NOVEMBER 5, 1997

Los Angeles County

Metropolitan

Transportation

A~horiw

One Gateway Plaza

Los Angeles, CA

9o0~2

213.922.6000

TO:

FROM:

SUBJECT:

BOARD OF DIRECTORS

ELLEN G. LEVINE, EXECUTIVE OFFICER -~

/TRANSIT OPERATIONS

TRANSIT OPERATIONS PERFORlVLA_NCE REPORTSEPTEMBER 1997

The attached report has been developed to provide an objective picture of operatingperformance of our bus system. The report is divided into five categories:

Service PerformanceMaintenance PerformanceFinancial PerformanceSafetyCustomer Satisfaction

Transit Operations Management plans to present this report each month. This reportrepresents September data and is the first to be presented to the Board and otherinterested parties in this form. Data becomes available 15 days after the end of themonth and requires approximately two weeks to analyze and process. In all, theBoard can anticipate a one-month delay in receiving the report. In the future, Rail,contract services, and other Transit Operations data will be added. In addition,detailed Financial Performance data will be included in this report once a budget isadopted and financial information becomes available.

We expect to modify and improve these reports in succeeding momhs and to presentspecial reports to highlight specific areas of concern or accomplishment aswarranted. Please call me at (213) 922-4314 if you have requests for information format changes.

Transit OperationsPerformance Report

September 1997

Prepared by:

Los Angeles CountyMetropolitan Transportation Authority

Transit Operations Division

TABLE OF CONTENTS

Service PerformanceOn-Time Pullout PercentageOutlates and Cancellations by DivisionBoardings per Revenue Service Hour

Maintenance PerformanceMean Miles Between Mechanical FailuresPast Due Critical Preventive MaintenanceProgram

Financial PerformanceFare Revenue

SafetyTraffic Accidents per 100,000 Hub Miles

Customer SatisfactionComplaints per 100,000 BoardingsComplaints by Major CategoryWheelchair Lift Defect Rate

Page 1

Page 6

Page 9

Page 10

Page 11

Summary Page 16

Page 1

SERVICE PERFORMANCEOn-Time Pullout Percentage

Definition: On-time Pullout Performance measures the percentage of buses leaving the operating divisionwithin ten minutes of the scheduled pull-out time. The higher the number, the more reliable the service.

Calculation: OTP% = [(100% - [(Total late and cancelled runs/Total scheduled pullouts) * 100)]

100.0%

99.0%

98.0%

97.0%

JUL

Systemwide - Three Year Trend

OCT JAN APR JUL OCT JAN APR JUL OCT JAN APR

__ On-time Perforrrance 3 Month Moving Average

Analysis: On-time performance continues to fall below an acceptable level of 99.5%. August showed aone-month improvement after six months of declining performance; September resumed the downtrend.The reasons for the declining performance are attributed to the following factors:

1. Ethanol bus failures;2. Bus operator shortages due to UTU contract negotiations last summer;3. Inadequate supervision of maintenance personnel at the divisions;4. The lack of an ATU contract which affected morale and the performance of the employees.

In addition, as noted in the Operations Business Plan, the real measure of On-Time Performance shouldbe the impact on service. Operations is developing a methodology for collecting this data and will report itin the future.

Corrective Actions: The following actions are proposed to improve the on-time pullout performance:

1. Convert the ethanol buses to non-alcohol fuel to improve reliability;2. Increase the bus operator hiring program and focus new operator training at the division level

to prepare operators for revenue service in six weeks instead of eight weeks;3. Implement the Maintenance Improvement Program (MIP) Leader Guidelines in December

1997;4. Hire the staff identified in the FY98 budget to increase maintenance supervision at the

operating divisions;5. Implement the ATU/MTA agreement, once it has been ratified by the MTA.

Page 2

SERVICE PERFORMANCE - Continued

Bus Operating Divisions - August & September 1997

100%

98%

96%

94%

92%

90%

88%

86%Div Div Div Div Div Div Div D~ Div Div6 10 8 7 15 9 3 18 1 2

¯ August rq September

5

Fleet Mix by Divisions - September 1997

lOO%

8o%

60%

40%

20%

0%Oiv Div Div Div Oiv Div Div Div Div Div Div3 7 8 6 1 15 9 10 18 5 2

ril-lEthanot I~Other Diesel ~Flex-metro Diesel r-ICNG !

Analysis: During the month of September, Divisions 6, 10, 8, and 7, performed best with 99.2% to 99.4%on-time pullouts. Divisions 18, 1, and 2 have the poorest record of on-time performance with 91.1% to96.5%. Only Divisions 10 and 1 showed improvement from August to September. The following chartshows the causes for the cancelled or delayed service. The overwhelming majority of the out-lates andservice cancellations were caused by the unavailability of equipment, although a number of divisions arestill experiencing bus operator shortages. Divisions experiencing problems are directly related to thetypes of equipment assigned. The ethanol and Flex-metro buses continue to be the most challenging tomaintain.

Corrective Actions: Management took several steps during October to provide short-term solutions tothe bus availability problems:

1. Modified three divisions to provide capability to fuel ethanol buses.2. Moved ethanol buses to Division 3 and planned to move ethanol buses to Divisions 5 and 7 in

November to minimize the number of miles placed on the buses each day and provide longertime between catastrophic engine failures;

3. Turned the fuel pressure back up to 3600 psi on the CNG buses to lengthen the trip miles oneach CNG bus;

4. Hired and began training 55 new operators in September, with an additional 60 new operatorsscheduled each month for October, November, and December;

5. In the long term, Flex-metro buses will be retired and replaced as they become eligible.

Page 3

SERVICE PERFORMANCE - Continued

Division

915

Sub-Total

Bus Operating Divisions -September 1997

OUTLATES

i "/oOt~ Pull-

Number! outs

~egion10-5i 1.956! 1.0231 d75--48i 0-_8 --471 0.8

279! 1.0

-Southern Region25 "67--

101-8

Sub-Total

TOTAL

23~t79i 1.43! 0~2

33! 0C52.-9 ....

611! 1.9

CANCELLATIONS~ % Ot

i Pull-Number outs

TOTAL ON-TIME

PULL-OUTRATE

168~----3~d 951-.519~ ~3 9-8.6-12 ,~------0-_3 --9-9T. 3-

--20’, d73- 9-8~8-14; 0~-2 99.0

233~ 0.8 98.2

15-0i 3.4 91.1171 ’ 0.~ 9-8-..341 0.3 99.42-~----0~-0 9-9-..25 0~-I 9-9.4

391~0T5 9-6.-5217 0.T 97.4

REASONS FOROUTLATES and

CANCELLATIONSBus

No Operator MechanicalAvailable Failure

12~, 2-6~12-5i 5-C-2-1t 14

11! 5C86i 425

19! 77

416~ 5"28j

6~7!1421 886

890! 1.5% 450; 0.8%i 97.7% 228i 1112

Analysis:, Although all eleven divisions performed below the standard set for on-time performance(99.5%) during September, Divisions 1 and 2 cancelled service between 3.02% and 3.41% of their service(more than any of the other divisions). Both of these divisions were running ethanol buses during themonth. Division 18, the division with the third highest outlate/cancellation rate, has new CNG buses whichare experiencing engine difficulties.

Corrective Actions: The following actions will improve the on-time pull-out rate:1. The ethanol buses will be spread to three additional divisions (Divisions 3, 5, and 7) effective

November 1997. This will have the effect of equalizing the bus deployments and shorten the trips forethanol buses, increasing the life between engine failures.

2. The Maintenance Improvement Program (MIP) guidelines are being developed to accomplish thefollowing: Improve the Condition of the Fleet, Improve Staff Technical Skills, Maximize LaborPerformance, and Reduce Maintenance Costs. The guidelines for Maintenance Leaders will be ineffect by December 1, 1997.

3. Bus Operators were equalized during October, bringing Division 2 to the correct ratio of operators toassignments (1.16 operators for every assignment.) However, the equalization did not improveDivision l’s level of operator assignments which remained below 1.11 operators for every assignmentthrough October 18, 1997.

4. An additional equalization action is scheduled for the end of October.5. Transit Operations is working with Cummins Engines to solve problems with new CNG buses.

Page 4

SERVICE PERFORMANCE - Continued

Boardings/Revenue Service Hour

Definition: Boardings per hour is the number of passengers estimated to board during one hour ofrevenue service.

Calculation: Boarding/Hour = (Total Passenger BoardingsFl’otal Revenue Service Hours)

Systemwide - Three Year Trend

60

58

56

54

52

5O

48

46

Brdgs per RSH

Fiscal Year 1996 Fiscal Year 1997 i Fiscal Year 1998

Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr

Bus Operating Divisions -August & September 1997

(# thousands)4,000

Div 7 Div 18 Civ 5 Div 1 Div 10 Div 3 Div 15 Div 2 Div 9 Div 8 Cont]’act Div 6

Servc, e

¯ August (3 September

Analysis: Ridership follows predictable seasonal trends. An increase in boardings reflects a positivetrend in ridership and indicates that we are transporting more people. In order to comply with theConsent Decree, ridership over acceptable load factors will require that we provide additional service.

Corrective Actions: As ridership increases, staff will make necessary service adjustments to ensure thatpassenger loads are within the consent decree guidelines.

Page 5

Miles6000

5000

4000

3000

2000

1000

0

MAINTENANCE PERFORMANCE - Continued

Bus Operating Divisions -August & September 1997Fleet Mix by Fuel Type - September 15, 1997

Div 3 Div 7 Div 8 Div 6 Div 1 Div 15 Div 9 Div 10 Div 18 Div 5 Div 2

nAugust r-I September

100%

80%

60%

40%

20%

0%Div Div Div Div Div Div Div Div Div Div Div3 7 8 6 1 15 9 10 18 5 2

!r3Ethanol .Other Diesel E3Flex-metro Diesel r.3CNG I

Analysis: The types of buses assigned to a division has significant impact on the mean miles betweenmechanical failures. Divisions 3 and 7 have the highest number of mean miles between vehicle failuresand have fleets which are comprised only of diesel buses. Those divisions with a high percentage ofethanol and Flex-metro buses exhibit the poorest performance.

Corrective Actions: The steps taken to improve the miles between roadcalls are the same stepsdescribed previously in correcting service performance:

1. Modified three divisions to provide capability to fuel ethanol buses.2. Moved ethanol buses to Division 3 and planned to move ethanol buses to Divisions 5 and 7 in

November to minimize the number of miles placed on the buses each day and provide longertime between catastrophic engine failures;

3. Turned the fuel pressure back up to 3600 psi on the CNG buses to lengthen the trip miles oneach CNG bus;

4. The Maintenance Improvement Program (MIP) guidelines were developed to accomplish thefollowing: Improve the Condition of the Fleet, Improve Staff Technical Skills, Maximize LaborPerformance, and Reduce Maintenance Costs.

Page 7

MAINTENANCE PERFORMANCE - Continued

Past Due Critical Preventive Maintenance Program (PMPs)

Definition: Average past due critical scheduled preventive maintenance jobs per bus. This indicatormeasures maintenance management’s ability to prioritize and perform critical repairs and indicates thegeneral maintenance condition of the fleet.

Calculation: Past Due Critical PMP’s = (Total Past Due Critical PMP’s/Buses)

Bus Operating Divisions - August & September 1997DOWN ,ili;

Ratio of PMP’s per BusGOOD ~i

Div ~v Div D~ ~v ~v ~v Div ~v D~ D~3 8 18 10 7 6 15 1 5 2 9

i ¯ August E] September

Analysis: One would expect to see a strong correlation between Past Due PMP’s and maintenance-related performance indicators such as On-Time Performance, Miles Between Vehicle Failures, etc.. Forexample, Division 3 has the lowest past due PMP’s and the greatest amount of mean miles betweenmechanical failures. However, there are some anomalies: Division 9, despite the high number of past duePMP’s, has not exhibited a corresponding negative performance in those maintenance-relatedperformance indicators. This phenomenon is the result of Division 9’s management expertise indetermining which PMP’s must have first priority in order to maintain service. However, this is only a shortterm solution and will result in service performance decline if this practice is continued.

Corrective Actions: The PMP program is a critical element of the Maintenance Improvement Program(MIP) which involves revising standards for PMP work to improve maintenance productivity. The FY98budget included revised PMP parameters which, when implemented, will allow maintenance personnel tofocus their attention on improving the critical PMP’s.

Page 8

($ millions)

$6o

FINANCIAL PERFORMANCEFare Revenue

Systemwide - Three Year Trend by Quarters

$5O

$40

$30

$20

$10

$0Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul -Sep Dec Mar Jun Sep Dec Mar Jun Sep95 95 96 96 96 96 97 97 97

i¯ Pass Sales r-i Farebox Cash [] Tokens

Analysis: Fare revenues for FY98 are improved compared to this time FY97 and FY96. The farerevenue for FY98 is on budget for the first quarter of FY98. The annual budget for FY98 fare revenue is$220 million; the first quarter revenues (all media combined) is $54 million. Pass and token sales areexpected to increase while cash sales are expected to decrease compared to previous years due to theconsent decree fare mandates.

Corrective Actions: The Transit Institute Training Program includes a module to train Bus Operators onmethods for collecting fares from reluctant passengers. The purpose of this module is to improveOperator collection methods. The MTA has also improved counterfeit prevention methods during FY98 toreduce opportunities for fraud.

(Other financial data will be available after adoption of the revised budget.)

Page 9

SAFETY PERFORMANCETraffic Accidents per 100,000 Hub Miles

Systemwide - Three Year Trend

Definition: Average number of Traffic Accidents for every 100,000 Hub Miles traveled. This indicatormeasures system safety.

Calculation: Traffic Accidents Per 100,000 Hub Miles = (# Traffic Accidents/(Hub Miles/100,000))

3 80

3.60

3 .40

3.20

3 .00

2 ,80

2

2.40

2.20

2 .00Jul Oct Jan Apr ul Oct Jan Apt ul Oct Jan Apt

Bus Operating Division -August & September 1997

7.00

a.O0

4.00

3.00

2.00

1.00

Div Div Div Div Div Div Div Div Oiv Div Div9 2 8 18 15 3 5 1 10 7 ~

U August rm Septernl3er

Analysis: During the first quarter of FY98, MTA averaged 2.9 accidents per 100,000 miles. Thisrepresents no significant change from FY97. The consistently low accident rate can be attributed to thehigh number of long term bus operators.

Corrective Actions: Although the MTA experiences a low accident rate, Safety continues to be a highpriority for MTA. Specific programs initiated in FY98 include the following;

1. Injury and Illness Prevention Program - to train employees and keep safety a constantmessage for all workers.

2. Safety Awareness Program - designed to help customers use Metro services safely, and tocommunicate safety information to motorists and pedestrians.

3. The CEO has initiated the integration of all safety resources into one Department reporting tothe Office of the CEO.

Page 10

CUSTOMER SATISFACTIONComplaints per 100,000 Boardings

Systemwide - Three Year Trend

Definition: Average number of customer complaints per 100,000 unlinked passenger trips. This indicatormeasures service quality and customer satisfaction.

Calculation: Customer complaints per 100,000 Boardings = Complaints/(Unlinked PassengerTrips/100,000)

7.2

Fiscal Year 19986.8

6.0

5.6

5.2

4 4

40

FiscalYear1996 Fiscal Year 1997

ul Oct Jan Apt Jul Oct Jan Apr

~M onthly Corn plaints

ul Oct Jan Apr

th Moving Average

Bus Operating Divisions -August & September 1997

25.0

20.0

15.0

10.0

5.0

!IAUgust c3September iL

Page 11

CUSTOMER SATISFACTION - Continued

Complaints per 100,000 Boardings

Analysis: The data indicates that complaints have increased during FY98 after a downtrend in the end ofFY97. The rise in complaints is attributed to the decline in on-time performance resulting from equipmentfailures and a shortage of bus operators. The high number of complaints received during March and Aprilof 1997, can be attributed to the "On-time Guaranteed Ride Program" which encouraged passengerfeedback. Division 1 received the least number of customer complaints during September with only 2.5complaints per 100,000 boardings. The contract service operated by Laidlaw and ATE/Ryder received 23complaints for every 100,000 boarding, during the period reported. Divisions 8, 9, 18, and 6 receivedabout 8 complaints per 100,000 boardings.

Corrective Actions: In addition to the technical corrections identified earlier to reduce equipment failuresand hire new bus operators, Transit Operations started several new programs during FY98 to providebetter response to customers. These programs are the following:

1. Meet the MTA Family - Transit Operations executive management selects a heavily usedlocation on a monthly basis to talk with customers, identify problem areas and listen tocustomer complaints.

2. Consent Decree Joint Working Group(JWG) - Transit Operations management meets weeklywith the JWG to discuss overcrowding and other customer satisfaction issues and to identifyways the MTA can respond to customer requests.

3. Transit Institute - The Transit Institute is a two day training program required for all busoperators to promote the Customer First attitude of the MTA. Included in the training aresessions on sensitivity training, strategies for dealing with difficult people, and empowermentto do the right thing for the customer.

4. Service Quality - The Management Ride program requires MTA management staff to rideMTA service at least three times each month and to report on operator courtesy, cleanlinessof the bus, comfort and adherence to ADA requirements. Management also speaks to thepassengers and records information to make service improvements.

Page 12

CUSTOMER SATISFACTION - Continued

Complaints by Major CategorySystemwide - One Year Trend

Definition: Complaints are defined by a customer telephone or mail received. Each complaint iscategorized and counted.

Calculation: Complaints are counted by the number of telephone and mail complaints received bycategory.

% of Total Complaints by Category

c0mplainti-: Sept: Oct: Nov Dec Jan. Feb

Schedule 39.5 33,4 32,5 28,5 32,4 33,5

Related41,5 39.3 36,7 36,7 37.4 41,2 44,7

15,9 16,7 19,2 16,3 18,7 16,4 13,5 18,3 17.0 13,5 14,9 16,0 16,7Passed Up

Unsafe 9,1 11,7 11,0 9,5 7.8 10,2 9,1 7,3 7,2 9,0 9,6 9,8 8.6OperationOperator 12,8 13,1 13,1 14,8 13.3 15,3 14.1 13,1 15,6 13,4 11.6 10,8 9,3

DiscourtesyOther 22,7 25,1 24,2 30,8 27,7 24,6 21,7 22,1 23,9 27,4 26,6 22,2 20,8

Analysis: The one-year trend shows that the highest number of complaints are related to servicereliability. Forty-five percent of all complaints received are schedule-related. This is consistent with on-time performance and service cancellations reported earlier in the report.

Corrective Actions: Management took several steps during October to provide near-term solutions tothe bus availability problems:

1. Modified three divisions to provide capability to fuel ethanol buses.2. Moved ethanol buses to Division 3 and planned to move ethanol buses to Divisions 5 and 7 in

November to minimize the number of miles placed on the buses each day and provide longertime between catastrophic engine failures;

3. Turned the fuel pressure back up to 3600 psi on the CNG buses to lengthen the trip miles oneach CNG bus;

4. Hired and began training 55 new operators in September, with an additional 60 new operatorsscheduled each month for October, November, and December;

5. In the long term, Flex-metro buses will be retired and replaced as they become eligible.

Page 13

CUSTOMER SATISFACTION - Continued

Wheelchair Lift Defect RateSystemwide 1997 Through September 1997

Definition: This performance indicator expresses the number of inoperative wheelchair lifts as apercentage of the fleet.

Calculation: % Assigned Buses with Wheelchair Lift Defects = Wheelchair lifts with defectsfTotalassigned buses.

7oz_%,o Buses with Wheelchair defects, III

~%

2%

~%

o%Jan-97 Feb-97 Mar-97 Apr-97 May-97 Jun-97 Jul-97 Aug-97 Sep-97

Analysis: The 9 month trend indicates that wheelchair lift defects have decreased to 2% of assignedbuses.

Corrective Actions: A temporary instructor was hired in August 1997 to train additional maintenancepersonnel to ensure that a sufficient number of qualified mechanics were available at each division torepair wheelchair lifts. Continued emphasis and stress on wheelchair lift maintenance and continuedtraining of mechanics will maintain or improve the current level of performance.

Page 14

TRANSIT OPERATIONS PERFORMANCE REPORT

Summary

In general, service and maintenance performance are on a downward trend. Thisdeclining trend was first noted last year. As Transit Operations management reviewedthe performance reports during January, February, and March 1997, several problemareas were evident. The main concern was focused in the Maintenance Performanceareas. Performance problems were evident in declining on-time performance, fleetreliability, and increased overtime usage.

Looking back for the last three years, maintenance performance declined with the shiftto the regional concept, the aging fleet and increased ethanol/Flex-metro problems. Asthe maintenance function shifted from a more technical management staff to moregeneralized management at the divisions, performance in the technical areas declined.Current Transit Operations management focused attention on the decliningperformance and proposed several programs to dramatically improve performance inthe FY98 budget. The proposed programs were to be implemented on a cost neutralbasis.

The primary change proposed in the F¥98 budget was increased supervision in theMaintenance areas. The increased personnel will allow for adequate shift coverageand improved supervision at each division. Although the initial steps of the personnelchanges were implemented in July 1997 (management and other supervisory personnelwere laid off to create the vacancy savings necessary to increase technicalmaintenance supervision at each division), the new maintenance personnel have notyet been hired due to the hiring freeze implemented in August 1997. The lack ofadequate supervision, coupled with a workforce unsure of the outcome of pending labornegotiations and fleet aging/equipment issues, resulted in additional performancedowntrends during the first quarter of FY98. Transit Operations anticipates allpersonnel will be hired and on-board by December 1, 1997.

In addition to the staffing changes proposed during FY98, Transit Operations identifiedthe constant failure of the ethanol fleet as a major cause for declining performance.Transit Operations will bring to the Board in December a proposal for converting theethanol fleet to a more reliable technology.

Page 15

CUSTOMER SATISFACTION - Continued

Complaints by Major CategorySystemwide - One Year Trend

Definition: Complaints are defined by a customer telephone or mail received. Each complaint iscategorized and counted,

Calculation: Complaints are counted by the number of telephone and mail complaints received bycategory.

Feb; Mar Apr

33.5 41.5 39.3 36.7 36.7 37.4 41.2 44.7

15.9 16.7 19.2 16.3 18.7 16.4 13.5 18.3 17.0 13.5 14.9 16.0 16.7

Passed UpUnsafe 9.1 11.7 11.0 9.5 7.8 10.2 9.1 7.3 7.2 9.0 9.6 9.8 8.6

OperationOperator 12.8 13.1 13.1 14.8’13.3 15.3 14.1 13.1 15.6 13.4 11.6 10.8 9.3

DiscourtesyOther 22.7 25.1 24.2 30.8 27.7 24.6 21.7 22.1 23.9 27.4 26.6 22.2 20.8

Analysis: The one-year trend shows that the highest number of complaints are related to servicereliability. Forty-five percent of all complaints received are schedule-related. This is consistent with on-time performance and service cancellations reported earlier in the report.

Corrective Actions: Management took several steps during October to provide near-term solutions tothe bus availability problems:

1. Modified three divisions to provide capability to fuel ethanol buses.2. Moved ethanol buses to Division 3 and planned to move ethanol buses to Divisions 5 and 7 in

November to minimize the number of miles placed on the buses each day and provide longertime between catastrophic engine failures;

3. Turned the fuel pressure back up to 3600 psi on the CNG buses to lengthen the trip miles oneach CNG bus;

4. Hired and began training 55 new operators in September, with an additional 60 new operatorsscheduled each month for October, November, and December;

5. In the long term, Flex-metro buses will be retired and replaced as they become eligible.

Page 13

CUSTOMER SATISFACTION - Continued

Wheelchair Lift Defect RateSystemwide 1997 Through September 1997

Definition: This performance indicator expresses the number of inoperative wheelchair lifts as apercentage of the fleet.

Calculation: % Assigned Buses with Wheelchair Lift Defects = Wheelchair lifts with defects/Totalassigned buses.

7%% Buses with Wheelchair defects

6%

5%

4%

3%

2%

1%

O%Jan-97 Feb-97 Mar-97 Apt-97 May-97 Jun-97 Jul-97 Aug-97 Sep-97

Analysis: The 9 month trend indicates that wheelchair lift defects have decreased to 2% of assignedbuses.

Corrective Actions: A temporary instructor was hired in August 1997 to train additional maintenancepersonnel to ensure that a sufficient number of qualified mechanics were available at each division torepair wheelchair lifts. Continued emphasis and stress on wheelchair lift maintenance and continuedtraining of mechanics will maintain or improve the current level of performance.

Page 14

TRANSIT OPERATIONS PERFORMANCE REPORT

Summary

In general, service and maintenance performance are on a downward trend. Thisdeclining trend was first noted last year. As Transit Operations management reviewedthe performance reports during January, February, and March 1997, several problemareas were evident. The main concern was focused in the Maintenance Performanceareas. Performance problems were evident in declining on-time performance, fleetreliability, and increased overtime usage.

Looking back for the last three years, maintenance performance declined with the shiftto the regional concept, the aging fleet and increased ethanol/Flex-metro problems. Asthe maintenance function shifted from a more technical management staff to moregeneralized management at the divisions, performance in the technical areas declined.Current Transit Operations management focused attention on the decliningperformance and proposed several programs to dramatically improve performance inthe FY98 budget. The proposed programs were to be implemented on a cost neutralbasis.

The primary change proposed in the FY98 budget was increased supervision in theMaintenance areas. The increased personnel will allow for adequate shift coverageand improved supervision at each division. Although the initial steps of the personnelchanges were implemented in July 1997 (management and other supervisory personnelwere laid off to create the vacancy savings necessary to increase technicalmaintenance supervision at each division), the new maintenance personnel have notyet been hired due to the hiring freeze implemented in August 1997. The lack ofadequate supervision, coupled with a workforce unsure of the outcome of pending labornegotiations and fleet aging/equipment issues, resulted in additional performancedowntrends during the first quarter of FY98. Transit Operations anticipates allpersonnel will be hired and on-board by December 1, 1997.

In addition to the staffing changes proposed during FY98, Transit Operations identifiedthe constant failure of the ethanol fleet as a major cause for declining performance.Transit Operations will bring to the Board in December a proposal for converting theethanol fleet to a more reliable technology.

Page 15