Trolley Ad Hoc Committee

MINUTES OFTHEMEETING: TROLLEY COMMITTEE / JANUARY 15 /11:00A.M.GALVESTON CITYHALLRoom204 InAttendance: Chairman KyleAlbright, CoChairman TreyClick,CouncilMember DavidCollins, KellydeSchaun, Joe Rozier, MikeShriner; Goodman Corporation-JohnCarrara; CityofGalveston-RickBeverlin, DavidSmith; Galveston.com –LeeRoaneandassociates. Hand-out: TrolleyAdvertising Report10/01/17 –11/30/18 CALLTOORDER: CHAIRMANKYLEALBRIGHTCALLEDTHEMEETINGTOORDERAT11:04A.M. ROLLCALL: QUORUMDECLARED. CONFLICTSOFINTEREST: NONE. APPROVALOFTHEMINUTES: FALLMINUTESAPPROVALDEFERREDTONEXTMEETING. REQUESTTOADDRESSTHECOMMITTEE: NONE. STATUSOFTHEFIRSTTROLLEYCAR:DAVIDSMITHNOTEDASTRUCTURALBEAMPROBLEM...CARTRAPPEDWATERWITHINTHESTEELCYLINDER COLUMNCAUSINGCORROSIONFROMTHEINSIDEOUT—COULDNOTDRAIN. GOMACOTROLLEYCOMPANYGOINGBACKWITHENGINEERSON THETROLLEYTRUNKSANDHOSE – REMOVEDBEAMSANDORDEREDNEWSTEELTOREPLACE (SOFARONTHEIRDIME…FULLCOSTISNOTKNOWN YET. THEYMAYASKFORMOREDOLLARS.). WILLHAVETOGOBACKTOCITYCOUNCILTOINCREASECONTRACTAMOUNT–FINALANSWER STILLREQUIRESMOREWORKBYGOMACO. ALBRIGHT: WHEREAREWEONTHEACTUALFABRICATION. SMITH: PUTINPLACEANDTEST; BRENT SUMRALLHASSEVERALMOREFACTORYCHECKSTOCOMPLETEATAPPROPRIATETIMES. SECONDITEM –GOMACOSENTTESTTRUCKS/ WHEELS. DIFFICULTYRUNNINGTHROUGHCURVESANDSWITCHES. STONEENGINEERINGCONSULTANTSCAMEDOWNLASTWEEK –RECOMMENDED ADJUSTMENTS ANDDIFFERENTWHEEL. JOHNCARRARA: GOMACOCOMPLETECARWORK--GENERATOR, WOOD FLOORS, INTERIOR, EXTERIOR--ASSOONASSTRUCTURALPROBLEMWORKEDOUT…CANMOVEFORWARD. THEORIGINALAMERICANMANUFACTURERSHUTDOWN ANDCOMINGBACKAGAIN. ANOTHERGROUP, MOREMODERN, PHILADELPHIA-ELPASO, MORESUITABLE. EVALUATEBETWEENTHETWO. COMPLETELYDIFFERENTASSEMBLY; TESTONTRACKS. SMITH: TRIALANDERRORDELAY BUTCOMPANYWEHIREDRECOMMENDEDBY GOMACO. ALREADYREDONEWOODWORKONINSIDE, SANDEDOUTSIDE –THEFIRSTCARISBEINGUSEDASAGUINEAPIG.SECONDANDTHIRD WILLMOVEALONGFASTER. AIRCONDITIONING: GOMACOHASTHEMNOW. CARRARA:WILLINSTALLANDMAKESUREWORKINGSEPARATELY. SMITH: ORIGINALLY, WEREGOINGTOSHIP. NOWWESHIPTOTHEM. THEYWILLNOTMOUNTTHEM –WOULDMAKETROLLEYSTOOTALLTO SHIP. STATUSOFTHEMARKETINGEFFORTSONTHETROLLEY/ BUSES: (GALVESTON.COM) LEEROANE. SUMMARYREPORTSONADVERTISING – 50% SOLDONBUSSHELTERS. SOMEINSIDESOLD. AFEWCANCELLEDONINSIDE. DIDN’TSEEBANGFORTHEBUCK – ISSUEINSIDETROLLEYS. LAST WEEKINSTALLEDTHEFIRSTMAP. PUTMAPALONGTOP,ANGLEDDOWN (PASSEDPHOTO). MAP - TWO24”SPOTS. AUDIT: MORESTUFFTO SELL. KELLYDESCHAUN: FINANCIALS. ROANE: REVIEWEDTHETROLLEYADVERTISINGREPORTFIGURESLISTEDFOROCTOBER1,2017 TO NOVEMBER30,2017 (REPORTDISTRIBUTED). REPORTREFLECTSWHOISADVERTISING. INTOTAL, ENDOFDECEMBER, $ 91,000; SOME EXPENSEDBACKTOCITY. SO, CITYSHARE $43,350. HELDONTOMONEYTOPURCHASEFRAMES; WILLCUTCITYACHECKINMARCH,$ 30,000. DESCHAUN: ISTHEREAPIEINTHESKYNUMBERWEWOULDBUILDUPTO. ALBRIGHT: HAVEN’TBEENABLETODO;ADVERTISINGDOLLARSARE APPLESTOAPPLES. SCOTTMOON:FORECAST- SHELTERSALONGSEAWALL,THEYWOULDSELLFAST. ANDINSIDESIGNSONTHETROLLEY - $300 PERMONTH. NOTSOMETHINGHAPPYWITH. THREEOUTOFFOURINSIDECANCEL. MORERESPONSEONTHREEEXTERIORSIGNS. LANDRY’S TOINCLUDEVIDEO. DESCHAUN: $600,000 REALLYAMBITIOUS. COMMENDEDFORTHE $91,000 YOUHAVEDONE—I LIKETHEBUSINESS YOUHAVE. ALBRIGHT: INCREASEFROMNOVEMBERTODECEMBERSIGNIFICANT. TREYCLICK: PEOPLETHATAREAHEAD OFTHEGAME. MOON:WHENSTEELWHEELSCOMEBACK, SIGNSWILLBEGONE. CLICK: WHENYOUWRITEACHECKWHEREDOESITGO? SMITH: CONTRACT ALLTHEFRAMESFORALLTHETROLLEYSREVENUETOTHECITY—DOLLARSSPENTUPFRONT. CARRARA: TECHNICALLYFUNDSNEEDTOGOTO ISLANDTRANSITSUPPORT. RICKBEVERLIN: WEHAVEHADNOINTERESTONMOVING. CARRARA: TRANSITPARTICIPATIONINTHESTRUCTURE. DESCHAUN: MORESENSETOPUTBACKINTOISLANDTRANSITBUDGET. OFFSETCOST. SMITH: RUBBERWHEELTHROUGHHOTTAX. ADVERTISINGONBUSESBACKTOIT. BEVERLIN: LASTYEARRANSUBSIDY FTAMONEY $800,000 ANNUALLY. EITHERTROLLEYORBUS WILLBEABSORBEDFOROPERATIONS – 110,000TRIPSVS.83,000TRIPS. DESCHAUN: WOULDLIKETOSEEINTHEGRANULARLEVEL. BEVERLIN: SPRINGBREAKGOESWAYUPAND SUMMER. ALBRIGHT: ALLCASH, PEN, PAPER. TICKETPRICING. MARKETING, GPS, AUTOMATEDCOUNTERS – NOTONADOLLARFARE – INCREASEINTICKETPRICING. DEPENDABLESCHEDULE. INTERRUPTION – TOINFORMCUSTOMERSUSINGTHETROLLEYS. UBERLIGHT, EFFICIENT, ASYSTEMSIMILAR. IMPORTANTMAINTAININGUPDATES. PACKAGEOFTROLLEYINEXISTINGEFFORTS—PACKAGINGANDVALUE TOCUSTOMERS. NOROOMFORDISCOUNTINGATFARE. BEVERLIN: CONSISTENCYOFFAREACONSIDERATION. DOWETHINKTHEREMAYBE PEOPLESHIFTINGFROMISLANDTRANSITTOTROLLEYS? YES, APPINPLACE. TROLLEYS $2.PARATRANSIT $2.EVIDENCEHAPPENEDONTHE RUBBERTIRETROLLEYS…TAKERUBBERANDSTEELTO $2. AGREEMENTCVB ISSUE. CONTRACTRATEFAREMEDIAORAPP – STAYINHOTEL COVERINGTHEFARE. OTHERSIDEOFTHECOIN. PERFECTWORLD, PAIDTOPARK, TROLLEYFORFREE. MAXRIDERSHIP – ESPECIALLYTOURIST RIDERSHIP. RIDERSHIPONISLANDTRANSITTOGOBACKWHEREIT SHOULDBE. MIKESHRINER: MOVEFROMCASHTOAUTOMATED. BEVERLIN: GRANTFORFARECARD – CARDREADERISSUE. ONPHONEITFLASHINGICON. SOMETHINGSIMPLE. IMMEDIATEDISCUSSION – CAN WEGETHOTELIERSTOAGREETOACONTRACTRATE. LEAVECAR; EVERYTRIPFREE. SMITH: CALLSFORCHARTERS. CAN’TCHANCELOSING RUBBERWHEELINANACCIDENT. DIVERTEMPLOYEESBACKTOISLANDTRANSIT. DESCHAUN: HOWTOGETAROUND. BEVERLIN: MOST LOCAL, BROADWAY, SORU. ISSUEONHOTELMOTEL –NOTSUPPOSEDTOBEMOVINGSTAFFSINCETAXGENERATED. DESCHAUN: REALISTIC TOEXPECTPEOPLETOPAY. SMITH: ISLANDTRANSITROUTESWOULDHAVETOBEALOCAL, USINGREGULARLY. RUBBERWHEELSIMPLERUP ANDDOWNSEAWALL. 50,000PEOPLE. DESCHAUN: WOULDLOVETOSEETROLLEYBUDGET – AMOUNTFROMTROLLEYBOX. FIRST, THEYWILLASKME:HOWMUCHTOPAY. ICOULD BEWRONG. BEFOREWECREATEAUSERFEE,WHATWEHAVEALREADY. BEVERLIN: ALLTRANSITISSUBSIDIZED, VARIETYOFGRANTS. $ 3.3 MILLION; WAS $4.8MIL. THISYEARAT $6.6.BYCOMPARISON,1/3SYSTEMPAIDFOR –FAREBOXWILLNOTMAKEITUP. ALWAYSBIGGAPS. WECANCOUNTRIDERSHIPINMILES. DESCHAUN: DON’TBELIEVEPUBLICSERVICEHASTOPAYFORITSELF. THEREFORE, IAMGOINGTOMAKE THECASEUSERNEEDSTOPAY. WEAREACONSERVATIVECOMMUNITYWHENITCOMESTOSPENDING. BEVERLIN: BULKCONTRACTSCENARIO, GUARANTEEDREVENUE. CONTACTUTMB –ISLANDTRANSIT. RIGHTNOWYOUHAVENEWWHEELS. 12YEARVEHICLES. SIXYEARSINCOST ESCALATION; HALFWAYTHROUGHLASTFISCALYEARATEUPENTIREBUDGET. VEHICLESWEDIDNOTOWN. PARTYOUHAVETOPLANFOR. AGE: COSTGOESUP. ALBRIGHT: WHATISTHENUTTHECITYHASTOHAVEONARIDE? ADVERTISINGDOLLARSDIVIDEDUP. WHATWEHAVE TOWORKWITH -DOORTODOORSERVICE -$ 12ANHOUR. PEOPLEHAVETOPROVETHEYNEEDTHESERVICEONREGULARBUSES. SHOULD RATESGOUPFROM $1TO $2.NEEDHARDNUMBERSONEXPENSES. TWELVEMONTHSTOKNOWWHATITISCOSTING. IS $2THENUMBER. BEVERLIN: FIXEDRATECLOSETO $8. HARRISCOUNTYRIDE $15.AGINGPOPULATION. ALBRIGHT: EXPECTATION. HOWMUCHTICKETFARE GOESTOOFFSETCOST? CARRARA: LOOKATALLTHEFINANCIALSINONEPACKAGE, ENOUGHFROMADVERTISING, ETC. – COULDHAVEAFARE THATISFREE. CITYWANTSTOHAVEANOMINALFAREBOX –WILLBEMUCHLARGERTHANINTHEPAST. ALBRIGHT: BACKTOCHICKENORTHE EGG. FAREDISCOUNTONHOTELS.BALANCINGACT. BASECOSTFROMRIDERSHIPTOGETTOTICKETPRICE. BEVERLIN: 25%.CARRARA: TOTAL REVENUEFROMFARELOWERWITHMOREANDNOTHINGWITHLESS. LOCALRIDERSHIP. SMITH: SKEWTHENUMBERSCANNIBALIZED. BEVERLIN: PANHANDLINGATTHESTOPS – NOTBESTTHING. SMITH: ISLANDTRANSITFIXEDRATESANDRUBBERWHEELTROLLEY – PULL REVENUEJUSTONTHERUBBERWHEELTROLLEYS. TICKETPRICE – MAKESURENOTSETTINGUPSYSTEM. GPS ORRWT THROUGHGOOGLE. GALVESTON.COMCANHELPUSWITHTHIS. RUNNINGABUS (NOTFIXEDROUTE) WHENWEMETWITHMETRO – COSTFORRUBBERWHEEL TROLLEYSDEFINEDDOWN. ALBRIGHT: SPRINGBREAKSHORTTIMEFRAME. BEVERLIN: CONSIDERPRETTYSOON. HANDINHANDWITHHOTEL AGREEMENT. SMITH: DAILYRATEASOPPOSEDTOPERRIDE. ALBRIGHT: WHENTREYANDI SPOKEWITHMELODYANDMEG,CONSISTENCY IMPORTANTTOOVERALLPACKAGE. PHYSICALPASSORCANDEPOSITWITHDRIVERORDIGITAL –COVERANDNOTCREATEADDITIONALCOST. JOEROZIER: RETAILERSONSTRAND…BEVERLIN: REIMBURSEMENT. ROANE: GALVESTON.COMCANDOTICKETSALES – THREWOUTBUTTOOSOON. SELLON-LINE $1TICKETLOSE30CENTS. MANAGESYSTEM: I NEEDREFUND – DIDNOTUSE. RAISETO $2 CASH—WIGGLEROOMONON-LINESALES. $ 1.20; SELLWEEKENDHOP ONHOPOFF $10 WEEKEND. I COULDSUBMITNEWPROPOSALONTICKETINGANDGOUP - $2.CITYABOVE $1;BUYSCANNER (COST) FORBUS. MONTHLY REVENUE? $ 30,000 CHECKTOCITY – BUYSCANNERSOUTOFIT. DESCHAUN: COSTBEFOREWESETPRICE. NOTMAKINGENOUGHONA DOLLAR. ACCOUNTABILITYFORPRESENTATION. STARTINGPOINTTARGET – RAISESUFFICIENTCASH. SMITH: TOCITYCOUNCIL – HAVETO KNOWCOST. ALBRIGHT: LET’SGETINBEFORESUMMER; COMEBACKINTWOWEEKS. INSIGHTANDGUIDANCE. BEVERLIN:$ 2 ANHOUR HOURLYOPERATINGCOSTOFTHERUBBERWHEELTROLLEYS; ALBRIGHT: LEECANPULLTOGETHER. SMITH: NOTHINGTOCITYCOUNCILYET. COMEBACKWITHNUMBERSANDPROPOSAL. BEVERLIN: NOFTAEVERBLENDEDINTOTHIS. WEWOULDNOTHAVETOGOTOAPUBLIC MEETING. SMITH: WORKSHOPFORCITYCOUNCIL. CRUNCHNUMBERS. ALBRIGHT: 29 TH OPEN. SMITH: INMIDDLEOFTRI-ANNUALAUDIT. CLICK: AGREEWITHALLTHAT. ALBRIGHT:ANYOTHERCOMMENTS?DESCHAUN: GLADFORFOLLOWUPONGPS.SMITH: JUSTCONNECTTO GOOGLE. PROBLEM – TEAMTOMANAGEIT. BEVERLIN: NEEDSTEELWHEELSTOCOMEBACK. SMITH: FLYRICKUP. BEVERLIN: AFTER FEBRUARY. ALBRIGHT: CALLEDFORADJOURNMENT. MOVEDBYCLICK,SECONDFROMROZIER. ALLINFAVOR. LINDASTREVELLFOR DAVIDSMITH –DIRECTOR FLEET, MASS TRANSIT, SPECIAL EVENTS  RubberWheelTrolleyService Operational FY2017-18 REVENUE ACCOUNTTYPETITLEYTD ACTIVITY 331180RFARE BOXREVENUES$ 74,064 EXPENDITURES ACCOUNTTYPETITLEYTD ACTIVITY 511001LREGULAR PAYROLL$ 247,783 500000LFRINGE ANDOTHER$ 100,754 511009LOVERTIME$ 31,530 522059EMOTOR VEHICLE PARTS$ 15,841 531240EMAINTENANCE CONTRACTS$ 1,657 531350EGARAGE CHARGES - FUEL$ 68,020 544098EREIMBURSABLE FROMINSURANCE CLAIMS$ ( 3,105) 500000DDEPRECIATION - FIVETROLLEYS$ 144,358 TOTALANNUAL COST$ 606,838 MilesCPM CostPerMile$ 606,838 223,243$ 2.72 RidersCPR CostPerPAIDRiders$ 606,838 74,064$ 8.19 RidersCPR CostPerALLRiders$ 606,838 110,351$ 5.50 HoursCPH CostPerHour $ 606,838 10,500$ 57.79