Riding Program - Feasibility and Insurance Options

Transcription

1 Feasibility and Insurance Options for Ride Programs propriate McNair Illustration Here POTENTIAL USE OF RIDE PROGRAM WILL BE DETERMINED BY: Numbers of seniors in the catchment area Alternatives available Income profile of seniors Amount of subsidy dollars available to subsidize rides The majority of these numbers will be included in the Needs Assessment which is generally completed prior to a Feasibility Analysis. Other numbers such as amount of subsidy dollars available will be determined by the agency. From these numbers, and through discussions with [potential] program participants, knowledge of the programs successes and challenges from multiple perspectives, other agency staff, and knowledge gleaned by the STAR team through other ride programs, the type of ride program established will vary. With those options come different insurance options due to the programs structure. Some questions related to these options are below. Decisions reflect what will be most feasible for each agency. These options will be compared and shared through a feasibility analysis, generally conducted prior to a program s launch.

2 FEASIBILITY WILL BE DETERMINED BY THE FOLLOWING QUESTIONS: Is the cost per ride affordable to the seniors in the area? -or- is there sufficient subsidy to apply to reduce rides cost to a point where it is affordable? Will the number of riders reach the break-even point at the determined cost per ride? Within a time the agency can afford? Can the agency support the operating costs up to break-even? Can the agency support the capital needed for the model chosen? What type of program the agency would like to see in place? How feasible this option is compared to those options recommended by STAR. THERE ARE VARIABLES INCLUDED WITHIN EACH TYPE OF TRANSPORTATION PROGRAM: Individual Ride Program (call to arrange a ride) Driver is paid, or volunteer? Agency owns cars? Or are cars owned co-operatively/jointly? Custom (contracted) Rides Is contractor paid by route? or based on sample quotes? Set routes How many days is the program in operation? What is the route driven? Where is the shuttle bus kept overnight? Storage?

3 COST PER RIDE WILL BE DETERMINED BY: Number of seniors anticipated using the service Number of rides being taken Total operating costs Program Type Example Example Example Example Volunteer Driver (Own Car) One. $5/ride (minimum) + $0.41/km to driver. (ONLY PRICE FOR USER AVAILABLE) Two. $3.00 per ride, $6.00 return trip within limited boundaries (ONLY PRICE FOR USER AVAILABLE) Three. Fuel reimbursement costs only (at $0.48/mile or 1.6km) However it is noted that the volunteer driving program often accrues more costs as more hours are spent arranging rides trips. Average cost = $24.39/trip. Four. $12 per trip within Langley, $55 to Vancouver. Volunteers donate 20% of fees paid by passengers back to the agency. Program participants pay $30 annual fee. Dispatcher (PT): $32,000/year, Admin: $2,750/year Volunteer Driver (Agency Vehicle) No examples available of volunteer driving program operating agency vehicle.

4 Shuttle Bus or Van Example One. Maintenance, Insurance, Repairs = Approx. $100/week Overall budget: $38,800/year (no vehicle acquisition) providing 6,388 rides. No information related to other costs. Example Two. Costs per year: Driver Wages = $47,200 Promotion = $3500 Repairs, maintenance, and fuel = $13,500. TOTAL: $64,200/year. Approximately 256 rides per week. Insurance (in kind) by local seniors housing authority. Vehicle acquisition costs not included. Wheelchair Equipped Bus One. Call a Ride Service Small Area: $359,000/28,000 rides (fewer kilometers, more rides) = $12.82/ride Large Area: $500,000/18,000 Rides (more kilometers to reach destinations)= $27.77/ride. Also rents buses for $75/hr +$1.75/mile (1.6km) One Cont. Urban Shuttle Services: 81,000 trips (avg. $21.91/trip) Rural shuttle services: 18,200 trips (avg $27.83/trip) Vehicle depreciation on a five year timeline. $4000/year/vehicle for maintenance. 20,000 25,000 miles annually. Drivers paid $10/hour - $15/hour. Example Two. Non Profit Agency renting shuttle to other groups. Bus rents for $34/running hour, $20.00/parked hour. Seating for 17 seniors, 6 attendants, and 6 wheelchairs (or other combinations). Mileage will be recorded to ensure it is correct relative to hours.

5 OPERATING COST WILL BE DETERMINED BY TYPE OF SERVICE Volunteer Driver using own car What costs will be borne by agency? Agency Shuttle driving fixed route Drivers paid salary Maintenance Insurance Operating costs per kilometer? Vehicle rental (if the option is considered more feasible Fuel On-Demand Shuttle Drivers paid salary Maintenance Fuel Vehicle rental (if ownership isn t encouraged) Insurance The vehicle options on the following page provide an overview of basic costs associated with vehicle ownership for each agency. It is important to note that these costs are associated with the newest models available; they are therefore higher than older models which may be purchased by agencies as well. Insurance rates vary based on the purchase price of the vehicle, whether or not there is a primary operator (this is unlikely in any program structure), whether collision and comprehensive is included (in which case we have included it), rate class. How rides are paid for also provides variations on insurance rates as demonstrated below. Overall many factors must be considered when creating a transportation program. Examples of more exact amounts for corresponding models are as follows: Sedans (agencies providing vehicles for volunteer driving programs, or program based on call for rides) Price of Acquisition (New Models) Insurance Rates per Year* Business Use 2012 Toyota Camry $23,700 - $29,900 $3649 ($304/month) 2012 Ford Fusion $17,084 - $24,419 $3849 ($320/month) 2012 Ford Fiesta $13,504 - $15,004 $3725 ($310/month) *These rates include Extension Third Party Liability ($5,000,000), Collision ($1000), and Comprehensive ($300), and License and registration fees, and new plate.

6 How the sedans are used will dictate the insurance type - as a business vehicle the rate class will be 007, as a private passenger carrying vehicle, the rate class will be 670. It is recommended to have business coverage for vehicles as other tasks may be completed in the vehicle that would then be insured only as private passenger vehicles and may compromise insurance. The price range above demonstrates little difference in insurance rates when considering only purchase price (less expensive models may still reach higher insurance rates). No discounts are available for vehicles driven by volunteers unless one is registered as the principle operator which is not recommended. If the ride program is the main source of income for an agency, the agency must insure their vehicles as commercial vehicles; also, if a flat rate is being charged by the agency for rides, the vehicle must be registered as a commercial vehicle which will accrue different rates. It is not recommended to get any other type of coverage for vehicles being purchased by agencies - BUSINESS USE is most recommended. Shuttle Vans (agencies establishing a regular rides program, along a set route) Vehicle Acquisition Insurance Rates per Year* Business Use Mileage 2012 Ford Turtle Top Van Terra XLT 2012 Goshen Coach GC Ford Turtle Top Van Terra 2012 Dodge Sprinter (6-7 Passengers) 2012 Mercedes Sprinter (6-7 Passengers) *There are many variables. $68,823 Approx. $4500/ year (Based on $70,000 vehicle) $75,940 $3688/month (based on price, without lift) $63,500 Approx. $ $4500/year (relevant to other vehicles) $35,000 Approx. $3400/year (Based on $35,000 vehicle) $42,900 Approx. $3500/year (Relevant to other vehicles)

7 MORE EXACT COSTS BASED ON VEHICLE ACQUISITION RATES ARE: Shuttle Vans (agencies establishing a regular rides program) Vehicle Acquisition Insurance Rates per Year* Business Use, Rate Class: 670 $26,001-$28,000 $2422 ($201/month) $40,001 - $45,000 $3316 ($276/month) $60,001 - $65,000 $3535 ($294/month) $65,001 - $70,000 $3596 ($300.month) $70,001 - $75,000 $3643 ($303/month) $75,001 - $80,000 $3688 ($307/month) $80,001 - $90,000 $3800 ($316/month) * These rates are for Rate Class 670 (2-21 Passenger Vehicle - School Bus or Private Use), they include extension third party liability ($10,000,000), collision ($1,000), and comprehensive ($300). They are based on no primary operator and include license and registration fees and the cost of a new plate. Again, no discounts are available for vehicles driven by volunteers unless one is registered as the principle operator. If the ride program is the main source of income for an agency, the agency must insure their vehicles as commercial vehicles; also, if a flat rate is being charged by the agency for rides, the vehicle must be registered as a commercial vehicle. These rates are based on Rate Class School bus and private bus use. Passenger carrying capacity 2-21 inclusive. The same rates apply to wheelchair-equipped buses; however rates are adjusted according to vehicle weight. Often lifts can be heavy and may therefore require different licensing and additional insurance rates, although the additional rates are not significant ($ /year higher than without lift). Also, because lifts are expensive to replace or repair, additional insurance rates may be applied. Overall, shuttles or buses equipped with lifts will accrue higher costs - mostly due to licensing which is based on the vehicles weight.

8 Accessible Buses Vehicle Acquisition *prices do not include lift Insurance Rates per year* Mileage 2012/2011 Ford Eldorado National Aerotech Para- Transit Bus $81,928 / Under $70,000 Approx. $ $3800, plus approximately $ additional for weight considerations =Roughly $3, Arboc Mobility Low Floor Bus (17/21 Passengers) Under$ 70,000 Approx. $3596/year, plus approximately $ additional for weight considerations = Roughly $3, Goshen Coach GC11 Para Transit Bus (16 Passengers / convertible for 2-6 wheelchairs) Under $70,000 (no lift - low floor) Approx. $3596/year, plus approximately $ additional for weight considerations = Roughly $3, Eldorado Aerotech Para-Transit Bus Under 81,928 - with Ricon K-5510 Wheelchair lift. Approx. $3800/year, plus approximately $ additional for weight considerations = Roughly $3,925 *There are many variables. These prices reflect insurance quotes from vehicles prior to lift being added. The approximate increase in price of between $ has been generalized to $125/year additional for insurance increases due to weight of the vehicle (GVW). Curb weight at maximum capacity will be measured when vehicle is inspected. When lifts are added after the vehicle has been manufactured, ICBC provides $5,000 additional equipment coverage. Additional coverage is still recommended.

9 ADDITIONAL NOTES: Vans and buses will require maintenance and repairs. Wheelchair lifts may need additional maintenance. Maintenance costs can range from $38/week (or $1980/year, Dynamic Bus Sales and Service Plan) - $100/week (as reported from some agencies). If there is not one principle operator, there are no discounts. Comprehensive and collision add to base insurance costs and are included in the above prices as this additional coverage is always encouraged. ICBC only covers driving; loading and unloading fall under commercial general liability. Most agencies likely have their own insurance. Commercial vehicles (business) require annual inspections and will require a National Safety Code. To learn more about National Safety Codes visit : IN HOUSE REQUIREMENTS: Some of these requirements may accrue additional costs. Signing seniors up for service Scheduling Rides (depending on type of service) Reporting required Training Overhead Costs for Agencies Premises Insurance Accounting/Book keeping Management/Executive Phone/Utilities Equipment (and depreciation) Total overhead costs for agencies Example costs $25,000/year $2,500/year $15,000/year $35,000/year $8,000/year $6,000/year $91,500/year In order to calculate overhead costs for seniors transportation driving programs multiply the % of size of rides program compared to overhead costs. If our example agency allots 10% of its overhead costs for the transportation program, in this case, the programs overhead costs would be $9,150/year.

10 OTHER PROGRAM COSTS TO CONSIDER INCLUDE: NEEDED: Additional Insurance requirements Promotion, dissemination Legal costs STAR fees Additional premises costs (People? Vehicles?) 3-5 years operating income/expenses (depending on when break-even point may be reached) Schedule of anticipated capital costs Cash Flow forecast by month up to break-even year, by quarter after that Projected Balance Sheets, Opening and for each year-end included It is recommended that any agency looking to launch a ride program, or make adjustments to their current program contact ICBC. Contact for insurance inquiries: Referred by ICBC to Passenger Transportation Licensing Phone: Rate Class: 670 BEST Better Environmentally Sound Transportation East Broadway, Vancouver, BC, Canada V5T 1W2 t: e: [email protected] w: starcanada.ca