BOARD MEETING

SEPTEMBER 26, 2002

SUBJECT: SERVICE SECTOR POLICY

ACTION: ADOPT PROPOSED POLICY CREATING THE SERVICE SECTOR GOVERNANCE COUNCILS

RECOMMENDATION

Adopt proposed policy creating the Service Sector Governance Councils.

ISSUE

In November 2001, the Metro established an internal working group to study the creation of new business units with decentralized, community based and locally responsive management for Metro Bus Operations. The working concept was to establish a more municipal operator-like size and working relationship with specific geographic areas served by the Metro, to co-locate those resources at operating bases and to reinvent relationships with corporate support functions in order to better meet the needs of the community and our customers.

After examining a variety of functions and processes, it was recommended that a local governing council be established and be delegated specific authority by the Metro Board of Directors. At its April 2002 meeting, the Board adopted support for the establishment of Service Sectors with governance councils.

At the August 7^th Ad Hoc Service Sector Committee meeting, staff presented the draft Service Sector Governance Council policy and the Service Sector Council Bylaws for review and consideration. The Committee recommended that no Metro Board Member shall serve on the Councils and that the Councils include consumers of public transit service. The Committee also reached consensus to incorporate staff’s proposed changes to the bylaws and those changes have been made.

The proposed policy will establish a framework to define the relationship between the Metro Board of Directors and its local governing Councils for Bus Operations service planning and scheduling functions. The policy will provide flexibility to allow the Service Sectors to develop and to incorporate changes from the knowledge gained by the sector experience.

The purpose of the Service Sector governance concept is to improve bus service; increase agency accessibility and responsiveness; promote greater coordination; maintain an employee supportive work environment and create a more efficient and customer focused management structure for the delivery of bus service. Key principles are to: localize control; maintain a single point of contact for route level service issues; balance responsibility with authority; streamline the decision making process; and support agency policies, plans and safety initiatives.

Under this policy, the Metro Board of Directors shall retain all mandated responsibilities in accordance with Metro enabling legislation under Public Utilities Code 130051 et seq. For example, the Board will retain hiring of the Chief Executive Officer and other Board appointees; approval of the agency budget and capital plan; negotiation of collective bargaining agreements; setting fare and service policies; establishing and monitoring agency programs; conducting public hearings for fare changes and service changes to corporate bus lines, Rapid Bus and rail service; conducting major procurements; managing construction projects, setting regional policies and having ultimate responsibility for resolving disputes regarding agency matters. Lastly, Metro Finance will be responsible for administering all banking, investing and debt issuance.

The Sector Governance Councils shall oversee the planning and implementation of service within their area. Their responsibilities include: approval of the sector General Manager’s budget proposal for the Chief Executive Officer’s consideration and recommendation to the Metro Board; calling and conducting public hearings for sector bus lines; approval and evaluation of sector programs; implementing service changes; reviewing and developing policy recommendations for Metro Board approval; ensuring compliance with all Metro policies and procedures and legal agreements (e.g. collective bargaining agreements, Consent Decree); providing input into the Sector General Manager’s performance review; and participating in annual meetings with the Metro Chief Executive Officer, Deputy Chief Executive Officer and the other Sector Governance Councils and General Managers.

The Chief Executive Officer is responsible for ensuring that the policy is converted to an action plan, budgeted for appropriately and implemented by staff.

As part of the proposed governance policy, the Metro Board shall confirm and appoint members to the Service Sector Councils based on nominations submitted by the coalition. As much as possible, members of the Councils shall be selected to reflect a broad spectrum of interests and geographic areas of the sector. Members may be elected officials and/or private citizens and shall include consumers of transit service. The process should provide for maximum outreach, input and review.

Attachments B – D depict various views to demonstrate the proposed nomination process for the Service Sector Council. Attachment B is the Service Sector Council Nomination Responsibility Matrix, which outlines the general roles, and responsibilities of staff, the Coalition, the Board Selection Committee and the Metro Board of Directors. Attachment C is a sample Gantt chart that displays the nomination process graphically by showing a schedule and timing of tasks required to nominate an individual to the Service Sector Council. This chart can also be used as a project-planning tool for the coalitions and the Metro Board of Directors to assess the timing of tasks required to complete a nomination process. Attachment D illustrates a sample timeline of a nomination process, from start to end, beginning in the month of September.

An alternative to adopting the policy would be for the Metro Board to retain all responsibilities for each of the five geographically based Metro Bus Operations business units. This alternative is not recommended, as it does not offer sufficient and timely responsiveness to local community needs and desires.

The recommendation does not require any financial commitments at this time. The FY03 Annual Budget adopted by the Metro Board contemplated the realignment of Metro staff into service sectors and their support areas.

The first year of the Services Sector’s implementation will be the transition year for management to gain knowledge from the sector experience and take into consideration the “lessons-learned” from our community, customers and staff. Management will be looking for opportunities to improve the initial sector design concept and incorporate the changes as appropriate to better meet the needs of the community and our customers.

Although staff has attempted to incorporate all contingencies, there are uncertainties that can occur during the start-up phase that may not have been considered or have been overlooked in the initial analysis. The preliminary design was based on the current bus service delivery and the approved FY03 budget and staffing levels with the understanding that the first year’s experience would provide us with the infrastructure to make future improvements. There are administrative and operational procedures that also need to be modified to reflect the service sector structure. These procedural changes continue to be made under the purview of the Chief Executive Officer.

As Metro implements the Sectors and the Councils, management will be reviewing the various aspects of the Service Sector roll out to determine if changes in bus service improved service quality, ridership and operational efficiencies. A number of areas impacting policy decisions will also be a focus of attention. Key areas include adopting sector bylaws, developing scheduling and service quality performance goals. Any changes in policy will be brought forward to the Board for approval. Staff will also apprise the Board with any new updates throughout this process.

The Chief Executive Officer will convert this policy to an action plan, budget for appropriately and have staff implement the plan.

The purpose of the Service Sector is to improve bus service; increase agency accessibility and responsiveness; promote greater coordination; maintain an employee supportive work environment and create a more efficient and customer focused management structure for the delivery of bus service. Key principles are to localize control; maintain a single point of contact for route level service issues; balance responsibility with authority; streamline the decision making process; and support agency policies, plans and safety initiatives.

The Sector Governance Councils shall oversee the planning and implementation of service within their area. Their responsibilities include: approval of the sector General Manager’s budget proposal for the Chief Executive Officer’s consideration and recommendation to the Metro Board; calling and conducting public hearings for sector bus lines; approval and evaluation of sector programs; implementing service changes; reviewing and developing policy recommendations for Metro Board approval; ensuring compliance with all Metro policies and procedures and legal agreements (e.g. collective bargaining agreements, Consent Decree); providing input into the Sector General Manager’s performance review; and participating in annual meetings with the Metro Chief Executive Officer, Deputy Chief Executive Officer, the other Sector Governance Councils and General Managers.

The Chief Executive Officer is responsible for ensuring that the policy is converted to an action plan, budgeted for appropriately and implemented by staff.

1. The Metro Board of Directors shall confirm and appoint members of the Service Sector Councils based on nominations submitted through a locally adopted process by a coalition comprised of Council of Governments, Interim Joint Powers Authority, and any cities and unincorporated county areas. As much as possible, members of the Councils shall be selected to reflect a broad spectrum of interests and geographic areas of the Sector. Members of the Councils may be elected officials and/or private citizens and shall include consumers of the service. Metro Board members may not serve as a member of the Council. Members of the Councils must reside or work within the Service Sector boundaries. Membership on the Council is not transferable or assignable. Council vacancies will be filled in the same manner as appointments are made.

2. The Metro Board of Directors shall establish parameters of the overall administrative functions for the Service Sector governing body consistent with Metro enabling legislation, mandated federal, state and local laws, rules and regulations, and Metro Board adopted policies and procedures. These include, but are not limited to:

· Establish funding for implementing Councils to cover costs associated with holding public meetings, stipends and travel. Examples include:

Ø Travel - Attend one APTA trip per member, which includes airfare, lodging, meals and registration

3. The Metro Board of Directors shall adopt funding levels and the annual capital plan for Service Sectors during the annual budget process of each fiscal year, as well as short and long-range transit plans covering all Sectors proposed by the Metro Chief Executive Officer. The Service Sectors shall administer operating budgets within Board approved funding levels. Responsibilities shall include, but are not limited to:

· Provide input on key operating parameters such as service hours, miles and schedules by tier of service and priorities for capital investments in Sector facilities and rolling stock.

· Review the Sector’s financial performance with their General Manager on a regular basis, at least quarterly

· Utilize Metro Finance, who keeps the official books and records as the sole source of financial and budgetary data

· Coordinate with Metro Finance who will make all disbursements for Sector goods, services, salaries, wages and employee benefits in accordance with Metro’s established system of internal controls.

4. The Councils will hold regularly scheduled meetings. Scheduled meetings should not conflict with regularly scheduled Metro Committee and Board meetings. Council meetings are limited to no more than two meetings a month and shall be conducted pursuant to Robert’s Rules of Order. All meetings of the Council shall be called, noticed and conducted in the manner prescribed by the Ralph M. Brown Act as amended from time to time. Members of the Service Sector Councils shall adhere to the Metro Code of Conduct and all other relevant State and Federal laws.

5. The Councils will meet and confer with the Metro Chief Executive Officer, Deputy Chief Executive Officer and other Sector Governance Councils on an annual basis to discuss the overall effectiveness of the Sectors and other related matters including the Sector General Manager’s performance.

6. Members of the Service Sector Councils will be paid a stipend in the amount of $100 per meeting, up to a maximum of $200 per month and may be used to supplement transportation costs.

7. Service Sector business units are charged with the delivery, monitoring, and improvement of the safety and performance of all bus service operated by the divisions assigned to each sector. Responsibilities will include:

· Ensure that services are operated in compliance with applicable statutory and regulatory requirements.

· Manage the maintenance and transportation functions at the divisions assigned to the sector.

· Procure goods and services, in accordance with agency procurement guidelines.

· Develop and implement programs to improve service performance, operating efficiency and service quality, including but not limited to: field supervision and maintenance campaigns, service demonstrations, fleet and employee safety programs and contracting for service.

· Develop route planning studies to better route and schedule Tier 2 and 3 services operated within the sector and those Tier 1 routes that are so designated.

· Develop efficiency studies to identify ways to decrease the unit cost of services provided in the sectors.

· Make changes to bus service within Metro Board adopted performance standards and make efficiency changes to changes to operations as appropriate.

· Contract with planning, business, consultants and other transit operators and any other contracting needs unique to the Sector.

· Recommend a Sector budget proposal to the Chief Executive Officer for review and recommendation for final approval by the Metro Board.

· Work with Metro planning staff and local transit operators to ensure coordination of services.

8. Service Sector business units are responsible for the development of efficient coach operator work assignments, and service schedules that are responsive to customer needs and existing service resource allocations. Responsibilities will include:

· Monitor and manage coach operator staffing and service levels in accordance with the sector budget.

· Update and revise schedules, coach operator work assignments and scheduling documents as part of the service change process.

· Develop and maintain all schedule documents and records necessary to manage the operation and support the public notification process.

· Conduct coach operator bids in June and December and anytime there are major changes to operating schedules, as outlined in the current coach operator agreement.

9. Service Sector business units are responsible for the development and implementation of changes in bus service that improve service quality, ridership, and operational efficiency. Responsibilities will include:

· Modify, cancel or initiate services assigned to their sector, in accordance with agency service policies, the sector budget and fleet availability.

· Participate in regularly scheduled Sector General Manager and Sector Council coordination meetings with corporate staff and representatives from the other sectors.

· Make temporary or interim changes in service by implementing detours or temporary schedule changes at the staff level, in an annual cumulative amount not to exceed the Chief Executive Officers authority for all sectors combined.

· Support the planning and implementation of key corporate initiatives, including: Rapid Bus Expansion, Consent Decree Service Improvements, and the Metro and Regional Short Range Transit Plans.

10. Service Sector business units are responsible for the development and implementation of a planning and public communication process that elicits and responds to the community and the customer. Responsibilities will include:

· Conduct community outreach and stakeholder meetings to elicit input to proposed changes and to identify service needs.

· Provide customers and stakeholders with advance public notification of changes in service.