BARTs Business Model What is Public Transits Business Model? July - PowerPoint PPT Presentation

BART’s Business Model What is Public Transit’s Business Model? July 31, 2018

BART Background Basic Facts • Regional rail rapid transit • Elected Board of Directors: 9 • Comprised of 3 Counties: - Alameda, Contra Costa & San Francisco - Serves San Mateo - Will serve Santa Clara in 2019 • 414,166 weekday riders (FY18) • 121 revenue route miles • 5 lines, plus Oakland Airport • 48 stations • 48,000+ parking spaces July 31, 2018 SPUR: What is Public Transit’s Business Model? 2

BART Background Basic Facts • FY19 Adopted Budget • Operating: $ 922 M • Capital: $1,355 M • Rail Farebox Ratio (FTA FY14): (Fare Revenue/Operating Costs) • SF/OAK (BART) 78% • NYC (NYCTA) 63% • Wash DC (WMATA) 62% • Boston (MTBA) 60% • Philadelphia (SEPTA) 55% July 31, 2018 SPUR: What is Public Transit’s Business Model? 3

Better BART, Better Market Street 2/3rds of BART trips begin or end on Market Street Weekday Trips by Sub-Area • 52%: Transbay • 27%: intra-West Bay • 21%: intra-East Bay Weekday Ridership (FY10 – FY16) • Growth: 29% • Growth: ~100,000 • June 2015 433,000 July 31, 2018 SPUR: What is Public Transit’s Business Model? 4

BART’s Business Model Related to the BART Strategic Plan • Core: Related to BART’s Vision and Mission – Seamless Mobility – Move people safely and reliably – Reduce Risk (safety/service/reputational/financial) – How do today’s decisions affect BART’s long-term outlook? • Dynamic: Related to BART’s current and future environment – Improve Customer Experience – Generate Revenue – Reduce Costs/Cost Neutral July 31, 2018 SPUR: What is Public Transit’s Business Model? 5

BART Strategic Plan Framework

Strategic Plan and FY19 Budget Strategic Plan function: Linking Policy guidance, Risk information, and Budget decisions Strategic Plan provides policy direction to Budget process & decisionmaking July 31, 2018 7

Ten-Year Financial Outlook FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 $10 $0 -$10 -$20 Millions -$30 -$40 -$50 -$60 -$70 July 31, 2018 SPUR: What is Public Transit’s Business Model? 8

BART DAS, July 2014 Riders by Station, by Time of Day Combined Station Entries & Exits in 15 Minute Increments 4500 Montgomery MT 4000 EM Embarcadero PL 3500 CC 3000 19th 2500 BK 16th 2000 12th 1500 24th MA 1000 BP 500 ED 0 PH 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 July 31, 2018 SPUR: What is Public Transit’s Business Model? 9

The Before and After Effects of BART Transbay Service July 31, 2018 SPUR: What is Public Transit’s Business Model? 10

Recent BART Ridership Trends Annual Trips (millions) 128.5 126.0 124.2 120.6 117.8 117.1 110.8 103.7 101.0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 July 31, 2018 SPUR: What is Public Transit’s Business Model? 11

Rail Ridership Trends At Peer Agencies Year-to-year % change (Calendar Year 2016 vs 2015) 0.2% -0.2% -0.8% -1.3% -4.5% -4.7% -10.4% BART WMATA MARTA CTA MBTA NY MTA SEPTA (DC) (Atlanta) (Chicago) (Boston) (SE Penn) Note: These data are based on “unlinked passenger trips.” Source: http://www.apta.com/resources/statistics/Documents/Ridership/2016-q4-ridership-APTA.pdf Unlinked passenger trips July 31, 2018 SPUR: What is Public Transit’s Business Model? 12

Transbay AM Floating Peak Hour, Peak Direction Ridership Peak Hour Ridership 30,000 27,500 25,000 22,500 20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0 2015 2016 2017 2018 July 31, 2018 SPUR: What is Public Transit’s Business Model? 13

Ridership by Day of Week July 31, 2018 SPUR: What is Public Transit’s Business Model? 14

Ridership Trends July 31, 2018 SPUR: What is Public Transit’s Business Model? 15

Fare Revenue Annual Fare Revenue (millions) $600 $500 Date of Average $61 $63 $60 Increase Increase $60 1/1/2006 3.7% $27 $39 $33 $400 $19 $54 1/1/2008 5.4% $53 $9 7/1/2009 6.1% $49 $43 7/1/2012 1.4% $41 $300 $40 $35 1/1/2014 5.2% 1/1/2016 3.4% 1/1/2018 2.7% $200 $399 $392 $393 $383 $353 $353 $318 $299 $291 $278 $274 $100 $0 FY08 FY09 FY10 FY11 FY12 FY13 FY 14 FY 15 FY 16 FY 17 FY18 Est Core System CPI-based Fare Increase SFO Extension July 31, 2018 SPUR: What is Public Transit’s Business Model? 16

Capital Sources Total excludes $7M in reimbursable capital expenses 17

FY17-31 CIP Major Investment Programs Need and Funding Need and Funding (millions) $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Capital Asset Renewal Programs Big 3 (including TCMP) Core Capacity (Excluding TCMP) Access Enhancement and Station Mod BART Metro Earthquake Safety Program System Expansion Other Needs Committed Funds Discretionary Funds Funding Gap July 31, 2018 SPUR: What is Public Transit’s Business Model? 18

Capital Budget History July 31, 2018 SPUR: What is Public Transit’s Business Model? 19

Operating to Capital Allocations 100% $900 $51 90% % Operating Funds Allocated to Capital/Access $50 $127 $49 $800 $56 80% $123 $58 $144 Operating Expenditures ($M) $700 $148 $62 70% $113 $62 $600 $84 $66 $68 60% $68 $68 $64 $70 $8 $50 $59 $34 $500 50% $63 $34 $24 $400 40% $743 $690 $637 $610 $300 30% $569 $561 $524 $524 $498 $498 $486 $467 $428 $200 20% 10% $100 0% $- FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Budget Operating Expense Allocations to Capital, Access, and Reserves Debt Service % of Operating Funds Allocated to Capital/Access July 31, 2018 SPUR: What is Public Transit’s Business Model? 20

BART’s Business Model Related to the BART Strategic Plan • Core: Related to BART’s Vision and Mission – Seamless Mobility – Move people safely and reliably – Reduce Risk (safety/service/reputational/financial) – How do today’s decisions affect BART’s long-term outlook? • Dynamic: Related to BART’s current and future environment – Improve Customer Experience – Generate Revenue – Reduce Costs/Cost Neutral July 31, 2018 SPUR: What is Public Transit’s Business Model? 21

Near Term Focus and Issues • Operating Essentials – Open BART to Antioch – May 2018 – Integrate New Rail Cars into revenue service – Staff an expanded Hayward Maintenance Complex • Initiatives to Improve Customer Experience, Reduce Costs, Generate Revenue – Quality of Life • Homelessness • Cleanliness • Fare Evasion • Safety & security – Administrative process efficiency improvements – Access and Parking improvements July 31, 2018 SPUR: What is Public Transit’s Business Model? 22

Ridership and Employment Trends BART Ridership vs SF-Oak-Hayward MSA Employment 2,500,000 500,000 480,000 2,400,000 460,000 2,300,000 440,000 420,000 2,200,000 400,000 2,100,000 380,000 360,000 2,000,000 340,000 1,900,000 320,000 1,800,000 300,000 SF-Oakland-Hayward MSA Employment Avg Weekday Ridership 12 per. Mov. Avg. (SF-Oakland-Hayward MSA Employment) 12 per. Mov. Avg. (Avg Weekday Ridership) July 31, 2018 SPUR: What is Public Transit’s Business Model? 23

Non-Passenger Revenue Opportunities • Transit Oriented Development • Advertising • The BART Digital Railway and Digital Strategy July 31, 2018 SPUR: What is Public Transit’s Business Model? 24

Total Units Affordable Office Retail Status Station % Affordable Units (SF) (SF) Current TOD Portfolio Castro Valley (1993) 96 96 100% Fruitvale Phase I (2004) 47 10 21% 27,000 37,000 Pleasant Hill Phase I (2008) 422 84 20% 35,590 Hayward (1998) 170 0 0% Completed Ashby (2011) 0 0 0% 80,000 Richmond Phase I (2004) 132 66 50% 9,000 MacArthur Ph I (2016) 90 90 100% San Leandro Ph I (2017) 115 115 100% 5,000 1,000 West Dublin (2013) 309 0 0% East Dublin (2008) 240 0 0% South Hayward Ph I (2017) 354 152 43% TOTAL COMPLETED 1975 613 31% 112,000 82,590 MacArthur Ph II (begins 2017 & 2018) 787 56 7% 39,100 San Leandro Ph II (2017-2019) 85 85 100% Construction/ Walnut Creek (began 2017) 596 0 0% Planned Coliseum Phase I (2017-2019) 110 55 50% West Pleasanton (2017-2019) 0 0 0% 410,000 Pleasant Hill Block C (begin 2018) 200 0 0% Fruitvale Phase IIA (begin 2018) 94 92 98% TOTAL UNDER CONST. & PLANNED 1872 288 15% 410,000 39,100 GRAND TOTAL 3847 901 23% 522,000 121,690

Revenue from Transit-Oriented Development 2018 BART TOD-Generated Revenue • Revenue is long term: from choices made 10-20 years ago Land Lease/Sale • Past priorities: ridership, $740k parking replacement, long term revenue Participation* Ridership $184K • City Redevelopment played ~ $3 Million major role in most completed projects • Decisions made today could affect revenue in 7-10 years *Transit Benefit Fees, Revenue Sharing for Retail, Parking Garages July 31, 2018 SPUR: What is Public Transit’s Business Model? 26