TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Preview of Post COVID Network Redesign

BRIEFING ITEM

RECOMMENDED ACTION(S):

Title
Consider receiving report and provide input on staff's initial proposals to redesign the route network in light of diminished operating revenue.
Body

STRATEGIC IMPORTANCE:

Goal - Financial Stability and Resiliency
Initiative - Service Quality

This network redesign process will allow the District to adjust service levels to match available revenues and resources. The initial proposals in this preview mainly discuss how to reduce the network, but the intent is to preserve as much service access and ridership as possible. The proposed new network will also allow the District to evaluate runtimes and layovers systemwide to improve reliability and ensure compliance with the Collective Bargaining Agreement.

BUDGETARY/FISCAL IMPACT:

This item is informational only and has no direct impact on the budget. The proposed plan will recommend a service network scalable between a reduction of 15 to 30 percent from the service levels included in the original Spring 2020 Sign-up that was interrupted by the implementation of the COVID-19 Emergency Service Plan (ESP). A 15-percent reduction is equivalent to 302,522 annual service hours, which equates to an annual cost reduction of $42.4 million assuming a $140/hour marginal operating rate. A 30-percent reduction equates to 605,044 fewer annual service hours and a cost reduction of $84.7 million at the same rate.

The per hour costing is mainly for reference and scale, as actual reductions in service cost would be significantly less without changes in staffing levels. This has been the case during the ESP, which significantly reduced service but kept the same operator count. Cost reductions have mainly been limited to fuel and overtime reductions. To the extent that the District permanently reduces service, the current plan is to rely on natural operat...

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