Monroe County Transit: Existing Conditions Analysis

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SCENARIO PLANNING & COSTS

6.1 Operating costs: Operating costs refer to the expenses associated with operating and maintaining public transportation. Understanding and managing these costs and the interplay between capital investments and operating-maintenance costs is essential for the managers and elected officials that oversee transit agencies to effectively balance community transit needs and community resources. Key components of operating costs to develop the Monroe County transit system include labor, fuel, bus and facility maintenance, insurance Transit vehicles and infrastructure require regular maintenance and occasional repairs. A high-quality preventive maintenance program is crucial for ensuring the safety and reliability of the transit system and the longevity of the bus fleet and transit facilities. Fuel & Energy Costs Fuel and energy costs typically represent less than 10% of transit operating costs. Higher fuel prices due to distribution challenges in the Keys could result in Monroe County Transit experiencing higher fuel prices than most US transit agencies and greater sensitivity to fuel price fluctuations, though fuel is likely to remain a small percentage of agency operating costs. Fuel price hedging and joining a fuel purchasing consortium are among the strategies hat Monroe County Transit could pursue to help control fuel costs and minimize fuel cost fluctuations. Maintainance and Repairs

and other costs. Labor costs, which include wages, salaries and benefits of labor expenses for bus drivers and maintanance, supervisory and administrative staff are the largest component of operating expenses. To optimize operating costs, Monroe County must apply the right types of transit service to each transit market and that services use human resources efficiently. Minimizing labor costs also should be a consideration in designing and locating transit passenger and maintenance facilities. Monroe County’s geography also is likely to prevent the Monroe County Transit from pursuing the industry trend towards conversion to battery electric buses. The Key’s electrical distribution system lacks the capacity to supply power at the scale required to charge electric buses. Battery electric vehicles also have a shorter operating range between charges compared to diesel powered buses, and this range can fluctuate significantly based on factors like passenger load and outdoor temperatures. This makes them a poor choice for operating the longer distance bus routes connecting the Keys to the mainland, or for evacuating residents and visitors in an emergency. Other types of alternative fuel vehicles, including diesel electric hybrids, may be feasible for use in Monroe County and will be investigated by Monroe County Transit to reduce transit’s environmental impact.