Submitted by/Soumis
par: Steve Kanellakos, Deputy City Manager, City Operations
Directeur municipal adjoint, Opérations municipales
613-842-3636
x2111, John.Manconi@ottawa.ca
SUBJECT:
|
TRANSIT SERVICES DEPARTMENTAL PRIORITIES - 2012 |
OBJET :
|
PRIORITÉS DU SERVICE
DE TRANSPORT EN COMMUN – 2012 |
That
the Transit Commission table this report to be received and discussed at the
May 16 meeting of the Transit Commission.
Que la
Commission du transport en commun dépose le présent rapport afin qu’il soit
reçu et examiné à la réunion du 16 mai de la Commission.
EXECUTIVE SUMMARY
In recognition of
the change in senior management at Transit Services on February 22, 2012, the
Transit Commission, at its meeting of February 29, 2012, approved a motion that referred the 2012 OC Transpo Business Plan,
tabled in January, to the General Manager of Transit Services for his
review.
The General Manager has undertaken a comprehensive review of Transit Services operations and identified a prioritized workplan for 2012.
The Departmental priorities have been identified based on a review of the capacity of the Department to appropriately resource the volume of projects contained on its 2012 workplan within the context of the Term of Council priorities approved by Council in July of last year.
In particular, the priorities of Transit Services for the remainder of 2012 are centred upon stabilizing the organization and strongly focussing on the implementation phase of key projects aligned to Term of Council priorities and the three pillars of service excellence: customer satisfaction, employee engagement and improved operational performance.
The Transit Commission has a direct
accountability for strategic objectives, initiatives and performance measures
falling under the Strategic Priorities:
“Transportation and Mobility” and “Service Excellence”
The Transit Commission has a
fundamental objective to “Ensure
sustainable transit services” by offering “reliable travel options at the lowest possible cost and in a financially
and operationally sustainable way”.
The Transit Services Department, with support and guidance from the
Transit Commission and Council, has already laid the groundwork for success of
this key priority by:
Other key strategic initiatives that
will be advanced by the Transit Services Department as part of its 2012
prioritized work plan will include work on:
Double Decker Buses, Facilities;
Para Transpo; Ottawa Light Rail; O-Train Expansion; IT Review; Employee
Engagement; Financial Management; and, Service Plan, as outlined in this
report.
BACKGROUND
In recognition of
the change in senior management at Transit Services on February 22, 2012, the
Transit Commission, at its meeting of February 29, 2012, approved a motion that referred the 2012 OC Transpo Business Plan,
tabled in January, to the General Manager of Transit Services for his
review.
This document constitutes the Transit Services 2012 prioritized workplan that will allow Transit Services to stay focused and committed to the implementation phase of key projects aligned to Term of Council priorities and the pillars of service excellence: customer satisfaction, employee engagement and improved operational performance.
The General Manager has undertaken a comprehensive review of Transit Services operations and identified a prioritized workplan for 2012.
The Departmental priorities have been identified based on a review of the capacity of the Department to appropriately resource the volume of projects contained on its 2012 workplan within the context of the Term of Council priorities approved by Council in July of last year. In particular, the recommended priorities for Transit Services for the remainder of 2012 are centred upon stabilizing the organization and strongly focussing on the implementation phase of key projects aligned to Term of Council priorities.
Term of Council
Priorities:
The Term of Council Priorities approved by City Council defines what the City will accomplish over the 2011 to 2014 term and forms the basis of the City Strategic Plan. Council has approved the following 8 priorities for the term of Council:
·
Economic Prosperity;
·
Transportation and Mobility;
·
Environmental Stewardship;
·
Healthy and Caring Communities;
·
Service Excellence;
·
Governance, Planning and Decision-Making;
·
Employee Engagement; and,
·
Financial Responsibility.
Two of the Council priorities,
Transportation & Mobility and Service Excellence, have specific strategic
objectives and strategic initiatives that fall within the jurisdiction of the
Transit Commission. These proposed strategic priorities have been further
translated into a set of executable strategic
objectives to give further clarity and meaning to the priorities.
The Performance
Measures associated with the Transit Commission priorities will be considered
by the Transit Commission at its meeting of May 16, 2012 (Report: 2011–2014 City Strategic Plan - ACS2012-CMR-OCM-0008).
The following strategic
objectives are assigned to the Transit Commission under the Strategic Priority
of Transportation & Mobility:
1.
Ensure sustainable transit services:
Offer reliable
travel options at the lowest possible cost and in a financially and
operationally sustainable way; and,
2.
Promote
alternative mobility choices:
Promote
alternative mobility choices by emphasizing transit, cycling and walking as
preferred ways of getting around the City. Use education, promotion
and incentives to encourage alternatives to driving, and provide information
that encourages responsible travel.
Service Excellence:
The Service
Excellence priority has an overall goal to improve client satisfaction with the
delivery of municipal services to Ottawa residents by measurably increasing the
culture of service excellence at the City, by improving the efficiency of City
operations, and by creating positive client experiences.
The City of Ottawa
has adopted a Service Excellence Framework.
It is a set of inter-related components that work inter-dependently
to produce a strategic outcome. It is
the City’s version of the Public Sector Value Chain.
The report sets out 12 priorities that align to the Term of Council Priorities, which are all contributors to achieving client satisfaction, engaged employees, and, improved operational performance.
In summary, Transit
Services Management Team will focus the remainder of 2012 on these projects which
are contributors to:
· Ensuring
sustainable transit services;
· Promoting
alternative mobility choices;
· Service
excellence.
The following 12 priorities
are being recommended and are described in further detail in the attached document:
1.
Labour
Relations
2.
PRESTO
3.
Fares
4.
Double
Decker Buses
5.
Facilities
6.
Para
Transpo
7.
Ottawa
Light Rail Project
8.
O-Train
Expansion
9.
IT
Review
10. Employee Engagement Plan
11. Financial Management
12. Service Plan
N/A
There
is no consultation required for this report.
N/A
There are no legal impediments to receiving the report.
Risk management implications are outlined within this report.
The initiatives and assumptions outlined in this report and the supporting
document are consistent with those included in the 2012 Operating and Capital
Transit Budget and Transit Long Range
Financial Plan.
Accessibility issues were taken into account when developing
the 2012 Departmental Priorities. There
is a separate section in the Business Plan dedicated to OC Transpo's
Accessibility Plan, as well as elements related to Para Transpo.
The Transit
Services Departmental Priorities - 2012 report refers to the delivery of major
business technology solutions. Further discussion will be required in
order to determine the level of impact these initiatives will have on IT
resources as well as, assessing associated costs. A detailed business
case may need to be evaluated through the City of Ottawa’s Portfolio Value
Management process for IT investments, in advance of any planned
implementation. ITS cannot commit to all of the potential work identified
in this report at this time, however ITS will work with Transit Services during
the development phase of these initiatives to further determine potential
needs.
This
report directly and indirectly supports the following objectives of the
Transportation Master Plan and previous Council strategic directions.
TM1 - Ensure sustainable transit
services
SE1 - Ensure a positive experience for every
client interaction
SE2
- Improve operational
performance
EE4
- Build a positive,
productive and engaged workplace
Document 1
– Transit Services Departmental Priorities – 2012
Staff will undertake any further action and direction of the Transit
Commission.
|
Transit Services
Departmental Priorities 2012 |
|
[Type the author
name] May 4, 2012 |
City
Operations City of
Ottawa Presented to
Transit Commission May 4, 2012
Document 1
1.
Labour Relations
In order for customer confidence and employee morale to increase it is
imperative that labour relations at OC Transpo improve. The recent ratification of a four year labour
contract with the largest employee group is a significant milestone that contributes
to customer service as transit users are now assured continuous, uninterrupted
service for the next four years. For our employees, our focus will now be in
engaging them in their ideas and contributions to service excellence.
The Departmental
management team will work collaboratively with the unions and their members on
a number of key initiatives that will continue to cultivate positive labour
relations. There are four key items that form part of the new contract and that
will continue to demonstrate collaboration.
These items will need appropriate resourcing and oversight by the
General Manager. They are listed below and they will be led by the General
Manager’s office:
a. Scheduling Committee;
b. Merivale Garage;
c. Contracting out/in review; and,
d. Safety on Buses (Cameras).
2. PRESTO
Presto is a major contributor to improving
customer service. Convenience, simplicity and transferability will all improve
the transit user’s experience and will lead to increases ridership. The focus
for this project is marketing, Friends and Family testing/feedback pilot and
day one readiness.
On May 1, 2012 OC Transpo launched the
convenient PRESTO smart card to 400 Friends and Family as a pilot to transit
customers. An additional 500 Friends and
Family will be added to participate in the June pilot. The purpose of the two month pilot is to
further test the PRESTO system to ensure that it will be ready for the broader
customer base before we go live July 1, 2012.
PRESTO cards will eliminate
complicated interactions between customers and operators, expand user options
for fare purchases (by the Internet, as well as by phone, in person, or by
mail), and simplify the fare system.
The PRESTO card will redefine customer relationships by enabling easy monitoring and measurement of single-trip fares and monthly pass use. It will provide a better understanding of how our customers use our system and also provide further opportunities to improve OC Transpo’s operational performance. As PRESTO’s functionality evolves to expand payment methods and additional services, customers will benefit from new opportunities for additional convenience.
3. OC
Transpo Fares 2012/2013
Transit Commission
and Council recently approved the OC Transpo Fares – 2012/2013 report. This provides for transit fare increases at 2.5%
overall effective July 1st, 2012. This
is in accordance with the Council approved 2012 budget. This is the second year that fare increases
do not exceed 2.5%.
The report also included changes to fares to take advantage of the
PRESTO smart card technology, which will be introduced on July 1, 2012. The introduction of PRESTO will transform the
way people in Ottawa experience transit. PRESTO offers convenience like never
before, including for the first time a fare card that is transferable between
two people, e.g. family members.
The new fare table has many attractive features, including discounted
pay-per-ride fares for seniors, the elimination of rural express fares and a
pay-per-ride fare increase capped at a nickel ($0.05) to make it easy for occasional
customers to migrate to the PRESTO card instead of the less convenient paper
tickets, which will be phased out over time.
Based
on these rates, and on ridership projections, the fare revenues are expected to
meet the established 2012 Budget of $174.25
million. Transit will also meet the
2012 budgeted revenue/cost ratio, which is the share of operating costs to be
borne by transit riders, of 53.3%. The
City’s fiscal framework has established a goal of 55% for the Transit
revenue/cost ratio to be achieved over several years. Certain risks, however, if fully realized may alter the above
projection. The Department will strive to meet the goal of maintaining average
fare increases to 2.5% for the current term of Council.
4. Double
Decker Buses
The arrival of 75
new double decker buses will commence in Q4 of 2012. The principal advantage of double-decker buses
is that they carry more customers and offer more seating than any other bus
type. This will lead to improved customer service. This increased capacity can be accomplished
at about the same capital cost as a 60-foot articulated bus and in the same
road space as a standard 40-foot bus. The double-decker buses are particularly
well-suited for use on OC Transpo express routes where seating availability is
critical to attracting and satisfying customers, and on future feeder routes
that will accompany the opening of the light rail line through the downtown
core. By reducing the number of buses needed to serve customer demands,
the use of double-decker buses will substantially reduce operating costs and
long-term capital costs. Transit Services will be working with our
manufacturer Alexander Dennis on a launch and public relations campaign to
mark this significant addition to our fleet.
5. Facilities
The provision of facilities that are clean, accessible and functional is
a key contributor to customer satisfaction for transit users.
In 2012, continued facility enhancements will be made throughout the
system in order to improve customer experience and safety. Specifically
at Transitway stations, we will be providing improved accessibility and
wayfinding measures and we will be undertaking many lifecycle projects such as
elevator modernizations, signage replacement, flooring and stairs rehabilitation.
At the westbound platform Laurier Station, we are working with the
University of Ottawa to provide a better and safer waiting area for our
customers. At Trim Station lot, the park and ride lot expansion will
provide our customers with increased capacity and improved accessibility
features. Design work is continuing at the Woodroffe/Strandherd. Chapel
Hill and Strandherd locations in order to meet increasing park and ride demand
in those areas. Changes are being made at Millennium Station to improve
safety for traffic travelling along Millennium Blvd, as well as for our
customers. We will continue to monitor recent operating improvements made
at Hurdman Station and, if needed, we will respond with additional changes that
would improve customer travel time through the station. Throughout the
City, we will be adding 50 new bus shelters, benches and providing new bus stop
pads to improve waiting areas for our customers.
We are also in the process of rehabilitating and modernizing the
maintenance facilities, some of which are more than 30 years old and require
lifecycle upgrades for capacity, cost effectiveness and sustainability
objectives. The work is required to improve employees working environment
(including restrooms, showers, lockers and lunchrooms) at St. Laurent,
Merivale, Pinecrest garage, the Walkley O-Train facility and some operator
washrooms across the Transitway system.
The Facilities
Maintenance and Non-Revenue Repair facility at 805 Belfast is to be
consolidated into existing facilities at 899 Belfast (Facilities Maintenance)
and Pinecrest (Non-Revenue Repair) by the end of 2012, to enable construction
of the future light rail maintenance facility.
Industrial garage
will undergo minor modifications to the servicing bays and one countdown lane
to accommodate the new fleet of double-decker buses and the floor throughout
the garage will undergo surface treatments to improve friction and address
health and safety concerns.
The renovations to
the administrative building at 1500 St. Laurent are planned for 2012 with a
reduced scope and total value of $7 million.
6. Para
Transpo
Improving service
to Para Transpo customers will include the following:
-
Implementation of Electronic fare payment system;
-
Replacement of the Para Transpo fleet which is nearing end of life;
-
Accommodate most ridership growth using contracted taxis; and,
-
Continuing to operate mini bus services internally.
In 2012, as
approved by the Commission, funds for Para Transpo service in the rural parts
of Ottawa are being redirected to community support service agencies that offer
transportation services for seniors and people with disabilities in rural
areas, and to new once-a-week OC Transpo services from rural villages to
shopping and service destinations in central Ottawa. Para Transpo is an extremely expensive way to
provide mobility in rural areas, and these changes will improve overall
mobility for seniors and people with disabilities without increasing costs.
7. Ottawa
Light Rail Project
OC Transpo staff have been participating with the Rail Implementation
Office on the development of the plans for the light rail line, and this
collaboration continues as the project moves into detailed design and
construction. The light rail line will make dramatic improvements for transit
customers in many ways – from improving reliability of service and reducing
travel times for current transit customers, to unlocking the capacity for
downtown Ottawa to continue to grow, to opening up downtown streets for other
uses as many bus routes are replaced by the new light rail service. The light rail line, its stations and
vehicles, and its service plans, are all being set based on transit customers’
travel needs.
During the years of
light rail construction, there will be significant disruption to the current
transit network. This impact will be managed to be as low as it can reasonably
be. The increased O-Train capacity will
be in place before heavy construction begins, to give more customers a way to
bypass the congested areas. The City is
co-ordinating the expansion of Highway 417 so that the new lanes can be used by
buses during light rail construction. But the sections of the Transitway
between Tunney’s Pasture and LeBreton Stations and between Laurier and Blair
Stations will need to close for some time to be converted to light rail tracks,
and when they do, buses will need to operate on parallel highways and streets.
When these detours are in place, the travel time for customers will increase.
The higher operating costs and the need for more buses and operators in the
system are built into the long-term financial plan for Transit, and the details
of the construction and the mitigation of its effects will be determined
following the award of the contract to build the light rail line.
In the coming
months, the Transit Services Department will be faced with many decisions and
choices that will impact our services and our customers. A coordinated and experienced lead is needed
in Transit Services that will assist the Department in understanding the
issues, plan proactively for service interruption and focus on day one
operations and readiness. Working in
partnership with the OLRT office, a resource is being secured that has
extensive experience in the operations of rail service to assist in this
regard.
8. O-Train
Expansion
Progress continues
on the project to expand the capacity of the O-Train service. This project was approved by the Commission
and Council in 2011, to provide more frequent service and greater capacity on
the O-Train. One of the benefits of this
project is to divert some customers away from the section of the Transitway
between downtown and Hurdman Station during the years of light rail
construction. In the longer term, the
service improvements on the O-Train will accommodate increasing ridership in
the corridor, including the area near Carleton University, will make it more
attractive for customers to use the O-Train to bypass downtown, and would be
compatible with any possible extension or other enhancement to the line, with
possibilities to be examined as part of the refresh of the Transportation
Master Plan. Construction is currently
planned for summer 2013.
9. IT
Review
Transit Services
has an extensive list of IT projects underway.
A detailed review of all IT projects is being undertaken. This review, which will form part of a report
to the Commission, will bring forward recommendations on prioritization of
projects, organizational accountabilities and identify opportunities for
leveraging corporate initiatives. IT projects
will have a solid business case that clearly brings forward benefits to our
customers or enables our employees to provide better service. In addition, it
will ensure that all projects underway and approved by the Commission are
adequately resourced, managed and set up for success.
10. Employee
Engagement
Employee engagement
has a direct and measurable impact on employee retention, productivity,
customer satisfaction, and financial results. It has been proven that
operational performance and customer satisfaction improves when employees are
engaged. Investing time and resources in this area will help Transit Service
drive up customer satisfaction.
The Employee
Engagement program will focus on elements such as:
·
Being
part of a successful organization;
·
Having
positive working relationships;
·
Doing
meaningful work; and,
·
Recognition
and appreciation.
The Department’s
priority will be to develop and implement strategies, programs and policies
that facilitate the building and strengthening of a committed, engaged and
satisfied client-centric workforce. The
corporate Service Excellence framework will form the basis of the road map and
the Department will leverage the corporate resources and ideas all ready in
place to help make meaningful change in this regard.
11. Financial
Management
In addition to ensuring our customers are satisfied and
employees are client focused, strict financial oversight is a priority for the
Department. Detailed financial tracking
has already been implemented and key line items such as fuel, overtime costs,
etc. are being monitored. A
comprehensive review of all capital projects, commitments and Work-in-Progress
is also underway and revenues will be closely monitored.
Marketing/Advertising
Marketing in 2012 will focus on the introduction
of the new PRESTO card for fare payment. Customers will be faced with
significant messaging in this regard and introducing new marketing concepts are
not recommended. Relating to
advertising, an RFP will be concluded by Q3 2012 to establish new advertising
contract(s) for both new assets and those covered by existing expiring
contracts. These new contracts will be
structured to reserve advertising streams that could be of particular interest
to the City’s strategic partners in economic development endeavours – for
example, transportation partnerships developed through tourism, events and
festivals. Advertising at on-street
passenger shelters and benches is covered by contracts ending in 2013.
Arising from the Service Ottawa initiative,
a market review and RFI by the City determined that transit revenue could be
maximized by offering more assets for advertising purposes, and by bundling
assets differently within each contract.
The assets will be offered through a subsequent process as part of the
Integrated Street Furniture Program.
Fuel
On fuel, we can advise that OC Transpo will
continue to focus on diesel consumption as our primary focus. Over the past few years several initiatives
have implemented to reduce the numbers of litres consumed per customer
including:
·
Completed driver training to improve efficiency;
·
Changing idling procedures in cold weather;
·
Added more high capacity buses; and,
·
Replaced high fuel consuming first-generation
articulated buses with newer, more efficient articulated buses.
We have also benefited from the hedge strategies implemented by
Corporate Finance. These strategies
reduce our exposure to the unpredictable diesel fuel market. City Council approved a Commodity Price
Hedging Policy in 2008. Under the policy, the City is able to enter into
financial agreements that fix the price of fuel. The benefit of the
policy is that it allows the City to manage financial risk by establishing a
level of certainty with respect to the price of fuel, and removes the budget to
actual price volatility and exposure that would otherwise occur.
Under the
policy, up to 85 percent of the forecast fuel volume can be hedged (price is
fixed) on an annual basis. Approximately 60% of the City’s 2012 forecast
fuel volume is now protected with these fixed prices, at a level close to the
rates budgeted for 2012.
Finance staff
determines its hedging strategy by setting target prices at which it is
appropriate to enter into fixed contracts. These target prices are based
on a review of historical price data. Staff continue
to monitor the markets and may execute more contracts for
2012. In addition, staff have commenced
putting in place fixed price contracts for the 2013 budget year.
OC Transpo has reviewed many solutions and will be focusing on adding
specific modifications to reduce fuel consumption. These include implementing
electric fan modifications on hydraulic fan equipped buses, improving the
functionality of automatic vehicle monitoring systems to help drivers know when
they are driving with optimum fuel efficiency and completing the purchase of
double decker buses, which bring economies by requiring fewer buses on the road
as well as providing the value of the new fuel efficient engines. We are also
looking at garage parking strategies as the smaller fleet may enable a higher
percentage of buses to be stored inside and reducing the use of the bus heater.
The transit industry has many major
alternate fuel related initiatives under way and OC Transpo is keeping informed
on all the technology changes and the results they can tangibly provide. A key strategy of any future procurement will
be to reduce the amount of diesel we consume by acquiring the best proven
products at the time of natural procurement cycles. This will support our trend
of using less fuel per ride.
A key challenge identified through long-range forecasting is the growing
discrepancy between the growth rates of fuel prices and transit fares. Diesel costs are forecast to continue
increasing at long-term rates of 5 per cent, while opportunities to use fuel
more efficiently have been maximized. A switch to a lower-cost fuel may be
required to contain fuel cost pressures as fleets are renewed in 10 to 15
years.
This has led to a continued pressure on the diesel fuel budget in 2012
and will continue to challenge future years. The Department will provide updates as part of
regular quarterly operating and capital budget status reports.
12. Service
Plan
Ridership levels on the transit system are expected to continue to grow, and service levels and the route network will continue to be adapted to accommodate increased numbers of customers and changes in customers’ travel needs. No major route changes are expected in 2012, except for improvements in Stittsville following its inclusion in the Urban Transit Area and the opening of the new park and ride lot at Scotiabank Place. Planning is continuing for service changes in future years, including the opening of the Strandherd-Armstrong Bridge, improved interprovincial services in coordination with the opening of the STO’s Rapibus facility, the relocation of federal workers to the former Nortel location, the opening of new park and ride capacity, and the increase in capacity on the O-Train.
Work continues to improve the reliability of service for customers in several ways. The actual running time required on all routes is being measured by on-board GPS equipment and analysed using new software and procedures, so that the scheduled time for every trip better matches the operating conditions. The continuing implementation of transit priority measures reduces travel time for customers and reduced the variability of travel time through congested locations. Staff are also continuing to improve workforce planning and management, to strike the best balance possible between efficiency and quality.
Safety
Relating to safety,
our focus in 2012 will be on exploring the feasibility, costing and logistics
associated with the use of Cameras on our buses. The safety of our Customers and Employees is
our number one priority. This complex
issue has a range of financial, operational, maintenance, legal (including
privacy) and other implications. As such, OC Transpo staff will consult with
all affected stakeholders in the development of a report, and will make
recommendations for Transit Commission to consider in time for 2013 Budget
deliberations.
Accessibility
Our goal of enhanced accessibility will
continue in 2012. OC Transpo will
enhance barrier-free access to transit stations and facilities by installing
more power doors, lowering operating controls, improving signage and lighting,
installing new curb ramps, and modernizing older elevators. As well, all transit employees who deal with
the public or develop policy will be trained in accessible customer service;
additional training will be undertaken on the AODA Integrated Accessibility
Standards regulation, and planned for any new accessibility standards tabled in
the coming months. The organization will continue its very successful partnership
with community agencies in the provision of travel training, which provides
persons with disabilities the confidence and skills needed to use public
transit
Community
Partnerships
OC Transpo has a long history of nurturing community partnerships, as
evidenced by its receipt of a special award in 2011 to recognize 25 years of
leadership in raising impressive Ottawa Food Bank donations through its annual
food drive. OC Transpo is also proud of
its role and reputation in serving our community’s needs beyond the issue of
mobility. Our many operators are the
community’s eyes and ears, and contribute to the safety of Ottawa residents at
all hours of the day and night. Every year, TRANSECURE Awards formally
recognize individual employees who go above and beyond the call of duty in
improving public safety.
Building on these
successes, OC Transpo will focus on creating long-lasting partnerships
that benefit customers and the community, leveraging OC Transpo’s brand
and assets to provide tangible benefits and maximize marketing opportunities.