Questions for WTA Q&A

Wages

1. Did any WTA employee or class of employees receive either a cost of living pay
increase or step pay increase from 2005-09? If so, which employees and by how
much?

[See file “Cola and step increase, 05 to 09.”]

Ridership

1. What was the effect of the recent fare hike on ridership?

For the first five months since the fare increase (October 2009 – February 2010)
WTA fixed route ridership has fallen by 3.9%. Though it’s too early to say for
certain, it appears the decrease is leveling off, meaning ridership may be starting
to rebound.

2. I am wondering, is there any statistic or estimate of how many cars WTA takes
off the road each day?

According to data collected from passenger surveys, approximately 40% of fixed

route passengers would have otherwise driven. Average weekday ridership in
2009 was 17,000 (higher on schooldays, lower during the summer). So we
estimate we reduce approximately 6,900 car trips per day.

Fares

1. I think I read the WTA says the average cost is $3.46 per ride. A Herald article
indicated the income from fares covers about 10% of the total cost. So is the
average amount paid by riders far below the stated $1 fare?
Yes. The average cost to carry a fixed route passenger is $3.46. Since October
2010 our cash bus fare has been $1 per ride. This $1 fare is valid for two bus
rides when a transfer is required to complete a one-way trip (transfers are free).
Some riders pay discounted fares (including free ride coupons to social and
health service agencies, free classroom passes for school trips, discounted fares
to seniors and disabled riders). In addition, the cost of a bus pass works out to
less than $1 per ride for those who ride frequently. Passes are intentionally
priced this way to encourage pass sales, as they reduce administrative costs and
significantly speed passenger boarding, thereby increasing operational
efficiency.

2. What is the average amount paid?

13% of fixed route riders pay the $1.00 cash fare. 74% pay with a bus pass and
13% pay with a token, ticket, coupon, transfer, etc.

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 The average fare collected per fixed route boarding is 50 cents. This includes all
discounted fare types (free ride coupons to social and health service agencies,
free classroom passes for school trips, discounted fares to seniors and the
disabled) free transfers, cash fares and passes. As a reminder, prices for
passes are set to encourage their use, as they speed passenger boarding,
increase operational efficiency and reduce administrative costs.

3. What was the effect of the fare increase for revenue?

The fare increase took effect on October 1, 2009. Our annual increase in fare
revenue is expected to be about $430,000 for 2010.

4. What sort of fare discounts are available?

WTA provides fare discounts for the following:

- All students with valid ID receive a 40% discount on a monthly pass. There
is a separate agreement with WWU which doesn’t specify a percent discount
for students but does provide a price break based on 100% participation.
- Children under the age of 8 and adults over 75 ride free.
- People aged 65 or over, people with a Medicare card and people with a
disability are eligible for a “Reduced Fare Card” which provides a 50%
discount on the cash fare or on monthly and quarterly bus passes.

5. What percentage of riders use discounts?

Discounted student fares (including WWU’s Universal Bus Pass), free rides for
young children and the elderly, and senior/disabled passes combined accounted
for about 53% of WTA’s fixed route passengers in 2009.

6. How has that ratio changed over time (if at all)?

Since 2002, the percentage of passengers using a discounted fare has fallen
from 58% to 53%.

7. How does this ratio compare with other public transportation entities in our
state, our region, nationally?

We don’t know. The discounts we provide for youth, university students, elderly
and disabled passengers, etc. are typical of transit agencies in the state and the
nation.

8. I understand the Mt. Vernon run was a pilot program, would the WTA consider
dropping that run? If not, would the WTA consider charging market rates for the
run that competes with two or more private companies?

Transit service between Bellingham Station and Skagit Station is operated jointly
by WTA and Skagit Transit. Since its introduction, funding has been provided
through the Washington State Department of Transportation in the State
transportation budget as approved by the Legislature. If State funding was not

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 provided, both WTA and Skagit Transit would need to reevaluate their ability to
operate the service. If both agencies agreed to do so, a fare increase would be
considered. The current fare is $2.00.

9. Would it be fair for a rider going to Ferndale or Lynden or Kendall to pay more?

WTA recognizes the potential value of a “zone-based” fare system. The main
reasons we haven’t implemented such a system are as follows:
- The financial impact of such a change would be small, given the small
percentage of our revenues coming from fares (about 10%), and the small
percentage of our ridership coming from rural routes (about 7%).
- the simplicity of a single fare system is an advantage to passengers and it
removes potential driver/passenger conflict over fares
- WTA has an interest in encouraging rural ridership, because taking a car off
the road from Bellingham to Kendal, for example (33-mile one way trip)
represents a much greater reduction in air pollution, energy consumption and
congestion than those of shorter trips.

Fleet and Facilities

1) Why doesn't WTA use a standard design (like the Skagit buses) for recognition,
and to keep costs down? The newest buses sport a classy "boat wake" pattern;
who designed this one and how much does it add to the cost of a bus?

The majority of WTA’s fleet (about 40 vehicles) reached the end of their useful
life (15 to 17 years old and over 550,000 miles) and needed to be replaced over
a three-year time period. This was a logical time to update our standard design
package. The blue stripes pattern is the new standard to be applied to all new
vehicles. The graphic was developed by local design firm Goodeye Design. The
manufacturer’s cost to apply this standard graphic package to a plain white bus
is $1,820, which is comparable to other standard graphic packages.

2) Is it possible that engine idle times could be reduced?

In 2007, WTA implemented a “no idle” policy, directing drivers to turn off vehicles
while waiting at WWU, at transfer points and transit stations. When necessary
for passenger comfort during cold weather, drivers are allowed to idle. Now that
spring has arrived, buses can turn off the engines when stopped for any length of
time.

3) Could arrival times be spaced a bit so that the "heavy throttle" characteristic of
WTA buses might be minimized and fuel saved (a "green" benefit as well)?

Though factors such as heavy traffic, slow passenger boarding, or road

construction can put pressure on drivers to stay on time, bus schedules are
carefully configured to allow buses sufficient time to get to their destination.

4) What is the cost to go longer distances? I was thinking there might be a way to
estimate cost per mile ... fuel and labor would be easy.

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 In 2009 fixed route net cost per mile was $8.39 once fares were accounted for.
This is a fully allocated cost meaning it includes all overhead, depreciation, etc.
WTA also tracks how much it costs to move one passenger one mile. In 2009
the net cost was $1.02 per passenger mile for fixed route.

Budget

1. If the local economy recovered to levels before the mortgage bubble, would the
WTA have a problem at all?

No, but the recovery would have to happen very quickly and dramatically, both of
which are unrealistic.

Sales tax revenues are not expected to increase in 2010. To maintain current
service without a sales tax increase, sales tax revenues would need to increase
19% in 2011 or 2012 and about 5.5% annually thereafter. Sales tax revenues
are expected to increase at 2% in 2011 and 3% thereafter.

2. How much extra money was spent to hold the vote in April instead of
November? Where did this money come from?

The cost of the April ballot date is estimated to be approximately $100,000 more
than a November ballot date. However the earlier date has a major financial
advantage; if the ballot issue is defeated in April, WTA would reduce services by
fall 2010, thereby cutting more than $800,000 in expenses when compared with
a November ballot date.

3. How will the money from a sales tax increase be spent (specifically)?

The money will be used to maintain current service. About 77% of WTA’s
operating budget is spent on salaries, wages and benefits. Parts, supplies,
repairs, maintenance and fuel consume another 13%. The remaining 9% is
spent on utilities, insurance, professional services and general expenses.

4. At the end of 2009, WTA had $22 million in reserves. General Manager Richard
Walsh has been quoted in numerous publications as saying that we could go for
two years with no service cuts before reaching a critical threshold. WTA's charts
in the budget indicate that this is the case. Let's assume we have an operating
shortfall of $3 million this year and $4 million next year. Won't that leave $15
million in reserves? Isn't that number $3 million more than staff's
recommendation to keep $12 million on hand?

No. In addition to a $2.7 million shortfall in operating expenses, WTA must fund
its capital program. Over the next two years, WTA’s capital expenditures
(primarily fleet replacement) are budgeted to be $3 million. In 2011 the
combined shortfall (operating expenditures plus capital expenditures) is
budgeted to be $5.5 million. If the ballot measure passes WTA would not begin
collecting the additional sales tax revenue until December 2010.

Cash Flow 2010 2011 2012

Operating $ (2,632,612) $ (3,542,000) $ (4,063,000)

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 Capital (pd by WTA) (1,153,956) (1,905,000) (1,658,000)
Total Outflow $ (3,786,568) $ (5,447,000) $ (5,721,000)

Effects of the Tax Increase

1. The temporary operating shortfall is $2.7 million. The new tax will raise at least
$6 million per year. Why are they asking for more than they need?

In addition to a $2.7 million shortfall in operating expenses, WTA must fund its
capital program. Over the next two years, WTA’s capital expenditures (primarily
fleet replacement) are budgeted to be $3 million. In 2011 the combined shortfall
(operating expenditures plus capital expenditures) is budgeted to be $5.5 million.
If the ballot measure passes, WTA would not begin collecting the additional sales
tax revenue until December 2010.

2. The WTA fought to keep the word "improve" on the ballot. Do they really wish to
"improve" service during an economic downturn?

WTA is constantly working to improve its service to the community. The word
improve has broad application to WTA bus service including such things as
enhanced system safety, efficiency, better on-time performance, more
convenient routes/schedules, etc. WTA has no current plans to expand bus
service. However, if the ballot is approved, WTA will be better able to meet the
public transportation needs of this community as future population growth and
development dictate.

Paratransit

1. The highest cost service is the PARA transit. Would the WTA consider
contracting out all or a portion of that service?

We currently contract out a small percentage of paratransit service. The

collective bargaining agreement between WTA and the Amalgamated Transit
Union permits contracting up to 4% of this service to taxi providers. For many
years, WTA has exercised this option when doing so is more cost effective than
providing trips directly. The collective bargaining agreement and U.S. Dept. of
Labor regulations prohibit WTA from contracting out other paratransit services.

2. PARA Transit, how many different people use this service, not the ridership
which is published in the budget?

In 2009, WTA carried 2,600 individuals on Specialized Transportation.

3. Would WTA consider charging them the actual trip cost after a certain monthly
limit?

No. Federal law prohibits transit authorities from charging more than twice the
fixed route fare on paratransit.

Miscellaneous

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1. Are there other operations that could be contracted out? There are 5 full time IT
employees & some 20 or so vehicle maintenance workers.

WTA believes its preventative maintenance and inspection program is safety

sensitive and most prudently handled in-house. IT functions have proven in the
long term to be most cost-effective when provided by in-house staff. WTA
currently contracts out many services, including custodial care, security,
landscape maintenance, vehicle detailing, specialized or heavy duty vehicle
repair, graphic design and legal services.

2. There are little ads now being run in various publications showing happy people
on buses; are these intended to increase ridership or to promote a favorable vote
on a sales tax increase?

The goal of WTA’s advertising is to increase ridership. Last fall we organized a

photo shoot so that upcoming ads could feature the (smiling) faces of actual
riders.