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`EXHIBIT X
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`Existing Transportation Network
`Companies Used as a Part of Basic Mobility:
`White Paper
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`Todd Hansen
`Zachary Elgart
`Kristi Miller
`Maarit Moran
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`Texas A&M Transportation Institute
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`11/26/18
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`Authors
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`Todd Hansen
`Zachary Elgart
`Kristi Miller
`Maarit Moran
`Texas A&M Transportation Institute
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`Disclaimer
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`TTI performed this research on behalf of the Texas Department of Transportation - Public Transportation
`Division. The contents of this report reflect the views of the authors, who are responsible for the facts
`and the accuracy of the data presented herein. The contents do not necessarily reflect the official view
`or policies of the Texas Department of Transportation. This report does not constitute a standard,
`specification, or regulation.
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`Existing Transportation Network Companies
`Used as a Part of Basic Mobility – Executive Summary
`This paper documents examples of public transit agency partnerships with transportation
`network companies (TNCs) and how the emerging service model is used to support existing
`public transportation operations. The paper examines existing types of service models along with
`in depth examples of case studies within and outside the State of Texas, describing issues and
`opportunities, regulatory concerns, and performance and cost effectiveness measures of pilot
`projects. The paper discusses key aspects of the pilot projects through synthesizing online
`information with staff perspectives.
`The purpose of the paper is to share the experiences of transit agencies in partnership with TNCs
`and technology companies, particularly agencies in rural or small urban settings and pilots
`designed to replace existing services. The paper includes the following five major sections:
`Emerging Mobility Service Models. This section discusses several service models where
`partnerships with TNCs might increase transit ridership by connecting passengers to transit
`stations, such as creating first-and-last mile connections in areas with limited transit
`service/frequency and/or low-density residential neighborhoods, filling gaps in traditional transit
`service, flexible-route microtransit, paratransit, late night service, and data and technology
`integration.
`Background for Case Study Research. This section outlines the methodology used to develop the
`case study protocol and select transit agencies with pilot TNC partnerships to document. Texas
`A&M Transportation Institute (TTI) prepared background information about transit/TNC pilot
`projects in North America and, with guidance from PTN, prioritized pilots that aligned closest
`with the research objectives. Pilots were categorized according to aspects of current status and
`federal funding, agency area type, service model, replacement vs. new service, agency operators
`and vehicles, and customer markets. Case study research prioritized agencies in rural or small
`urban areas, replacing existing service with shared mobility, or focusing pilots on service persons
`with disabilities. TTI researchers developed a discussion guide that was provided to transit
`agencies with a formal email invitation to participate in the case study research. TTI contacted
`staff members at each agency and established discussion times with the agency contacts.
`Researchers conducted a one-hour informal interview with each agency using the discussion
`guide of questions.
`Case Study Examples. This section provides the six case studies that TTI conducted with transit
`agencies to describe and detail aspects of TNC partnerships including issues and opportunities
`for a pilot project, regulatory concerns and how they were addressed, and service issues
`addressed including performance and cost effectiveness, as information is available. The
`agencies selected for this research are:
` Austin, Texas – Capital Metropolitan Transit Authority.
` Arlington, Texas – City of Arlington.
` Denton, Texas – Denton County Transportation Authority.
` Eden Prairie, Minnesota – SouthWest Transit.
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`Innisfil, Ontario – Town of Innisfil.
` Temple, Texas – City of Temple/Heart of Central Texas Independent Living Center, Inc.
`The case studies selected represent a variety of transit agency sizes and location, as well as types
`of TNC partnerships. Key takeaways from the case studies include:
` Data sharing has the potential to challenge and limit partnerships with TNCs. Data can
`provide meaningful information to understand the role of TNCs and to inform decision
`making about transportation policy. However, due to concerns about privacy and
`competition, data-sharing agreements have not been common between TNCs and
`government agencies. It is imperative to clearly state data sharing needs/requirements in
`the beginning in writing and understand privacy concerns of the TNC.
` The development of a metric to measure cost that accounts for the unique service
`conditions appropriate for TNC-style service is important, as cost per passenger is not
`capable of telling the entire story.
` Outreach and training can be critical for service adoption of pilot services. Word-of-
`mouth is the best form of advertisement for riders to use services, but initial efforts at the
`beginning of the pilot to educate customers about the service are also worthwhile.
` Third party software for dispatch and routing of transit agency vehicles has the potential
`to be more efficient than traditional demand-response dispatching models while avoiding
`the need for extended reservation lead times by providing on-demand service.
` Transit agencies must ensure that enough TNC drivers are available to meet demand for
`requested trips.
` The exploration of additional funding opportunities is critical in order to continue,
`improve, and expand the service/partnership in the future.
` Transit agencies must understand the capabilities of rapidly evolving TNCs and adjust to
`working with companies that have a very rapid pace of innovation that does not always
`coincide with traditional procurement and contracting processes.
` Partnerships with TNCs have been a mechanism for the transit agency to provide a
`diverse set of options and innovations to best serve customers, for example transit
`dependent riders in low-density environments, workers who need first and last mile
`connections, and student populations.
`Policies and Regulations. This section discusses policies and regulations that govern TNCs at the
`federal and state levels, as well as regulations in Texas. There are still not clear rules from the
`Federal Transit Administration regarding working with TNCs, particularly on how regulatory
`and funding obligations of transit agencies extend to TNC partners. As of June 2018, 48 states
`and Washington, D.C., have passed at least one piece of legislation regulating some aspect of
`TNCs. Legislation and policy introduced across states varies, there are some common trends.
`The policies most frequently introduced at the state-level are meeting insurance requirements,
`conducting background check requirement for drivers, disclosure of rates to passengers, and pre-
`empting local authority to regulate TNCs.
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`Appendices. This section includes additional reports and resources from transit agency case
`studies. Examples of information in the appendices include background reports, agreement scope
`of services, local by-laws, and software specifications.
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`Existing Transportation Network Companies
`Used as a Part of Basic Mobility
`This paper documents examples of public transit agency partnerships with transportation
`network companies (TNCs) and how the emerging service model is used to support existing
`public transportation operations. The paper examines existing types of service models along with
`case studies providing partnership examples within and outside the State of Texas. The paper
`describes issues and opportunities, regulatory concerns, and performance and cost effectiveness
`measures of pilot projects.
`The purpose of the paper is to share the experiences of transit agencies in partnership with TNCs
`and technology companies, particularly agencies in rural or small urban settings and pilots
`designed to replace existing services. The paper discusses key aspects of the pilot projects by
`synthesizing online information with staff perspectives. The information in this paper will assist
`Texas Department of Transportation (TxDOT) Public Transportation Division (PTN) in drafting
`a call for proposals to develop pilot projects to demonstrate and evaluate how TNCs might be
`used in support of existing public transportation operations.
`The content of this paper includes the following:
` Emerging Mobility Service Models.
` Background for Case Study Research.
` Case Study Examples.
`o Austin, Texas – Capital Metropolitan Transit Authority.
`o Arlington, Texas – City of Arlington.
`o Denton, Texas – Denton County Transportation Authority.
`o Eden Prairie, Minnesota – SouthWest Transit.
`o Innisfil, Ontario – Town of Innisfil.
`o Temple, Texas – City of Temple/Heart of Central Texas Independent Living
`Center, Inc.
` Policies and Regulations.
` Appendices.
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`Emerging Mobility Service Models
`Conceptually, coordination agreements and partnerships with TNCs can benefit transit agencies
`by helping increase service efficiency and reduce operational costs. Partnerships between transit
`agencies and TNCs might increase transit ridership by connecting passengers to transit stations
`and creating first-and-last mile connections in areas with limited transit service/frequency and/or
`low-density residential neighborhoods.
`An American Public Transportation Association (APTA) study found TNC users to be more
`likely to use public transportation than people that do not use TNCs1. TNC users can request
`TNC trips to drop them off near a transit stop or station to connect with transit service, lowering
`overall trip costs using both services rather than a TNC ride for the entire trip. TNCs also have
`greater operational flexibility than traditional transit by providing gap service during late hours
`when public transit services are less frequent or closed.
`Transit Cooperative Research Program (TCRP) Research Report 195 researched how TNCs are
`affecting the use of public transit and personal automobiles across several regions2. The report
`found that TNC use did not impact transit ridership use in the peak-hour commute times and that
`TNCs were used most heavily for short distances during off peak-hours in concentrated
`downtown neighborhoods, especially on weekend nights. Recommendations from the research
`include integrating TNCs into transit programs such as “guaranteed ride home”, paratransit, and
`demand-responsive transit services.
`First-Last Mile Connections
`First-last mile connections are one of the primary possible benefits for transit agencies to partner
`with TNCs, helping agencies connect customers who live beyond a comfortable walking distance
`to a bus stop to access transit. Service programs can be set up to define eligible trips by a
`geofence, a specific geographic area coded into the technology platform.
`Gap Service
`Gap service partnerships address the challenges of providing adequate and cost-effective transit
`in areas that are difficult to serve or with low population densities. Transit agencies sometimes
`reduce service frequency outside of central business districts and on nights and weekends. In gap
`service partnerships, TNCs provide service for customers in a designated zone. The transit
`agency subsidizes the trip fare to save on operating expenses by using TNC vehicles and drivers
`rather than a transit vehicle.
`Microtransit
`Microtransit is an emerging service model providing demand responsive or flexible-route trips in
`a defined service zone by matching customers to vehicles through real-time trip requests.
`Microtransit is intended to serve areas that are typically difficult for fixed-route transit to serve,
`such as low-density suburban development, and provide improved quality of service for riders.
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`1 http://newsmanager.commpartners.com/aptapt/issues/2016-03-18/index.html
`2 http://www.trb.org/Main/Blurbs/177112.aspx
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`Americans with Disabilities Act (ADA) Paratransit
`On-demand paratransit service is ADA demand response paratransit for customers with
`disabilities but available for trip reservations in real-time through trip requests rather than calling
`in trip reservation in advance. Real-time requests are made either through a mobile app or
`through a representative using an online platform. Available vehicles are immediately matched
`to the trip and dispatched to pick up the customer.
`Late-Night Service
`Partnering with a TNC for late night service can help transit agencies provide a service option for
`customers outside of the agency’s standard operating hours. Late night service is particularly
`useful for customers trying to reach late night destinations or work shifts outside of normal
`hours.
`Data and Technology Integration
`Improved technology along with connections between mobile apps and data feeds have become
`an important component of the shared mobility conversation. Public and private providers
`working together on technology platforms is a key component of the movement toward a
`mobility as a service (MaaS) model. MaaS will create seamless multimodal trips for customers
`and optimize payment integration systems between providers for the same trip.
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`Background for Case Study Research
`Texas A&M Transportation Institute (TTI) conducted six case studies of transit providers
`working with TNCs to provide services in Texas or the U.S., with a priority on rural and small
`urbanized. The case studies describe and detail aspects of the partnerships including issues and
`opportunities for a pilot project, regulatory concerns and how they were addressed, and service
`issues addressed including performance and cost effectiveness, as information is available.
`TTI drafted a list of questions to guide conversations with staff at case study agencies about the
`agency’s experiences with TNC partnerships/pilots. The questions focused on aspects of the
`project’s history/initiation, regulatory concerns, and performance measurement. Appendix A
`includes the full list of questions used by TTI researchers for guidance in case study research.
`TTI has prepared background information about transit/TNC pilot projects in North America and
`worked with PTN to prioritize the pilots that aligned closest with the research objectives. Pilots
`were categorized according to aspects of current status and federal funding, agency area type,
`service model, replacement vs. new service, agency operators and vehicles, and customer
`markets. Case study research prioritized agencies in rural or small urban areas, replacing existing
`service with shared mobility, or focusing pilots on service persons with disabilities.
`TTI researchers sent the list of questions as a discussion guide to agencies along with a formal
`email invitation for transit agencies and cities to participate in the case study research. TTI
`contacted staff members at the agencies determined to be associated with the TNC project
`through relevant media coverage. Appendix B includes the email invitation to participate in the
`research.
`TTI established discussion times with the agency contacts as convenient and conducted an
`approximately one-hour informal interview with each using the discussion guide of questions.
`The discussions allowed TTI to discover or clarify information from available online materials
`about the pilots for the research objectives of the white paper. The following sections include the
`case study summaries for each of the participating agencies.
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`City of Arlington, Texas
`Pilot Start: Arlington On-Demand service started in December 2017 and will run through
`December 2018.
`Status: Ongoing – Up for renewal in December 2018.
`Partner: Via.
`Project Information and Services
`The Arlington On-Demand pilot agreement with Via uses ride-matching service to create flexible
`fixed-routes and pickup points in real-time using Via’s software. Via operates the service with
`contracted drivers and 10 vans each seating up to six passengers. Arlington On-Demand has
`service hours from 7am to 9pm Monday through Friday and 9am to 9pm on Saturdays. Users log
`into the Via mobile app to request trips, or they can use a call-in center phone number to speak to
`Via representative for assistance with booking trips. Figure 1 shows the pilot area in Arlington.
`Figure 1. Arlington On-Demand Service Area.
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`Source: City of Arlington
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`All standard trips are a $3 flat fare for customers. Customers can also purchase a ViaPass option,
`a weekly pass for $10 in which riders can take up to four trips per day. The Phase 1 zone of the
`pilot launched in December 2017 includes areas of the Arlington Entertainment District,
`Downtown Arlington, the University of Texas at Arlington (UTA) campus, and the East
`Arlington neighborhood. The total cost for the first year of the pilot is $922,500, supported by
`the Federal Transit Administration (FTA) grant revenues (two thirds) and local city funding (one
`third).
`Project Goals
`In 2016, under the direction of the City Council, Arlington staff assembled a Transportation
`Advisory Committee with 31 citizens from different areas of the city. The committee was tasked
`to focus on the vision of what transportation should be in Arlington, exposing them to different
`transportation service models and technologies. The committee underwent a year-long process to
`look at information about transportations options available and consider the solutions that would
`provide the best fit for the city. Aside from paratransit service and a previous commuter bus
`route, Arlington has not been a part of conventional fixed-route transit systems, and has
`historically not had interest in becoming a member city of a metropolitan transit authority.
`Arlington has also resisted making major investments in capital infrastructure such as local rail
`systems or bus fleets.
`At the end of the year-long process, the committee produced a visioning report in September
`2017 entitled Connect Arlington: A Transportation Vision Connecting People and Place.
`Guiding principles of the report included a transportation system that offers flexible/adaptable
`solutions, attracts emerging technologies, is cost-effective, and encourages partnerships. The
`committee recommended modes for the city transportation system of Demand-Response
`Rideshare, Bus Rapid Transit/High Intensity Bus, Rubber-Tired Shuttle, and Personal Rapid
`Transit. The report describes rideshare as having the ability to address mobility needs through a
`dynamic micro-transportation system with an infinite number of on-demand stops. The report
`also identified major transportation corridors and hubs in the city. Appendix C includes the final
`report.
`Procurement, Planning, and Development
`The committee took a particular interest in new models of shared mobility from TNCs as well as
`autonomous vehicle technologies that would provide improvements in service without large
`capital investment. City staff reached out to experts from different companies to speak to the
`committee and received presentations from TNCs such as Via, Lyft, and Uber about their service
`models and technologies. The committee began to view the rideshare model as a solution for
`Arlington due to the efficiency of the rideshare model and operating software. City Council
`directed the Arlington staff to issue a request for proposals (RFP) for rideshare services, which
`allowed companies to suggest services that would be best in response to the service needs of the
`city.
`The City of Arlington received multiple proposals in response and found Via to have the most
`qualified, best overall proposal. Via’s software is built specifically to address ridesharing and
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`optimize routes, and Via’s approach to shared mobility focuses on shared rides with multiple
`passengers per vehicle. The city did not experience any significant issues in starting up the
`service after acceptance of the proposal. Since Via had experience providing rideshare service in
`other cities, Via suggested how many vehicles would be needed to cover service in the Phase 1
`area. Normally Arlington On-Demand uses 10 vans for operations, but in times of intense
`demand, Via will add additional contracted drivers (typically 2 or 3) to the fleet who use their
`own vehicle along with a “Via” magnet placed on the outside. There was not a need to add any
`vehicles during the first several months. In Phase 2, Via will add three additional permanent vans
`to the fleet. Figure 2 shows the map of target destinations for pilot service in the RFP.
`Figure 2. Arlington RFP Target Destinations for Pilot.
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`Source: City of Arlington
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`The service area chosen for Phase 1 of the pilot was designed to provide service to areas in
`Arlington previously covered by The Max commuter bus service. The Max service operated for
`four years, connecting the Trinity Railway Express Centreport Station to UTA, downtown, and
`the entertainment district, with potential ridership eventually tapping out. The city wanted a
`service that would go to downtown as well as employers in the entertainment district, while also
`providing coverage in East Arlington (a traditionally underserved area). The Phase 2 expansion
`area to south Arlington will further connect riders to the Parks Mall, Arlington Highlands area,
`and other destinations along Interstate 20. The entire pilot area provides coverage for service
`connections to the transportation hub at Centreport Station as well as increasing mobility options
`to area employers, campuses, and local businesses.
`The contract with Via is set up to initially run for one year, with four potential one-year renewals
`to follow. The terms of the contract such as service area, fleet, and cost can be adjusted in each
`renewal of the contract. The first year of the contract will end on December 11, 2018, and
`Arlington expects they will renew the contract for another year.
`Customer Information and Marketing
`The Arlington On-Demand project has been one of the best received of any transportation
`projects Arlington has had. Traditionally citizens in the city are very vocal on privatized
`solutions to issues. Feedback the city has received about Arlington On-Demand has been positive
`given that the service is a privatized solution with flexibility.
`In the first three months of the service, Via and city staff did specific activities and outreach to
`help customers be aware of the system, including on the ground marketing at activity areas such
`as Walmart and UTA. Staff would walk around and talk to people about Arlington On-Demand
`and hand out promotion cards for initial free rides. Arlington did not do any media buys to
`promote the service, instead pushing out messaging on some social media and emails. Via
`worked directly with city staff in the Planning Department and Office of Communications to put
`information about Arlington On-Demand on the City of Arlington website, MyArlingtonTX and
`social media, public service announcements, and collaboration with key city stakeholders.
`One concern of the city is that any huge increase in demand for the pilot service can outstrip the
`supply. After the first three months, Via found they did not need to do additional marketing. The
`city has seen increases to new user account sign ups and ridership every week of the pilot. The
`city is cautiously watching the new service expansion to make sure there is not too much demand
`for the limited number of vehicles available. Phase 2 of the pilot will launch in September 2018,
`extending the Arlington On-Demand zone further southward to Interstate 20 to cover
`destinations such as the Parks Mall and Highlands Village area. Figure 3 depicts the passenger
`vans used in the pilot.
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`Figure 3. Arlington On-Demand Passenger Vans.
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`Source: Via
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`Lessons Learned
`The City of Arlington found the planning and procurement of the Arlington On-Demand service
`to be hassle free and has enjoyed working with Via as a partner to plan and implement the
`service. Customer marketing has not been an issue, as demand for the service has spread well
`through word of mouth after initial outreach efforts and online media campaigns. One lesson
`would be to have contingency plans to scale up vehicle fleet supply in the case of greater than
`anticipated demand.
`Regulatory and Policy Concerns
`Because the pilot uses FTA funding, there are quarterly reporting requirements the city must
`fulfill, including inspection, maintenance, and ridership reports. The FTA funding supporting the
`pilot is continuous, meaning it will be available for each possible contract renewal. The funding
`source Arlington is using for the pilot is revenues to Arlington as a direct recipient from what
`was previously Job Access and Reverse Commute program funding. The level of FTA funding
`will be consistent from year to year, and the city may have access to some additional FTA funds
`in the next year.
`In accordance with the terms of the contract, Via makes vehicle inspection reports and proof of
`insurance requirements available to the city on a regular basis and makes efforts to make
`independent contractor driver partners make their vehicle maintenance records available. The
`city can also request other information from Via as needed as has not found any issues in
`responsiveness or level of information provided.
`State and Local Regulations
`The city did not see any regulations at the state level, such as the new house bills governing
`TNCs, that were of concern regarding potential impacts to Arlington On-Demand. There were
`some concerns on whether the city’s own taxi ordinance would involve the pilot, but the city’s
`attorney determined that the taxi ordinance was not applicable to ridesharing.
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`Internal Policies
`The city is working on incorporating paratransit service further into the on-demand service
`model. Arlington Handitran service operates wheelchair accessible vehicles (WAVs) is available
`to persons in the general public who have disabilities or the elderly. Currently Arlington On-
`Demand provides WAVs through two Handitran vehicles set aside from regular daily paratransit
`service. The vehicles can be booked either through the Via app or by calling the regular
`Handitran dispatch number. When a Handitran vehicle is dispatched from an Arlington On-
`Demand trip, Handitran drivers operate the vehicle rather than Via-contracted drivers who
`operate the other vans used in the pilot. Arlington may consider a rideshare pilot to operate all
`Handitran service trip requests in real-time using rideshare software.
`The city also has designed provisions in the Arlington On-Demand program for persons without
`smartphones and the unbanked. Via has a customer service line with a representative to help
`callers book trips, taking their information and then booking it on the platform themselves.
`Unbanked persons can purchase a prepaid credit card from local convenient stores and use it for
`fare payment either in the smartphone app or by calling in to the customer service line.
`Challenges
`On the day-to-day public transportation component, Arlington has found funding availability to
`be a challenge to provide service. The city wants to make sure they have a sustainable
`transportation system, with the ability to expand the available service area. The city has the
`vision of Arlington On-Demand eventually going citywide.
`The city has found that requirements from the FTA to get funding can be intensive, but the
`Regional FTA representatives have been very helpful in providing guidance. The requirements
`are difficult because they are set up for traditional transit services as opposed to rideshare
`services, particularly when it comes to vehicle types and some of the hiring and personnel
`practices. The City of Arlington is responsible for basic reporting and retention requirements to
`FTA and the National Transit Database (NTD). Handitran staff handles the NTD reporting for
`the city for the entire Arlington On-Demand program. NTD has Arlington breakout information
`specific to the Handitran program as they have in previous years.
`Performance and Cost Effectiveness
`The agreement with Via is set up as a turnkey contract with a flat rate for the year. Via sends the
`city a bill each month with a portion of the cost for the year based on ridership levels occurring.
`The total cost of the twelve monthly bills will not exceed the amount of the total agreement cost
`for the first year. Via does the fare collection and keeps the revenues from fares, which are
`reinvested into the program. Via provided the city with an increased cost estimate for the
`program next year if the contract is renewed, based on the full service area with Phases 1 and 2
`and observed trends in demand. The city initially tried to negotiate the number with Via, but the
`city will stick with Via’s cost estimate for the contract renewal for year two of the service.
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`Pilot Indicators
`The city prepares monthly performance standards reports for the city with daily and weekly
`ridership information. The city mainly focuses on pilot indicators of ridership, new accounts
`signups, and rider wait times in order to monitor performance. The basic daily ridership goal is
`between 250 and 500 rides per day. This goal was set based on the service that The Max was
`performing previously. Arlington On-Demand hit 250 daily rides near the beginning of the
`program and is now up to 400 daily.
`The goal for median time of arrival of vehicles after the requested trip is confirmed by Via is no
`more than 12 minutes. Via and the city worked together to determine the 12-minute wait time
`goal based on both customer service quality and reasonable expectations for vehicle availability.
`The average wait time for the service is under the 12-minute goal, though sometimes wait times
`during the morning or evening rush hour can be longer. The city will sometimes look at a
`traditional farebox recovery ratio as well in order to approach performance of the pilot as a
`standard transit service.
`Data Availability
`According to the contract terms, the City of Arlington and Via co-own all customer data input by
`end users. Via owns al