File #: 2015-0544   
Type: Informational Report Status: Filed
File created: 5/12/2015 In control: Executive Management Committee
On agenda: 2/17/2016 Final action: 2/18/2016
Title: RECEIVE AND FILE the cost benefit analysis and customer satisfaction survey results for the Employer Annual Pass Programs.
Sponsors: Finance, Budget and Audit Committee
Indexes: Appointment, Audit, Binding Arbitration, Contracts, Eric Garcetti, Evaluation and assessment, Hilda Solis, Housing, Informational Report, Metro Commute Services, Motion / Motion Response, Non-contract, Operating revenues, Plan, Program, Program management, Surveys, Transportation Communications Union
Attachments: 1. Attachment A - Total Annualized Cost Summary, 2. Attachment B - Detailed Annualized Cost Hybrid Approach, 3. Attachment C - Detailed Annualized Cost In House Approach, 4. Attachment D - Detailed Annualized Cost Contract Out Approach, 5. Attachment E - Cost Cntr Proj Num Labor Charges Summary, 6. Attachment F - Staffing Analysis, 7. Attachment G - Fare Per Boarding July 2014 to June 2015, 8. Attachment H - Current Participation Customer Survey, 9. Attachment I - Former Participation Customer Survey, 10. Attachment J - Board Report Item 5 Dated 2.18.15, 11. Attachment K - Solis & Garcetti Motion 5, 12. Attachment L - Recap of Proceeding Item 5 Dated 2.26.15, 13. Attachment M - Board Report Item 20 Dated 2.20.2003, 14. Attachment N - Department Organizational Chart
Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
FEBRUARY 18, 2016

Subject/Action
SUBJECT: PROGRAM SUPPORT - EMPLOYER ANNUAL PASS PROGRAMS

ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE the cost benefit analysis and customer satisfaction survey results for the Employer Annual Pass Programs.

Issue
ISSUE

In February 2015, Staff went to the Board requesting approval for a contract to provide program support for Metro's Employer Annual Pass Program (EAPP). FY14 the EAPP generated over $6.2 million in revenue for Metro and serves over 900 businesses with 32,000 annual TAP cardholders. The Board was pleased with the program's growth, but denied approval of the new 10 year vendor support contract and instead approved to extend the current EAPP vendor support contract which will expire March 31, 2016. At that time, a motion by the Board was approved to direct the CEO to:

A. Extend the current EAPP support vendor contract by 9 months, (which has been completed). This vendor contract will expire on March 31, 2016.

B. Conduct a cost/benefit analysis of adding staff (full-time equivalent, non-contract, part-time, etc.) based on historical and projected growth rates of the program, including potential consequences if staffing levels are not consistent with program growth.

C. Conduct a customer satisfaction survey of clients, including those that chose to no longer participate in the program. These surveys were completed in March 2015.

D. Recommend an Employer Annual Pass Program staffing plan, including but not limited to bringing the program in house, contracting out entirely, or a hybrid approach.


Discussion
DISCUSSION

Motion 5 (Solis and Garcetti) requested that staff conduct an analysis of historical and forecasted sales data and complete two customer satisfaction surveys. The summary results are described below.
Cost Benefit Analysis

Staff conducted an historical analysis for the sales an...

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