SCMTD February 2004 Board of Directors Agendas - Santa Cruz ...

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EXAMPLE #I
METRO is currently invoiced at a rate of $52.30 per billable hour. In Example #I,
attached, METRO was billed $21.81 for .417 billable hours. After co-mingling
this ride with one other person (highlighted) the billable time to METRO was
reduced to 0.322 hours for a savings of $4.97. This is a real savings of 22.8%.
EXAMPLE #2
In Example #2, attached, METRO was billed $61.03 for 1.167 billable hours.
After co-mingling this ride with three non-ADA persons (highlighted) the billable
time to METRO was reduced to 0.537 billable hours for a savings of $32.94.
This is a real savings of 54%.
I would like to extrapolate a dollar savings to the District based upon these
assumptions.
> If 44 rides is provided at a productivity of 1.98 rides per hour there are
22.22 billable hours times $52.30 equals $1,162 to be billed to the
District.
When we allocate on-board time.
> If 33% of the time is grouped or co-mingled the billable hours is lowered
to 14.89 billable hours times $52.30 equals $779. A savings of $383.00
to the District.
> If 50% of the time is grouped or co-mingled the billable hours is lowered
to 11 .I 1 hours times $52.30 equals $581 .OO. A savings of $581 .OO to the
District.
TRACKING
It is the responsibility of the Community Bridges CIS to validate our current
invoices and he will continue to do so. The formula used is a minor variation on
an allocation policy we were using prior to July 1, 2003, Steve Paulson,
Paratransit Administrator for METRO, using Crystal Reports submitted by
Community Bridges staff will also continue to validate the invoices.