<title>Lessons Learned in Transit Efficiencies, Revenue Generation, and Cost Reduction

(EXECUTIVE SUMMARY)

</title>

 

<BODY bgcolor="#FFFBF0" background="images/bg.gif" link="#238E23" alink="#D9D919" vlink="#A68064">

 

<blockquote><blockquote><blockquote>

<a href="http://www.usf.edu/"><IMG BORDER=0 WIDTH=312 HEIGHT=33 SRC="images/logo.gif" ALT="USF"></a>

<BR CLEAR=left><BR CLEAR=left>

 

 

<A HREF="/index.shtml"><IMG BORDER=0 IMG ALIGN=left SRC="images/cutrtxt.gif" ALT="Center for Urban Transportation Reseach"></A>

<BR CLEAR=left><BR CLEAR=left>

<P>

<BR>

<P>

<BR>

<P>

 

<p align="center"><font size="6">Lessons Learned in Transit

Efficiencies, Revenue Generation, and Cost Reduction<br>

<br>

EXECUTIVE SUMMARY<br></font size>

<br>

<br>

<B>by Center for Urban Transportation Research (CUTR) <br>

College of Engineering, University of South Florida Tampa,

Florida <br>

<br>

June 1997 </font></p>

</B>

 

<p align="center"><font size="6">Executive Summary</font><br>

<font size="5"><strong>Background</strong></font></p>

 

<p><font size="3" face="Garamond">Transit agencies are no

different than virtually all other public agencies, private

companies, or households in at least one fundamental respect: all

of them need money to function. Securing sufficient funds to

operate has been perhaps the biggest challenge facing transit

systems in the past few years. Declining federal transit

operating assistance, costly legislative mandates (e.g.,

Americans with Disabilities Act and drug testing requirements),

and resistance to increasing taxes have made balancing budgets

that much more difficult. According to a survey conducted by the

American Public Transportation Association, 56 percent of all

transit systems had raised their base fares an average of 26

percent in FY 1995 and/or 1996, while 48 percent of all systems

cut an average of 12 percent of their vehicle miles of

fixed-route service during that same time period. </font></p>

 

<p><font size="3" face="Garamond">It is true that public transit

agencies face a multitude of difficulties in sustaining service

as their external environments change and create new pressures.

However, it is inherently inconsistent for a service industry

that emphasizes &quot;Customer Service&quot; to reduce service

and raise fares as primary options when dealing with tight

budgets. Making the passenger (or customer) bear the brunt of

tight budgets by paying more and/or getting less is <b>not</b>

being customer friendly, and usually results in lower ridership

and revenue. Better options are to increase productivity and/or

reduce costs to continue to remain attractive to customers who

have choices. While public transit agencies serve customers that

many regard as &quot;captive,&quot; in truth, everyone has

options on how, or how often, they travel.</font></p>

 

<p align="center"><font size="5"><strong>Purpose of Project</strong></font></p>

 

<p><font size="3" face="Garamond">The purpose of this research

project was to gather and redistribute information on how transit

agencies are generating new revenues or reducing costs without

harming the best interests of their passengers. This project was

based on the idea that transit agencies have a great deal to

learn from each other in the areas of raising new revenues or

reducing costs. A very simple survey was developed and sent to

more than 400 transit agencies in the United States, asking them

to provide a brief description of the five most effective methods

used by their respective agency that have generated new revenues

and/or saved money. Responses were received from 75 transit

agencies. Many of the techniques were similar among agencies

(e.g., advertising on buses or bus shelters). However, even in

those areas of similarity, there were distinctions that should be

of interest to transit systems that might wish to adjust their

methods of doing similar activities.</font></p>

 

<p align="center"><font size="5"><strong>Summary of Findings</strong></font></p>

 

<p><font size="3" face="Garamond">There were over 180

unduplicated methods of saving money or generating revenues

submitted by the 75 transit systems responding to the survey. All

of these techniques are included in the full report. However, it

is important to understand that there are six common themes among

these many different techniques. By understanding these basic

themes, transit leaders can more effectively encourage their

managers to recognize similar opportunities in their own systems.

The common themes among successful techniques are described and

summarized below:</font></p>

 

<p align="center"><font size="5"><b>Theme I. Positive Opportunism</b></font></p>

 

<p><font size="3" face="Garamond">This theme is meant to describe

those actions taken by transit agencies that take advantage

(without harming anyone else) of their unique assets. Many people

have a perception of transit agencies as black holes of unending

expenses. However, transit agencies have many assets that are of

value to others and can become profit centers. One of

transit&#146;s defining characteristics is that it provides

transportation<i> linkages</i> for people and communities.

Positive opportunism encourages transit managers to envision new

linkages with other public or private entities that can generate

revenue as well as additional support for transit. Subcategories

within this theme are:</font></p>

 

<p><font size="4" face="Flora Medium"><b>Sale of Advertising

Rights</b></font></p>

 

<p><font size="3" face="Garamond">Transit agencies sell space for

advertising on buses, benches, shelters, rail cars, vans,

automated guideway cars, schedules, transfers, passes, ticket

books, property, etc. One transit system enjoys such a fine image

that it makes royalties from the sale of T-shirts and mugs with

its logo on them. Within this subcategory, there are different

ways of administering an advertising program. For instance, some

agencies have doubled or tripled revenues by bringing the transit

advertising function in-house versus contracting this

responsibility to national brokers. Advertising in-house has also

created stronger linkages to local businesses that advertise on

the system, who then have another reason to support the transit

service in the community. The transit system may collect

substantial dollars for these advertising opportunities, or trade

the value of the opportunity for other goods or services that

help them more effectively market their system. The LYNX system

in central Florida has taken the &quot;painted bus&quot; concept

to new heights through exercising artistic control while

demanding, and getting, advertising on buses that actually adds

to the attractiveness of the fleet.</font></p>

 

<p><font size="4"><b>Facilities that Help Generate New Revenues</b></font></p>

 

<p><font size="3" face="Garamond">Examples include performing

vehicle maintenance work (for profit) for other agencies out of

transit&#146;s facilities, charging for parking under guideways,

leasing rights-of-way along rail corridors to telecommunications

companies, renting excess building space (taking advantage of

agency downsizing), selling surplus property, entering leveraged

leases for guideways and maintenance facilities, charging for bid

books for construction projects, and selling waste oil.</font></p>

 

<p><font size="4"><b>Equipment that Helps Generate New Revenues</b></font></p>

 

<p><font size="3" face="Garamond">Examples include entering

leveraged leases for buses and rail cars, washing other public

and private vehicles with agency bus wash equipment, charging for

printing for other agencies with printing equipment purchased

with capital grants, providing charter service where permissible

with unique transit vehicles, and gaining designation as an

authorized warranty center allowing the agency to be paid by the

vehicle manufacturer for performing repairs. </font></p>

 

<p><font size="4"><b>Taking Advantage of Transit's Employees as

Unique Assets</b></font></p>

 

<p><font size="3" face="Garamond">A common phrase heard is that

the most important asset of an agency is its &quot;human

capital.&quot; In transit&#146;s case, employees are the source

of ideas to reduce costs through employee suggestion programs,

and they are indispensable participants in

&quot;gainsharing&quot; programs that have saved at least one

agency millions of dollars. In addition, transit employees are a

unique asset that can generate new revenues through the sale of

the expertise they have gained in matters such as hazardous

materials training, Commercial Drivers License testing, simulator

training, or rail operations planning for international

consulting purposes.</font></p>

 

<p><font size="4"><b>Taking Advantage of Transit's Passengers as

Unique Assets</b></font></p>

 

<p><font size="3" face="Garamond">Access to transit&#146;s

customers is valuable to entities other than the transit system.

Telephone companies will pay for the rights to place telephones

at strategic locations in a transit system, while also offering

additional transit information services to the passenger at no

extra cost. One transit agency charges companies for the right to

distribute discount coupons to passengers who buy monthly passes.

Joint promotions with private companies at transit centers, or on

board transit vehicles, increases ridership and revenue. School

Boards in some districts will pay the transit system for each

student carried as they pursue every method to increase the

educational attainment of their young citizenry. </font></p>

 

<p align="center"><font size="5"><b>Theme II. Partnerships</b></font></p>

 

<p><font size="3" face="Garamond">Transit agencies have long

operated in the spirit of partnership with federal and state

governments for transit operating and capital assistance. What

has changed is the need to expand the list of partners. Transit

agencies do not have the financial resources to independently

accomplish all they would like to do in their communities, nor

can they rely as heavily on a federal government that is hoping

to reduce its massive deficit. Hence, transit systems are looking

to <i>leverage</i> their limited resources by forging new

partnerships that bring non-traditional sources of support. These

partnerships allow transit agencies to provide services or

facilities where it would not otherwise be feasible.

Subcategories within this theme include:</font></p>

 

<p><font size="4"><b>Private Sector Partners Supportive of New

Transit Service</b></font></p>

 

<p><font size="3" face="Garamond">Examples include agreements

with malls, business parks, major employers, associations of

businesses, or hospitals for new services paid partially or fully

by the private entities. The majority of these partnerships are

initiated by the private sector partners.</font></p>

 

<p><font size="4"><b>Public Sector Partners Supportive of New

Transit Service</b></font></p>

 

<p><font size="3" face="Garamond">Examples include agreements

with military bases, universities, public schools, transportation

management associations, downtown development authorities,

convention centers, or cities for new or extended service paid

for partially or fully by the other public agencies. These

agreements also provide opportunities for transit agencies to

restructure existing nearby services to be more productive.</font></p>

 

<p><font size="4"><b>Public or Private Entities Assisting with

New Transit Service Facilities or Equipment</b></font></p>

 

<p><font size="3" face="Garamond">Examples include agreements

with cities or private developers to pay for portions, or the

entirety, of new transit facilities; agreements with air

pollution control districts or utility companies to pay for all

or substantial portions of the cost of new transit maintenance

facilities or equipment ranging from bike racks to alternative

fuel buses; agreements with redevelopment agencies to provide

physical improvements or complimentary services in or near

transit passenger facilities; and MPOs that allocate funds from

new ISTEA sources for ADA improvements or environmental

remediation.</font></p>

 

<p><font size="4"><b>Public or Private Entities that Support

Existing Transit Service</b></font></p>

 

<p><font size="3" face="Garamond">Examples include agreements

with employers that buy transit passes for their employees;

businesses that sell pass materials at their facilities;

businesses that agree to maintain bus stops, shelters, or

stations; businesses that sponsor events that promote transit;

private carriers that strategically utilize transit agency

services for special events; businesses that make their parking

facilities available for transit patrons when space is available;

and newspapers that write stories on transit services at no cost

to the transit agency.</font></p>

 

<p align="center"><font size="5"><b>Theme III. Cooperation</b></font></p>

 

<p><font size="3" face="Garamond">This theme includes additional

examples of transit systems working with public or private

entities, or their own workforce. It differs from the

&quot;Partnership&quot; theme in the sense that the transit

system is already engaging in the activity in question. No

entirely new service or facility is being created through

cooperation. However, by cooperating with other agencies or

groups, transit systems can either reduce their costs or gain

greater benefits and enhance their image. Subcategories of this

theme include:</font></p>

 

<p><font size="4"><b>Joint Purchasing</b></font></p>

 

<p><font size="3" face="Garamond">Examples include procuring

goods or services through pre-established state contracts to save

time and money; forming consortiums among multiple agencies to

purchase commonly required commodities such as insurance, drug

testing services, or fuel; &quot;piggy-backing&quot; on contracts

of other public agencies; participating in regional marketing

among transit systems to reduce the cost of administration,

thereby allowing transit agencies to focus on operations

performance.</font></p>

 

<p><font size="4"><b>Sharing/Trading of Services, Facilities, or

Funds</b></font></p>

 

<p><font size="3" face="Garamond">Examples include trading

advertising space on agency vehicles for services such as

training; swapping capital dollars for operating dollars between

agencies within the same state; utilizing other public agencies

to invest funds or perform support services; sharing the cost of

services that cross the boundaries of more than one service area;

and joint use of maintenance facilities between transit agencies

and school boards to reduce capital and operating expense.</font></p>

 

<p><font size="4"><b>Providing Experience/Service/Employment

Opportunities for Other Agencies</b></font></p>

 

<p><font size="3" face="Garamond">A number of transit systems are

realizing genuine benefits from utilizing summer youth employees,

college interns, and volunteers who provide valuable services

ranging from data entry, graffiti removal, research, schedule

distribution, etc., at very low cost. Similarly, some transit

systems are benefiting from low cost labor provided through

sheriff&#146;s work incarceration programs or other community

service programs for station cleaning and landscaping services. </font></p>

 

<p><font size="4"><b>Coordination of Services</b></font></p>

 

<p><font size="3" face="Garamond">Serving as a coordinator for

paratransit services has allowed some systems to realize savings.

They are in a better position to mainstream paratransit

passengers to less expensive fixed-route options, coordinate

various paratransit providers to encourage multi-loading, and

reduce the capital expense by maximizing the use of paratransit

vehicles through coordinated use of vehicles among agencies.</font></p>

 

<p><font size="4"><b>Cooperative Agreements with Transit Labor</b></font></p>

 

<p><font size="3" face="Garamond">A number of transit systems

have successfully negotiated with their bargaining units to

reduce costs through the following techniques: greater use of

part-time operators for general use, weekend runs, trippers,

vacations, lunch reliefs, etc.; extended wage progression

schedules; two-tiered wages for new hires or small vehicle

operators; one-time cash bonuses versus base wage increases;

changing to managed health care versus select health care; early

retirements coupled with pension modifications; changing separate

sick and annual leave to consolidated paid time off; and salary

freezes and cooperative measures to find savings.</font></p>

 

<p align="center"><font size="5"><b>Theme IV. Service Planning,

Marketing, or Delivery Methods</b></font></p>

 

<p><font size="3" face="Garamond">Not surprisingly, the highest

cost element of any transit system is the actual operation of

service. The methods transit agencies have used to provide

service have not changed dramatically in the past fifty years.

However, the areas they serve have changed significantly, and

sources of funding seem harder to secure. Transit systems must

become more disciplined or creative in the traditional methods of

providing service, and/or find new and more cost-effective ways

to serve the new urban form. This theme shows how transit systems

are responding to the need to improve the productivity of their

service, within the following subcategories:</font></p>

 

<p><font size="4"><b>More Careful and Prudent Resource Allocation

Decisions</b></font></p>

 

<p><font size="3" face="Garamond">Examples include consolidating

or interlining routes; minimizing service on days of lower demand

such as Martin Luther King Day and the day after Thanksgiving;

thoroughly scrutinizing and reducing deadhead mileage and

overtime; using a productivity frequency index to make service

cuts with the least possible impact on ridership; allowing bus

operators to construct their own runs within recognized

parameters; and reducing the size of trains or buses to better

reflect demand.</font></p>

 

<p><font size="4"><b>Modifying the Method of Service</b></font></p>

 

<p><font size="3" face="Garamond">Many transit systems are making

fundamental changes to the way they provide service that responds

to the changing urban form and/or the desires of their customers.

Some of the new methods that have worked for transit agencies

include changing radial service to more grid-like service;

modifying fixed-route service to point deviation (either entirely

or during off-peak); providing demand-responsive service in low

density areas or in off-peak times; and replacing express service

with vanpools or megavans. Point deviation has been helpful not

only in attracting additional passengers due to its convenience,

but also by allowing agencies to reduce the amount of separate

paratransit services required.</font></p>

 

<p><font size="4"><b>Contracting for Services Through Competitive

Bids</b></font></p>

 

<p><font size="3" face="Garamond">Some transit agencies contract

all their bus or rail service every few years at substantial

savings. Others contract out only a portion of their service, but

still realize the benefits of partial competition through

subsequently more effective negotiations with their own

bargaining units.</font></p>

 

<p><font size="4"><b>Mainstreaming Paratransit Users to

Fixed-Route Service</b></font></p>

 

<p><font size="3" face="Garamond">Many transit systems have

persuaded state Medicaid programs to purchase bus passes rather

than paratransit services for their clients, resulting in

win-win-win results. Two systems report savings as a result of

modifying multiple subscription paratransit routes to new, more

cost-effective &quot;community routes.&quot;</font></p>

 

<p><font size="4"><b>Marketing and Fares</b></font></p>

 

<p><font size="3" face="Garamond">The attractiveness of transit

service can be enhanced through the fare structure. Passes of

various durations (one day, weekend, four-day visitor, weekly,

summer, etc.) have proven to be extremely popular. Family fares

(kids ride free) and &quot;friends ride free&quot; programs, as

well as deep discount fares for frequent passengers, have

increased ridership and revenue for many transit systems.</font></p>

 

<p align="center"><font size="5"><b>Theme V. Maximizing Capital

Budgets</b></font></p>

 

<p><font size="3" face="Garamond">Although federal operating

assistance has been cut, capital dollars have generally been

available and are more politically palatable to those who

question the level of support transit should receive. Strategic

use of capital funds can reduce operating costs while increasing

productivity, and sometimes results in profits. This theme shows

how transit systems are utilizing capital dollars as investments

that allow them to maintain or improve service levels. The

methods being used fall into the following categories:</font></p>

 

<p><font size="4"><b>Use of New Technology</b></font></p>

 

<p><font size="3" face="Garamond">Transit has been generally slow

to experiment and implement new technology. However, many transit

systems credited new technologies for generating cost savings.

Among the successful applications have been automated passenger

counters, automated scheduling for fixed-route and paratransit

applications, signal pre-emption systems, desktop publishing,

automatic vehicle location systems, video surveillance in money

rooms and on board buses, automated ticket vending, transfer

dispensing machines, and automated customer information service

for fixed-route and paratransit.</font></p>

 

<p><font size="4"><b>Relatively Low-Tech Solutions that Save

Labor and/or Parts Costs</b></font></p>

 

<p><font size="3" face="Garamond">Not all operating cost

reductions require high technology. Transit agencies reported

savings due to investments such as new brake lathes, a deep water

well for bus wash machines, metal bus benches in place of wood,

portable shelter cleaning equipment, seats that reduce workers

compensation claims, an automated lubricating device for bus

maintenance, high platforms at commuter rail stations to

eliminate the need for wheelchair lifts, and using waste oil for

heating facilities.</font></p>

 

<p><font size="4"><b>Acquiring Vehicles that Reduce the Cost of

Operations and Maintenance</b></font></p>

 

<p><font size="3" face="Garamond">More transit agencies appear to

be abandoning the practice of standardizing their fleets. A

number of systems are purchasing smaller vehicles that are more

fuel efficient and more consistent with the level of demand.

Others are purchasing larger vehicles to increase capacity

without the need for additional vehicles or operators. A growing

number of agencies report that alternative fuel buses reduce

operating costs over the life of the vehicle.</font></p>

 

<p><font size="4"><b>Facility Investments to Reduce Operating

Costs</b></font></p>

 

<p><font size="3" face="Garamond">Sometimes costs can be reduced

by consolidating facilities such as administration offices or

rail maintenance facilities. Other times it pays to build

additional bus operations facilities to reduce deadhead mileage

expense. While the costs and benefits must be reviewed very

carefully on a case-by-case basis, capital grants provide the

opportunity for such major investments, when they make sense.</font></p>

 

<p><font size="4"><b>Capitalization of Operating Expenses</b></font></p>

 

<p><font size="3" face="Garamond">Federal capital grant dollars

can be used to pay for the capital costs associated with

contracted fixed-route and paratransit service. They can also be

used to pay for costs such as leasing administrative and

operating space and purchasing associated capital and maintenance

equipment, providing substantial relief to the agency&#146;s

operating budget. Tolls generated by local expressway authorities

can be used as soft match for federal capital grants, thereby

saving local transit systems the normal cost of matching such

grants.</font></p>

 

<p><font size="4"><b>Vehicle Maintenance Techniques that Extend

the Life of Vehicle Systems and Parts</b></font></p>

 

<p><font size="3" face="Garamond">A number of maintenance

practices were cited for their cost saving qualities, including

recycling cleanable and reusable filters, using synthetic oil to

reduce labor cost associated with oil changes, and performing

frequent oil analysis and opacity testing. Transmission brake

retarders were credited with at least doubling the life of

brakes, and aluminum wheels were also credited with increasing

brake life, eliminating heat-related tire damage, and increasing

fuel efficiency.</font></p>

 

<p align="center"><font size="5"><b>Themes VI. Improved

Management of Resources</b></font></p>

 

<p><font size="3" face="Garamond">This theme focuses on the

activities transit agencies are taking to save money through

better management of their organization, resources, expenses, and

processes. These activities reflect transit&#146;s willingness

and need to question the status quo. This theme concentrates on

internal matters versus external partnerships or cooperative

ventures. The methods being used fall into the following

subcategories:</font></p>

 

<p><font size="4"><b>Reorganization/Reduction in Force</b></font></p>

 

<p><font size="3" face="Garamond">A number of systems have

reduced the size of their administrative staffs and agency

budgets by reorganizing the agency upon retirements or through

attrition. Attrition is sometimes encouraged by departure

incentive (early retirement) plans that incur up-front costs, but

long-term savings as lower cost professionals are hired. Other

agencies do not have the luxury of waiting for retirements and

have to make tougher choices based on needs versus resources.

Private consultants are sometimes used to help identify surplus

positions. Position eliminations often involve combining work

previously dispersed among several positions. Organizations tend

to become flatter, requiring training for those who are left to

deal with more functions and decisions.</font></p>

 

<p><font size="4"><b>Contract/Outsource or Retain Functions</b></font></p>

 

<p><font size="3" face="Garamond">Elements of transit management

such as planning, scheduling, building maintenance, inventory, or

money counting are either &quot;farmed out&quot; or retained,

depending on which option is more cost effective. Smaller systems

might outsource virtually every function and focus on managing

contracts containing incentives and penalties.</font></p>

 

<p><font size="4"><b>Improved Methods of Procurement</b></font></p>

 

<p><font size="3" face="Garamond">The purchase of major items

such as insurance can be aided by combinations of low bid and

negotiation procedures with multiple brokers, or by using an

insurance broker to analyze benefits and negotiate rates with

various proposers. Leasing can be more effective than purchasing

when procuring facilities, but purchasing tires versus leasing

them allows the transit agency to resell the tire carcasses at a

price higher than their 10 percent capital match spent on the

tire when it was new. Fuel hedging has allowed many agencies to

benefit from stabilized fuel costs. Bulk purchase of certain

items can reduce the unit cost by as much as 15 percent.</font></p>

 

<p><font size="4"><b>Managing Major Expenses</b></font></p>

 

<p><font size="3" face="Garamond">Certain expenses that are

common among most transit agencies and represent substantial

portions of their operating budgets have been effectively reduced

through focused efforts. Examples include energy costs that have

been reduced through investing in expertise to better understand

the rate structure of power companies and to improve the

management of their electrical power demand; liability expenses

that have been reduced through self insurance programs that cost

less than premiums when combined with an emphasis on safety,

training, accident investigation, and challenging claims; reduced

workers&#146; compensation claims as a result of having carriers

perform claims management functions and establishing light duty

or temporary modified assignment programs for those receiving

workers&#146; compensation benefits; reductions in sick leave as

a result of spot auditing of sick pay requests and stationing

doctors and nurses at transit facilities to perform physicals;

performing baseline marketing studies to gain a better

understanding of who uses transit to help determine the most

cost-effective way to spend advertising dollars; utilizing

commercial paper lines of credit to access funds at a low

interest rate to maintain access to low-cost funds to keep

projects moving; and managing pension policies carefully to

reduce necessary contributions.</font></p>

 

<p><font size="4"><b>Reengineering Internal Processes</b></font></p>

 

<p><font size="3" face="Garamond">Although details were sometimes

sketchy, transit agencies reported that they were re-thinking

processes such as track installation, train motor rebuilds,

contract reviews, distribution of passes to vendors, and petty

cash procurement to determine how they could be accomplished less

expensively. One system noted that it now confers with other

transit agencies instead of consultants for advice. Another

agency has established a &quot;utility bus operator&quot;

position that can perform multiple tasks besides operating a bus.

Bus maintenance intervals have been extended 50 percent, thereby

decreasing maintenance expenses with no increase in service

failures. Finally, the pre-issuance of commonly used materials

prior to the midnight shift allows the closing of storerooms

during that shift, with attendant reduction of staff requirements

during the shift.</font></p>

 

<p align="center"><font size="5"><b>Conclusions</b></font></p>

<P><font size="3" face="Garamond">Transit agencies clearly have many experiences to share that can help the industry reduce costs or generate new revenues without resorting to raising fares or cutting service. The techniques discovered through this survey are not a panacea for the financial pressures most transit systems are experienceing. The bottom line resultes are typically new revenue or savings of between 5 and 10 percent of an operating budget (though it couldbe significantly more). However, the implemenation of these techniques also improves the image of the transit system within their own communities.

<BR>

For

instance, one general manager of a northeastern U.S. transit

property had to institute service cuts, but he also presided over

a number of new revenue generating techniques. He noted that,

&quot;We had to make a number of difficult choices, but the

general response from the media and business community was

&#145;It&#146;s about time you stopped begging and started

managing.&#146;&quot; In short, the process of a more

business-like approach, leveraging limited resources through

partnerships and cooperative arrangements with public and private

agencies, encouraging entrepreneurial thinking, and finding new

ways to serve the public will ultimately improve a transit

agency&#146;s standing in the community as well as its bottom

line. In some instances, however, there may be a need to be

sensitive to the reactions of tax paying private companies who

might resist a transit agency that starts doing new work that

could be done by local companies.</font></p>

 

<p><font size="3" face="Garamond">In his book entitled <i>The

Seven Habits of Highly Effective People,</i> author Steven Covey

writes about the need for each individual to evolve from being a

dependent person to an independent and interdependent person to

achieve full effectiveness. This advice applies to transit

agencies as well. They must minimize their reliance on federal

operating assistance, and increase their capabilities of

generating necessary revenues. Clearly, there is a movement in

the country for less government and greater self-reliance. This

is perhaps best illustrated by the broad support for welfare

reform. Just as individuals will need to improve their skills, so

are transit agencies being asked to be more creative and

self-reliant. This report hopes to contribute toward the

accomplishment of that goal.</font></p>

 

 

<P>

For more information about this project, contact Joel Volinski, Deputy Director, Center for Urban Transportation Research, at <A HREF="MAILTO:volinski@cutr.usf.edu"><I>volinski@cutr.usf.edu</I></A> or by phone at 813-974-3120.

 

 

 

 

 

 

 

 

<P>

 

 

 

<P>

<BR>

 

<P>

</CENTER>

<P>

<P>

Please direct all comments and/or questions regarding this page to <A HREF="mailto:webadmin@cutr.usf.edu">

<I>webadmin@cutr.usf.edu</I>.</A>

<P>

<BR CLEAR=left><P>

<P>

<A HREF="/index.shtml"><IMG BORDER=0 IMG ALIGN=left SRC="images/larrow.gif" ALT="Left Arrow"></A><STRONG>Return to the CUTR Home Page</STRONG>

 

</FONT></CENTER>

</BODY></HTML>