. -0.469 <: 0.0001 -0.699 *0.0001 16) The bus drivers here are friendly and courteous. -0.454 rfO.0001 -0.672 <0.0001 * Orders reversed. * These measures are based upon the entire sample of respondents (excluding captive users and the two occasional user categories have been combined). 2 These measures are based upon a sub-sample of regular choice transit users and non-users; occasional users are excluded and the two non-user categories are combined. TABLE 4 . 25 MEAN SCORES FOR PERCEPTION ITEMS BY TRANSIT USAGE ITEMS (A) (E 0 (C) (D) (E) Safety 1. 64 1. 54 1. 69 1. 45 1. 39 Comfort 1. 99 2 . 17 2. 28 1. 85 1. 81 Convenience 2. 67 2 . 86 2. 73 1. 95 1. 56 Enj oyment 2. 94 3 . 01 3. 22 2 . 18 1. 99 R e l i a b i l i t y 2. 01 1. 98 2. 19 1. 58 1. 63 Punctuality 2. 02 2. 08 2. 30 1. 68 1. 60 Speed on Commute Trips 2. 98 2 . 94 3. 20 2 . 61 2. 42 Speed on Non-Commute Trips 2. 98 2 . 89 3 . 14 2 . 61 2. 42 Cost of Travel 2. 28 2. 29 2 . 53 1. 97 1. 76 A S S O C I A T I O N (F) (ALL) ( I ) TC* 1.43 1.55 - 0 . 1 0 2 N.S. - 0 . 3 3 0 N.S. 2.21 2 .05 - 0 . 1 4 5 <: 0 .003 - 0 . 3 7 6 i 0 . 0 0 2 2 .10 2 .45 - 0 . 3 0 2 ^ 0 .0001 - 0 . 6 9 ^ 0 . 0 0 0 1 2.29 2 .72 - 0 . 2 1 7 ^ 0 . 0 0 0 1 - 0 . 5 1 3 ^ 0 .0001 1.57 1.88 - 0 . 1 8 9 ^ 0 . 0 0 0 1 - 0 . 4 5 7 * 0 .0001 1.72 1.95 - 0 . 1 3 8 ^ 0 .028 - 0 . 3 8 2 -c-0.009 2 .95 2.87 - 0 . 1 3 4 <0 . 0 02 - 0 . 3 7 5 <r 0 .0002 2.84 2 .84 - 0 . 1 4 4 * 0 .0023 - 0 . 3 6 6 z 0 .0031 2.27 2 .20 - 0 . 1 4 8 <- 0 .035 - 0 . 4 2 3 < 0 .0004 (A) Do not use, never have (B) Do not use, have (C) Occasional use, when have to (D) Occasional use, by choice (E) Regular by choice (F) Regular, no a l t e r n a t i v e (I) Excluding captive users and two occasional user categories are combined. (II) Based on a sub-sample of regular choice t r a n s i t users and non-users, occasional users are excluded and the two non-user categories are combined. 115. rated favourable. The choice r i d e r s generally had the most favourable ratings for a l l perception a t t r i b u t e s about t r a n s i t . The most pronounced differneces i n ratings between choice and captive/non-users were for items such as 'convenience', 'enjoyment' and 'speed'. One can conclude that the choice r i d e r s are usually more s a t i s f i e d with t r a n s i t than either the captive users or the non-users. I t was also found that t r a n s i t usage was re l a t e d to ones a t t i t u d e about t r a n s i t and h i s perception of the a t t r i b u t e s concerning bus t r a v e l . 116. 4.2.4 The Effectiveness of Transit In Reducing Residents' Dependence  on Automobile There are two issues to be addressed. The f i r s t i s the a v a i l a b i l i t y of t r a n s i t and the second i s the impact of t r a n s i t i n reducing people's dependence on the automobile. Results from both passenger survey and the household survey were used to provide the needed evidence. Results from the passenger survey show that between 35% to 50% (depending on the c i t y ) of a l l t r a n s i t users would have to depend on the automobile for t r i p making (either as d r i v e r or passenger) i f t r a n s i t was not a v a i l a b l e . The household survey also provides some evidence of the a v a i l -a b i l i t y of t r a n s i t to a l l residents i n small c i t i e s . It was found that more than 90% of the residents i n the. three small c i t i e s surveyed had reasonable access to a bus stop ( i . e . within the quarter-mile l i m i t ) and 75% of a l l workers had the choice of taking the bus to work i f they wanted to. The l a t e r findings show that an a l t e r n a t i v e to automobile t r a v e l was provided to at least three-quarters of the population for work and other purposes, and the former findings provide the evidence that t r a n s i t reduced some people's dependence on the automobile mode. In order to show the impact of t r a n s i t on reducing dependence on the auto mode some measures must be i d e n t i f i e d . One of them i s household car-ownership l e v e l . About 5% of the residents surveyed responded that t r a n s i t had affected the l e v e l of car-ownership i n t h e i r household, and another 6% responded that i t was probable or possible that t h e i r car-ornership l e v e l s might be reduced due to t r a n s i t (Table 4.26 and Table 4.27). 117. TABLE 4.26  DOES TRANSIT AFFECT CAR OWNERSHIP? KITIMAT TRAIL PENTICTON ALL Yes 5% 6% 3% 5% No 95% 94% 97% 95% T o t a l 100% 100% 100% 100% TABLE 4.27 WILL CAR-OWNERSHIP LEVEL BE REDUCED IN FUTURE? Probably 3% P o s s i b l y 3% Probably Not 80% Don't Know 5% Not Stated 9% T o t a l 100% 1 1 8 . In summary, t r a n s i t had not affected the l e v e l of car-ownership s i g n i f i c a n t l y , even though about three-quarters of the population could reach most of the a c t i v i t y centres and work locations by t r a n s i t . 119. 4.2.5 Impact of Marketing The consumer-oriented approach to marketing t r a n s i t was adopted by the Transit Agency since i t s inception. The p r i n c i p l e was that people would have to know about the service and be able to use i t ( i . e . knowing the schedules and fares etc.) before they adopted the idea of using i t . Since t r a n s i t was a new idea i n most small c i t i e s i n B.C., an a d v e r t i s -ing campaign was c a r r i e d out during start-up of the new systems. This included a f u l l page advertisement i n the newspapers and at l e a s t two weeks of advertising on the radios. Time-tables were either mailed out to the residents or were d i s t r i b u t e d at major a c t i v i t y centres, such as shopping centres, major department stores, p o s t - o f f i c e , r e c r e -a t i o n centres, c i t y h a l l and other public places such as the h o s p i t a l and the l i b r a r y . The f i r s t day of service was normally free so that l o c a l residents could t r y out the service. Both the C i t y of T r a i l and Penticton experienced t h i s type of marketing programme, while the D i s t r i c t of Kitimat had no advertising programme, except during the times of schedule changes. This section examines whether the marketing programme was successful i n informing the residents of new service and the impact of knowledge about the service and usage of time-tables has on t r a n s i t use. The importance of marketing i s also examined by comparing the knowledge and perception of those who l i v e i n a c i t y with a marketing programme versus one without. Most of the marketing e f f o r t was spent i n introducing the idea of public t r a n s i t to the l o c a l residents. The advertisements were informative rather than persuasive. In order to assess whether the marketing 120. component of the Tra n s i t Programme i s a success or not, one has to address the following issues. 1. Are the residents l i v i n g i n the marketing-oriented areas more informed of the service than those l i v i n g i n areas with no marketing ? 2. Do those l i v i n g i n the marketing areas have a better opinion of t r a n s i t than the ones without the marketing exposure? 3. Is the marketing e f f o r t necessary? Is i t worth i t ? Answers to the above can provide some basis to judge whether the market-ing component of the T r a n s i t Programme was e f f e c t i v e and whether i t was necessary and worth the cost and e f f o r t . 121. 1) Success of Marketing Programme i n Informing Residents of the Service Almost a l l respondents i n a l l c i t i e s knew there was bus service i n the community, while only 44% knew the day-time frequencies and only 19% knew those for the evening. Over 70% of the respondents knew the fare s t r u c t -ures of t h e i r t r a n s i t systems. Over 85% knew t h e i r bus stop locations and only 8% did not know where the stops were. (Table 4.28) Approximately 70% of a l l respondents knew where to obtain further informa-t i o n concerning the service. The three major sources of information were given as the C i t y H a l l , the C i t y Bus Company and the phone book.(Table 4.29) About 63% of respondents indicated that they had bus timetables at home, while only 35% of those who had timetables said they used them r e g u l a r l y or occasionally, and 47% did not o f f e r any response. Most responded that they did not use timetables because they did not use the service. The major deterrents for using timetables were c i t e d as: - do not know where to obtain them; cannot understand them; - already know schedule; found timetable u n r e l i a b l e and not up-to-date; ask friends instead. In general, people were quite ignorant of the frequency of service, but the majority of them knew where to obtain further information concerning ther service. Over 50% had seen or heard advertising on t r a n s i t (Table 4.30). Most have seen or heard about the bus service before the service was st a r t e d . TABLE 4.28 KNOWLEDGE ABOUT BUS SERVICE IN COMMUNITY 122. Existence Daytime Frequency Evening Frequency Fare Stop Location How To Obtain Further Information Know Of 97% 44% 19% 70% 87% 70% Don't Know Of U n s u r e 1% 26% 39% 8% 6% 24% 2% 30% 42% 22% 7% 6% TABLE 4.29 SOURCES OF INFORMATION ON BUS SERVICE City Bus Company 26.8% C i t y H a l l 24.1% Phone Book 7.2% Misuse 5.5% Chamber of Commerce 3.9% Bus Driver 3.2% Other Bus Users 2.2% Phone Number on Bus Sign 2.2% Obtain Bus Timetables 1.7% Look on Bus Schedule for Phone Number 1.2% Hotel or Tra n s i t Information 0.8% Others 0.8% No Answer 20. 6% 124. This was due to the advertising programme sponsored by the P r o v i n c i a l Transit Agency before and during start-up of services. Approximately 90% of them indicated that they had heard or seen advertising i n the news-paper and on the radio - the two medias used for the i n s t i t u t i o n a l advertising during start-ups. (Table 4.31) Contrary to expectations, respondents r e s i d i n g i n the marketing-oriented T r a i l and Penticton service areas were not generally better informed than Kitimat residents about a l l aspects of t r a n s i t services i n t h e i r areas. T r a i l residents were more knowledgeable about t h e i r t r a n s i t system than both Kitimat and Penticton, but Kitimat residents were more knowledgeable about frequency, fares and stop locations than the Penticton residents. This awareness may be due to the f a c t that the Kitimat system was est-ablished three years before the Penticton system. The incidence of time-table possession i n T r a i l was above average and may be ascribed to the postal-walk mail-out of timetables during start-up and schedule changes. This was also responsible for the high l e v e l of timetable usage i n T r a i l . (Table 4.32) In summary, no conclusive statement can be made on whether the marketing program i s successful i n informing residents of the service. Knowledge of the service might have been gained through coverage by the news media rather than the advertisements i n the newspapers or on the radio. TABLE 4.30 SEEN OR HEARD ADVERTISEMENTS Yes 53.4% No 27.3% Unsure 14.6% No Response 4.8% TABLE 4.31 WHEN? SEEN ADVERTISING No Response 61.0% When Service Started 17.1% Before the Service Started 6.5% After the service has been i n for a While 4.2% Regularly 2.5% Recently 2.2% Past 6-12 Months 2.3% When Bus Times Changed 1.5% Unsure 2.7% TABLE 4.32 KNOWLEDGE OF TRANSIT VS. CITY About Frequency (Day) About Frequency (Night) Fares Stop Location KITIMAT 51% 35% 75% 91% % Knowing  TRAIL 65% 4% 90% 97% PENTICTON 42% 27% 62% 89% Possession of Timetable? Frequent Use of Timetalbe? Occasional Use of Timetable? KITIMAT 56% 12% 39% YES TO TRAIL 86% 39% 40% PENTICTON 42% 19% 41% 127. 2) Knowledge and Perceptions of Those Who Live i n a C i t y with  Marketing Versus One Without The knowledge and perception measures of those respondents l i v i n g i n T r a i l and Penticton (with marketing program) are compared with those l i v i n g i n Kitimat (without marketing). Table 4 . 3 3 shows that residents i n T r a i l and Penticton were more aware of the service than those l i v i n g i n Kitimat. However, the r e l a t i o n s h i p between knowledge of the service and a d v e r t i s i n g i s not strong. The perception measures of those who l i v e i n Kitimat were compared with o those who l i v e i n T r a i l and Penticton. (Table 4 . 3 4 ) . Both users and non-users i n the marketing areas ( T r a i l and Penticton) constantly rated bus t r a v e l more favourable than s i m i l a r groups i n Kitimat. Ratings by the regular users of the two areas (marketing and non-marketing) were displayed i n graphical form i n Figure 4 . 6 to h i g h l i g h t the diffe r e n c e i n ratings between the two areas. Differences i n ratings are stronger among the user group than among the non-user group, as can be seen by the higher gamma measures occurring f or users. The marketing impact i s s i g n i f i c a n t for 'convenience', 'enjoyment', ' r e l i a b i l i t y ' and 'punctuality'. This means that marketing may be used to influence people's perception of bus t r a v e l . Whether the increase i n people's perception of bus t r a v e l i s worth the marketing e f f o r t remains to be investigated i n the next section. 3 ) Is the Marketing E f f o r t Necessary? Is It Worth It? Table 4 . 3 5 shows that there i s a strong r e l a t i o n s h i p between t r a n s i t usage and knowledge of t r a n s i t services. A s i m i l a r r e l a t i o n s h i p was found TABLE 4.33 IMPACT OF ADVERTISING  ON KNOWLEDGE (Kitimat versus T r a i l and Penticton) Association r Seen or Heard Advertising -0 .415 * 0.001 Possession of Timetable -0 .398 * 0.001 Use of Timetable -0 .383 - 0.001 Existence of Bus Service -0 .177 N.S. Frequency of Service (Day) -0 .161 0.001 Fare -0 .257 ^ 0.001 Stop Location -0 .285 0.001 NOTE: Negative gamma means that there i s postive impact, while p o s i t i v e gamma means there i s no impact. TABLE A.34 BUS TRAVEL RATINGS BY TRANSIT USAGE CLASS AND BY AREA MEAN RATINGS BY NON-USERS MEAN RATINGS BY USERS Perception Attributes Safety Comfort Convenience Enj oyment R e l i a b i l i t y Punctuality Speed (Commute) Speed (Non-Commute) Cost of Travel Penticton Kitimat & T r a i l 1.65 2.14 3.17 3.30 2.09 2.23 3.25 3.12 2.37 1.55 2.08 2.56 2.82 1.93 1.95 2. 77 2.77 2.21 Association -0.127 n.s. -0.060 n.s. -0.242 <0.02 -0.276 * 0.001 -0.114 Penticton Kitimat & T r a i l -0.206 -0.254 -0.227 -0.078 n.s. * 0.05 n.s, 0.02 n.s. 1.55 2.24 2.13 2.52 2.13 2.19 8.10 2.90 2.38 1.30 1.56 1.32 1.79 1.39 1.29 2.02 2.11 1.56 Association JL A -0.106 n.s. -0.416 n.s. -0.574 ^0.04 -0.448 < 0.01 -0.525 ^ 0.05 -0.740 * 0.001 -0.463 * 0.03 -0.462 n.s. -0.539 *0.03 NOTE: Negative gamma means that there i s impact of marketing on perceptions of service. safety comfort convenience enj oyment r e l i a b i l i t y punctuality speed on commute t r i p speed on -commute t r i p cost of t r a v e l FIGURE 4.6 RATINGS OF.BUS TRAVEL BY REGULAR USERS SERVED IN (A) MARKETING ORIENTED AREAS (B) NON-MARKETING ORIENTED AREAS (A) (B) TABLE 4.35 KNOWLEDGE OF TRANSIT SERVICES BY DEGREE OF USAGE DO NOT USE DO NOT USE NEVER HAVE HAVE USED BEFORE OCCASIONAL* REGULAR USERS USERS BY CHOICE Have Heard or Seen Transit Advertising Possess a Timetable Know the Frequency of Service (Day) Know the Frequency of Service (Night) Know the Fare Know the Stop Location 55% 42% 36% 17% 47% 85% 58% 54% 44% 17% 64% 92% 56% 73% 62% 26% 91% 94% 58% 90% 79% 46% 97% 99% ASSOCIATION 1 A * -0.015 n.s. -0.488 ^0.001 -0.460 ^0.001 -0.312 ^0.0001 -0.690 ^ 0.0001 -0.397 ^ 0.001 NOTE: Regular, No A l t e r n a t i v e Users are excluded. * Occasional Users (both 'Choice' and 'When Have To') are combined. Negative gamma supports the statement that knowledge i s related to t r a n s i t usage and p o s i t i v e ones contradict the statement. 132. by Lovelock i n the survey conducted i n the Bay Area . Possession and frequency of timetable usage were also found to be associated with t r a n s i t usage. (Table 4.35 and Table 4.36). However, the r e s u l t s did not indic a t e which comes f i r s t - a cause and e f f e c t question. I t i s d i f f i c u l t to judge i f people use the service because they know about i t ( i . e . the impact of advertising) or i f people know about the service because they use i t . It was also found that the r e l a t i o n s h i p between advertising or the aware-.', ness of adv e r t i s i n g and t r a n s i t usage i s not s i g n i f i c a n t . Both of these findings preclude any conclusions on the value of the marketing program. Since i t i s common knowledge that people have to know about the service before they can use i t , i t i s necessary to provide some form of information campaign to promote the use of t r a n s i t . Due to the l i m i t e d extent of the marketing e f f o r t i n small c i t i e s , i t i s d i f f i c u l t to generalize the value of marketing i n t h i s report. 133. TABLE 4.36 FREQUENCY OF USE OF TIMETABLE VERSUS TRANSIT USAGE Use of Timetable Frequently Occasionally Once or Twice Never (A) 1% 1% 1% 25% Tr a n s i t Usage (B) (C) 8% 13% 26% 29% 54% 73% 58% 39% .(D) 37% 13% 15% 8% To t a l # 100% 100% 100% 100% Association: = -0.535 7^* = ^o.oooi (A) Do not use, never have (B) Do not use, have (C) Occasional use (D) Regular use, by choice 134. 4.2.6 Requirements for Transit In Small C i t i e s and What  Tran s i t Can and Cannot Do The B. C. approach to marketing t r a n s i t was based on the b e l i e f that know-ledge and perception has an influence on t r a n s i t usage. It was found necessary to improve people's perception about bus t r a v e l and inform them of the various aspects of the service. The analysis i n the l a s t section shows that marketing has not had any dicernable impact on t r a n s i t usage. It was not c l e a r whether t h i s was due to the l i m i t e d e f f o r t of marketing or that people's requirements for t r a n s i t i n small c i t i e s are d i f f e r e n t from those i n the larger urban areas (such as the San Francisco Bay Area, as i n Lovelock's study). The requirements of t r a n s i t i n small c i t i e s can be evaluated from the following findings. The r e s u l t s from the household survey show that approximately 75% of a l l respondents had personal use of car 'always' or 'most of the time' (Table 4.37) and the majority of them were from multiple car f a m i l i e s . An inverse r e l a t i o n s h i p was found between usage of car or car ownership and t r a n s i t usage. This shows that t r a n s i t has not been able to appeal to the car users or owners. The low l e v e l of t r a n s i t usage to work (8%) indicates that t r a n s i t i s not e s p e c i a l l y needed for work t r i p s i n small c i t i e s . The low peak-to-base r a t i o s i n small c i t y services (as documented e a r l i e r ) also shows the low demand for the work t r i p by t r a n s i t . The absence of congestion and high parking charges which i s common i n larger c i t i e s (but v i r t u a l l y non-existent i n small c i t i e s ) i s believed to be one of therreasonsffor :t.ae low performance of t r a n s i t i n a t t r a c t i n g commuters. Therrequirements for t r a n s i t have found to be mainly re l a t e d to providing mobility to the earless and the semi-captive users from one-car f a m i l i e s 135. TABLE 4.37(a) AVAILABILITY OF CAR FOR PERSONAL USE Yes Always 60% Most of the time 15% Part of the time 6% Occasionally 6% Never 3% Total 100% ASSOCIATION OF CAR USAGE WITH TRANSIT USAGE * 0.553 * Exclusive of captive users. TABLE 4.37(b) TRANSIT USAGE VERSUS CAR-OWNERSHIP USE OF TRANSIT Don't Use, Never Have Don't Use, Have Occasional If Have To Occasional By Choice Regular By Choice Regular, No A l t e r n a t i v e TOTAL Associ a t i o n NUMBER OF CARS IN HOUSEHOLD NONE ONE TWO THREE FOUR PLUS TOTAL 16 ( 7%) 86 ( 35%) 104 ( 42%) 22 ( 9%) 17 ( 7%) 245 (22.4%) 20 ( 7%) 117 ( 39%) 121 ( 41%) 24 ( 8%) 16 ( 5%) 298 (27.2%) 20 ( 11%) 81 ( 45%) 61 ( 34%) 11 ( 6%) 8 ( 4%) 181 (16.5%) 20 ( 9%) 105 ( 48%) 67 ( 31%) 20 (• 9%) 8 ( 4%) 220 (20.1%) 21 ( 22%) 41 ( 42%) 26 ( 27%) 7 ( 7%) 2 ( 2%) 97 ( 8.9%) 19 ( 36%) 18 ( 34%) 15 ( 28%) 1 (1 .9%) 0 (0 .0%) 53 ( 4.8%) 116 (10.6%) 448 (41.0%) 394 (36.0%) 85 (7.8%) 51 (4.7%) 1094 (100%) ^ 2 = - 0.210 0.0001 137. for 'work' and 'shopping' purposes. It i s also required as an a l t e r n a t i v e to automobile use and thus lowers some people's dependence on theaautomo-il^ b i l e . This i s the r o l e that t r a n s i t has been required to play i n small c i t i e s . The s u b s t i t u t i o n e f f e c t of t r a n s i t for investment i n the private mode has not been materialized i n the small c i t i e s i n B. C. due to the low l e v e l of usage by commuters. The inherent disadvantage of t r a n s i t ( i t i s slower and more inconvenient than the private mode) i s d i f f i c u l t and expensive to overcome i n small c i t i e s even though some c i t i e s are -c . i compact and work locations are clustered. At most, public t r a n s i t i s mainly u t i l i z e d as a r e l i e f or stand-by service and not to be competitive with the private mode for the journey to work. 138. 4.3 SUMMARY This chapter has examined the c h a r a c t e r i s t i c s of t r a n s i t users, t h e i r demands and u t i l i z a t i o n of the service and the c h a r a c t e r i s t i c s of the com-munity.-withihl. which the service operates. On board passenger surveys and household a t t i t u d i n a l survey were undertaken a f t e r service improvements to obtain t h i s information. The following was found about t r a n s i t users and services from the on board surveys: The socio-economic c h a r a c t e r i s t i c s of t r a n s i t users i n small c i t i e s does not d i f f e r widely i n s p i t e of large differences i n service _ o . l e v e l s . - The young, women and the aged were primary users of the service. - Some users did not have access to a car but were not nec e s s a r i l y from low income households. - Work, shopping and school were the predominant t r i p purposes. Small c i t i e s have lower peak-to-base r a t i o s than large c i t i e s because the work t r i p by t r a n s i t i s not as important i n small c i t i e s as i t i s i n large c i t i e s . This i s due to the lack of congestion and the a v a i l a b i l i t y of cheap parking i n small c i t i e s . There i s a d i r e c t r e l a t i o n s h i p between r i d e r s h i p l e v e l s and the amount of service; provided. The household a t t i t u d i n a l survey provided the following observations: - Approximately 13% of the adult population i n small c i t i e s are regular users of transit,: 5% of which are captive and 8% are choice r i d e r s . - The a v a i l a b i l i t y of other transportation (auto or the auto passenger mode) i s the dominant reason non-users do not choose 139. the t r a n s i t mode. About 93% of the respondents l i v e d within a quarter mile of the bus stop, however, only 50% thought i t was convenient to take the bus to work. Choice r i d e r s are usually more s a t i s f i e d with t r a n s i t than either captive users or non-users. Generally, the a t t i t u d e to t r a n s i t by both users and non-users i s favourable. Transit has not affected the l e v e l of car-ownership s i g n i f i c a n t -l y . It was not possible to conclude that marketing had a p o s i t i v e impact on t r a n s i t use. It i s important to note that perceptions and attitudes to t r a n s i t determined by surveys can sometimes be d i f f e r e n t from behaviour. That i s , people may say that t r a n s i t i s good but are not w i l l i n g to support the d e f i c i t . In small c i t i e s i n B. C. the c i t i z e n s vote to support the t r a n s i t d e f i c i t s (half of the operating d e f i c i t ) . 140. FOOTNOTES 1. Service supplied to provide a d d i t i o n a l capacity required to handle excess demand. I t usually does not f i t into the regular schedules or shown on the regular schedule. 2. F i e l d i n g , G. J . , Glauthier, R. E. and Lave, C. A., Performance  Indicators For Transit Management, I n s t i t u t e of Transportation Studies and School of S o c i a l Sciences, U n i v e r s i t y of C a l i f o r n i a , Irvine, C a l i f o r n i a , January 1978. Drosdat, H.A., Transit Performance Measures: Their Significance  i n Local Funding A l l o c a t i o n , Ph.D. D i s s e r t a t i o n , U n i v e r s i t y of Washington, 1977. 3. Perara, Maximus H., The Transit Systems of Small C i t i e s i n  Ontario, Research Report No. 39, Uni v e r s i t y of Toronto, York Univ e r s i t y J o i n t Program i n Transportation, A p r i l 1977. Hutchinson, B. G., Unpublished research proposal, 1977, Uni v e r s i t y of Waterloo, Waterloo, Ontario. 4. This i s not s u r p r i s i n g . Passenger volume increases as long as passenger miles increase u n t i l a c e r t a i n point when t r a n s i t cannot a t t r a c t more t r i p s or d i v e r t more t r i p s from the auto mode. 5. Lovelock, Christopher H., Consumer Oriented Approaches to  Marketing Urban T r a n s i t , DOT/UMTA Research Report No. 3, Stanford U n i v e r s i t y , March 1973, Stanford, C a l i f o r n i a . 6. The survey design proved to be more than s a t i s f a c t o r y . A s i m i l a r survey methodology was used f o r a marketing study i n the Bay Area (Lovelock's study) the response rate was 70%. 7. Kitimat, D i s t r i c t of, Kitimat Townsite Plan, March 1969. 8. Lovelock, i b i d . 9. While c a l c u l a t i n g means and standard deviations assumes i n t e r v a l -scaled properties i n the scoring which may not be e n t i r e l y j u s t i f i e d , i t nevertheless provides a useful measure of the extent of agreement or disagreement with each statement. 10. Stanton, William J . , Fundamentals of Marketing, Third E d i t i o n , 1971, McGraw H i l l . 141. FOOTNOTES (continued) 11. Krech, David, Richard S. C r u t c h f i e l d , and Egerton L. Ballachey, Individual i n Society, McGraw H i l l Book Company, N.Y. 1962, Chapter 5, and Daniel Katz, "The Functional Approach to the Study of Attitu d e s " , Public Opinion Quarterly, Summer 1960, pp. 163-204. 12. Lovelock, i b i d . 142. CHAPTER FIVE  PROGRAM EVALUATION 5.0 INTRODUCTION The preceeding chapters provided background information for the evaluation of the Transit Supply Program i n B. C . The purpose of t h i s chapter i s to evaluate both the supply program and the i n s t i t u t i o n a l arrangement, the public marketing agency, which implemented the program. The evaluation presented herein follows a framework established by Weiss for assessing s o c i a l programs"'". This chapter i s structured i n the following manner according to Weiss' framework: (i) Determine the program goals and objectives.' ( i i ) E s t a b l i s h c r i t e r i a for evaluation of the Transit Program, ( i i i ) Measure how w e l l goals have been achieved, (iv) Determine the economic e f f i c i e n c y of the supply program and the effectiveness of the funding arrangement, (v) Evaluate the implementation of the program through the public marketing agency. 5.1 PROGRAM GOALS AND OBJECTIVES In B r i t i s h Columbia, Mr. Lorimer (Minister of Municipal A f f a i r s (1972-1975) who was responsible for the Transit Program) made the following 2 statements about the d i r e c t i o n or purpose of the Transit Program . (i) to pursue a l t e r n a t i v e s to automobile t r a v e l i n B. C , with p a r t i c u l a r emphasis on public transportation. It was f e l t that public t r a n s i t could ( i i ) o f f e r a means of mobility to those without access to an automobile such as the young, the e l d e r l y , those away from homes without cars and housewives when the husband has the family car at work. I t was also believed that a ( i i i ) successful t r a n s i t system could contribute to postponing or eliminating the expenditure of public funds on new roadways and bridges and (iv) could bring i n d i r e c t benefits such as the lessening of environmental p o l l u t i o n and the conservation of energy reserves. One primary and two secondary goals can be in f e r r e d from .".these statements (i) The primary goal of the program was to increase the mo b i l i t y of those who do not have access to a car. ( i i ) Two secondary goals were to provide an a l t e r n a t i v e to public expenditures on the auto mode thereby conserving land and l i v a b i l i t y and ( i i i ) decrease dependence on the private automobile. Both the P r o v i n c i a l and l o c a l governments have not established any specif 144. and clear c r i t e r i a to be used to judge the effectiveness of the program. Besides the service standards (more l i k e industry's rules-of-thumb) which were enforced u n o f f i c i a l l y , the Transit Agency has no c r i t e r i a by which the program can be assessed. This lack of measureable objectives and c r i t e r i a i s discussed i n the next section. 145. 5.2 CRITERIA FOR EVALUATION OF THE TRANSIT PROGRAM The statements of the Minister are of l i t t l e help for evaluation purposes. An important step on the way to evaluating government programs i s to es t a b l i s h a set of c r i t e r i a which can be used to measure achievements. There are two sets of c r i t e r i a which can be applied i n t h i s evaluation: the s o c i a l and the economic c r i t e r i a . The s o c i a l c r i t e r i a determine whether the program i s moving towards i t s s o c i a l goals while the economic c r i t e r i a are used to judge the economic e f f i c i e n c y of the program and to f l a g problem areas of the funding arrangement. The success of the program must ultimately be determined by the government which should r e l a t e achievements as measured by the s o c i a l c r i t e r i a to the costs as measured by ithe economic c r i t e r i a . Success or f a i l u r e of the program depends to a great deal on the weights placed on the s o c i a l c r i t e r i a . The value placed on the s o c i a l c r i t e r i a are l a r g e l y subjective and therefore any evaluation must be subjective. The following are the s o c i a l c r i t e r i a which are examined herein f o r each of the three program goals: 1. M o b i l i t y for those without access to a car. (i) What sectors of the community are affected? ( i i ) Does the community think the service i s adequate (that i s , the community votes l o c a l l y to fund t r a n s i t and therefore should be s a t i s f i e d with what they are paying for)? ( i i i ) Do the needs for t r a n s i t i n small B. C. c i t i e s match the goals of the program? 2. Conservation of land and l i v a b i l i t y . ( i ) Is t r a n s i t a more e f f i c i e n t mode i n terms of energy consumption? 146. ( i i ) Is there a reduction i n t r a f f i c congestion and parking requirements? ( i i i ) To what degree has i n t e g r a t i o n of land use planning and transport planning been achieved? 3. Reducing dependence on auto. (i ) What i s the extent of switch and choice riding? ( i i ) Can people i n these small c i t i e s do without t h e i r automobile i f they have to? ( i l l ) Does t r a n s i t have any impact on auto-ownership? Four economic c r i t e r i a were selected for evaluation purposes. They are l i s t e d below and the reasons for t h e i r s e l e c t i o n are given i n Section 5.4.1. The c r i t e r i a are: (i) cost recovery, which i s defined as the t o t a l operating revenues as a percentage of operating cost and i s considered the basic measure of system p r o f i t a b i l i t y ; ( i i ) d e f i c i t per capita, which i s defined as t o t a l operating d e f i c i t divided by t o t a l population served. While the cost recovery standard sets an upper l i m i t on service l e v e l s , the d e f i c i t per capita sets the maximum l e v e l of f i n a n c i a l support. It provides an i n d i c a t i o n of the magnitude of d e f i c i t incurred by each c i t y , ( i i i ) D e f i c i t per r i d e i s defined as the t o t a l operating d e f i c i t divided by the t o t a l number of passengers ca r r i e d i n a year. (iv) Rides per capita i s defined as t o t a l passengers c a r r i e d divided by t o t a l population served and measures the market penetration of t r a n s i t i n the community. 147. 5.3 ACHIEVEMENT OF GOALS This section presents a discussion on the Transit Program's achievements i n terms of the stated goals. These goals were in f e r r e d from public s t a t e -ments and were paraphased as follows: (i ) to increase the mobility of those who do not have access to a car; ( i i ) to provide an a l t e r n a t i v e to public expenditures on the auto mode thereby conserving land and l i v a b i l i t y ; ( i i i ) to decrease dependence on the private mode. The government perceived that there were 'needs' to be f u l f i l l e d and there were 'requirements' for meeting these needs. The 'needs' were defined as developing t r a n s i t systems i n small c i t i e s (5,000 to 70,000) which were deprived of a reasonable l e v e l of t r a n s i t s ervice. The 'require-ments' were that services should be subsidized to a l e v e l equivalent to the acceptable standards set by the industry for built-up urban areas. These standards were viewed as the reasonable l e v e l s of service f o r small communities. These standards were: (i) Transit routes should focus on a c t i v i t y centres i n the community. ( i i ) Day-time service frequency i n built-up urban areas should be at least hourly, but preferably half-hourly, ( i i i ) A maximum walking distance to the bus stop i n a f u l l y b u ilt-up urban area should be not more than a quarter mile, (iv) Local t r a n s i t services should be designed to connect with other forms of public transport serving the region. 148. Evaluating the value of the investment i n t r a n s i t has to be p a r t l y subjective because i t i s d i f f i c u l t to quantify the 'quality of l i f e ' 3 factors which are associated with t r a n s i t . In order to conduct a subjective evaluation three p a r t i c i p a n t s ' points of view are considered. These p a r t i c i p a n t s are: the user, the community at large, and the 4 government . The user of the service usually represents the raison d'etre of the service i t s e l f . The welfare of the users i s the major concern of government. Therefore i t i s important to know who uses the service, how they perceive the service and whether they f i n d the service adequate. In the view of government, i t i s important to know whether the service i s generally accepted by community residents (both users and non-users) and whether t r a n s i t has a c t u a l l y served the mobility-disadvantaged. Findings from passenger surveys and household a t t i t u d i n a l surveys were used to provide the evidence of the t r a n s i t impacts. This section examines the achievements of the supply program i n terms of the s o c i a l c r i t e r i a stated i n the previous section. 149. 5.3.1 Mo b i l i t y Objective 1. What sector of the community are affected? (Details are presented i n Section 4.2.1.) The household survey findings showed that the young, the old and the female population were affected most. It was also found that h a l f of the adult population (that i s , population over 18 years of age) used the service. While 13% of the adult population were regular users, only 5% out of 13% were captive. Approximately 37% of these captive users were over 55 years of age. 2. Does the community think the service i s adequate (that i s , the community votes l o c a l l y to fund t r a n s i t and therefore should be s a t i s f i e d with what they are paying for)? (Details are presented i n Section 4.2.'2 and 4.2.3.) The findings from the surveys provided the basis to believe that the l e v e l s of service i n small c i t i e s were adequate i n terms of coverage i n r e s i d e n t i a l o r i g i n s (93% of respondents l i v e d within a quarter-mile to a bus stop) but not so good i n terms of work or school destinations. About 23% of the workers stated that i t was impossible to take t r a n s i t to work. 'Other transportation' (which most l i k e l y r e f e r s to the 'automobile' or 'auto passenger' mode) i s the dominant factor for the lack of i n t e r e s t i n the t r a n s i t mode. Transit was found to be generally accepted i n small c i t i e s , and only a few (8%) were completely against using t r a n s i t i n the future. Nearly 15% did not consider t r a n s i t as a v i a b l e a l t e r n a t i v e i f they were without the use of t h e i r cars for a month. 150. The choice r i d e r s generally had the most favourable perceptions of t r a n s i t than the captive and non-users. It was also found that t r a n s i t usage was related to one's a t t i t u d e towards t r a n s i t and h i s perception of the ..-Z'ZJ:. a t t r i b u t e s concerning bus t r a v e l to a c e r t a i n extent. However, the major deterrent to using t r a n s i t i s the l e v e l of household car-ownership and a v a i l a b i l i t y of a car for personal use. In general, both the users' and non-users' opinion of t r a n s i t i n small c i t i e s surveyed were favourable. This means that the l o c a l residents were s a t i s f i e d with what they voted to have for t h e i r community. 3. Do the needs for t r a n s i t i n small B. ,C. c i t i e s match the goals of the program? (Details are presented i n Section 4.2.6.) The government at the outset of the t r a n s i t supply program decided what the needs of small c i t i e s were without carrying out any study. The household and on board surveys show that the requirements for t r a n s i t have found to be mainly r e l a t e d to providing mobility to the earless and the semi-captive users from one-car f a m i l i e s for 'work' and 'shopping' purposes. This i s the major r o l e that t r a n s i t f i l l s i n small c i t i e s . To a lesser degree i t was found to be an a l t e r n a t i v e to automobile use. The low usage of t r a n s i t by commuters i s mainly due to the a v a i l a b i l i t y of the private auto and the free parking at work locatio n s i n small c i t i e s . At most, public t r a n s i t was found to be u t i l i z e d as a r e l i e f or stand-by service for the choice r i d e r s and not to be competitive with the private mode for the journey to work. It can be said that the government's perceptions of the needs f o r t r a n s i t i n small c i t i e s were correct, that i s , to provide m o b i l i t y for those without access to an auto. 151. 5.3.2 'Conserving Land and L i v a b i l l t y ' Objective 1. Is t r a n s i t a more e f f i c i e n t mode i n terms of energy consumption? The o i l embargo of 1973-74 showed that there are a few a l t e r n a t i v e methods of conserving energy: i ) Make fewer t r i p s ; t h i s was the so l u t i o n widely adopted during the embargo. i i ) Adopt vehicles that consume les s f u e l ; r i s i n g f u e l p rices and government pressure are pushing the v e h i c l e market i n t h i s d i r e c t i o n . i i i ) Car-pooling; car-pooling i s not very popular because i t lacks the a t t r a c t i v e features of private automobile t r a v e l , such as independence of movement and privacy, iv) Expand t r a n s i t service; f or t h i s conservation strategy to succeed the a d d i t i o n a l energy consumed by t r a n s i t must be les s than what the passengers who switch to t r a n s i t from automobiles would otherwise have consumed. of bus f u e l consumption i s complex due to the following reasons: Deadheading miles vary from route to route and from system to system. It i s d i r e c t l y a r e s u l t of the l o c a t i o n of bus garages. 'Switch r i d e r s ' , those who switch from a le s s energy e f f i c i e n t mode have to be distinguished from 'captive' r i d e r s , those who would not have t r a v e l l e d at a l l i n :the absence of t r a n s i t . No d i r e c t energy savings can be contributed to captive r i d e r s . Switch r i d e r s conserve almost a l l t h e i r d r i v i n g f u e l i f they occupy excess capacity i n a bus that i s running anyway to carry captive r i d e r s . As 152. Piper ' i n h i s study on energy consumption of d i f f e r e n t t r a n s i t modes has pointed out, when the bus i s f u l l , marginal captive r i d e r s cause a corres-ponding f u e l 'penalty' i f they replace a switch r i d e r . If another bus i s put i n service to handle t h i s overload s i t u a t i o n , the marginal consumption of f u e l for t h i s extra bus must be considered. However, i n most cases i n small c i t i e s , overload s i t u a t i o n seldom occurs. So i t can be assumed that the l e v e l of switch r i d i n g represents the extent of energy savings r e s u l t i n g from t r a n s i t . The survey findings i n d i c a t e only about 5% to 18% of t r a n s i t r i d e r s were former auto users. Since t r a n s i t accounts for not more than 8% of a l l t r i p s i n the community , the impact of t r a n s i t on energy conservation i s small. 2 • Is there a reduction i n t r a f f i c congestion and parking requirements? (Details are presented i n Section 4.2.6.) Due to the low usage by commuters, both the s u b s t i t u t i o n e f f e c t of t r a n s i t to investment i n the private mode and the reduction of t r a f f i c congestion have not materialized i n the small c i t i e s . The inherent disadvantage of t r a n s i t ( i t i s slower and more inconvenient than the private mode) i s d i f f i c u l t and expensive to overcome i n small c i t i e s even though some c i t i e s are compact and work locations are clustered. 3.- To what degree has int e g r a t i o n of land use planning and transport planning been achieved? These findings are mainly q u a l i t a t i v e . It i s a case of whether there i s inte g r a t i o n or no integ r a t i o n . Local p o l i t i c i a n s and c i t y o f f i c i a l s were encouraged to review the l o c a t i o n , density and layout of new r e -s i d e n t i a l subdivisions and the l o c a t i o n of service areas as important elements i n the a b i l i t y of t r a n s i t services to serve the requirements 153. of l o c a l residents. Information was also made av a i l a b l e during the conceptual planning stage showing that p o l i c i e s designed to enhance the q u a l i t y of automobile t r a v e l could be detrimental to the performance of t r a n s i t services. However, no major re v i s i o n s of the municipal planning p r a c t i c e were seen. Transit i s s t i l l being placed as a secondary service to road, water and sewer. Transit has only been required to serve as a more economic means of r e l i e v i n g short-term problems, such as parking i n the downtown areas ( T r a i l ) and s o c i a l needs such as providing a means of t r a v e l to youngsters for recreation purposes (Kitimat) or giving some means of t r a v e l for the t o u r i s t s (Penticton). B a s i c a l l y , land use decisions i n small c i t i e s are made on the basis of private p r o f i t s rather than o v e r a l l s o c i a l b e n e f i t s . Unless land developers become more conscious of s o c i a l issues, i t i s doubtful whether t r a n s i t w i l l ever become part of the o v e r a l l community planning process. ( An example of a f u l l y integrated system can be found i n the c i t y of Edmonton where t r a n s i t planning receives the same amount of attention as roadway designs and planning^ .) Since t h i s i s also one of the functions of the 'p.iiua.', more de t a i l e d discussion on improvements can be found i n section 5.5 where the 'p.m.a.' i s evaluated. At present, i t i s f a i r to conclude that there i s no i n t e g r a t i o n of land use and transport planning i n small c i t i e s i n B. C . 154. 5.3.3 'Reduce Dependence on Auto' Objective (Details are presented i n Section 4.2.4.) 1) What i s the extent of switch and choice riding? It was found that between 35% to 50% of a l l t r a n s i t users would have to depend on the automobile f o r t r i p making (either as dr i v e r or passenger) i f t r a n s i t was not a v a i l a b l e . While choice r i d e r s (regular and occasional users) i n small c i t i e s represents about 45% of the adult population, i t i s f a i r to say that t r a n s i t has reduced these people's dependence on the auto to a c e r t a i n degree. 2) Can people i n these small c i t i e s do without t h e i r automobile i f they have to ? It was found that 85% of those surveyed responded that they could go without the use of t h e i r automobiles i f they had to. This provides the stand-by value of the service ahd_indicates that people are less dependent on t h e i r automobiles because of t r a n s i t . 3) Does t r a n s i t have any impact on auto-ownership? About 5% of the residents surveyed responded that t r a n s i t had affected the l e v e l of car-ownership i n t h e i r households, and another 6% responded that i t was probable or possible that t h e i r car-ownership l e v e l s might be reduced due to t r a n s i t . In summary, t r a n s i t was found to be generally accepted i n small c i t i e s . Both the users' and the non-users' opinion of t r a n s i t were favorable. About 75% of the residents could take the bus to work i f they chose to. These findings provide the basis to believe that the l e v e l s of service provided i n these c i t i e s were adequate i n the eyes of those who pay for them. Transit was also found to provide an a l t e r n a t i v e means of t r a v e l to most of the residents i n small c i t i e s . The stand-by value of the service was what the non-users i n the community were voted to have even though they did not n e c e s s a r i l y use the service themselves. The findings from the surveys also provide the evidence to believe that t r a n s i t has reduced some people's dependence on the automobile. It was also found that the needs f o r t r a n s i t i n small c i t i e s match the goals of the program, that i s , to provide mobility for those without access to an auto. The old, the young, and the female population have benefitted the most from t r a n s i t . However, t r a n s i t has not been able to influence land use decisions or reduce energy consumption. The value of t r a n s i t i n terms of reducing t r a f f i c congestion i n small c i t i e s i s somewhat a myth because congestion i s minimal and parking i s p l e n t i f u l and usually free of charge. The above has i d e n t i f i e d the achievements of t r a n s i t i n small c i i t e s . Since assessment of the merit of decisions requires i n v e s t i g a t i o n of a l t e r n a t i v e s and associated costs, i t i s important to know whether the benefits of the program j u s t i f y the l e v e l of funding. This question i s inves-tigated.- i n the following section. 156. 5.4 ECONOMIC EFFICIENCY OF THE SUPPLY PROGRAM AND THE EFFECTIVENESS  OF THE FUNDING ARRANGEMENT The previous section outlined the achievements of the t r a n s i t program and determined whether i t has achieved what i t was set up to do. This section presents a discussion on the economic e f f i c i e n c y and effectiveness of the t r a n s i t program. Economic e f f i c i e n c y i s defined as the production of outputs for minimum inputs (or cost) while effectiveness i s l a r g e l y a q u a l i t a t i v e measure which rel a t e s the degree to which outputs are consumed or used. F i r s t of a l l , i t i s important to know how the program was set up i n order to approach the question of economic e f f i c i e n c y . The Rapid Transit Subsidy Act of 1972 (Appendix A3) provided a 50-50 operating d e f i c i t sharing arrangement for t r a n s i t because i t was thought to be i n the i n t e r e s t of the public to encourage the development by m u n i c i p a l i t i e s and regional d i s t r i c t s of a public transportation system. Under the conditions of grant that: " (a) the public t r a n s i t authority keep such books, records, and accounts of i t s operations, i n such form as the Minister of Finance may prescribe, open to inspection by the Minister of Finance; (b) the public t r a n s i t authority provide such reports and f i n a n c i a l statements r e l a t i n g to i t s operations as the Minister of Finance may require." The Transit Services Act was proposed and passed i n 1974 (Appendix A4) s p e l l i n g out the long-term plan for t r a n s i t i n the Province. Nothing was mentioned which could be related to funding arrangements or evaluation c r i t e r i a . 157. In summary, (i) neither Acts have any mention of the a l l o c a t i o n of t r a n s i t funds and provide no upper l i m i t for funding. That i s , can a l l systems go under the same funding arrangement, OR what i s the basis for allo c a t i o n ? ( i i ) The Acts also make no mention of t r a n s i t performance. Should a l l systems receive the same P r o v i n c i a l support ( i . e . 50% operating d e f i c i t ) no matter how well or how badly i t i s performing? ( i i i ) The Acts also provide no basis for evaluating the e f f e c t -iveness of t r a n s i t subsidies. The Acts stated that f i n a n c i a l statements of t r a n s i t properties have to be submitted before the Province provides ^ i t s share of the d e f i c i t and these f i n a n c i a l statements need not be audited. The Acts do not i d e n t i f y the p o t e n t i a l uses of these reports. 158. 5.4.1 Evaluation of E f f i c i e n c y and Effectiveness Four performance measures were selected for the evaluation. The s e l e c t i o n of these four economic c r i t e r i a was based on.the following: (i) ease of data o b t a i n a b i l i t y , e.g. 'passenger-mile' and 'population served'are very d i f f i c i l t to obtain without expensive surveys; ( i i ) can be used on a system-wide or province-wide l e v e l , e.g. ' r e l i -a b i l i t y ' , 'route headway' and 'route u t i l i z a t i o n ' measures have l i t t l e merits for showing program performance; ( i i i ) d a t a - a p p l i c a b i l i t y on a p r o v i n c i a l basis, e.g. 'number of school children served' i s d i f f e r e n t from system to system based on the design of the service and l o c a l requirements. The four measures chosen for t h i s evaluation are: (i) cost recovery, which i s defined as the t o t a l operating revenues as a percentage of operating cost and i s considered the basic measure of system p r o f i t a b i l i t y ; ( i i ) d e f i c i t per capita, which i s defined as t o t a l operating d e f i c i t divided by t o t a l population served. While the cost recovery standard sets an upper l i m i t on service l e v e l s , the d e f i c i t per capita sets the maximum l e v e l of f i n a n c i a l support. It provides an i n d i c a t i o n of the magnitude of d e f i c i t incurred by each c i t y , ( i i i ) D e f i c i t per r i d e i s defined as the t o t a l operating d e f i c i t divided by the t o t a l number of passengers ca r r i e d i n a year, (iv) Rides per capita i s defined as t o t a l passengers ca r r i e d divided by t o t a l population served and measures the market penetration of t r a n s i t i n the community. 159. Comparison With Large Urban Areas In 1977, the P r o v i n c i a l Government spent $1,336,600 on the Small C i t y Tran-s i t Program. This i s equivalent to a d e f i c i t of about $7.80 per capita . . and d e f i c i t per r i d e r o f $0.48 (Table 5.1). The cost-recovery r a t i o of the Small C i t y Program was about 0.31. Comparing these figures to those for the two larger urban areas i n the Province, the magnitude of P r o v i n c i a l support for small c i t y t r a n s i t was not out of l i n e by a simple notion of equity. The d e f i c i t per c a p i t a for the large urban areas was four times of that for small c i t i e s , yet the rides per capita was also four times of that for small c i t i e s . These differences r e f l e c t the d i f f e r e n t requirements for t r a n s i t i n small and large c i t i e s . Comparison With Small C i t i e s i n Western Canada The performance of t r a n s i t i n small c i t i e s must be compared to other small c i t y operations to gain a better understanding of small c i t y operations (Table 5.1). The data for these small c i t i e s i n Western Canada are 1975 figu r e s . These c i t i e s show s l i g h t l y higher d e f i c i t s per c apita compared to the B. C. small c i t i e s . However, they do show a higher l e v e l of rides per capita which suggests greater market penetration. The low market penetration i n B. C. small c i t i e s i s probably due to the f a c t that the p r a i r i e c i t i e s have had public t r a n s i t for many years and people's r i d i n g habit have long been developed. Similar patterns can be found with the Nelson Transit System. This system when compared to other B. C. small c i t c i t i e s shows the second highest market penetration even though the l e v e l of service supplied i s lower than i n the other c i t i e s . Nelson also has one of the highest t r a n s i t u t i l i z a t i o n rate meaning that the c i t y i s s l i g h t l y more compact than others (Figure 4.4). TABLE 5.1 TRANSIT SYSTEMS PERFORMANCE DATA Small C i t i e s Larger Urban Areas* In B.C. Vancouver & V i c t o r i a Small C i t i e s In Western Canada** (1975 Data) Red Deer Medicine Lethbridge Moose Brandon 1977 Data Hat Jaw Population ( ,000) 342 1,304 30 30 41 35 37 P r o v i n c i a l Subsidies ($,000) 1,336 44,920 - - - - -D e f i c i t s ($,000) 2,673 44,920 176 243 283 222 234 Cost Recovery 0.31 0.37 0.61 0.49 0.60 0.50 0.41 D e f i c i t Per Capita ($) 7.80 34.44 5.88 8.10 6.91 6.34 9.21 D e f i c i t Per Ride ($) 0.48 0.42 0.19 0.17 0.16 0.17 0.22 Rides Per Capita .16.4 81.7 31 47 43 38 41 Adult Fare 25C 350 - - - - -Hours Per Capita 0.59 2.34 0.83 1.39 1.22 1.08 1.30 Miles Per Capita 8.15 27.9 11.93 15.5 15.9 11.3 16.9 Cost Per Hour ($) 20.5 23.4 17.9 11.4 14.1 11.8 11.9 Cost Per Mile ($) 1.50 1.96 1.30 1.02 1.08 1.12 0.90 Rides Per Bus Mile 2.0 2.9 3.5 4.0 4.7 3.3 2.5 SOURCE: * B.C. Hydro and Power Authority, Planning Department ** Public Transport Study, Medicine Hat, Grimble Consulting Group, July 1976 at o 161. Comparison of Performance Among Small C i t i e s i n B. C. Comparison between d i f f e r e n t small c i t i e s i n B. C. i s presented i n Table 5.2. The twelve systems receive d i f f e r e n t rankings i n terms of performance depending on the measure chosen. The wide range of a l l o c a t i o n of P r o v i n c i a l support (ranged from $2.12 to $18.50 per capita) for t r a n s i t among d i f f e r e n t c i t i e s s i g n a l requirements for improved funding c r i t e r i a . The P r o v i n c i a l Agency might argue that t r a n s i t funding i s p a r t l y determined by the amount of contribution from the l o c a l l e v e l . But i s i t v a l i d to assume that the remaining 70% of the small c i t y population (who are at present with no; t r a n s i t ) have l e s s desire for t r a n s i t than those l i v i n g i n c i t i e s who receive more than the l e v e l of service provided by the P r o v i n c i a l service standards? If the Acts were set up to a l l o c a t e P r o v i n c i a l support i n the most e f f e c t i v e and equitable manner, b e n e f i t t i n g the greatest number of -people should be the major concern. If t r a n s i t 'needs' and 'requirements' were governed by l o c a l desires i t would be f a i r to say that the differences i n performance are r e s u l t s of l o c a l s o c i a l and geographic constraints. Aside from population density and geographic constraints i n these c i t i e s , two of the major reasons for the high d e f i c i t per capita were the amount of services provided and the differences i n hourly contract rates. The -high per capita d e f i c i t experienced i n Kitimat i s l a r g e l y due to the high l e v e l of service (17.2 bus miles per capita) and the high hourly rate of $22.0 for the contracted service. A discussion on the discrepancies i n contract rates i s presented i n the next section (Section 5.5). To sum up, the agency lacks: 1) an incentive and d i r e c t i o n to measure performance which can be used to enhance proper a l l o c a t i o n of resources; TABLE 5.2 PERFORMANCE CHARACTERISTICS FOR B.C. CITIES' SYSTEMS (1977) COST DEFICIT PER DEFICIT PER RIDES PER RECOVERY RIDE $ CAPITA $ CAPITA Nelson 0.31 ( 6) 0.42 ( 4) 11.97 ( 9) 28.3 ( 2) Nanaimo 0.26 ( 9) 0.69 ( 8) 13.98 (10) 20.4 ( 5) Powell River 0.24 (10) 0.99 (10) 11.52 ( 7) 11.6 ( 9) Kitimat 0.32 ( 5) 0.55 ( 7) 18.50 (12) 33.5 ( 1) Prince George 0.41 ( 2) 0.29 ( 1) 4.29 ( 2) 14.9 ( 8) Port A l b e r n i 0.39 ( 3) 0.32 ( 2) 5.37 ( 3) 16.6 ( 7) Kamloops 0.33 ( 4) 0.47 ( 5) 11.75 ( 8) 25.0 ( 3) Kelowna 0.30 ( 7) 0.69 ( 8) 6.39 ( 4) 9.3 (10) Penticton 0.28 ( 8 ) 0.80 ( 9) 7.38 ( 6) 9.3 (10) Prince Rupert 0.44 ( 1) 0.40 ( 3) 6.71 ( 5) 16.9 ( 6 ) T r a i l 0.28 ( 8) 0.54 ( 6) 12.15 (11) 22.5 ( 4) Maple Ridge 0.18 (11) 1.08 (11) 2.12 ( 1) 2.0 (11) ALL SYSTEMS 0.31 0.48 7.80 16.4 NUMBER OF SYSTEMS WITH LESS THAN AVERAGE :. PERFORMANCE 6 . 7 6 5 NOTE: ( ) Ranking 163. 2) a uniform reporting system; 3) the proper c r i t e r i a for a l l o c a t i n g funds; and 4) a clear objective of what t r a n s i t i s expected to accomplish. Possible explanations for t h i s are that there i s a reluctance on the part of the P r o v i n c i a l Government through i t s Transit Agency to develop performance measures and to evaluate t r a n s i t for the purpose of a l l o c a t e ing support funds i n general. This might be due to the following reasons: (i ) A lack of a r e a l i n t e r e s t i n t r a n s i t by the P r o v i n c i a l Government. ( i i ) The P r o v i n c i a l Government might not want to know the e f f i c i e n c y or i n e f f i c i e n c y of the public mode which might be used e a s i l y for comparison with the private mode, ( i i i ) The i n d i c a t i o n of the e f f i c i e n c y ( p a r t i c u l a r l y i n e f f i c i e n c y ) might embarrass the d i f f e r e n t p a r t i c i p a n t s involved i n the a l l o c a t i o n of funds (e.g. administrators and l e g i s l a t o r s ) . (iv) The reluctance on the part of decision-makers to be pinned down on s p e c i f i c objectives that can be measured. (For example, i f the 50% cost-recovery i s enforced e i t h e r the users or the l o c a l governments would have to pay for the difference between the actual d e f i c i t and the allowable d e f i c i t s . ) In general, there i s a lack of commitment and d i r e c t i o n on the part of decision makers as to what they expect or want t r a n s i t to achieve for the general welfare of the c i t i z e n s i n the Province. The following questions should be ra i s e d . " 1) Should economic c r i t e r i a be used to set service standards and guidelines? 164. 2) Can performance measures be used to influence operators or l o c a l governments to improve the economic e f f i c i e n c y and effectiveness of t r a n s i t operations? 3) Should economic e f f i c i e n c y be one of the c r i t e r i a to judge the success of the program? The decisions on the supply of services and the p r i o r i t i e s and a l l o c a t i o n of t r a n s i t funds have been assigned to the Transit Agency but the r e a l control has always been i n the hands of the P r o v i n c i a l Government. Even though the Agency i s interested i n the effectiveness of the funding arrangement, the p o l i t i c a l process hasstaken t i l l 1979 to approve one of the economic c r i t e r i a which was recommended. The funding arrangement discussed thus far applied only to the small c i t y program. A new Act (the Urban Transit Authority Act) was proposed and passed i n 1979 to f a c i l i t a t e the i n c l u s i o n of the two larger urban areas i n B r i t i s h Columbia - the Greater Vancouver and Greater V i c t o r i a Region - under the Transit Program. Both the c a p i t a l and operating funding arrangements have been changed. The 100% financing f o r c a p i t a l has been revamped. Instead, a l l c a p i t a l costs, calculated on the basis of an annual 'lease fee' arrangement, are considered as part of operating expenses. The formula for sharing the operating d e f i c i t s changed from a 50-50 s p l i t between the Province and the municipality to 75-25 i n the f i r s t year ( i . e . 1979) to 60-40 a f t e r f i v e years. (The s p l i t i s 75-25 for the second year, 70-30 for the t h i r d and 65-35 for the--fourth year.) There i s also a revenues target of 30% of operating costs. For small c i t i e s , the f i n a n c i a l burden remains v i r t u a l l y unchanged. The higher P r o v i n c i a l share of operating d e f i c i t s more or les s compensate for the half-share of the lease fee charges on equipment which the m u n i c i p a l i t i e s did not have to pay for before. 165. 5.4.2 Recommendations There are a few recommendations that can be made concerning the d e f i c i e n -cies of the funding arrangement. These recommendations are presented as follows: 1) It i s recommedned that the Province adopt a set of definable and measureable objectives. For example, the objective could be to provide adequate l e v e l of service to a l l c i t i z e n s i n the small c i t i e s within the next f i v e years. 'Adequate' l e v e l of service would be the P r o v i n c i a l service guidelines which are governed by the economic c r i t e r i a such as the following. 2) The Agency should develop set of c r i t e r i a for resource a l l o c a t i o n such that the above objective can be achieved i n an optimal fashion. For example, the economic c r i t e r i a suggested f o r the above objective could be: - minimum 40% cost recovery; - maximum $10 P r o v i n c i a l subsidy per capita; supplemented with the following service guidelines: - 20 ve h i c l e miles per capita or half-hourly service whichever i s greater for built-up urban areas; for semi-rural areas or r u r a l areas, at least 3 round-trips a day to the closestccentre; - at least 80% of the population are served with maximum walking distance of a quarter mile to a bus stop or a maximum walking time of 10 minutes. 3) In order to perform e f f i c i e n t l y , a uniform-and simple reporting 166. system should be developed such that the data required for the evaluation i s obtained automatically. The data needed are: - annual passengers c a r r i e d ; - population served; - number of bus hours and number of bus miles per year; - t o t a l operating costs and t o t a l operating revenues; - average fare ; - number of revenue miles and revenue hours per year; - number of s t a f f ; - d i r e c t operating costs; - route miles. 167. 5.5 THE EFFECTIVENESS OF THE PUBLIC MARKETING AGENCY The Rapid Transit Subsidy Act passed i n 1972 made no e x p l i c i t provisions i n i t s tenets for a public marketing agency or an agency of any kind. The r o l e of the agency brought into existence at that time was simply to administer the funding program by assuring that subsidies were paid out to q u a l i f i e d m u n i c i p a l i t i e s . No e x p l i c i t reasons or goals were set out for the Agency at that time. The Transit Services Act was passed i n 1974 which l a i d down the groundwork for the inter-governmental approach and the p r i n c i p l e of separating the planning and marketing functions from the operating function. This section of the study i s an evaluation of the effectiveness of the 'p.m.a.' approach. When an organizational structure i n the private sector i s being evaluated, there are s p e c i f i c i n d i c a t o r s of effectiveness such as earnings per share or rates of return on investment etc. that can be used to measure e f f e c t i v e -ness. There are clear d e f i n i t i o n s of output measures to show i f the company i s doing the r i g h t thing. For evaluating the 'public marketing agency', the c r i t e r i a that can be used to judge i t s performance are not very concrete. The performance of t r a n s i t i s influenced by many external factors other than the way services are being planned, marketed and produced. It i s also constrained by l o c a l s i t u a t i o n s , s o c i a l objectives and the l e v e l s of service provided. Due to the lack of a single i n d i c a t o r to be used for measuring the 'p.m.a.'s'' effectiveness, the evaluation has to provide evidence as to whether the Agency has achieved what i t was set up to accomplish. The reasons for adopting the 'p.m.a.' approach are believed to be the following: i ) to provide means of e f f i c i e n t l y administering government-funded services, monitoring performances and measuring benefits; 168. 11) to achieve co-ordination of transport modes and c a r r i e r s , and i i i ) to enable the closer i n t e g r a t i o n of public transportation and l o c a l land use planning. In order to achieve the above, the government would have to have some say i n the services which i t subsidized. The government would want to see that s o c i a l l y desirable services are not abandoned due to economic reasons. The r o l e of the 'p.m.a.' i s to ensure that government-funding for t r a n s i t be spent i n the most e f f i c i e n t and e f f e c t i v e manner. In order to achieve t h i s r o l e , the B. C. Transit Agency took on the following functions: 1) providing planning and marketing services to a l l small c i t i e s ; 2) providing expertise i n t r a n s i t management that would otherwise not be attainable i f each c i t y i s operating i t s own system; 3) ensuring that l o c a l school bus services can be integrated into the o v e r a l l network; 4) making sure that public t r a n s i t i s integrated with l o c a l land use planning; 5) providing p o l i c y advice to l o c a l governments concerning matters i n planning, financing and other operations aspects of the business. The evaluation of the Transit Agency ( i . e . the 'p.m.a.') would require answering enquiries r e l a t i n g to the following broad objectives. i ) achieving control of the services which the government i s paying f o r ; i i ) co-ordinating transport modes and c a r r i e r s ; i i i ) enabling closer i n t e g r a t i o n of public t r a n s i t and land use 169. p l a n n i n g . The e v a l u a t i o n i n t h i s s e c t i o n d e a l s w i t h answering q u e s t i o n s c o n c e r n i n g the above broad o b j e c t i v e s . 170. 5.5.1 The Control Objective The common goal of a l l public marketing agencies i s to maximize s o c i a l b enefits. Without d i r e c t involvement i n subsidy programs, governments can only react, not i n i t i a t e , and hence they have l i t t l e power to see that programs are administered e f f i c i e n t l y and s o c i a l l y desirable services are supplied and consumed i n the most e f f e c t i v e manner. There are three a l t e r n a t i v e s which can be adopted to achieve e f f i c i e n c y , effectiveness, and a t t a i n control over 'what', 'where' and 'when'services should be provided. These a l t e r n a t i v e s are as follows. 1) Government can acquire the operator and service outright. (Most t r a n s i t subsidy programs i n the 1960's were administered t h i s way so that s o c i a l l y desirable services were not abandoned t o t a l l y by private companies. There were numerous conversions during t h i s period from private to public ownership of t r a n s i t services.) 2) Government can set requirements by law or m i n i s t e r i a l d i r e c t i v e s and perform audits on operators. 3) Government can adopt the public marketing agency approach by d i r e c t l y getting involved i n the planning and marketing functions. The high c a p i t a l spending for the f i r s t approach and the lack of planning input with the second approach and the need to deal with each i n d i v i d u a l - c i t y with unique requirements are the most apparent shortcomings which prompted the adoption of the 'public marketing agency' concept. The 'p.m.a.' approach can achieve s i m i l a r controls by contracting out the operating functions and r e s p o n s i b i l i t i e s to private operators. No major c a p i t a l 171. committment i s required under t h i s arrangement except i n some cases where c a p i t a l subsidies are provided for upgrading.rolling stock and increasing f l e e t sizes due to service improvement needs. I t i s not the in t e n t i o n of t h i s evaluation or the int e n t i o n of t h i s study ;to show the 'p.m.a.' as the only means to achieve these controls. This evaluation i s intended to document whether t h i s approach can achieve these ends and how e f f e c t i v e i t i s . In order to determine whether the 'p.m.a.' has i n fact gained control over the provision of t r a n s i t services responses are developed for the following questions. (i ) How well has the 'p.m.a.' con t r o l l e d 'what','where' and 'when' services are provided? ( i i ) How well has the 'p.m.a.' monitored the performance of the services provided? ( i i i ) How e f f e c t i v e i s the marketing component of the 'p.m.a.' concept? Is i t necessary? (iv) Does the 'p.m.a.' have any control over the costs of services? 172. 1) How well has the 'p.m.a.' con t r o l l e d 'what', 'where' and 'when'  services are provided? By adopting the 'p.m.a.' concept i n conjunction with the inter-governmental approach, the point of view of the operators, the users and the two l e v e l s of governments (both P r o v i n c i a l and municipal) are taken into considerat-ion. (Refer to Chapter Three.) The users' point of view i s usually stated during the f i r s t referendum for a l o c a l t r a n s i t system. This public referendum gives the c i t i z e n s the f i r s t voice i n determining whether they want t r a n s i t i n t h e i r communities and whether they are w i l l i n g to share h a l f of the t r a n s i t d e f i c i t s with the P r o v i n c i a l government. Further involvement from the users i s through the conceptual planning stages when public inputs are s o l i c i t e d . The public i s also involved i n approving the f i n a l service plan. The inter-governmental approach also assures that inputs from the two l e v e l s of government are fed into the service plans and s p e c i f i c a t i o n s so that both l o c a l and P r o v i n c i a l objectives are r e a l i z e d . If c o n f l i c t s a r i s e between the two l e v e l s of governments, the P r o v i n c i a l objectives would carry the most weight. This approach allows the users, the governments (usually also represent the i n t e r e s t of society at large) to have the power to control 'what', 'where' and 'when' services should be provided. The operators are l e f t to concern themselves with only the day-to-day operations of services. They are responsible for running the services according to the s p e c i f i c a t i o n s set out by the 'p.m.a.'. The 'purchase of servic e ' contract provides these private operators a fixed return on the quantity of service supplied. This arrangement a l l e v i a t e s the d i f f i c u l t y often experienced by private t r a n s i t companies i n supplying good q u a l i t y vehicles and services. The operators can also be f a i r l y responsive to service changes. This means 173. that service can be added and deleted anytime becuase contractors are paid on the basis of t h e i r v a r i a b l e cost. Since the private companies do not have to cover a large investment i n :capital equipment, contracts with the Agency can be of shorter periods of time (that i s , one or two year contracts). In summary, t h i s arrangement allows governments to contract private operators to ensure that s o c i a l l y desirable services are provided i n an e f f e c t i v e manner. The 'purchase of service' contract arrangement i s also f l e x i b l e i n a sense that government programs for t r a n s i t can be altered according to changes i n government p o l i c i e s and funding arrangements. 174. 2) How well has the 'p.m.a.' monitored the performance of the services  provided and measured benefits? The performance of the services provided are monitored and benefits documen-ted from periodic on-board passenger surveys and passenger counts. The u t i l i z a t i o n rates and c h a r a c t e r i s t i c s of usage are the information sought. This data i s used to review services which can be cut back i f u t i l i z a t i o n rates are low and there i s no s o c i a l j u s t i f i c a t i o n for the service. These types of changes deal mainly with route layouts and schedules. In terms of o v e r a l l system performance, the p i t f a l l s of the Transit Program have been documented i n Section 5.4. The lack of measureable objectives and s p e c i f i c c r i t e r i a for resource a l l o c a t i o n were provided as the major p i t f a l l s of the B. C. Transit Program and they should not be considered as c h a r a c t e r i s t i c s of the 'p.m.a.'. 3) How e f f e c t i v e i s the marketing component of the 'p.m.a.' concept?  Is i t necessary? The marketing function of the Agency encompasses more than j u s t advertising. It i s more of a consumer-oriented approach designed on the basis of the marketing-mix p r i n c i p l e which includes market research, product design and packaging, informing and persuading the market about the service. Due to the li m i t e d extent of the marketing e f f o r t i n small c i t i e s , i t i s d i f f i c u l t to generalize the value and the effectiveness of t h i s marketing approach. One thing which i s c e r t a i n i s that people do need knowledge of the service before they can use i t . Therefore i t i s important to have an information campaign to promote the use of t r a n s i t . Packaging has also found to be an important aspect of production. Properly designed and 175 . easy to read timetables are necessary. In order to design the s e r v i c e that meets the needs and requirements of the users, market research would d e f i n i t e l y be necessary. 4) Does the 'p.m.a.' have any c o n t r o l over the costs of se r v i c e s ? The costs of s e r v i c e s under the 'purchase of s e r v i c e ' c o n t r a c t s are governed by the contract r a t e s . These r a t e s are determined by the bidders on the b a s i s of t o t a l costs of p r o v i d i n g the s e r v i c e w i t h some p r o f i t . With t h i s contract arrangement, the lowest b i d i s u s u a l l y chosen but not always. L o c a l operators are normally given p r i o r i t y to take on the operation of t r a n s i t s e r v i c e s i n t h e i r home towns because of h i s l o c a l contacts and ready set up f o r c a r r y i n g 'out - " operations. These p r i v a t e operators, under contract to the 'p.m.a.' and the muni c i p a l government, do not have to provide audited f i n a n c i a l statements to j u s t i f y the r a t e s charged. Since the b i d d i n g environment f o r co n t r a c t s i s not a t t r a c t i v e to o u t s i d e r s (that i s , operators from other c i t i e s ) the l o c a l operator who bi d s f o r the s e r v i c e u s u a l l y gets the asking r a t e . No economies of s c a l e were r e a l i z e d even though t r a n s i t shares the same overhead w i t h the c o n t r a c t o r ' s other operations. (Most c o n t r a c t o r s own and operate other transport s e r v i c e s such as a i r p o r t e r s , charter s e r v i c e s and/or school s e r v i c e s . ) T h e o r e t i c a l l y , overhead expenses should be shared among the operators' other f u n c t i o n s , yet overhead costs were a l l o c a t e d t o t a l l y to t r a n s i t i n order to j u s t i f y the l e v e l of hour l y r a t e s requested. Since a u d i t s of operators' f i n a n c i a l statements were not r e q u i r e d , the r e a l cost f o r t r a n s i t cannot very e a s i l y be i s o l a t e d . In summary, governments have very l i t t l e c o n t r o l over the costs of s e r v i c e . Economies of s c a l e which might come about because operators own and operate 176. other bus services out of the same f a c i l i t i e s tend to be retained by the operator. The lack of competition for contracts i n most cases has resulted i n r e l a t i v e l y high contract rates. As a r e s u l t , the rates for bus hours and bus miles vary among d i f f e r e n t systems i n the Province. In the case of one community, the i n i t i a l bid for service was submitted by only one operator who also ran the a i r p o r t e r and some school bus operations i n the community. Rates were set a r b i t r a r i l y and as a r e s u l t , t h i s system had one of the highest unit cost per bus hour among a l l systems i n the Province. The f i n a n c i a l statements showed that the returns on investment to the operator for the f i r s t two years were quite s u b s t a n t i a l , ranging from t h i r t y to f o r t y percent. Normally, the way to combat the above problems i s through f i n a n c i a l audit. This provides the information on the r e a l cost for service but i t does not reduce the rate the contractor would l i k e to charge. This problem can only be solved i f the 'p.m.a.' has an a l t e r n a t i v e way of providing the service such as i s the case i n Kamloops or power to l i m i t the subsidy paid. Recommendat ions 1) The Agency should seek ways to f i n d out the r e a l cost of providing service so that the d e f i c i t s can be accounted f o r . For example, auditing procedures may be able to serve t h i s purpose. This inform-ation would also help to i d e n t i f y the performance of the services. 2) The Agency ought to constantly look for means of providing service i n the most e f f i c i e n t and e f f e c t i v e way - regardless of who provides the service (public or p r i v a t e ) . For example, i f conversion from private to public ownership proves to be both economically e f f i c i e n t and at the same time d e l i v e r the services as required, t h i s option should not be overlooked. For the case i n Kamloops, there were 177. Indications that t h i s Crown owned company was more e f f i c i e n t i n terms of cost and more e f f e c t i v e i n terms of implementing the service as planned. This case i s presented here to show how the Crown company approach works. The case of Kamloops The Crown owned operating company has found to be a promising approach. Since there i s only l i m i t e d evidence to judge whether i t was the most e f f i c i e n t way for providing service and c o n t r o l l i n g costs, no recommendation or conclusion can be made at t h i s time. However, the merits and short-comings experienced with t h i s approach i s discussed. The Transit Services Act provides for the occasion when a s u i t a b l e private operator cannot be found by enabling the Province to e s t a b l i s h a Crown bus operating company. Two instances of t h i s occurred when no competent low-cost contractors were found to operate the i n t e r c i t y services on the Island and the l o c a l bus service i n Kamloops. The Thompson Okanagan Transit Ltd., a Crown company, operates the services i n Kamloops. As there i s no service contract agreement, the Province c a r r i e s a l l the costs incurred i n running the company and services. The manager for the company i s provided by the Transit Agency and i s given the r e s p o n s i b i l i t i e s of the o v e r a l l operation and administration of the company. A l l r e s p o n s i b i l i t i e s and functions that belonged to an operating company apply to t h i s Crown company as w e l l . A l l f a c i l i t i e s , buses, equipment and garage f a c i l i t i e s are owned by the Province. A l l these c a p i t a l costs were charged back to the system as depreciation expense except for buses which the Province charged only a lease fee of one d o l l a r per bus. It might appear that t h i s type of P r o v i n c i a l involvement i n operations 178. contradicts the 'p.m.a.' concept of separating the planning and marketing functions from operations. But i n theory the concept of control and the assurance of achieving e f f i c i e n c y i n government funded services i s the same or even greater. Usually the Province becomes involved i n operations only i f the m u n i c i p a l i t i e s do not f e e l that they would want to take on such r o l e . Local governments did not want to get involved i n t r a n s i t operations because they lacked the s p e c i a l i z e d management s k i l l s required to carry out the tasks. This Crown owned company was going to be set up to run services i n Kelowna and Penticton (40 miles from Kamloops) and to create a 'regional operating company'. A management team, c e n t r a l garage for maintenance and maintenance f a c i l i t i e s could be shared by the three systems. The t y p i c a l s t a f f i n g arrangement i s for the management s t a f f to be employees of the Transit Agency and other employees to be under the p a y r o l l of the Crown company. The management s t a f f can also be contracted from the Transit Agency and/or employed by the Crown operating company. The task of day-to-day operations, runcutting and d r i v e r assignments etc. (those belong to the OPERATING COMPANY as?'discussed i n Chapter Three) are handled by the management people (one manager and possibly three supervisors, one for each c i t y ) . In terms of major f i n a n c i a l commitments such as the proposed new garage f a c i l i -t i e s i n Kamloops, decisions are made by the M i n i s t r y responsible for t r a n s i t . The cost comparisons between Kamloop's system and other s i m i l a r sized systems are shown below to provide some evidence f o r the cost advantages mentioned above. If the company was to operate the services i n both Kelowna and Penticton, there may be higher cost savings. TABLE 5.3 COST COMPARISONS BETWEEN DIFFERENT TYPES OF SYSTEMS (a) COST PER MILE (1977) 1 1 1 2 2 Kamloops Nanaimo Nelson Powell Prince Port Kitimat River George A l b e r n i $1.44 $1.70 $1.72 $1.77 $1.63 $1.52 $1.57 (12% lower than average) (b) COST PER HOUR (1977) $18.03 $27.28 $21.55 $23.39 $23.00 $19.60 $21.98 Note: 1 Municipal owned and operated 2 private contractors 180. As Table 5.3 shows, the hourly rate for the Kamloops system was about 22 percent lower than the average rate or 23 percent lower than the median rate incurred by other systems i n the Province. The municipal or regional owned and operated systems constantly show higher hourly rates than those operated by private contractors. Further investigations into these p u b l i c l y -owned systems are warranted i n order to explain the discrepancies i n the cost of services. In the case of Nanaimo, i t was the f i v e percent overhead charged by the Regional D i s t r i c t and the high administrative costs that contributed to the high cost of operation. One of the other advantages of t h i s arrangement i s that subsidized services are not provided as p r o f i t a b l e business ventures to private entrepreneurs. This i s obviously a p o l i t i c a l d ecision. As experienced i n C , the two P r o v i n c i a l . p a r t i e s hold d i f f e r e n t views i n t h i s area. This provision of purchasing power and consolidating services was i n i t i a t e d by the previous government (1972-1975) i n the Transit Services Act. However, the functions and r e s p o n s i b i l i t i e s of the Urban Transit Authority which was set up by the e x i s t i n g government preclude the advancement of the 'regional operating company' concept. Nonetheless, the advantages of t h i s arrangement should be documented. There are also disadvantages associated with t h i s approach being that: i ) government owned companies usually have l e s s room to maneuver during union contract negotiations because of the d i r e c t r e s p o n s i b i l i t i e s they have overseeing that services are not discontinued for any period of time. As a r e s u l t , many public owned and operated systems lead the industry i n terms of wage rates for d r i v e r s . (For example, B. C. Hydro and the Nanaimo 181. wage scales are the highest i n the Province, that i s , about ten to twenty percent over the average hourly wage for drivers.) i i ) Sometimes, management lacks the p r o f i t incentive (just l i k e any other public s e r v i c e ) . As long as services are operated within the allowed budget, very l i t t l e attempt i s made to maximize r i d e r s h i p . i i i ) High c a p i t a l outlays for garage f a c i l i t i e s and a d d i t i o n a l involvement from the Transit Agency i s usually required to over-look the proper operations of the services. 182. 5.5.2 The 'Co-ordination' Objective One of the reasons for the establishment of the 'p.m.a.' i s to co-ordinate transport modes and services so that the user views a l l public transport modes ( r a i l , a i r , bus, i n t e r c i t y coach) as one public transport system. At the same time, services (school, r u r a l , semi-rural and urban) can also be co-ordinated so that a l l publicly-funded services are provided i n the optimal way. This modal co-ordination i s more appropriate f o r larger urban areas where d i f f e r e n t modes and services e x i s t . In small c i t i e s where there i s an occasion for co-ordination, the Transit Agency has progressed towards t h i s objective while considering the i n t e r e s t s of a l l p a r t i e s involved, including the users. The following are examples of such instances where co-ordination of services were provided f o r . School and Urban Service Co-ordination During school hours, there i s usually ample capacity i n the c i t y bus systems to serve the school loads that would otherwise be c a r r i e d by school buses. With t h i s co-ordination objective i n mind, the P r o v i n c i a l Agency usually informs the School Boards and the c i t i e s who are j o i n t l y responsible f o r school services, of the p o t e n t i a l benefits i n co-ordinating the urban and school service. This has been achieved with the Kitimat System. In Kitimat, the School D i s t r i c t used to contract school bus operators to run the school services. Since there was spare capacity i n the urban system, i t was suggested by the Transit Agency to the l o c a l government that t h i s spare capacity could be u t i l i z e d by transporting stduents while at the same time both the l o c a l government and the School Board could benefit from not having to go out for a separate school bus contract. 1 8 3 . The School Board paid the P r o v i n c i a l Agency a f i x e d fee f o r using the P r o v i n c i a l f l e e t . Later, a cost-sharing agreement was made between the three p a r t i e s involved for services that were u t i l i z e d s o l e l y f o r school operations. In t h i s case, a l l p a r t i e s benefitted from the co-ordination. Rural and Urban Service Co-ordination The above approach can also be implemented in supplying services to r u r a l areas. In Maple Ridge, the majority of the route miles serve semi-rural areas ten to f i f t e e n miles from the town centre. During peak hour periods a l l t r a n s i t v ehicles are u t i l i z e d i n the urban areas. However, in the off-peak the excess v e h i c l e s are used to provide service to the semi-rural areas. This makes i t possible to provide t r a n s i t services to semi-rural residents. 'Work' t r i p s are not served but other services such as 'medical' and 'shopping' t r i p s are served. 184. 5.5.3. The 'Integration' Objective Local o f f i c i a l s are encouraged by the Transit Agency to view the l o c a t i o n , density and layout of new r e s i d e n t i a l subdivisions and the l o c a t i o n of service areas as important elements i n the a b i l i t y of t r a n s i t to serve the requirements of l o c a l residents. S i m i l i a r l y the r e l a t i o n s h i p between auto and t r a n s i t modes were i l l u s t r a t e d . Again information was made ava i l a b l e showing that p o l i c i e s designed to enhance the q u a l i t y of automobile t r a v e l would l i k e l y be detrimental to the performance of t r a n s i t services. As documented in Section 5.,3>only a l i m i t e d degree of in t e g r a t i o n has been achieved. Land use and development decisions have been made and w i l l continue to be made on the basis of maximizing sales and p r o f i t s f o r developers. It i s a fac t that land use planners and developers control the fate of t r a n s i t . In order to increase the performance of t r a n s i t systems, t r a n s i t planning must be integrated into the o v e r a l l planning process and should not be treated as an after-thought. There are simple improvements that can be adopted such as the fol l o w i n g ^ : 1) Clustering of a c t i v i t i e s When recreation, medical f a c i l i t i e s are located adjacent to a shopping mall, the t r a n s i t routes that serve the shopping mall also allow people to t r a v e l to the other a c t i v i t y centres. This would change the community pattern from a "many-to-many" scheme to one of a "many-to-few" nature. 2) Neighborhood design Direct routing through the centre of a neighborhood places t r a n s i t 185. service closer to area residents and avoids the necessity f o r t r a n s i t diversions from routes that follow peripheral streets. In order to permit d i r e c t t r a n s i t services to operate within a few hundred feet of a l l residents, simple connections of the ce n t r a l c o l l e c t o r street through the en t i r e neighborhood can be provided. These short sections of the street could be designed f o r "BUS ONLY" operation i f safety of residents i s to be preserved. In some lo c a t i o n s , walking distances to a r t e r i a l s could be reduced by providing walkways. A c t i v i t y centre design In t r a n s i t planning, the requirement for d i r e c t routing frequently c o n f l i c t s with the requirement that the stops be close to where the action i s . To serve a large shopping centre, for example, a bus may have to make a two to f i v e minute detour from a d i r e c t route to the detriment of through service. (Usually t r a f f i c around or through shopping centres i s quite congested.) When confronted with land use patterns that present such c o n f l i c t , both the a c t i v i t y and the through passenger cannot be served well. Based on experience i n Penticton and other small c i t y environments, provisions can be made during the base periods to provide d i r e c t access to major shopping centres. However, during the peak periods when there are greater portions of through r i d e r s , d i r e c t routing i s provided. It has been suggested by many that s i t e planning guidelines that create large setbacks from street frontage either f or parking or landscaping purposes should be revised to create a better access f o r t r a n s i t users. Increasing density on a r t e r i a l s T o t a l number of people within a reasonable walking distance w i l l be 186. increased since buses normally run on a r t e r i a l streets. A l l the above recommendations f o r improvements are made on the basis that g 1) people do not walk f a r to t h e i r bus stops (not bus routes) ; 2) people compare a t r i p by t r a n s i t with the best a l t e r n a t i v e , the same t r i p by automobile. In other words, a person i s u n l i k e l y to use t r a n s i t i f the stops are too far away from his o r i g i n or destination or i f the routing i s c i r c u i t o u s as to be markedly longer and more time consuming than a d i r e c t t r i p by automobile. These are a few of the major a t t r i b u t e s of t r a n s i t use that can be improved through better i n t e g r a t i o n of land use and t r a n s i t planning. I f the services are well integrated the range of a l t e r n a t i v e s open to users i s greatly expanded. The demand-responsive systems cannot generally be j u s t i f i e d as a t r a n s i t strategy on eit h e r p r o d u c t i v i t y or - 9 f u e l e f f i c i e n c y grounds (Piper, 197 6) • I t i s appropriate i n trans-porting handicapped persons and can be used to improve the pro d u c t i v i t y of shared-ride t a x i s . In general, e f f o r t s should be made to develop urban forms which make possible a good pu b l i c transport service at an acceptable cost. Peripheral built-up areas should be organized around urban centres and low density developments should be l i m i t e d . 187. FOOTNOTES 1. Weiss's framework for evaluation of goal achievement programs can be summarized by the following steps: - i d e n t i f y goals and objectives; - e s t a b l i s h c l e a r and s p e c i f i c c r i t e r i a for success; - c o l l e c t evidence systematically and translate the evidence into quantitative terms i f possible; - compare evidence with c r i t e r i a that were set; - draws conclusions about effectiveness, the merits, the success, of the program. 2. P o l i c y statement of A p r i l 1973 by Honourable James Lorimer, Mini s t e r of Municipal A f f a i r s 1972-1975, the Minister responsible for t r a n s i t . 3. McCrossen, Dennis F., "Choosing Performance Indicators for Small Transit Systems", Transportation Engineering, Vol. 48, No. 3, March 1978, pp. 26-30. 4. Tomazinis stressed the evaluation of t r a n s i t supply to be made on the basis of s a t i s f y i n g four p a r t i c i p a n t s ' points of view. The operator's point of view i s not included i n t h i s study because the evaluation deals mainly with the program and the i n s t i t u t i o n a l arrangement rather than each i n d i v i d u a l system's operations and how well the systems are performing. The actual service p r o d u c t i v i -t i e s r e f l e c t the e f f i c i e n c y of the 'p.m.a.1 more so than the operator since the agency i s the one responsible for the design and the packaging of the product. 5. Piper, Robert R., "Energy E f f i c i e n c y of Dial-A-Ride System", Santa C l a r a , C a l i f o r n i a , 1976. 6. Personal conversation with Mr. Bob David (Director of Planning), Planning Department, Ci t y of Edmonton, 1977. 7. S u l l i v a n , Brian E., Tra n s i t Planning and Community Design: Innovat- ions i n approach to the Problems of Urban Transport, T r a n s i t Services D i v i s i o n , B r i t i s h Columbia Government, February 1976, Victoria-Vancouver, B r i t i s h Columbia. 8. Piper, Robert R., E. K-Y. Chan and R. S. Glover, "Walking Distances to Bus Stops", Proceedings, seventeenth annual meeting, Transportation Research Forum 17, 1:307-312, 1976. 9. Piper, i b i d . 188. CHAPTER SIX  SUMMARY, CONCLUSION AND RECOMMENDATION 6.0 CONCLUSIONS The purpose of t h i s paper was to examine and evaluate the supply of t r a n s i t services to small c i t i e s i n the Province of B r i t i s h Columbia. P r i o r to P r o v i n c i a l government involvement i n t r a n s i t supply the industry was su f f e r i n g from the following problems: i ) increasing costs; i i ) decreasing r i d e r s h i p ; i i i ) reduced or stagnant service l e v e l s i n growing c i t i e s ; iv) service l e v e l s which did not meet minimum nationa l standards; v) a shortage of managerial personnel f a m i l i a r with planning, managing and operating t r a n s i t systems; v i ) low p r o d u c t i v i t i e s of the systems. S t a t i s t i c s from Census Canada showed that approximately 20% of f a m i l i e s i n B. C. do not have access to automobile and i n 50%' of the f a m i l i e s one adult member of the household i s without access to an automobile. The general state of decline of the t r a n s i t industry and the desire to provide a basic l e v e l of m o b i l i t y for B r i t i s h Columbians without other means of transportation became the prime reason for P r o v i n c i a l involvement i n the small c i t y t r a n s i t industry. Two secondary reasons for involvement were: - to provide an a l t e r n a t i v e to expenditures on pr i v a t e transportation thereby conserving land and l i v e a b i l i t y ; 189. - to decrease the dependence on the private automobile. In order to implement the t r a n s i t supply program a public marketing agency was created. It embodies the concept of separation of functions and r e s p o n s i b i l i t i e s . Marketing and planning decisions are assigned to the Agency while actual operations of the service i s executed by a p r i v a t e l y or p u b l i c l y owned c a r r i e r . The public marketing agency approach to imple-_ menting the t r a n s i t supply program was selected because i t was thought to provide a greater degree of c o n t r o l over program implementation. The underlying reasons for adoption of the 'p.m.a.' were to: i ) provide means of e f f i c i e n t l y administering government funded services, monitoring performances and measuring benefi t s ; i i ) to achieve co-ordination of transport modes and c a r r i e r s ; and i i i ) to enable the choser i n t e g r a t i o n of public transportation and l o c a l land use planning. This paper evaluated how well the t r a n s i t supply program and the public marketing agency attained the goals set out. I t should be noted that the goals and objectives stated above were not nec e s s a r i l y e x p l i c i t l y stated. Some were in f e r r e d from statements of government o f f i c i a l s . Due to the vague nature of the goals and the complete lack of measureable, definable c r i t e r i a by which to measure.success or f a i l u r e i n a t t a i n i n g the goals, an evaluation of the supply program and the 'p.m.a.' was d i f f i c u l t . 190. 6.1 THE TRANSIT SUPPLY PROGRAM  The M o b i l i t y Objective Transit usage i n small c i t i e s increased s i x - f o l d during the period from 1972, when the government involvement began, to 1977. Household and on board passenger surveys showed that the young, the old and the female population (the earless) were the largest proportion of users. Service l e v e l s prior to government involvement were below n a t i o n a l l y accepted standards; by 1977 service l e v e l s were improved to better than national standards. From the point of view of the users the l e v e l s of service was adequate i n terms of coverage of r e s i d e n t i a l o r i g i n s but did not provide good service for work destinations. This was not seen as a serious problem because t r a n s i t i n small c i t i e s was not intended to serve the commuter market. Easy cheap parking and a lack of congestion preclude the capture of t h i s market. Tr a n s i t was found to be generally accepted i n small c i t i e s , and only a few were completely against using t r a n s i t . The majority considered tranr s i t as an a l t e r n a t i v e i f they were without the use of t h e i r car. In general, the t r a n s i t supply program did improve the m o b i l i t y of those without access to a car. Both users and non-users a l i k e held a favorable opinion of t r a n s i t . This means that the l o c a l residents were s a t i s f i e d with what they voted to have for t h e i r community. 191. 'Conserving land and l i v a b i l i t y ' Objective In order to achieve t h i s objective energy savings, reduction i n t r a f f i c congestion and parking requirements and inte g r a t i o n of land use planning and transport planning were seen as goals to achieve. Survey findings indicated that only 5 to 18% of t r a n s i t r i d e r s were former auto users. Since t r a n s i t accounts for no more than 8% of a l l t r i p s i n the community, the impact of t r a n s i t on energy consumption i s small. Due to the low usage by commuters, both the s u b s t i t u t i o n e f f e c t of t r a n s i t to investment i n the private mode and the reduction of t r a f f i c congestion ( i t i s not too bad to begin with) have not materialized i n the small c i t i e s . Land use decisions i n small c i t i e s are made on the basis of p r o f i t s rather than s o c i a l b enefits. Unless land developers become more conscious of s o c i a l issues, i t i s doubtful whether t r a n s i t w i l l ever become part of the o v e r a l l community planning process. E s s e n t i a l l y t r a n s i t i s s t i l l viewed as a service secondary to road, water and sewer. At present, i t i s f a i r to conclude that there i s no inte g r a t i o n of land use and transport planning i n small B. C. c i t i e s . 'Reduced Dependence on Auto' Objective This objective was evaluated by examining the extent of switch and choice r i d i n g , whether people can do without t h e i r automobiles and the impact of t r a n s i t on auto ownership. Transit has reduced dependence on the auto because i t was found that 35% to 50% of a l l t r a n s i t users would have to depend cn'.the automobile either as a passenger or driver i f t r a n s i t was not a v a i l a b l e . Also 85% of those surveyed indicated they could do without use of t h e i r car i f 192. necessary. This suggests a reduced dependence on the auto due to t r a n s i t . Auto ownership was s l i g h t l y affected as 5% of residents surveyed indicated that t r a n s i t had affected the l e v e l of car ownership i n t h e i r household. In general i t can be said that the t r a n s i t supply program has been successful at increasing the mobility of small c i t y residents and reducing t h e i r dependence on the auto. However, i t has not been very successful at increas-ing l i v a b i l i t y i n terms of reduced congestion, reduced f u e l consumption and integrated land use and t r a n s i t planning. Economic E f f i c i e n c y and Effectiveness of the Program Neither the Rapid Transit Subsidy Act nor the Transit Services Act have any mention of t r a n s i t performance and provide no basis for evaluating the effectiveness of t r a n s i t subsidies. Therefore, four performance measures were selected for the evaluation and they were: 'cost recovery r a t i o ' , ' d e f i c i t per c a p i t a ' , ' d e f i c i t per r i d e ' and 'rides per c a p i t a ' . The performance of the t r a n s i t supply program was evaluated by comparing the aggregate performance measures of the small c i t i e s i n B. C. with large B. C. c i t i e s , and with small c i t i e s i n Western Canada. Also a comparison of the performance of small B. C. c i t i e s was undertaken. The d e f i c i t per capita i n large urban areas was four times greater than i n small c i t i e s , however, the r i d e s per capita was also four times greater. These differences r e f l e c t the d i f f e r e n t requirements of t r a n s i t i n small and large c i t i e s . That i s , that small c i t y t r a n s i t caters l a r g e l y to the captive market with l i t t l e emphasis on serving the commuter market while large c i t y t r a n s i t caters to both the captive and choice markets with more 193. emphasis on serving the commuter market. In general, B. C. c i t i e s were found to have a lower market penetration than p r a i r i e c i t i e s . I t was thought that t h i s could be explained by the fact that p r a i r i e c i t y systems have been i n operation for a longer period of time allowing the development of r i d i n g habits which have not been developed i n the new B. C. systems. The performance of the twelve B. C. systems varied widely. Variations i n population density, geographical constraints, and the wide range of a l l o c a t i o n of P r o v i n c i a l support (from $2.12 to $18.50 per capita d e f i c i t ) were the cause of performance v a r i a t i o n s . The difference i n P r o v i n c i a l support and hence l e v e l of service supplied was found to be the most important factor i n causing v a r i a t i o n s i n per capita r i d e r s h i p . Ridership l e v e l s were found to be highly correlated with the l e v e l of service, which i s dependent on funding from the Province. Given that the Transit Acts were set up to a l l o c a t e P r o v i n c i a l support i n the most e f f e c t i v e and equitable manner questions a r i s e as to the appropriateness of the current method of a l l o c a t i o n of resources to the small c i t i e s i n the Province. Currently the Province simply matches contributions from the l o c a l l e v e l . This approach has resulted i n only 30% of the small c i t y population receiving t r a n s i t funding and, within that 30%, wide v a r i a t i o n s of support ;exist. It was postulated that t h i s s i t u a t i o n was not planned but was due to a lack of commitment and d i r e c t i o n on the part of decision makers as to what they expect or want t r a n s i t to achieve. Because of t h i s the Agency lacks: 194. i ) a clear objective of what t r a n s i t i s expected to accomplish; i i ) the proper c r i t e r i a for a l l o c a t i n g funds; i i i ) a program to measure the performance of the c i t i e s supported which can be used to enhance proper a l l o c a t i o n of resources; and iv) a uniform reporting system. Although i t can be said that the t r a n s i t supply program has been successful i n increasing the mobility of the earless, the raison d'etre of the Program, the approach to d i s t r i b u t i o n of resources among c i t i e s i s not equitable. There are a few recommendations that can be made concerning the d e f i c i e n c i e s of the funding arrangement. 1) It i s recommended that the Province adopt a set of definable and measurable goals and objectives. 2) The Agency should develop a set of c r i t e r i a for resource a l l o c a t -ion such that „' goals and objectives can be achieved i n an optimal fashion. 3) In order to perform e f f i c i e n t l y , a uniform and simple reporting system should be developed such that the data required for the evaluation i s obtained automatically. 6. 2 THE EFFECTIVENESS OF THE PUBLIC MARKETING AGENCY The effectiveness of the 'p.m.a.' was evaluated i n l i g h t of attainment of the following objectives. i ) Control of the services which government i s paying f o r . i i ) Co-ordination of transport modes and c a r r i e r s , i i i ) Integration of public t r a n s i t and land use planning. In general, control was gained over the provision of service, that i s , the 195. 'p.m.a.' i n conjunction with l o c a l municipal input could usually specify what, where and when services should be provided. However, i t was found that the 'p.m.a.' had l i t t l e c o ntrol over costs because of lack of comp-e t i t i o n on the behalf of private operators and due to the unwillingness of the 'p.m.a.' to audit operators. The following recommendations were made regarding means of gaining more control over costs: 1) The Agency should seek ways to determine the costs of providing service so that d e f i c i t s can be accounted f o r . Auditing of private operators may be able to serve t h i s purpose. 2) The Agency ought to constantly look for means of providing service i n the most e f f i c i e n t and e f f e c t i v e way - regardless of who provides the service (public or p r i v a t e ) . Another objective of the 'p.m.a.' i s the co-ordination of services., This i s generally more applicable i n large urban areas where the r a i l , a i r , bus and i n t e r - c i t y coach systems can be linked together. In small c i t i e s the p o t e n t i a l e x i s t s for i n t e g r a t i o n of school, r u r a l , semi-rural and urban services. In Kitimat the spare capacity of the urban system was used to transport students to and from school. In Maple Ridge free buses i n the off-peak period were used to provide service from r u r a l areas to the town centre for shopping and medical t r i p s . Another objective of the 'p.m.a.' was to achieve i n t e g r a t i o n of laHd use and development decisions and t r a n s i t planning. Although an e f f o r t was made to demonstrate to l o c a l o f f i c i a l s the r e l a t i o n s h i p s between the l o c a t i o n , density and the layout of r e s i d e n t i a l subdivisions and t r a n s i t usage, l i t t l e was achieved i n the way of i n t e g r a t i o n of land use planning and t r a n s i t planning. 196. The main purpose of the study i s to document the supply program - most important the public marketing agency and to r e l a t e e f f i c i e n c y and effectiveness of the program to the goals and objectives. C r i t e r i a of evaluation were established because none was a v a i l a b l e . J u s t i f i c a t i o n for t r a n s i t subsidies were discussed and i t was found that better funding c r i t e r i a f o r t r a n s i t on the basis of need and performance are needed. There are several p o t e n t i a l e f f e c t s of the findings of t h i s research which could influence how a 'p.m.a.' arrangement can be developed and implemented to supplying public transport services elsewhere (not lim i t e d to small c i t i e s ). This research can: (i) provide a conceptual framework for the development and assessment of 'public marketing agencies'; ( i i ) provide a p r a c t i c a l framework to analyse government programs; ( i i i ) f l a g problem areas with the 'p.m.a.' arrangement. This report can also be used for the following purposes: (i) As a guide for planning services i n small c i t i e s (through better understanding of the needs and requirements i n small c i t i e s ) . ( i i ) As reference for implementing the 'p.m.a.' concept and knowing the p i t f a l l s to avoid, ( i i i ) As a reference for p o l i c y makers to set measureable objectives and c l e a r and s p e c i f i c c r i t e r i a for program evaluation, (iv) Providing an evaluation framework to evaluate a government program which has no defineable goals and measureable objectives therefore no c r i t e r i a f o r evaluation, (v) Can be used to judge the f i n a n c i a l requirements f o r t r a n s i t 197. i n small c i t i e s . (vi) As a guide for s e t t i n g c r i t e r i a for a l l o c a t i o n of funding for t r a n s i t . Further Research The evaluation presented i n t h i s report i s an experimental approach attempting to t i e the concept of goal achievement and t r a n s i t performance measures to the evaluation of a government t r a n s i t supply program. Through the course of t h i s research i t was found that there was l i m i t e d work on the evaluation of the r e l a t i o n s h i p s and the applications of t r a n s i t performance measures to assessing the success of government t r a n s i t supply programs. It i s recommended that more research should be devoted to that area. I t was also found that greater information on the performance of the wide v a r i e t y of e x i s t i n g public marketing agencies i s needed. The p o t e n t i a l u t i l i t y of t r a n s i t can only be r e a l i z e d with government support. P o l i t i c a l considerations i n t r a n s i t d ecision making are unavoidable. This, however, does not preclude the need for the develop-ment and use of economic c r i t e r i a . 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S u l l i v a n , Brian E., Transit Planning and Community Design: Innovations  i n Approach to the Problems of Urban Transport, Bureau of Transit Services, B r i t i s h Columbia Government, 1974, Victoria-Vancouver, B r i t i s h Columbia. S u l l i v a n , Brian E., An Analysis of Demand f o r and Supply of Rural Public  Transportation: The Case of Alberta, unpublished Ph.D. D i s s e r t a t i o n , Stanford University, June 1974, Stanford, C a l i f o r n i a . S u l l i v a n , Brian E;, "New Methods of Public Transport Administration: The Public Marketing Agency", Canadian Transport Commission Research  Pu b l i c a t i o n , Report 46, October, 1972. Su l l i v a n , Brian E., Timed-Transfer Focal Point Concept, Bureau of Transit Services, B r i t i s h Columbia Government, 1974, Victoria-Vancouver, B r i t i s h Columbia. Thompson, Gregory L., A Macro Analysis of Variables Influencing Transit  Usage, Bureau of Transit Services, B r i t i s h Columbia Government, A p r i l 1973, Victoria-Vancouver, B r i t i s h Columbia. Thompson, Gregory L., Planning Considerations For Increasing Metropolitan  Area Transit Impact, unpublished paper, January 1976. Tomazinis, A. R., Pro d u c t i v i t y , E f f i c i e n c y , and Quality i n Urban Transportation Systems, D. C. Heath and Company, Lexington, Mass., 1975": Toronto Transit Commission, P o l i c i e s for Discussion - Standards for Evaluating E x i s t i n g and Proposed Routes, January, 1977. Toronto Transit Commission, Transit Revenue P o l i c y Study, A p r i l 1977. Toronto Transit Commission, Service Standards: Results of the Analysis  Undertaken for the Year 1978, Report no. 5, A p r i l , 1978. Toronto Planning Board,.City of, Review of the T.T.C.'s Report: P o l i c i e s  for Discussion, Standards for Evaluating E x i s t i n g and Proposed Routes, October, 1977. Transit Service P o l i c y , Memorandum to the SCAG Transporation and U t i l i t i e s Committee, Southern C a l i f o r n i a Association of Governments, March 17, 1976 (unpublished). Transport Canada, Strategic Studies Branch of, Indirect Energy i n  Transportation, A report prepared by the IBI Group, March, 1978. 203. Urban Mass Transportation Industry Uniform System of Accounts and Records  and Reporting System, Department of Transportation, Urban Mass Transport-ation Administration, O f f i c e of Transit Management, Vol.1, January 1977. Wachs, Martin, "Consumer Attitude Towards Transit Service: An Interpretive Review", Journal of the American I n s t i t u t e of Planners, Vol. 42, No. 1, 1976, pp.96-104. Weiss, Carol H . , Evaluation Research Methods of Assessing Program  Effectiveness, Prentice H a l l , 1972. APPENDIX A l THE HOUSEHOLD SURVEY QUESTIONNAIRE Transit Survey 205 . INFORMATION ABOUT YOURSELF a) How long have you lived at your present address? Years b) How long have you lived in this community? (Please check one) | |0-2 years 3-5 years \ \6-10 years [ |over 10 years c) In what other major cities or urban areas have you lived, for periods of two or more years? d) What is your sex? Male \ \ Female Married e) Your marital status? Single other f) Please check your age group. 20 or less 21-24 25-34 35-44 45-54 55-64 65 and over g) Have you attended university or post-secondary institutions? Yes No If yes, please check the highest level of post^secondary education achieved so far. ^ Post-secondary education Obtained Bachelor's degree Graduate work YOUR USAGE OF PUBLIC TRANSPORTATION a) Please check the one sentence below which best describes your experience with bus services. I don't use the bus and I never have in the past. I don't use the bus at the present time, although I have used it in the past. I occasionally use the bus, but only when I have to. I occasionally use the bus by choice. I am a regular bus user by choice. I am a regular bus user because I have no alternatives. b) Do you have any particular reasons for not using the bus service regularly? 206. c) Have you encountered any problems in trying to use the bus? TRANSIT ADVERTISING AND PUBLICATIONS a) Can you recollect having seen or heard any advertising specifically for bus services in your corrrnunity? (Please check one) Yes No Unsure If yes, when? Where did you hear about the bus service? Newspaper | | radio b) Do you have a bus timetable in your home? T.V. Yes No c) If you are a bus user, do you make use of the timetable? frequently occasionally once ov twice never, Why not? INFORMATION ON TRANSIT AND YOUR COMMUNITY d Imagine that someone wants to know a few things about public transportation in your carrnunity. Below, please indicate quickly and briefly the answer that you would be able to give to each question based upon your current knowledge and without checking up on the matter or asking any other household members for advice. (If you know the answer, please write i t in. If you don't know i t or are not sure, please check the box marked 'unsure'.) Part A Question: "Is there a local bus service around this community?" No I Unsure Answer: Yes If you answer 'no' or 'unsure', please skip to Part B. If 'yes', please  continue below. Question; "How frequently do the buses run on local routes?" Answer: during the day during the evening Or Unsure 207. Question: "What is the fare for a one-way trip?" Answer: Or Question: Answer: Part B Unsure "Where is the nearest bus stop?" Or Unsure How would you try to obtain further information about the public transit service in your area? Answer: DRIVING AND VEHICLE OWNERSHIP IN YOUR HOUSEHOLD a) Do you have a current drivers license? Yes No b) Roughly, how many miles do you say you drive per year? Do not drive 5,000 miles or less 5,001-10,000 miles 10,001-15,000 miles 15,001-20,000 miles Over 20,000 miles c) How many persons, including yourself, are residing full-time in your household? (Please exclude anyone living away from home while at school or college.) Persons aged 16 and over Persons aged 10 - 15' Persons aged 9 and under d) How many of those aged 16 and over are regular drivers? (Drive car three times a week of more) e) How many of each of the following types of vehicles, in working order, are operated by resident members of your household (including yourself)? Autos (including campers, trucks) Motorcycles Bicycles 208. f) To what extent do you normally have personal use of a car available to you (Please check one) AIways Most of the time Part of the time Occasionally I Never g) Has the availability of bus service affected the number of automobiles in your household? No Yes, to what extent? h) Do you expect to reduce the number of automobiles in your household within the next year, due to the present bus service? Probably Possibly Don't know Probably not 209. TRAVEL AND YOUR JOB a) What is your occupation? (Only those who have regular jobs or who are students answer the next few questions, others please skip to the next section.) b) How many days a week do you normally go to work? days Where is your regular place of work or study located? Do people who commute there by car normally have to pay parking fees? (Please check one) i 1 .-, Always Sometimes Never Parking provided free of charge c) What mode(s) of transportation do you use, and how frequently, for corrmuting to and from your place of work or study? (Please check as many boxes below as are appropriate) Frequency of use for commute trips 5 or more \days/week 3-4 days/week 1-2 days/week Occasionally Drxve auto alone Drive with family Carpool (or ride with friends )  Bus Taxi Motorcycle Bicycle Walk Other (please specify A 210. 6 d) If you ever use the bus for corrmuting, how do you reach the bus stop from your home? Walk Drive and park car Obtain a ride Approximate Time Other And how do you reach your workplace from the bus stop at the other end? Walk Obtain a ride Approximate Time Other e) If necessary, could you get from your house to your regular place of work or study by bus? (Please check one) Yes,fairly easily Yes, but it is inconvenient Possible, but its very inconvenient No, it is impossible ^_ Unsure [ Not applicable, work at home or within walking distance f) What are your usual hours of work? to NON-CXM1UTE T R A V E L a) For journeys in your cxximunity other than going to work, how much do you use each of the following modes of transportation? Frequency of use for non-commute trips 3 or more days/week days/week 1-3 days per month At least once in past year Never, or not lately Your own or household auto Motorcycle Bicycle Taxi Bus Walk Other (please specify) 211. OPINION OF BUS TRAVEL IN YOUR AREA Please indicate your general opinion of BUS travel in your area based on what you know or have heard about travel by bus within your community. extremely extremely neither ~~ moderately , moderately Characteristies slightly slightly safety safe form of traveI 3 • 6 dangerous form of travel comfort oomfortable uncomfortable convenience convenient 1 2 3 4 5 6 7 inconvenient enjoyment enjoyable 1 2 3 4 5 6 7 unenjoyable r e l i a b i l i t y reliable 1 2 3 4 5 6 7 unreliable punctuality on-time arrival 1 2 3 4 5 6 7 late arrival speed on commute trips fast 1 2 3 4 5 6 7 slow speed on non-commute trips fast 1 2 3 4 5 6 7 slow cost of traveI inexpensive 1 2 3 4 5 6 7 expensive 2 1 2 . 8 YOUR OPINION ON TRANSPORTATION AND PERSONAL TRAVEL Please circle the letter which best describes your feeling about each of the statements, according to the following codes: A means strongly agree a means slightly agree o means neither agree nor disagree d means slightly disagree D means strongly disagree 1) The idea of ear-pooling appeals to me. A a o d, D 2) I would never travel regularly by any form of public transport-ation, no matter how much they improved the service. A a o d D 3) Travelling by bus is so much more relaxing than driving. A a o d D 4) I might use the bus service more often if information about routes and schedules were easier to obtain. A a o d D 5) I hate to be tied to fixed schedules for travelling. A a o d D 6) I don't enjoy driving very much. A a o d D 7) I have bad memories of public transportation elsewhere. A a o d D 8) It is important to me that my home should be close to bus routes. A a o d D 9) I have never bothered to find out details of what public trans- : portation services are available around here. A a o d D 10) I would use public transportation a lot more if fares were lower. A a o d D 11) I could manage without a car for a few months if I had to. A a o d D 12) I really can't see much of a future for public transportation. A a o d D 13) I don't think there's a parking problem in our community. A a o d D 14) I have sometimes not tried to use the bus because I did not have the exact fare handy. • A a o d D 15) The buses are clean. A a o d D 16) The bus drivers here are friendly and courteous. A a o d D APPENDIX A2 BACKGROUND INFORMATION OF THE THREE CITIES SELECTED FOR THE SURVEY AND THE HISTORICAL DEVELOPMENT OF THEIR BUS SERVICE 214. The C i t y of Penticton Penticton i s a compact c i t y of 21,000 situated at the Okanagan Valley i n Southern i n t e r i o r of B r i t i s h Columbia. The c i t y i s surrounded by the Okanagan Lake to the north, the Skaha Lake to the south and the Okanagan River to the west. The considerably day and sunny climate i n the Okanagan Region has made Penticton, and Kelowna for that matter, two of the most a t t r a c t i v e summer resort areas i n the West. Tourism i s Penticton's major economic source. As a r e s u l t , area population vary widely and range from the base of 21,000 to 28,000 at the peak of the t o u r i s t season. The c i t y of Penticton a t t r a c t s not only the t o u r i s t s i n the summer, but also the r e t i r e d c i t i z e n s from other areas. The senior population i n the c i t y i s very, high as compared to other parts of the Province and they account for 17% of the c i t y population. The young population account for a s u b s t a n t i a l portion of the c i t y population as w e l l (30%). The natural topography of the c i t y has constrained most of the urban development, r e s u l t i n g i n a r e l a t i v e l y compact pattern of development between Lake Okanagan and Lake Skaha. However, the community services and a c t i v i t i e s are dispersed. The h o s p i t a l , shopping centres and recreation f a c i l i t i e s a l l located at d i f f e r e n t parts of the c i t y . R e s idential developments also are scattered around the community. Downtown Penticton i s the l a r g e s t single concentration of a c t i v i t i e s i n the c i t y with two other major shopping centre located to the south of the c i t y centre. 215. H i s t o r i c a l Development Of Transit Service In  Penticton Arid I t ' s Operating Performance H i s t o r i c a l Development Of Service The Penticton Transit System was a one-bus operation, serving two routes. It was subsidized by the l o c a l government. In 1974, the c i t y went into a j o i n t venture with the P r o v i n c i a l Government under the terms of the two Transit L e g i s l a t i o n s (the Rapid Transit Subsidy Act and the Transit Services Act). The d e f i c i t s from the one-bus system were shared between the c i t y and the province. On January, 1977, a new system was introduced under the 'purchase of contract' arrangement. The contract, for operating t r a n s i t services i n Penticton was awarded to Berry and Smith Trucking Ltd. The new system started with three bus-routes using three v e h i c l e s . The three new 35 foot d i e s e l buses were leased to the c i t y from the P r o v i n c i a l Fleet at a nominal fee of one d o l l a r . Service was operated every half-hour during the day from Monday to Saturday and generally once an hour during the evening u n t i l 10:30 p.m. Timed transfer connections were also provided with the semi-r u r a l and fringed service operated by Naramata Bus Service. The new system provided transfer p r i v i l e g e s which applied to a l l parts of the c i t y including those c i t y residents who were served by the Naramata Bus Service. Timed transfer connections were provided for the three routes at Downtown Penticton. 216. Regular adult fare was 35c with concessions given to senior c i t i z e n s , students and c h i l d r e n . The f i r s t four days of service were far e - f r e e days to encourage people to t r y out the new bus service. Radio spots and newspaper advertisements also appeared during the week. Add i t i o n a l public service advertisements were used to announce the fa r e - f r e e day. In addition to the p r i n t i n g of the system timetable i n the l o c a l newspaper, 7,000 system timetables were d i s t r i b u t e d through shopping centres, stores, public agencies, retirement homes, the l i b r a r y , schools etc. The t r a n s i t information telephone number was given wide p u b l i c i t y i n newspaper and radio advertisements and i n the timetable. The system was designed j o i n t l y by the c i t y and the province based on the c r i t e r i a of meeting the following l o c a l and p r o v i n c i a l guidelines: A) Local Guidelines 1) Bus routes would have a minimum half-hour frequency during the day. 2) Schedules should be c a r e f u l l y designed to coincide with the beginning of work s h i f t s , school cl a s s times and store hours. 3) Bus service should be extended into the evening, but l a t e night service was not necessary at the time. 4) Service r e l i a b i l i t y should be guaranteed. Delay caused by break-downs, t r a f f i c congestion or lack of supervision should be minimized. 217. B) P r o v i n c i a l Guidelines 1) The t r a n s i t network's f o c a l points s h a l l coincide with the f o c a l points or a c t i v i t y centres i n the community. 2) A minimum walking distance i n f u l l y b u i l t - u p areas of a quarter-mile should be implemented where f e a s i b l e . 3) Local buses should operate with multiple stops to serve the r e s i d e n t i a l areas and a c t i v i t y centres. Operating Performance Table-A. 1 provides a summary of the operating performance of the new Penticton Bus Service f or 1977 and 1978. The 1976 data are provided f o r comparison purpose. As the table shows, there was a d r a s t i c decrease of the f i n a n c i a l performance of the system when i t was improved from a one-bus system to a three-bus system. Cost recovery dropped from 0.51 to 0.28. This i s l a r g e l y due to the increase of the cost f or service from $12.44 per bus hour i n 1976 to $16.32 i n 1977 and the lower t r a n s i t u t i l i z a t i o n rate for the new service (19 passengers per bus hour for the old system versus 15 for the new system i n 1977). The increase i n the l e v e l of service provided ( i n terms of bus miles) and the increase i n the unit cost for service had resulted i n a ten times increase i n d e f i c i t s per c a p i t a . The cost for carrying a passenger with the new system was $0.79, a one and one-half times increase from the old system. 218. TABLE A . l OPERATING PERFORMANCE 1976/1977/1978 - PENTICTON SUMMARY SHEET Population Served 1976 20,000 1977 21,000 1978 21,000 Total Annual Bus Hours Bus Hours Per Capita Total Annual Bus Miles Bus Miles Per Capita 2,610 0.13 33,408 1.67 13,039 0.61 170,625 7.80 12,236 0.57 162,034 7.56 Total Transit Passengers Annual Rides Per Capita Passengers Per Bus Hour 48,000 2.41 19 197,900 9.28 15 243,000 11.36 20 Total Annual Expenditure Total Annual Revenue Operating Ratio Total Annual D e f i c i t D e f i c i t Per Capita D e f i c i t Per Ride $32,473 $16,417 0.51 $16,056 $0.80 $0.33 $'216,041 $ 59,789 ,, 0.28 $156,251 $7.32 $0.79 $221,621, $ 73,974 0.33 $147,647 $6.89 $0.61 Number Of Vehicles In Service 1 3 3 219. The s l i g h t reduction i n the evening service i n 1978 was responsible for the s l i g h t l y higher p r o d u c t i v i t y and lower d e f i c i t per r i d e or per c a p i t a . As a r e s u l t , t r a n s i t u t i l i z a t i o n improved to 20 passengers per bus hour with also an improved cost recovery of 0.33. Table A.2 provides a comparison of the l e v e l of service provided, operating costs and passengers c a r r i e d . The cost figures have been adjusted for i n f l a t i o n . As i t shows, the contract rates have increased a l o t f a s t e r than i n f l a t i o n , while the l e v e l of service provided has also increased faster than the number of passengers c a r r i e d . The combination of these factors i s responsible for the n i n e - f o l d increase i n share of public subsidies for t r a n s i t , a common phenomena i n the public transport industry. TABLE A.2 OPERATING PERFORMANCE - PENTICTON  (INDEX METHOD) Cost of Li v i n g Population Served Annual Miles Annual Passengers D e f i c i t Per Ride Payment * Rate to Contractor D e f i c i t Per Capita 1976 100 100 100 100 100 100 100 1977 109 107 511 410 239 131 915 1978 118 107 485 504 185 134 861 * Per Hour Basis 221. The C i t y Of T r a i l The C i t y of T r a i l i s located i n south c e n t r a l B r i t i s h Columbia. I t has grown up on both sides of the Columbia River and i s approximately 395 miles east of the C i t y of Vancouver. The c i t y has a r e l a t i v e l y stable population base of about 10,000 persons. The c i t y i s located i n an area of rugged and mountainous t e r r a i n . This has constrained the c i t y ' s growth i n terms of size and form. In some areas west of T r a i l where extremely d i f f i c u l t t e r r a i n has resulted i n a street system characterized by th i n , c i r c u i t o u s thoroughfares and steep gradients. Downtown T r a i l i s the only major concentrated area for economic a c t i v i t i e s . Parking i s scarce i n th i s c e n t r a l business d i s t r i c t . Cominco i s the major employer i n the c i t y . Cominco employs almost 2,500 employees i n the c i t y plant and 1,500 i n other plants i n the region. H i s t o r i c a l Development Of Transit Services In T r a i l  And I t's Operating Performance H i s t o r i c a l Development Of Service The T r a i l bus system started i n l a t e 1976. Before then the C i t y of T r a i l had been without bus service for many years. The implementation of th i s 222. new bus service was a j o i n t venture between the C i t y and the Province. The new service was i n i t i a t e d i n two stages, with a sing l e bus covering four routes under Phase I. By early January 1977, Phase II was implemented which involved three new buses operating over f i v e routes. The system i s operated by the C i t y as a d i v i s i o n of the Public Works Department. The system was designed on the basis of the following guidelines provided by the C i t y and the Province: 1. Transit routes should focus on a c t i v i t y centres i n the community. 2. Day time service frequency i n built-up urban areas should be at le a s t hourly, but preferably half-hourly. 3. A maximum walking distance to the bus stops i n a f u l l y built-up urban area should be not more than a quarter mile. 4. Local t r a n s i t services should be designed to connect with other forms of public transport serving the region. The T r a i l t r a n s i t system i s b a s i c a l l y a r a d i a l network with timed connections for a l l buses at downtown. The provision of convenient transfer with minimum wait at the f o c a l points i s one of the design requirements of a l l systems planned by the Transit Agency. The basic fare for an adult r i d e was 25<? u n t i l 1979 when i t was increased 223. to 35C- Seniors, students and ch i l d r e n are given concessions - a common pr a c t i c e i n B r i t i s h Columbia. Service operates s i x days a week with no evening service. Since the f i r s t day of service, the system has received public exposure through a v a r i e t y of media. Development of both Phase I and Phase II of the system was well covered by the l o c a l newspaper. Both the newspaper and the l o c a l radio s t a t i o n were used to advertise the start-up of service. Timetables were also mailed to a l l households i n the service area. Operating Performance Table A. 3 provides a summary of the operating performance of the new T r a i l service for 1977. The cost recovery for T r a i l was s i m i l a r to that i n Penticton. Although the system p r o d u c t i v i t y (measured by rid e s per capita) and t r a n s i t u t i l i z a -t i o n (rides per bus hour) were higher i n T r a i l than Penticton, the s l i g h t l y higher u n i t cost for service and the lower adult fare (25c i n T r a i l versus 35c i n Penticton) were mainly responsible f o r the low cost recovery. The l e v e l of service provided to T r a i l (measured by bus hours per capita) was approximately 60% higher than that i n Penticton, and th i s was also responsible f o r the same proportional increase i n the l e v e l of d e f i c i t s per ca p i t a . TABLE A.3 OPERATING PERFORMANCE 1977 ~ T R A I L SUMMARY SHEET 1977 Population Served 10,000 Total Annual Bus Hours 9,696 Bus Hours Per Capita 0.97 Total Annual Bus Miles 116,352 Bus Miles Per Capita .11.63." Total Transit Passengers 225,000 Annual Rides Per Capita 22.5 Passengers Per Bus Hour 23 Total Annual Expenditure $168,947 Total Annual Revenue $. 47,342 Operating Ratio 0.28 (Cost Recovery) T o t a l Annual D e f i c i t $121,605 D e f i c i t Per Capita $ 12.16 D e f i c i t Per Ride $ 0.54 Number Of Vehicles 3 In Service 225. The D i s t r i c t Of Kitimat The D i s t r i c t of Kitimat i s located i n the north west coast of B r i t i s h Columbia. I t i s 400 miles north west of Vancouver and 70 miles inland from Prince Rupert. It s i t s at the head of the Douglas Channel on a deep f j o r d stretching inland for 80 miles. This municipality i s sur-rounded by rugged mountains and f o r e s t s . In 1.948, the Aluminum Company of Canada Ltd. found the Kitimat-Kemano area suitable for the establishment of a large aluminum swelter. This led to a planned town development project which was started i n 1951, with the establishment of a small community. This community was incorporated as a D i s t r i c t M u n i c i p a l i t y i n 1953 by a s p e c i a l enactment i n the l e g i s l a -ture. By 1976, the M u n i c i p a l i t y of Kitimat had a population of 12,000. One of the d i s t i n c t i v e features of the Kitimat Plan i s the segregation of industry and residences. The r e s i d e n t i a l areas have been divided i n t o neighborhoods, each s e l f - s u f f i c i e n t i n terms of shopping, education, and recreation f a c i l i t i e s . Houses with well l a i d out gardens are grouped around i n t e r n a l parks through which a system of walkways lead to neighborhood shopping o u t l e t s . The neighborhoods are linked with each other and with commercial and i n d u s t r i a l sectors by means of l i m i t e d access t r a f f i c a r t e r i a l s that run around the periphery. 226. Parking i s p l e n t i f u l i n Kitimat. The Service Centre where many of Kitimat's secondary and t e r t i a r y i n d u s t r i e s are located and the D i s t r i c t ' s primary industries - Alcan, Eurocan and Northern Dock are a l l located to the west of the r e s i d e n t i a l neighborhoods, on the other side of the Kitimat River. Alcan i s the largest employer i n the community, employing approximately 1,500 people. Eurocan Pulp and Paper Company Ltd. employs about 1,200 people as w e l l . H i s t o r i c a l Development of Transit Services And  The System's Operating Performance H i s t o r i c a l Development of Service I n i t i a l t r a n s i t service began i n the D i s t r i c t of Kitimat on A p r i l 22, 1974. The service was planned by the then Bureau of Transit Services, M i n i s t r y of Municipal A f f a i r s , i n consultation with the D i s t r i c t of Kitimat i n order to meet and serve l o c a l needs and long range planning objectives of the municipality. Vehicles were leased to the municipality at a nominal rate ($1.00) by the Province with annual operating d e f i c i t s being shared j o i n t l y by the Province and the M u n i c i p a l i t y . Coastal Bus Lines Limited was contracted under an agreement with the M u n i c i p a l i t y and the Province of B r i t i s h Columbia, to run the service. 227. The service design consists of a network of bus routes r a d i a t i n g from the C i t y Centre with schedules arranged f or convenient t r a n s f e r r i n g . A l l work places, neighbourhood centres and dwelling units are served by the system. Schools i n a l l three neighbourhoods are also accessible by t r a n s i t . The l o c a l goals and objectives of t r a n s i t were o r i g i n a l l y established by the town planner who did the i n i t i a l town s i t e plan. They agreed that whatever i n t e r - c i t y system was devised, i t should meet the following four basic requirements: 1. To provide common c a r r i e r mass transportation service between dwelling units and working places. 2. To provide common c a r r i e r mass transportation services between dwelling units and shopping/amusement centres such as the neighbourhood centres, the C i t y Centre and future sub-centres. 3. To provide common c a r r i e r mass transportation services between dwelling units and schools other than primary schools. The assumption being that the l a t t e r w i l l be serviced by school buses. 4. To provide common c a r r i e r mass transportation services between neighbourhoods. These objectives were further r e f i n e d by the Municipal Staff and the Pr o v i n c i a l Transit Agency to follow the following guidelines. 228. 1. A l l routes should begin and terminate at one c e n t r a l l y located terminal i n order to f a c i l i t a t e ease i n t r a n s f e r r i n g - either to other i n t e r - c i t y buses or to i n t r a - c i t y l i n e s . 2. During periods of peak demand, the fa s t e s t and most d i r e c t service route between dwelling units and places of work should be sought. 3. During l e s s active or off-peak demand times, more round about, c i r c u i t o u s routes could be implemented, thereby providing optimum service between neighbourhoods and such places as the h o s p i t a l , C i t y Centre, etc. 4. Bus stop locations should be sheltered and, i f possible, situated mid-block so that there would be as l i t t l e t r a f f i c interference as possible. The Kitimat Transit System i s a r a d i a l network with timed connections at the C i t y Centre. The service runs on a 30 minute headway during the day and 60 minute i n the evening. Special tr i p p e r s are provided to meet the s h i f t times at Alcan during the peak periods. Service operates seven days a week. The basic fare for an adult r i d e i s 25c with concessions given to senior c i t i z e n s , students and c h i l d r e n . A premium fare of 400 i s chaorged for t r i p s to Alcan and the I n d u s t r i a l area. Operating Performance Table A.4 provides a summary of the operational performance of the Kitimat service f or the f i r s t three years. (1975 - 1977). 229. The cost recovery for the f i r s t year was low (0.21) due to the high l e v e l of service provided and the high contract rate. As a r e s u l t d e f i c i t per capita was about $25.00 for the f i r s t year of operation. The service was cut,back by about 20% by 1977. This cut back of service did not cause a reduction i n system p r o d u c t i v i t y (measured by r i d e s per capita) nor the rate which t r a n s i t i s being u t i l i z e d (rides per bus hour). Since the D i s t r i c t i s provided with the highest l e v e l of service among a l l small c i t i e s i n B.C., i t also has the highest system produc-t i v i t y . TABLE A.4 OPERATING PERFORMANCE 1975/1976/1977 - KITIMAT SUMMARY SHEET 1975 1976 1977 Population Served 12,500 12,500 12,500 Total Annual Bus Hours Bus Hours Per Capita Total Annual Bus Miles Bus Miles Per Capita 19,165 1.53 264,283 21.14 18,211 1.46 251,134 20.09 15,334 1.23 214,830 17.19 Total T r a n s i t Passengers Annual Rides Per Capita Passengers Per Bus Hour 329,200 26.3 17 441,250 35.3 24 418,750 33.5 27 Total Annual Expenditure $398,513 $403,159 $337,110 Tot a l Annual Revenue $ 85,591 $129,081 $105,754 Operating Ratio 0.21 0.32 0.32 (Cost Recovery) Total Annual D e f i c i t $312,922 $274,078 $231,356 D e f i c i t Per Capita $ 25.03 $, .21.92 $ 18.51 D e f i c i t Per Ride $ 0.95 $ 0.62 $ 0.55 Number Of Vehicles In Service 6 6 6 APPENDIX A3 PROVINCIAL RAPID TRANSIT SUBSIDY ACT 232. 1 9 7 2 Preamble. G r a n t o f fifty per cent o f deficit o f p u b l i c trans> p o r t a t i o n system. C o n d i t i o n s o f grant. PROVINCIAL RAPID TRANSIT SUBSIDY CHAP. 50 C H A P T E R 50 Provincial Rapid Transit Subsidy Act [Assented to 30th March, 1972.] W H E R E A S it is deemed highly desirable i n the public interest to encourage the development b y municipalit ies and regional districts in the Province o f a system o f publ ic bus, rai lway, or any other form o f rapid transportation for the purpose o f (a) providing economical and efficient urban transportation to the people o f the munic ipal i ty ; (b) decreasing the expense to the municipal ity o f providing cost ly roads and parking places for an increasing number o f motor-vehicles; and (c) preventing and el iminating traffic congestion i n the m u n i c i p a l i t y and the resultant air p o l l u t i o n : N o w , therefore, H e r Majesty, by and w i t h the advice and consent o f the Legislative Assembly o f the Province o f Br i t i sh C o l u m b i a , enacts as fol lows:— 1. Where a m u n i c i p a l i t y , or a group o f municipalities j o i n t l y , or a regional district (herein cal led the " p u b l i c transit author i ty" ) , constructs o r operates an efficient, non-profit system o f public buses, railways, o r any other f o r m o f publ ic rapid transportation approved for the purpose o f this A c t b y the Minister o f Finance, the Lieutenant-Governor i n C o u n c i l , o n the recommendation o f the Minister o f Finance, may authorize the Minister o f Finance to pay o u t o f the Revenue Surplus A p p r o p r i a t i o n A c c o u n t o f the Consol idated Revenue F u n d , or f rom the Consolidated Revenue F u n d , or part ly f r o m the Revenue Surplus A p p r o p r i a t i o n A c c o u n t and partly f r o m the Consol idated Revenue F u n d , i n such proportions as he may consider requisite o r advisable, to the publ ic transit authority i n each year, u p o n certi f ication b y the Comptrol ler-General that the expenditure comes w i t h i n the purposes o f the A c t , such s u m o f money as may be required to share equally w i t h the publ ic transit author i ty t h e j m m i a L c ^ r a t i o g j l e f i c i t , not including deprecia-t i o n , but including a n y a m o r t i z e d debt charges or sinking fund payments i n that year, o f t h e ^ p u b l i c transit authority that relates solely to the construction^pr^peratiori o f the publ ic rapid transportation system. 2. The Minisfer o f Fiifance may require, as a condit ion o f his approval o f a publ ic rapid transportation system for the purpose o f this A c t and o f the annual payment under section 1, that (a) the p u b l i c transit authority keep such books, records, and \ accpunts o f its operations, i n such form as the Minister o f Finance m a y prescribe, open to inspection b y the Minis ter o f F i n a n c e ; (b) the publ ic transit authority provide such reports and financial statements relating to its operations as the Minister o f Finance may require; 221 233. CHAP. 50 PROVINCIAL RAPID TRANSIT SUBSIDY 20-21 ELIZ. 2 (c) a municipality or regional district participating in a public rapid transportation system give preference in the control of traffic on the streets of the municipality or regional district to the public transit vehicles of the public transit authority; and (d) the Minister of Finance approve, in advance, of (i) the terms of debt amortization; and (ii) any capital, or extraordinary, expenditure, as defined by the Minister of Finance, of the public transit authority. Regulations. 3. The Lieutenant-Governor in Council may from time to time make such regulations not inconsistent with this Act as he may deem necessary or advisable for the purpose of carrying into effect the provisions of this Act according to their intent. Printed by K. M. M ACDONALD, Printer to the Queen's Most Excellent Majesty in right of the Province of British Columbia. 1972 i 222 234. APPENDIX A4 TRANSIT SERVICES ACT 235. ' 9 7 4 TRANSIT SERVICES CHAP. 97 CHAPTER 9 7 Interpre-tation. P u b l i c passenger transpor-tat ion systems. Transit Services Act [A ssented to 30 th May, 1974.] HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as. follows: 1. In this Act, unless the context otherwise requires, "company" means the British Columbia Transit Company established under section 11; "minister" means that member of the Executive Council charged by order of the Lieutenant-Governor in Council with the administration of this Act, and includes a person designated in writing by the minister; "motor-vehicle" means a motor-vehicle as defined in the Motor-vehicle Act; "public passenger transportation system" means a municipal, regional, or provincial system or organization of common carriers for the trans-portation of passengers by any means whatsoever including, without limiting the generality of the foregoing, any form of rapid transit, surface, underground, or elevated trains, ferries, motor-vehicles, public buses, motor coaches, and trolleys; "rapid transit" means a public passenger transportation system designated by the minister as a rapid transit system. 2. It is the duty of the minister and he has the authority and power, subject to this Act and the regulations, (a) to investigate, research, design, and plan public passenger trans-portation systems for the Province or for any municipality or regional district thereof; (b) with the prior approval of the Lieutenant-Governor in Council, to purchase or. otherwise acquire, maintain, and operate public passenger transportation systems; (c) to construct, equip, maintain, and operate lines of railway, branches, and spurs as he may consider a necessary adjunct to a public passenger transportation system and for that purpose to exercise all the powers that may be exercised by a railway company under the Railway Act and the regulations under that Act; ' (d) with the prior approval of the Lieutenant-Governor in Council, to purchase or otherwise acquire land and buildings and structures thereon that he may consider necessary for the purposes of this Act and to dispose of them when no longer required; (e) to purchase or otherwise acquire motor-vehicles, lines of buses, motor coaches, and ferries, and operate, maintain, controL and 643 236. CHAP. 97 TRANSIT SERVICES 22-23 ELIZ. 2 manage such motor-vehicles, buses, motor coaches, and ferries for the purpose of carrying on the business of a public passenger transportation system; (f) to construct and maintain buildings and other structures for the purpose of this Act, including, without limiting the generality of the foregoing, buildings and structures for (i) storage, maintenance, and repair of equipment acquired under this section; or (ii) passenger depots, waiting rooms, restaurants, hotels, and other facilities for the comfort and convenience of passengers; (g) to construct and maintain passenger boarding places and other works on or adjacent to public highways for the operation of a public passenger transportation system; (h) with the prior approval of the Lieutenant-Governor in Council, to purchase or otherwise acquire land or rights-of-way required for railway lines, branches, spurs, and yards; (i) to construct tunnels, elevated guideways, roadbed, tracks, rails, or any other surface upon which to operate a public passenger transportation system; (j) to manufacture and construct rapid transit vehicles and systems for (i) motive power supply and distribution systems; (ii) transit traffic control, signalling, and safety systems; and (iii) transit communications and surveillance systems, and such other equipment, works, or services required for or in connection with a rapid transit system; and (k) to carry out any other duties or responsibilities related to public passenger transportation services as may be imposed under any other Act or order of the Lieutenant-Governor in Council. 3. Subject to the prior approval of the Lieutenant-Governor in Council, the minister may make an agreement with a municipality, regional district, public transit authority, or any corporation (a) for the operation by the municipality, regional district, public transit authority, or corporation of any part of a public passenger transportation system; or (b) for the rental or use by the minister of land, buildings, structures, rail lines, facilities, services, and equipment of a municipality, regional district, public transit authority, or corporation; or (c) for financial contribution by the minister to or for an under-taking or service that is provided by a municipality, regional district, public transit authority, or corporation for the benefit of public passengers and travellers; or Agreements respecting transit facilities. 644 237. 1974 TRANSIT SERVICES CHAP. 97 Incorporation or acquisition of companies. (d) to provide all or part of an experimental or demonstration project related to public passenger transportation, to design, develop, construct, test, and operate all or part of such experimental or demonstration project, and to acquire, hold, exercise, develop, license, sell, lease, or otherwise dispose of any right or title to any part of such experimental or demonstration project. 4. With the prior approval of the Lieutenant-Governor in Council, the minister may (a) purchase or otherwise acquire all or part of the issued and outstanding capital stock of any corporation carrying on the - business of a public passenger transportation system; and (b) incorporate a company under the Companies Act or under a private Act for the exercise of all or any of the powers conferred upon the minister, or for the better operation, control, or management of any undertaking or ancillary service authorized under this Act, and every such company has all the powers, rights, remedies, and immunities conferred by law or by this Act upon the minister. Fares and tolls. 5. Notwithstanding any other Act, the Lieutenant-Governor in Council may make regulations fixing the fares and tolls to be charged for all passenger traffic carried by a public passenger transportation system established under this Act. R e c i p r o c a l running rights. Motive power. 6. With the prior approval of the Lieutenant-Governor in Council, the minister may enter into an agreement with any railway company to provide and secure such reciprocal running rights, traffic arrangements, and other rights over and in respect of the railway of such company and the railway constructed or to be constructed by the minister as will afford to such company and to the minister reasonable and proper facilities for mutually exercising such running rights, fair and reasonable traffic arrangements, and equitable fares and tolls between such company and the minister. 7. (1) The minister may operate any part of the public passenger transportation system by electricity or any other motive power. (2) For the purpose of subsection (1), the minister may (a) construct and maintain rectifier stations, transmission lines, and other electric power distribution systems; and (b) make agreements with British Columbia Hydro and Power Authority, or any other producer of electricity, for the supply of electric mvtive power. (3) For the purpose of subsection (2) (a), the minister may purchase or otherwise acquire the right to lay conduits under or erect transmission lines 645 2 3 8 . CHAP. 97 TRANSIT SERVICES 22-23 ELIZ. 2 on or over such land as he may consider necessary and upon or over public highways and across any water, subject to agreement in respect thereto first being made between the minister and any private owner of the land affected. Financial arrangements. 8. (1) The minister, or any other person designated by h im, may hold shares in any corporation purchased or otherwise acquired, or in any company incorporated under section 4, on behalf o f Her Majesty in right o f the Province, and may exercise all the rights of shareholders in respect o f shares so held. (2) The Minister of Finance, with the prior approval of the Lieutenant-Governor in Counc i l , may advance to the minister or to any corporation or company referred to in subsection (1) such sums as may be required from time to time to enable the minister or the corporations or companies to carry out their powers under this Ac t . (3) The Minister of Finance, with the prior approval of the Lieutenant-Governor in Counc i l , may guarantee the performance of any or all obligations and undertakings o f any corporation or company referred to in subsection (1), or the repayment of any advances made by any other person to any such corporation or company, or the payment of any securities issued by such corporation or company. (4) The Minister o f Finance, with the prior approval o f the Lieutenant-Governor in Counc i l , may loan money to any corporation or company referred to in subsection (1), upon such terms and conditions and upon such security as the Lieutenant-Governor in Counc i l may prescribe. (5) The amount of all sums advanced, guaranteed, or loaned under this A c t shall not exceed in total the sum of f i fty mi l l ion dollars. Accounts. 9. The accounts of every corporation or company referred to in section 4 shall be audited by the Comptroller-General. - - - - -Reports. 10. The minister shall prepare annually a report of his administration o f this Ac t and a financial statement of the operations of any public passenger transportation system established under this Act for the preceding fiscal year of the Government and the report and financial statement shall be laid before the Legislature with in fifteen days after the opening o f the first session in the fol lowing calendar year. Transit C o m p a n y 11. (1) The Lieutenant-Governor in Counc i l may, by order, establish a corporation to be known as the Brit ish Columbia Transit Company consisting . o f not less than five members appointed by the Lieutenant-Governor in Counc i l to hold office during pleasure. (2) Each member of the company shall be reimbursed for his reasonable travelling and out-of-pocket expenses incurred by him in discharging his duties and in addition may be paid such remuneration for his services as a 646 2 3 9 1974 TRANSIT SERVICES CHAP. 97 member of the company as the Lieutenant-Governor in Counci l may prescribe. (3) The Lieutenant-Governor in Counci l shall designate one of the members as chairman and one other member as vice-chairman. (4) A majority of the members constitutes a quorum at any meeting of the company. (5) A member o f the company who, is a member of the Legislative Assembly may, notwithstanding the Constitution Act, accept payments of his reasonable travelling and out-of-pocket expenses made to him under subsection (2) and is not thereby ineligible as a member of the Legislative Assembly and is not disqualified to sit and vote as such. (6) A member of the company who is a member of the public service may, notwithstanding the Public Service Act, accept payments made to him under subsection (2). (7) The Companies Act does not apply to the company. Powers o f c o m p a n y 12. (1) The company is in all respects an agent of the Crown in right o f the Province, but may, as agent, carry out its powers and duties under this Act in its own name. ' " (2) The Lieutenant-Governor in Counci l may, by order, authorize the company to carry out, on behalf o f the minister, all or any of the duties of the minister under this Act and for that purpose may authorize the company to exercise any power or authority conferred upon the minister under this Act , or to perform and carry on any undertaking or operation under this Act and thereupon the company has all the powers, authority, rights, remedies, and immunities conferred by law or by this Ac t upon the minister. C r o w n b o u n d . A p p r o p r i a t i o n . 13. (1) The Crown is bound by this Act. (2) This Act is subject to the Automobile Insurance Act. 14. (1) The Minister of Finance shall pay, on the requisition of the minister, out o f the Consolidated Revenue Fund or out of the Revenue Surplus Appropriation Account of the Consolidated Revenue F u n d or partly out of the Consolidated Revenue Fund and partly out of the Revenue Surplus Appropriation Account o f the Consolidated Revenue Fund, such sums as may be required for the purposes of this Act unti l the thirty-first day of March, 1975, and thereafter such sums shall be paid with moneys authorized by an Ac t o f the Legislature to be so paid and applied. (2) In addition to the moneys payable under subsection (1), the Minister of Finance shall pay, on the requisition of the minister, sums required for the purposes o f this Act oik of the Provincial Transit Fund established under the Provincial Transit Fund Act. C o m m e n c e -ment. 15. (1) This Act, excepting this section and the title, comes into force on a date to be fixed by the Lieutenant-Governor by his Proclamation, and he may fix different dates for the coming into force of the several provisions. (2) This section and the title come into force on Royal Assent. P r i m e d b y K . M . M A C D O N A L D , P r i n t e r l o t h e Q u c c r f s M o s t E x c e l l e n t M : i j c s i y i n l i y l u o f the P t o v i n c c o f B r i t i s h C o l u m b i a . 1 9 7 4 647 

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