Collaborative Strategies For Improving Transit Systems
Guidance forCoordination,Cooperation ingTransitSystemsRevised August2013For furtherinformation:Noel C. ShughartOffice of Transit651-366-41811 Page
Table of ContentsIntroduction4Background5Minnesota GO: 50 Year Transportation VisionFocus on Outcomes: Redesigning Minnesota’s Local Government ServicesBenefits7Coordination and CooperationConsolidationCurrent Examples of Coordination and Cooperation10Joint Powers AgreementsIntergovernmental AgreementsCase StudiesTransit Coordination Strategies13Mobility Coordinator – Travel TrainerCoordinated Funding and Grant WritingTransit Cooperation Strategies16Transportation Management Coordination Center (TMCC)Joint PurchasingShared ResourcesTransit Consolidation Strategies20Consolidate OperationsThree C Toolkit21Appendix A: Getting Started With Coordination, Cooperation,Consolidation22Appendix B: Restructuring Study Scope of Work and Deliverables242 Page
Appendix C: Resource References27Appendix D: Sample Mobility Manager Job Description28Appendix E: Sample Staffing Structure32Appendix F: Paul Bunyan Transit Joint Powers Agreement343 Page
IntroductionBeginning in early 2011, the MnDOT Office of Transit launched the Transit For Our Futureinitiative as an effort to refine MnDOT’s process for evaluating applications for public transitfunding under preservation or contraction scenarios, as state forecasts predicted the availabilityof substantially lower funding levels.The goal of the Transit For Our Future initiative (TFF) is to improve customer access andservice by establishing consistent State program policies that balance accessibility (i.e. broadavailability) with efficiency in providing public transit service in Greater Minnesota. Transitsystems may choose one or more strategies that are intended to enhance the organizationalworking relationships among Greater Minnesota public transit systems resulting in expandedservice access, more efficient management, and a higher level of compliance with existing andproposed federal regulations.This guidance introduces the Three C strategies. The strategies are intended to enhance theorganizational working relationships among Greater Minnesota public transit systems. TheThree C’s refer to the continuum of coordination, cooperation and consolidation.Agencies involved in efforts to strengthen organizational working relationships alter the interestsof their institutional and governance structure to take into account the interests of the otheragencies involved and the public they serve. In order to do so, agencies need a way to guidethe Coordination-Cooperation-Consolidation continuum so that it continues to reflect thecommon interests of the participants. The governance structure chosen for a particularorganization depends on where along the continuum the participating agencies are in theirrelationship building efforts.Coordination: Two or more agencies work together in some formal relationship, perhapsfocusing primarily on information sharing. All agencies retain their separate identities andauthorities, including control over the vehicles they own and their employees.Cooperation: Two or more agencies use joint decision making power to establish formalarrangements (interagency agreements) to provide for the management of the resources of adistinct system. Agencies retain their separate identities and authorities, including control overthe vehicles they own and their employees.Consolidation: Two or more agencies vest all operational authority in one agency that thenprovides services according to purchase of service agreements or other contractualrelationships. The vehicles are owned by the consolidated system and employees may beemployed by the consolidated system.This guidance provides an overview of a wide range of strategies for enhancing the workingrelationships among Greater Minnesota Transit Systems. These improved relationships willpotentially improve the administration and delivery of the public transit program in GreaterMinnesota. Each strategy is defined and lists potential benefits and obstacles. Individualstrategies are also discussed in terms of how they work within Minnesota’s transportationfunding and service environment. This guidance includes strategies that have been successfullyimplemented within Minnesota as well as national best practices. Not all strategies will berelevant to every Three C effort in Minnesota4 Page
BackgroundMinnesota Go: Minnesota’s 50 Year Transportation VisionThe need for innovation and redesign of transportation services in Minnesota has recently cometo light with MnDOT’s Minnesota GO – A 50 Year Transportation Vision. The Vision identifiedsome of Minnesota’s future challenges including the possibility of persistent budget shortfalls.To address this challenge, the Vision identified a guiding principle for more coordination in thedelivery of transportation projects and services.Persistent Budget Challenges: For the foreseeable future, governments at all levels willexperience ongoing budget challenges. This will put continuous constraints on investmentin infrastructure (of all kinds). If unaddressed, reduction, elimination and consolidation ofservices are all possible.Source: MnDOT’s Minnesota GO- A 50 Year Transportation VisionFocus on Outcomes: Redesigning Minnesota’s Local Government ServicesA recent effort in Minnesota also attempted to educate local governments and nonprofitagencies in the need to redesign service delivery methods. In November 2011, six “LocalGovernment Innovation Forums” were convened by; the League of Minnesota Cities, theAssociation of Minnesota Counties, and the Minnesota School Boards Association, inpartnership with the Minnesota House of Representatives Redesign Caucus and In Commons,an effort of the Bush Foundation and its partners. The Innovation Forums brought together morethan 400 city, county and school district leaders, including both elected and appointed officials,to generate ideas about ways they could collaborate across jurisdictions. Forum participantswere provided a baseline of information on population changes and economic factors –sometimes referred to as the “new normal”—which are placing unprecedented pressures ongovernment.5 Page
Today, our state is facing a “new normal” – with an increasingly aging population, growingpublic service needs, a changing workforce and a shrinking base of taxpayers – and thesecircumstances are calling us to innovate again.– Focus On Outcomes Report, 2012The New NormalMinnesota’s state and local governments have faced growing budget deficits in recent years asthey struggle to address the State’s long-term structural budget deficit. In particular, accordingto former state demographer Tom Gillaspy, state and local budgets are facing severalconverging factors that stand to have a lasting impact on how public services are managed anddelivered in the years to come. These factors include aging populations, an evolving economyand increasing service demands.Aging populationIn the decade from 2011 to 2020, more Minnesotans will turn 65 than in the past 40 yearscombined, and even more Minnesotans will turn 65 in the decade that follows. The aging ofMinnesotans will place growing demands on public services from healthcare to transportation tohousing and more.An evolving economyExperienced but aging Minnesotans are leaving the workforce for retirement while the verynature of our economy is transitioning from the Great Recession. As these high-earningemployees leave the workforce, and tax rolls, to be replaced with younger, lower-earningworkers, it’s likely that the state’s tax revenues will stagnate as well.Increasing service demandsThe Great Recession combined with the state’s aging public infrastructure is placing increaseddemands on public services from healthcare to road maintenance and repair and many more.According to Gillaspy, Local leaders have four possible responses to the challenges ofincreased service demand coupled with a decreased tax base, two typical and two oftenunexpected: Cut government programs; Raise taxes; Increase economic growth: equip our workforce to do more, be more productive, andmake Minnesota an economic leader; or Increase government productivity: redesign the way we deliver services to ensure thegreatest possible outcomes for every tax dollar spent.6 Page
Benefits of Coordination, Cooperation, ConsolidationCoordination and CooperationIn a Legislative Auditors Best Practices Report, Cooperative Efforts in Public Service Delivery, abenefit was described for local governments: Many of these cooperative agreements helpaddress the complexity of governance in Minnesota. Minnesota ranks seventh nationwide in thetotal number of governmental units and ninth nationwide in governmental units per capita. Whilehaving so many local governments enhances local representation, it also increases thelikelihood of a redundancy in services. Some governments are so small that without cooperationwith other entities, the costs of providing certain services would be greater than the communitycould bear.Minnesota has over 3,400 units of government within its boundariesTransit system coordination and collaboration can realize the following benefits: More opportunities for creativity in service delivery; Better balance between efficiency as measured by operating cost per revenue hour andeffectiveness as measured by passengers per revenue hour; More flexibility in vehicle management; More attentiveness to all aspects of federal requirements; and More time for managers to develop expertise in specialty areas.The most fundamental benefit to current and potential riders of transit, when systems coordinateservice delivery, is the potential for increased mobility for better access. For transit-dependentpopulations, including lower-income workers, the elderly, and persons with disabilities, removalof the current disconnect between many rural transit networks and their nearest counterpartsmeans increased access to jobs, medical care, social and human services, and educationalinstitutions.For transit agencies, coordination of transportation services with other providers in the regioncan help to eliminate duplicated services. For example, vehicles from multiple providers eachdeliver a single passenger to a medical center at similar times. When transit providers and otherservice agencies can pool their resources and client bases to eliminate overlap and improveoperating efficiency, resources can often be freed to improve transit services and support otheragency goals.7 Page
ConsolidationCentralizing Administrative Staff:One of the primary benefits of consolidation is centralizing administrative staff to attainoperational and administrative efficiencies. The administrative structures of many rural systems,especially smaller systems, have a “one person show” with a transit manager needing skills inall areas to run the operation. All transit systems need to have expertise in house or contractedfor with specific skill sets in: OperationsPublic relationsFinanceHuman ResourcesTechnologySafety/SecurityThey must also be able to: Market their services Collect, monitor and report comprehensive data Be knowledgeable about Federal Transit Administration compliance requirements suchas:o Drug and alcohol testing regulationso Disadvantaged Business Enterpriseso Title VI—Civil Rightso Procurement (e.g. micro-purchase, RFP, Sole Source) Facilities Vehicles Office EquipmentComparing Organizational Structures:In a recent Regionalization Study, the North Carolina DOT compared the organizationalstructures of single-county transit systems with those of regional transit systems. For singlecounty transit systems the typical administrative organization includes a Transportation Director,an Administrative Assistant and a third staff member, often called an Operations Supervisor.Sometimes there is a fourth person (who may be part-time). The operational staff includesadditional staff members (typically 2-4, depending on system size) who take reservations,schedule trips, dispatch the trips to the drivers, and then verify the performance of the trips intothe required reporting systems. The administrative staff is required to cover all functional areas,including financial management, grants administration, policy development, safety and training,vehicle maintenance, etc. This can be contrasted with the typical structure of a regional transitsystem, which also includes a Transit Director, but also typically a Finance Manager or Officer,a Vehicle Maintenance Manager, and an Operations Supervisor or Manager, and often anAdministrative Assistant. Depending on the size of the regional system, it may also includeadditional specialized staff members, such as a Safety and Training Officer or Manager,Accounting Clerks, etc. The larger regional system, as compared to single county systems, willbe able to have an administrative staff that has more specialized training and knowledge, andhave fewer administrative staff overall.A sample staffing structure is contained in Exhibit E.8 Page
Benefits Identified in Pennsylvania:The State of Pennsylvania has recently undertaken several transit consolidation studies thatidentify the following benefits:Transit consolidation saves money primarily by reducing administrative andmanagement costs through the elimination of duplicative functions in the new combinedtransit authority. These functions may include management, accounting and finance, humanresources, call intake and scheduling, transit/travel information, grant activities, and dispatch.The amount saved varies depending on the number of entities being consolidated and theirmanagement and other characteristics.Reducing overall operating cost: Overall operating costs of the consolidated entity are lessthan the sum of operating costs for the current individual agencies.Fulfilling current unmet needs: Consolidation generates savings to meet current and futureneeds with in-house personnel or other resources. These include the functions of transportationplanning, information technology, procurement, safety and loss prevention, road supervision,contractor oversight, human resources, marketing, and fleet maintenance.Improving fleet maintenance: Consolidating maintenance management systems, partsinventories, and certain maintenance activities can save money and improve the quality ofvehicle maintenance.Improving technology: Consolidation can offer an opportunity to implement integrated,updated systems and technology such as demand-response scheduling software. Thisimproves communications and performance, and may reduce operating costs.Enabling operational efficiencies: Streamlining demand-response operations and adjustingthe service levels to demand on an ongoing basis enhances efficiency.Increasing ridership and revenue: A consolidated, regional transit system is more convenientand understandable to riders and conducive to more effective public information efforts. Inaddition, improvements in quality of services may be realized. These may include fleet reliabilityand appearance, improved demand-response scheduling, public information systems, andintegration of independent services and modes.Streamlining and integrating management functions: Consolidation can create managementfunctions that are more responsive to transit and shared-ride needs from a communityperspective and result in an overall higher level of professional management.9 Page
Current Examples of Coordination and CooperationIn Choices for Change: A Guide to Local Government Cooperation and Restructuring inMinnesota published by the University of Minnesota Extension Service, intergovernmentalcooperation may range from formal joint powers agreements to unwritten understandings. Thereare three categories of intergovernmental cooperation: joint powers agreements,intergovernmental service agreements, and intergovernmental transfer agreements.Intergovernmental service agreements are the most common type of cooperation and includeboth written and unwritten agreements. Two cities may have an unwritten agreement aboutsharing road repair equipment. A cluster of cities and townships may have a written agreementconcerning snow removal or economic development.In the Legislative Auditors Best Practices Report on Cooperative Efforts in Public ServiceDelivery it is stated: Local governments in Minnesota have cooperated successfully with oneanother on a wide range of services for many years. A League of Minnesota Cities surveycompleted by more than 280 cities showed 1,682 collaborative arrangements in place. Of theagreements submitted, 550 were over ten years old. Some agreements occur between likegovernments such as school district-to school district or city-to-city, while others include morethan one type of government. Some cooperative efforts also include participants from theprivate and non-profit sectors.Joint Powers AgreementsThere are three basic joint powers structural models: a consolidated service approach,a service contract approach, and a mutual aid approach. Consolidated service. Under the consolidated service approach, two or more localgovernments agree under the joint powers law to create a joint board consisting of one or morerepresentatives from each of the participating local governments. Each entity provides financialsupport to the joint board. In turn, the board employs the necessary staff, owns or leases theequipment, and manages the operations. Service contract. Under the service contract approach, one entity maintains and manages theoperation and the other entity simply purchases services from the first entity. Typically, theagreement will specify the level and type of service to be provided, performance standards, andother system expectations. Mutual aid. Under the mutual aid approach, two or more governments agree to assist eachother in specified circumstances; e.g., when an emergency in one local government requiresadditional personnel, or when one entity is short-staffed because of vacancies, vacations,injuries, sickness, etc. Generally, no money changes hands; the assumption is that, in the longrun, things will even out and each entity will receive roughly as much assistance as it provides.10 P a g e
Several public transit systems in Minnesota are formed under joint power agreements. Listedbelow are the systems and the type of agreement they have utilized. The joint powersagreement for Paul Bunyan Transit is provided in Appendix F.Public TransitJoint Powers InMinnesotaPaul BunyanTransitFar North PublicTransitKandiyohi AreaTransit JointPowers BoardRainbow RiderTransit BoardRiver Rider PublicTransitTrailblazer JointPowers BoardMinnesota ValleyTransit AuthorityChisago IsantiConsolidatedServiceService Contract Intergovernmental Service AgreementsIntergovernmental service agreements are typically written agreements between two or morecities, townships, counties, or a mix thereof.The Minnesota League of Cities conducted a survey of cooperative efforts as part of theLeague’s State of the Cities Report 2004 research. The survey asked cities to identify thecooperative efforts in which they participate and their partnering entities, the reasons whyspecific cooperative efforts are innovative, and some of the barriers that cities have faced inpursuing these efforts. Almost 300 cities provided detailed information on 1,682 currentcooperative efforts. Most of the cooperative efforts identified were police or fire (433), parks andrecreation (265) and general government (e.g. planning and joint purchasing) (245). A fullsummary of the cooperative efforts identified is in the table below.11 P a g e
Type of CooperativeEffortPoliceParks/recreationGeneral Other*TotalTotalNumberIdentified byRespondents265265245168126122734181,682Portion inGreaterMinnesota CitiesPortion inMetro des libraries, health and social programs, transit, airports, ambulance services, conservation, buildinginspection.Example of Broad Range of Cooperative Services: MinneapolisAs one example of the broad range of services for which cities cooperate with other local units,Minneapolis, Minnesota’s largest city, is currently participating in 16 cooperative agreements.Based on the city’s response to the League’s informal request for information, Minneapolis has34 joint powers agreements for; watershed management organizations, bomb squad services, atruancy center, transit services, school-based health clinics, the Small and UnderutilizedBusiness Program, and the Neighborhood Revitalization Program, which is active in 81 differentneighborhoods in the city.Examples of Transit Consolidations: Greater MinnesotaSome recent of transit systems in Minnesota merging: City of Faribault into Three Rivers (Effective Jan. 1, 2012)City of Dawson into Prairie Five (Effective July 1, 2012)City of Northfield into Three Rivers (Effective July 1, 2012)City of Montevideo into Prairie Five (Effective Dec. 31, 2012)Cottonwood County into Western CAC (Effective Dec. 31, 2012)StrategiesEach of the following Three C strategies is intended to provide an overview of the possibilitieswhen transit systems work together. These examples are intended to spark discussions whichmay lead to activities that are similar.12 P a g e
Coordination Strategy: Mobility Manager/CoordinatorMobility managers/coordinators are staff dedicated to promoting and improving mobility ofresidents and/or agency clientele. The Mobility Manager/Coordinator is responsible forcoordinating transportation resources and providing public education regarding existingtransportation resources. Mobility Coordinators also work to build awareness among decisionmakers, service providers, and riders on key issues related to the coordination of transportationand human services. (See Appendix D for a sample position description)Individual mobility coordinators may be hired by a particular agency or may be shared amongmultiple agencies.Link to Library of Local Mobility Management WebsitesMobility Coordinators typically: Serve as advocates for addressing the critical needs in transportation services to thegeneral public and individuals with special needsTrain agencies and individuals on local transportation optionsDevelop and oversee outreach and education efforts on transportation resourcesExpected Benefits Dedicated staff to improvingcoordination creates resources to makesure programs can get started and arecarried forward.Creation of neutral resources that canbe shared across agenciesPartial funding available throughfederal grantsPotential Challenges Determining which department will“house” staff person and how to bestshare resources and expensesRequires lead organization to takeresponsibility to house and payfor staffHow It’s Done in MinnesotaCurrently, there are four mobility management programs funded with federal grant resources.Rather than focusing on program development, that is the focus of a MobilityManager/Coordinator, these programs are primarily involved with helping individuals connectwith available transportation resources on a multi-county basis. Mobility management positionsthat focus on individual information and referral are also referred to as “transportation solutionscoordinators”. Information, Assistance and Referral (I & A) is a service that helps individuals,families and communities identify, understand and effectively use the programs that comprisethe human service delivery system.13 P a g e
Coordination Strategy: Mobility Manager/CoordinatorOverview of National/Regional Best PracticesPolk County, Iowa –Iowa mobility coordinators conduct transportation-related outreach,coordinate policy, and support operations. They focus their efforts on issues of education andcoordination, or research and funding, depending on the needs of the community. In addition,Iowa mobility coordinators seek to utilize all forms of transportation including public transit,volunteer transportation programs, and for-profit transportation.Jefferson Area United Transportation (JAUNT), Virginia – JAUNT’s mobility managerprogram has an innovative twist. JAUNT works closely with human service agencies to helpthem improve their operation. This assistance involves an initial kickoff meeting with the agencyto discuss the process, gathering appropriate information from the agency, analyzing theagency’s transportation-related resources and needs, and developing a written report withrecommendations. Although these recommendations are tailored to each agency, typical suggestions include opportunities for the agency to partner with JAUNT to address unmettransportation needs, how the agency may be able to pool resources or share vehicles withanother human service agency, or how the agency could use private providers of transportationservices.14 P a g e
Coordination Strategy: Coordinated Funding and Grant Writing Single agency prepares and manages grants for several agenciesLead agency develops co-sponsored grant applications and fosters multipleagency grantsCreates opportunities for leveraging existing funds to meet grant matchingrequirementsExpected Benefits Potential ObstaclesProvides wider access to range offunding programsReduces regional costs for pursuinggrantsProvides access to more specializedgrant writing staffImproves success rateFacilitates more centralized planningand management of resources Determining which department will“house” staff person and how to bestshare resourceRequires lead organization to takeresponsibility to house and pay for staffAgreement among team members forgrant proposalHow It’s Done in MinnesotaTechnology Consortium - Ecumen (Meeker County Transit) was the lead agency withRiverRider, and Pipestone, Martin and Brown counties for applying for a State Grant and theprocurement of advanced technologies.Overview of National/Regional Best PracticesNorth Front Range Metropolitan Planning Organization, Fort Collins, Colorado - Prepares,files and manages unified grant applications on behalf of transportation providers.North Front Range Mobility Coordination15 P a g e
Cooperation Strategy: Transportation ManagementCoordination Center (TMCC)Coordinating dispatch and/or call centers involves creating a one-stop call-in number and usinga single dispatching center to schedule requested rides among the available providers, vehiclesor services. Providing consumers with one call-in number greatly increases customerconvenience. To improve convenience may directly or indirectly include centralized Informationand referral. Jointly scheduling trips also helps to organize trips efficiently and maximizes ridesharing. Reducing individual trip costs means the ability to provide more rides to more peoplefor the same amount of resources.Expected Benefits Enables passengers to make one calland access services provided byseveral providersImproves productivity and efficiencywith higher volumes and co-mingling oftripsEnables providers to schedule vehiclesto fill service gaps.Potential Obstacles Determining which department willhouse technology and how to bestshare resourceRequires lead organization to takeresponsibility to house and pay for staffHow It’s Done in MinnesotaPaul Bunyan/Hubbard County - Hubbard County contracts with Paul Bunyan Transit, locatedin neighboring Beltrami County, to provide dispatch services for its city buses. Paul BunyanTransit uses dispatch software, automatic vehicle locators (AVLs), and mobile data terminals tomake a direct connection with the Hubbard County vehicles. Residents of Park Rapids call thesame phone number for service, but calls are transferred to Paul Bunyan Transit fordispatching.Overview of National/Regional Best PracticesThe Purchase Area Regional Travel Management Coordination Center, Kentucky - ThePaducah Area Transit System (PATS) and three rural transit systems created a TransportationManagement Coordination Center (TMCC).Goals: Do more with existing resources; Enhance mobility within and between communities, meaning increasing access to multipledestinations and opportunities; and Generate new revenues for transportation services.Performance Related Goals: Provide a place, phone number and website where people can get information about services,bus passes and vouchers; Assist consumers in learning about/becoming eligible;16 P a g e
Offer a source for travel training and travel orientation; Empower customers to schedule rides and check on ride status via the Internet and InteractiveVoice Response (IVR) telephony; and Link one-call service directly to rides as part of an integrated service delivery chain.Purchase Transit WebsiteRide Connection One Call Center, Portland, Oregon - Ride Connection is a non-profitorganization established to link accessible, responsive transportation with community needs.VisionTo create independence and community connections through the gift of mobility.ValuesRecognize, nurture and appreciate our staff and volunteers.Maintain collaborative relationships with network providers.Coordinate system-wide training and safety programs.Deliver safe, personalized and accessible door-to-door services.Assure honest, reliable and accountable business relationships.Lead by example.Coordinated comprehensive approach to enhance independent mobility. The call center is theprimary information and referral hub: Able to coordinate transportation services with multiple programs and providers,including public transit Provides a reliable and consistent customer service experience Three Travel Navigators and one SchedulerRide Connection Website17 P a g e
Cooperation Strategy: Joint PurchasingJoint purchasing focuses on coordinating administrative and fiscal functions commonlyundertaken by multiple organizations as a way to achi
Appendix F: Paul Bunyan Transit Joint Powers Agreement 34 . 4 P a g e Introduction Beginning in early 2011, the MnDOT Office of Transit launched the Transit For Our Future . especially smaller systems, have a “one person show” with a transit manager needing skills in
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