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HomeMy WebLinkAboutFY 2026 (Transportation Agency) TRANSPORTATION AGENCY FY 2026 BUDGET AND OPERATIONS SYNOPSIS Celia Mahikoa Executive 1 1. FY 2025 to FY 2026 BUDGET COMPARISON 2 2 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET Highway Fund Benefits expenses are being increased by $93,655 or 7.8%. To ensure we are adequately positioned to meet future obligations, we have made a strategic decision to increase the allocation of our Other Post-Employment Benefits account across the board. This will provide for flexibility in addressing any potential increases. The Highway Fund supports approximately 50% of Full-Time Bus Driver payroll expenses. There are no other changes in Transportation’s other Highway Fund accounts. General Excise Tax Fund Salary and Wages reflect an increase of just $563, which is the net result of reflecting the $226,823 incremental increase in salaries and wages, along with decreases of $226,260 prompted by the 6- month short-funding of (1) Transit Dispatcher and (3) Bus Driver positions that had been vacant throughout fiscal year 2024. Benefits expenses are being increased by $303,301 or 10.2% (as described above). Vehicle/Equipment, Lease funds have been decreased by $187,753 due to the final lease payment for five buses being completed in December 2024. No further lease payments are required. Operations funds increased by $89,749 prompted by $69,750 in funding required in the IT Arrangement (SBITA) account to maintain the new electronic fare collection system implemented and activated in January 2025 and a $19,999 increase in the Computer Peripherals/Supp funding to support the ongoing replacement of computers, laptops, and related accessories required. 3. OPERATIONAL CHALLENGES Kaua‘i’s Short-Range Transit Plan was completed in 2018 and provides the County with a list of useful recommendations for improving Kaua‘i Bus service that as implemented continues to increase the effectiveness, efficiency, and user-friendly nature of this essential public transit service for the people of Kaua‘i. The ongoing support provided by our Mayor, Councilmembers, and many other partners in public service has provided the Transportation Agency the resources and capability to continue to successfully implement some of the significant changes recommended. A few of the operational challenges experienced more recently follow. Personnel Shortages Staffing shortages have continued to present significant operational challenges, to the point where it has been necessary to continue the removal of Sunday bus service which was initiated in August 2023. The removal of service will need to remain until enough bus drivers and dispatchers can be retained in active service to support the reinstatement of Sunday bus service. A net increase in hiring eight full-time bus drivers and four transit dispatchers into existing vacancies should provide a level of staffing sufficient to do so. An effective strategy employed for driver recruitment has been the hiring of on-call Van drivers who are provided an extensive training program that supports drivers in obtaining the CDL-P 3 license required for a full-time Bus Driver position. There have been some ongoing challenges with meeting the licensing requirements causing significant delays, however ongoing consultation with the applicable agencies, and enhancements to the Agency’s driver training program should provide more success with getting drivers qualified to fill the full-time Bus Driver vacancies. Baseyard Space Another ongoing challenge faced by the Kaua‘i Bus continues to be the limited space on which the bus baseyard, repair shop, and administrative facility are located. The current facility was constructed over 20 years ago, at which time transit service was extremely limited and ridership was less than 25% of what normal ridership would be today. Since then, the fleet size, repair shop requirements, and operations staffing have more than doubled, and ridership of the Kaua‘i Bus by the public more than quadrupled. The existing facilities have reached their maximum capacity, and although a mezzanine was completed within the repair shop and a portable office building has been installed to address the shortage of office space, the need for additional space remains. Electric Fleet Transition The State of Hawai‘i’s renewable energy and transportation electrification goals prompted a County Proclamation made December 12, 2017 that describes the County’s commitment to converting 100% of the County’s fleet to renewable-powered fuels by the year 2035. The County Transportation Agency remains committed to working towards transitioning Kaua‘i Bus vehicles to a zero emission fleet, however due to the significant ongoing delays with the first order of vehicles and the challenges with initiating the charging infrastructure installation, this goal is unlikely to be accomplished by 2035. 4. OPERATIONAL HIGHLIGHTS FROM FY 2025 One of the Transportation Agency’s operational highlights for fiscal year 2025 is directly related to one of the operational challenges shared above. The collaborative effort with statewide partners in the “Hawai‘i Zero Emission Bus Pilot Project” provided the support needed to award the contract for the purchase of Kaua‘i’s first four electric powered transit buses that are scheduled to be manufactured in April 2025, and are currently estimated to be placed into Kaua‘i Bus service by September 2025. Funding for the second order of four electric powered transit buses was allocated to Kaua‘i by FTA in 2023, and is anticipated to be available by June 2025, at which time procurement for the second group of electric buses can commence. The Federal Transit Administration (FTA) provided a $3.5 million grant requiring no local matching funds to proceed with the design, engineering, and construction of additional repair shop space. The design was promptly completed, after which the extensive environmental review and approval by the FTA was completed this fiscal year, and construction is therefore anticipated to begin in April 2025. Another FTA grant is also currently being processed to fund a second phase of base yard expansion that will provide additional fleet parking that includes significant structural improvements to the currently unusable water basin area adjacent to the bus base yard. The project will also assist with ensuring there will be sufficient space for the additional electric infrastructure required to continue the fleet transition. 4 Another significant operational highlight is the successful implementation of the electronic fare payment system that was activated in January 2025. The extensive social media marketing campaign along with postings being placed on buses and at bus stops has within the first two months of activation prompted more than 484 riders to download the app and set up their account for a total of 3,452 rides that reduced cash payment processing by $7,744.50. The Kaua‘i Bus mobile app that continues to provide Kaua‘i Bus riders (and potential riders) a live map of bus routes and the real time status of Kaua‘i Buses, continues to provide riders and potential riders the Kaua‘i Bus real time tracking of estimated bus arrival times, and the ability to receive text updates of service changes. It provides a service portal for paratransit customers, with so far, over 216 clients registered for paratransit system information access. The app is available for download through the Apple Store and Google Play Store. Additionally, Wi-fi continues to be available on the Kaua‘i Buses, providing passengers the benefit of connectivity while also providing the County with portable Wi-Fi connection points in periods of disaster and emergency response. The Kaua‘i Bus is committed to utilizing the various technologies available to improve the passenger experience and increase efficiency of transit operations. One of the most rewarding highlights to note each year is the Agency’s ongoing communication with its customers and team members who continue to provide the Kaua‘i Bus leader team with comments and suggestions that are taken into consideration when employing efforts to enhance transit service and information access for customers. Regular attendance at public school career days, public information gatherings, and the Kaua‘i Developmental Disability Council’s monthly meeting provides attendees with updates that impact Kaua‘i Bus riders and addresses questions or concerns that riders and potential riders might have. These events provide the community various forums to share their questions, comments, and experiences with the leadership team. The Kaua‘i Bus team is extremely grateful for the ongoing support from our customers, County Administration, County Council, and so many others that graciously assist with what’s needed to continue successfully providing essential public transit service for our community.