Memorandum
City of Lawrence
City Manager’s Office
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TO: |
David L. Corliss, City Manager
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FROM: |
Jonathan Douglass, Assistant to the City Manager
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CC: |
Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager Casey Toomay, Interim Transit Administrator
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DATE: |
April 28, 2009
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RE: |
Downtown to Memorial Stadium Football Shuttle
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KU football fans board a bus from 9th and New Hampshire to Memorial Stadium. |
Background
In the summer of 2008 the city began exploring the possibility of establishing a shuttle service from downtown Lawrence to Memorial Stadium on KU home football game days. The intent of the service was two-fold: bring customers downtown before and after football games, and alleviate some of the parking problems in neighborhoods surrounding the stadium. The city allocated $13,720 for the service to be paid from Guest Tax Reserve and Public Parking funds.
The city solicited quotes from nine vendors and two quotes were ultimately received. The city selected the University of Kansas transit operations as the vendor to provide the service. Charges for the service were based on a per bus hour rate. The shuttle service was provided from two hours prior to kickoff until about one hour after the game finished. Parking was free at the New Hampshire Street Garage and the Riverfront Garage on game days, and the shuttles stopped near each garage. The shuttle service was free to riders.
Demand for the service was greater than anticipated, and the original amount of funding was depleted during the fifth of seven games (when more buses were needed the cost of the service increased), but the Athletic Department paid for the overages so the shuttle could continue to operate through the end of the season. The table below summarizes the demand for service and costs for the entire season.
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2008 Football Shuttle Hours and Passenger Counts |
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Date, Opponent, Kickoff |
Bus Hours |
Round Trip Passengers |
Cost |
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8/30/2008 vs. FIU, 6:00 p.m. |
28.62* |
953 |
$2,003.40 |
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9/6/2008 vs. LTU, 6:00 p.m. |
58.18 |
1084 |
$4,072.60 |
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9/20/2008 vs. SHSU, 6:00 p.m. |
55.04 |
1026 |
$3,852.80 |
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10/11/2008 vs. CU, 11:30 a.m. |
38.28 |
746 |
$2,679.60 |
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10/25/2008 vs. TTU, 11:00 a.m. |
37.46 |
797 |
$2,622.20 |
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11/1/2008 vs. KSU, 11:40 a.m. |
35.54 |
811 |
$2,487.80 |
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11/15/2008 vs. UT, 11:40 a.m. |
34.71 |
675 |
$2,429.70 |
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Total |
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$20,148.10 |
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Total Paid by City |
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$13,720.00 |
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Total Paid by KU Athletics |
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$6,428.10 |
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* Due to unexpected overages in bus hours, the contractor absorbed additional hours without charge. Adjustments were made to anticipate higher demand in future weeks |
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The shuttle service was clearly a success from the standpoint of the riders – demand for the service was high, especially when the weather was nice and the game was played in the evening. Toward the end of the season ridership dropped off a little as the weather got colder and wetter and the game times moved earlier in the day.
A Downtown Lawrence, Inc. survey of its membership early this year included questions regarding the shuttle service. Of the 49 surveys returned, 36 responded to the shuttle related questions (the non-responders were mostly professional offices not open on Saturday). Nineteen respondents noticed an influx of customers that they attributed to the shuttle service and 16 did not. Eighteen respondents noticed an increase in sales and 16 did not.
The Oread, Old West Lawrence, and West Hills neighborhood associations all report that there was no discernable difference in the amount of game day parking in their neighborhoods compared to previous years. This may have been due to the overall increase in attendance experienced in the past two years.
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KU football fans wait to board a bus from 9th and New Hampshire to Memorial Stadium. |
Future of the Shuttle Service
Staff seeks City Commission input regarding the following questions:
- Should the city sponsor a shuttle service during the 2009 KU football season?
- Should the shuttle service be free to ride (meaning the city would assume the entire cost of the service) or should a fare be charged?
If the Commission desires to sponsor a free shuttle service at service levels similar to last year, staff will prepare an RFP for release in the next few months. If the Commission desires to sponsor a shuttle that will charge a fare, there are a number of options to consider. It can safely be assumed that as fares increase, demand will decrease, but by how much is unknown.
The Kansas State game on 11/1/08 was the closest to an “average” game in terms of ridership. Based on the costs to provide service for that game, the attached analysis of the break even point for revenues and expenditures has been prepared. It appears that any round trip fare below $4 will lose money, requiring subsidy of the service.
An analysis performed last year based on the game with the highest demand indicated that if a $4 round trip fare had been charged, demand would have to stay at least at 61% of the peak demand observed in order to break even on revenues and expenditures.
Additionally, simply dividing the cost by the ridership for the entire season indicates that the service cost approximately $3.53 per round trip ride, confirming that a $4 fare is approximately what is needed to break even. However, at $4 per person, a car load of 5 people could likely find parking in a pay lot nearer to campus for the same price, so demand for the shuttle may fall precipitously at that fare level.
Options for operating a pay-to-ride shuttle could include the following:
- An RFP could be prepared that calls on the vendor to provide a shuttle at certain levels of service (based on 2008’s operations), and the city could provide ticket takers to collect fares at each of the two stops. The city would retain those revenues and use them to pay for the shuttle vendor. The city would pay for the cost of the service which is not covered by the fare collections.
- An RFP could be prepared that calls on the vendor to set the fare level, collect the fares, and determine the appropriate level of service. This option would remove the city from the operations of the service other than the provision of free parking at the garages and use of right-of-way for the bus stops. The city would lose control of the determination of proper service levels, but would also lose the financial risks of providing the service. The vendor would have incentive to manage the service and fare levels to meet demand. It is worth note that the city had discussions with KU last year about such an arrangement and KU had reservations about operating in that manner. As one of only two vendors that provided quotes for the service, this may be a significant concern if the city wishes to operate the shuttle in this manner.
Recommendation
Staff recommends charging a $1 or $2 round trip fare and subsidizing the rest of the cost of the shuttle service. The fare would be waived for each individual or group (up to four people) presenting a key to a Lawrence hotel/motel room or a receipt from a downtown business dated the day of the game. The cost to the city for providing this service would depend on a number of variables, including the demand for the service, the level of the fare and the number of riders qualifying for a waiver of the fare. A few possible scenarios are illustrated in the table below and in the attached analysis.
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Scenario (ridership as a percentage of “average” ridership in 2008) |
Cost to City |
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$2 fare, 60% ridership, 50% of fares waived |
$8,093 |
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$1 fare, 60% ridership, 50% of fares waived |
$9,796 |
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$2 fare, 80% ridership, 50% of fares waived |
$10,440 |
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$1 fare, 80% ridership, 50% of fares waived |
$12,711 |
ACTION: Authorize staff to prepare and release a Request for Proposals for a downtown to Memorial Stadium football game day shuttle service, if appropriate.