A U D I T E P O R T. Audit of Lee County Transit (Lee Tran) Internal Audit Department. Audit Number April 2011

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1 A U D I T R Audit of Lee County Transit (Lee Tran) E P O R T Internal Audit Department Audit Number April 2011

2 April 21, 2011 The Honorable Charlie Green Clerk, Lee County Re: Lee County Transit (Lee Tran) Dear Mr. Green: The Internal Audit Department has conducted an audit of Lee County Transit, Keith Buonocore, CPA has completed this review. The response to the auditor s conclusions, issues and recommendations are attached to this report. The auditor wishes to thank the Lee County Transit employees for their assistance and cooperation during the review. This Report has been posted to the Clerk of Courts website under Internal Audit, Audit Reports. The hyperlink to the report has been sent to the Lee County Board of County Commissioners and appropriate parties. Sincerely, Chuck Short, Director Internal Audit Department CTS/jmd

3 Table of Contents Lee County Transit (Lee Tran) Page Introduction 1 Conclusions 1 Observations 1 Recommendations 1-2 Scope 2 Lee County Transit (Lee Tran) 2-3 ADA Para-transit Service Background 3 Service Coverage 4-7 Lee Tran s 10 Year Transit Development Plan Required Reporting 7-8 Major Initiatives 8-9 Routine Customer Notifications/Disruptions of Services 10 Benchmarking Response 12

4 Audit of Lee Tran Introduction The Clerk of Court conducted an audit on Lee Tran fixed route & ADA (Americans with Disabilities Act) operations. The audit was performed in accordance with general auditing standards for the professional practice of Internal Auditing. Audit work paper files contain details supporting any findings, conclusions, and recommendations in this report. Conclusions Lee Tran was found to continually monitor and evaluate the need for and quality of transit services in order to: Determine appropriate type and core level of County-wide transit services Identify current and planned local transit resources Evaluate existing and potential future regional transit services Outline capital and maintenance outlays for proposed service development Leverage potential funding sources and relate those to public expectations Identify a coordinated implementation plan supporting regional costs & benefits Observations A dedicated transit funding source needs to be established by the Board of County Commissioners (BoCC) and the Metropolitan Planning Council (MPO). The BoCC and MPO should continue their progress on regional transit solutions. Overtime, there will continue to be a high percentage of salaries & wages due to the nature of the transit business and the extended hours of operations for core services. At the time of this review, Transit department-wide inventories amounted to approximately 9,900 items at an identified cost of $585,000. This amount may be posted to the end of the year balance sheet under Inventories for this fund. Recommendations Continue to coordinate all public transportation services funded with maximized local, state, and federal funds. 1

5 Continue to provide a comfortable, cost-efficient, and cost-effective coordinated transportation service that meets the core needs of the fixed-route ridership as well as the transportation disadvantaged demand ridership within available limited resources. Assure that quality transportation services continue to be provided safely and securely. Continue to market and promote available core transportation services that can be provided as an alternative to higher fuel prices and congested traffic conditions. Continue to maximize the use of human and financial resources and equipment. Ensure that transportation operators carry out appropriate routine training programs. Scope The audit process for this report involved the following: Inspect transit vehicles, fueling site, and maintenance facilities. Review the monitoring and reconciling of gasoline and diesel fuel inventories. Review route scheduling and overtime determination processes. Review the financial revenue recording, tracking, and reporting. Review the maintenance work-order and inventory systems. Review planning data collection systems and related key indicator reporting. Review ADA eligibility, scheduling, routing, billing, revenue collection & reconciliation. The time and cost were 648 hrs and $34, Lee County Transit (Lee Tran) Background Lee County Transit is known as Lee Tran. Lee Tran is operated by Lee County government and is responsible to the Lee County Board of County Commissioners. The County assumed official ownership of the transit service in At that time, the system consisted of several fixed-route bus lines connecting the City of Cape Coral, the City of Fort Myers, and the rest of the unincorporated County. Since the beginning of transit service operations in Lee County, many improvements and service expansions have been implemented that have assisted in improving the public transportation services provided within the county limits. Lee Tran operates a fixed route public transportation service in the county through its Transit division. Lee Tran currently operates 17 bus routes. Sixteen of the bus routes operate on a scheduled fixed-route system at least six days per week. Routes 15, 50, 100, 120, and 140 operate expanded hours on Sundays. Route 160 provides limited express bus service to Pine Island on Thursdays. Lee Tran provides trolley service, branded as The Trollee, along Fort Myers Beach and also provides two park-and-ride trolleys that connect to the Fort Myers Beach trolley. One of the park-and-ride lots is located at Summerlin Square to the north of Estero Island (Fort Myers Beach) and the other is in Bonita Springs to the south of Estero Island. All three trolley systems operate during the peak tourist season. During the off-peak season, the three routes are combined into one for efficiency. The established regular one-way bus fare is $1.25. Half-fares are available to youths, seniors, and persons with disabilities. The bus service is marketed to riders in all age groups. Passengers must be able to board, disembark, and manage their own belongings on and off the vehicles. Most routes 2

6 operate between 5:00 a.m. and 9:45 p.m. Monday through Saturday, with limited corridor service and service to the beach areas on Sundays between 6:00 a.m. until 9:45 p.m., as well as service to the Southwest Florida International Airport. ADA Para-transit Service Background The ADA (American Disabilities Act) requires that operators of federally subsidized fixed-route transit service also provide complementary door-to-door Para-transit service for people living within ¾ mile of fixed bus routes who are unable to use the fixed-route service due to a disability. To meet the requirements of the ADA, Lee Tran has created Passport, Lee Tran s ADA Para-transit service. By definition, Para-transit means those elements of public transit which provide service between specific origins and destinations selected by the individual user with such service being provided at a time that is agreed upon by the user and the provider of the service. Para-transit service is provided by demand-responsive operations that are characterized by their nonscheduled, non-fixed route nature. This term applies to the County s ADA Paratransit demand program. This service is available to ADA-eligible persons in Lee County during regular fixed bus route service hours seven days a week. Passport is used to complement the fixed-route system by serving ADA-eligible elderly and any person with disabilities who live within the prescribed distance from a fixed bus route. Up until February 2005, Lee Tran met its provision of the complementary Para-transit service by subcontracting it out to a series of different contractors. The last of these was the County s CTC, Good Wheels, Inc., which had been operating the ADA service since July In February 2005, Lee Tran began managing its own ADA program trips. Lee Tran now takes reservations, schedules and provides its own transportation for all ADA-related trips. While Lee Tran split off ADA services from the CTC, Good Wheels, they continue to provide the other TD services in the County. Transportation Disadvantaged (TD) user of the system means, Those persons who because of physical or mental disability, income status, or age, or who for other reasons are unable to transport themselves or to purchase transportation, and are therefore, dependent upon others to obtain access to health care, employment, education, shopping, social activities, or other life sustaining activities, or children who are disabled or high risk or at risk as defined in Chapter , Florida Statutes. 3

7 Service Coverage Services are provided from North Fort Myers to Bonita Springs and Pine Island to Lehigh Acres in the county that encompasses approximately 811 square miles. Ridership 3,100,000 3,050,000 3,000,000 2,950,000 2,900,000 2,850,000 2,800,000 2,750,000 2,700,

8 Ridership statistics are routinely monitored by route by month by area served. Ridership 13.50% 13.74% 58.24% 11.80% 2.72% % Revenue Route # Fort Myers Cape Coral Unicorp. Lee FMB Bonita Spr Total Revenue per Rider , ,615 $ 93,815 $ ,346 82,346 $ 59,541 $ , ,766 $ 92,037 $ , ,770 $ 87,984 $ ,620 55,620 $ 48,295 $ ,558 96,558 $ 74,711 $ ,175 36,175 $ 24,984 $ , ,245 $ 142,923 $ ,833 27,833 $ 13,757 $ ,509 82,509 $ 75,081 $ , ,727 $ 245,999 $ , ,652 $ 109,259 $ ,791 53,791 $ 41,802 $ , ,564 $ 114,485 $ , ,721 $ 655,505 $ ,491 68,491 $ 80,331 $ $ 963 $ , ,897 $ 177,185 $ ,306 13,306 $ 7,352 $ ,865 73,865 $ 45,707 $ 0.62 $ ,574 5,574 $ 1,318 $ 0.24 FY , ,949 1,750, ,762 81,797 3,005,897 $ 2,193,033 $ 0.73 Expense trend resembles the transit ridership trend over the past few years as adjustments were made by Lee Tran to react to the region s economic conditions. 5

9 FTE increase in Fiscal 2005 as ADA Para-transit operations began by Lee Tran. Lee Tran FTEs Fuel inventories were inspected and successfully reconciled during audit test period. Lee Tran maintains solid controls over fuel inventories. Gallons 25,000 Unleaded Diesel Fuel Inventory 20,000 15,000 10,000 5, /1 2/2 2/3 2/4 2/5 2/6 2/7 2/8 2/9 2/10 2/11 2/12 2/13 2/14 2/15 6

10 Lee Tran s ADA Para-transit operation required investment since fiscal ADA Expenses $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Note: Figures for fiscal year 2010 did not include any operation fuel costs. Lee Tran s Ten-Year Transit Development Plan The transit development plan (TDP) is the long-range financial and planning document of Lee County's transit system, and must be consistent with the county s comprehensive plans. Lee Tran, as transit provider, must develop and maintain a TDP in accordance with state statutes in order to remain eligible for state transit block grants. Lee Tran must provide an annual progress report to the Florida Department of Transportation in September of each year. The current guiding document is the TDP major update. Also, the Transportation Disadvantaged Service Plan must be consistent, to the maximum extent feasible, with the Lee County Transit Development Plan. Required Reporting The State of Florida Public Transit Block Grant Program was enacted by the Florida Legislature to provide a stable source of state funding for public transportation agencies, such as the transit service Lee County provides through Lee Tran. The Block Grant Program requires Lee County, as a public transit service provider, to develop and adopt a TDP. Under Florida Administrative Code Rule , TDP progress reports must be completed annually and submitted to the State by September 1. The plan must 7

11 be found consistent with the approved government comprehensive plans and the MPO s Long Range Transportation Plan. Much effort is expended in generating the required material for these reports. The Lee County TDP is the strategic guide for public transportation in Lee County covering a 10 year period of time similar to the Lee Comprehensive Plan. Lee County completed a major update of the TDP in 2006 which included an evaluation of existing services, a review of demographic and travel behavior characteristics of the service area, a summary of local transit policies, the development of proposed transit enhancements, and the preparation of a ten-year planning horizon. Annual progress reports include past year s accomplishments as compared to the original implementation program. The report also includes an analysis of any discrepancies between the plan and its implementation for the past year and outlines steps that will be taken to attain original goals and objectives along with any revisions to the implementation program for the coming year. A revised implementation program for the tenth year is added with recommendations for the new tenth year of the updated plan. A revised financial plan with revised projects or services needed to meet the goals and objectives is included in the annual report. The report also includes updates for projects which funding may not have been previously identified. Major Initiatives The County continues to move towards a dedicated transit funding source. Lee County administration continues to fund future transit system capital improvements and maintenance commitments. Lee Tran continues to maintain balanced core service priorities to future costs and revenue streams. Lee Tran continues progress with customer service enhancements with the installation of new shelters and rider related amenities. Current Planning Initiatives: 1. New centralized operating facility 2. Edison Mall transfer center 3. Hybrid bus deployment analyses 4. Trip planning/scheduling software enhancements 5. Bus shelter project progression 6. Customer service software refinement 7. Bus rapid transit (BRT) & commuter planning 8. Beach park & ride enhancements 9. Safety & security initiatives 8

12 Ridership input monitoring: Improve the quality of transit service (e.g., on-time performance, frequencies, regional connectivity). Rider & community suggestions Mold transit so that it can meet the needs of a variety of users. Provide more service on Pine Island Road and Veteran s Parkway. Provide more buses on the routes (i.e., better frequency) to improve ontime performance and make the service more reliable and convenient for users. Implement a system of park-and-ride lots and express routes. Ponder the use of light rail, which may be more successful at attracting people out of their cars. Operational Monitoring and Continual Improvement Functional areas monitored: Transit system operations, including, but not limited to, realigning route structures, increasing system average speed, decreasing deadhead mileage, expanding area coverage, and improving schedule adherence; Transit system maintenance procedures, including, but not limited to, effective preventive maintenance programs, improved mechanics training programs, decreasing service repair calls, decreasing parts inventory requirements, and decreasing equipment downtime; Transit marketing and consumer information programs, including, but not limited to, automated information services, organized advertising and promotion programs, and signing of designated stops; and Transit system technology involved in overall operations, including, but not limited to, transit equipment, fare collection techniques, electronic data processing applications, scheduling, demand management and vehicle/bus locators. 9

13 Routine Customer Notifications / Disruption of Services Customer notifications are provided through newspapers, news programs, flyers, and through the Lee Tran website. Adjustments to routes are constantly needed to accommodate county construction projects or major roadway obstacles. Detours Route 40 Southbound: Construction on Santa Barbara Boulevard has closed four southbound bus stops between SW 13th Terrace and SW 21st Terrace. Drivers need to deal with continual changes in traffic patterns and detours. Drivers are notified of traffic conditions through constant communication with route administrators. Traffic is a constant challenge in Lee County especially during the winter season. Route adjustments are made on the fly to keep buses on schedule throughout the day. Spare vehicles are utilized in extreme circumstances to maintain daily uninterrupted service to customers. Minor inconveniences are a reality in this business, but efforts continue toward reasonable improvements. Benchmarking State of Florida published statistics on average transportation costs for fixed & TD trips. $25.00 $20.00 $15.00 $10.00 $5.00 Florida Transportation Cost (Per Trip) $ Para-transit Fixed Route Fixed Route Para-transit 10

14 State of Florida published Transportation Disadvantaged funding analysis. Florida Transportation Disadvantaged Funding Local Non-Government 4% Fare Box 7% CTD (Commission for the Transp. Dis.) 10% FDOT & USDOT (Dept. of Transportation) 5% DCF (Children and Families) 6% AHCA (Health Care Administration- Medicaid) 16% Local Government 49% DOE (Education) 0% Other Federal Programs 1% DOH/DCA/DJJ/AWI (Health, Community Affairs, Juvenile Justice, Agency for Workforce Innov.) 0% DOEA (Elderly Affairs) 2% 11

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