Research

Researchers Meet with Representatives from Bus Industry

SURTC researchers met with representatives from the bus industry in Dallas Sept. 29 to gather ideas and input for a study of small bus manufacturers. The meeting was held at the conclusion of the American Public Transportation Administration annual EXPO.

"We had a small group, but the members had excellent input," noted Del Peterson, the SURTC researcher directing the effort. "Our goal was to bring together manufacturers and transit representatives to form an advisory committee. That group will help narrow the focus of our study and define our research." SURTC director Jill Hough and affiliate researcher Jim Miller are assisting in the research.

The eight-member group that met in Dallas included Barbara Sisson, Associate Administrator for Research, Demonstration and Innovation in the Federal Transit Administration. The FTA is funding the research.

Peterson says the next step is to begin collecting data on trends and changes in the bus manufacturing industry. "We want to develop a picture of where the industry has come from and where it is now. With the mergers and changes that have occurred, that picture is very complicated," he says.

Transit providers in suburban areas, small cities and rural areas rely on small buses and vans to provide mobility to their customers. From 1995 to 2001 the Federal Transit Administration helped fund more than 50,000 vehicles and more than 26 percent of those were buses smaller than 30 feet long. More than 35 percent were vans and other small vehicles used for rural and specialized transportation services.

Transit agencies are concerned about the health of the manufacturing industry because of potential impacts on the availability and quality of buses, costs, loss of U.S. manufacturing jobs and the inability of weak firms to conduct research and development and adopt new technology.

"The supply chain for small transit vehicles has not received the same attention as that of the larger vehicles though it shares many of the same issues," Peterson notes. "In addition to the issues faced by large bus manufacturers, small bus and van suppliers face unique challenges because of the relatively small size of individual orders and the large number of competitors."

The 18-month study will look at the financial health of the industry and examine bus purchasing trends of the last 20 years. It will also examine FTA and local procurement policies and their impact on the manufacturing industry. The study will evaluate the impact of other laws and regulations, especially the Clean Air Act, the Americans with Disabilities Act and Buy America requirements.

The study will attempt to identify incentives to adopting new technologies and the impact that standardization of bus specifications would have on production efficiency and cost. Other factors that will be studied include excess capacity in the industry and competition and subsidies.

Transit Risk Financing Study Complete

As a result of concerns expressed during the 2004 SURTC Advisory Board Meeting, SURTC researcher Gary Hegland has assembled a report on insurance options for small urban and rural transit operations.

"The increasing cost of insurance was a concern expressed clearly by representatives at the advisory board meeting last year," Hegland recalls. "The Dakota Transit Association came forward with funding to investigate potential options for reducing costs to small-sized transit operations."

Hegland notes that some transit agencies have seen insurance premiums increase by as much as 100 percent or more per year recently. "Agencies are trying to better manage their risk even thought the increase in premium does not seem to be the result of increases in property damage or losses of human life."

For the project, Hegland researched definitions of risk and options employed by transit agencies across the region to finance that risk. Major options include: purchasing commercial insurance, participating in risk retention group insurance plans, participating in state-run insurance pools, forming insurance purchasing groups.

"How transit agencies finance their risk can have a significant impact on their cash flow," Hegland notes. "They need to carefully consider what options are available and choose options that best balance risk mitigation with affordability." Hegland notes that not all options are available to transit operations in all states because of differences in state law. "In some cases, agencies may need to lobby for changes to state law so they will be able to participate in appropriate risk financing options."

Finally, Hegland says it's important for transit operators to evaluate their risk management plans. "Identifying and reducing risk is very important for agencies. They need to identify what can go wrong, what they'll do about it and how they'll pay for it. It should be a continual process."

DTA Partnership with SURTC Flourishes

Ron Baumgart
River Cities Transit, Pierre, SD

The Dakota Transit Association conference and roadeo coordinated and managed by the DTA board with SURTC's assistance was a success, according to Gary Hegland, the SURTC staff member who coordinated the meeting activities.

"For the first time we had a coordinated vendor show, conference and roadeo," Hegland says. "We had more vendors and higher attendance than we anticipated."

Official registration at the conference was 80 members and 54 drivers from across North Dakota and South Dakota attended training. The Roadeo attracted 47 competitors.

"The help we've received from SURTC has been invaluable," notes Ron Baumgart, past president of DTA and general manager of River Cities Transit in Pierre, S.D. "This conference is an example of that help. The people who attended and the vendors seemed very pleased."

The event opened on Saturday, Sept. 17, with the Roadeo, followed by driver training sessions on precision driving, CPR and defibrillation and wheelchair lift procedures on Sunday morning. The vendor show opened at noon on Sunday with presentations on scheduling and dispatching presentations on Sunday afternoon. The conference continued until Wednesday at noon.

Sessions at the conference included presentations by Jennifer Stewart, community planner with the FTA regional office in Colorado; Dale Marsico, executive director of the Community Transportation Administration of America; and Robin Silverman, author and motivational speaker.

"As DTA continues to grow, SURTC's involvement will be critical," Baumgart says. "Right now, even the simple things like having a base of operations and someone to call with questions is incredibly important."