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HomeMy WebLinkAbout24 - Go Local ReportCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 9t, January 13, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Homer Bludau, City Manager 9491644 -3000 or hbludau @city.newport- beach.ca.us SUBJECT: Go Local Report ISSUE: Now that the "Go Local" study has been completed, what action does the Council want to take regarding the final report? RECOMMENDATION: Receive and file the report with OCTA. There is no desire to prepare an application for a Phase 2 study. DISCUSSION: Background: In March 2008, the cities of Newport Beach and Costa Mesa agreed to join together to apply to OCTA for Phase 1 "Go Local" monies in order to conduct a study regarding potential transit ridership to and from John Wayne Airport (JWA). Each of the 34 cities within Orange County were eligible for up to $100,000 to do feasibility studies in order to identify potential transit routes which would be economically viable within their jurisdictions. Since both cities were interested in learning more about JWA passenger characteristics, the cities developed a study scope of work that fit within the Go Local regulations and therefore, was approved by OCTA staff. The approved study sought to evaluate alternate transit connections from various Metrolink stations into JWA as a means of reducing airport ground traffic congestion. The study's intent was not to develop JWA transit connections that would increase passenger usage of JWA, but rather to evaluate transportation alternatives based on a detailed evaluation of the JWA air passenger market. Additionally, the consultant team headed by Peggy Ducey evaluated a critical issue for both cities — how to encourage and move air passengers to inland airports with excess air capacity. This additional regionalization analysis pivoted on a detailed evaluation of the JWA air passenger market, which provided critical insight into potential opportunities to Go Local Report January 13, 2009 Page 2 develop and promote a successful regional aviation system that better utilizes airport resources in the Inland Empire. On September 101" the cities of Newport Beach and Cost Mesa held a joint City Council meeting to review the findings of the Phase I Go Local study. At that meeting, the City Councils provided further direction to the consultant staff to complete the Go Local report, as well as developing recommendations for future steps toward regionalization. GO LOCAL STUDY FINDINGS: Based on an in -depth analysis of the JWA passenger market, the study determined that the majority of air passengers could access JWA from anywhere within Orange County in under 25 minutes, and in many cases, under 20 minutes. The survey also revealed that air travelers place greater priority on convenience and time savings than on any other factor when choosing an airport access mode. When actual air passenger travel times were compared to projected travel times by public transit, such as the I Shuttle or the OCTA Bus Rapid Transit (BRT), air passenger travel times almost doubled. Based on these findings, an airport transit service connecting directly into JWA would not attract significant numbers of air passengers, simply due to travel time differential. The report's findings do suggest that OCTA, which will operate BRT and the City of Irvine which operates the I Shuttle, could modify their operating and service characteristics to better address the needs of air travelers. However, changing the service operations won't attract air passengers without a focused, targeted marketing campaign so that air passengers would be more aware of the options of public transit to JWA. Aside from developing or expanding public transit into JWA, the Go Local report identifies a number of ways to potentially reduce traffic congestion around JWA. For example, in the Anaheim Disney Resort area, the majority of air passengers (between 56 % -73 %) are already using some type of transit service rather than renting a private vehicle. Focusing attention and marketing on using public or private high- occupancy airport transit service could significantly reduce JWA traffic congestion. Additionally, over 40 courtesy hotel shuttles access JWA daily. Consolidating these services into one transit system could reduce traffic congestion considerably. The conclusion of the report is that even though JWA is a major ground transportation trip generator, a significant investment in a dedicated airport transit link will not be cost effective. The study also identified key market sub - segments that may provide opportunities to shift passenger service to Ontario Airport. Specifically, the tourism and entertainment focus around Disneyland indicates an opportunity to develop incentives to attract passengers to outlying airports. Between both LAX and JWA, more than three million passengers annually converge on the Disney Resort area. POTENTIAL FUTURE AREAS OF STUDY 1. Newport Beach and Costa Mesa might consider doing an analysis of the potential of the Disney Resort and northern Orange County aviation market as it relates to shifting Go Local Report January 13, 2009 Page 3 passenger activity from JWA and LAX to Ontario Airport. Such a study would require the cooperation of the Los Angeles World Airports (LAWA), but it is in the best interests of all agencies to do so. 2. Newport Beach and Costa Mesa might consider a more thorough analysis of the northern Orange County air passenger market, which would include air passengers using JWA and LAX to access business and tourist centers in the larger Disney Resort area, including Buena Park's Knott's Berry Farm. 3. Newport Beach and Costa Mesa might consider engaging in discussions with Anaheim and the Disney Resort representatives to further explore the potential of providing both financial and non - financial incentives to encourage air passengers to use Ontario Airport. 4. Newport Beach and Costa Mesa might consider further marketing and public information research be completed to explore ways to develop air passenger incentives in order to stimulate the use of Ontario Airport over that of JWA. The City Council will discuss the establishment of its Council priorities for 2009, and further actions to protect our residents from the adverse affects of JWA will likely be one of those priorities. Once that happens, the City Manager will return with a work plan containing some or all of these recommended actions for Council consideration as part of that work plan. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the Council considers the item). Submitted by: HOMER L. BL AU City Manager Attachment EXECUTIVE SUMMARY: GO LOCAL STUDY Evaluation of Transit Connections to John Wayne Airport In 2006, the Orange County Transportation Authority (OCTA) approved the Go Local program, with the goal to increase Metrolink ridership through city- initiated transit projects. Each Orange County city was eligible for a $100,000 grant for an initial feasibility analysis. In March 2008, the cities of Newport Beach and Costa Mesa combined their grants to evaluate alternate transit connections from various Metrolink stations into John Wayne Airport (JWA) as a means to reduce airport ground traffic congestion. Three different airport- transit connections were evaluated: shuttle service linking Metrolink and JWA such as the I Shuttle, express bus service such as the OCTA Bus Rapid Transit, and a light rail connection. The critical question is whether Orange County air passengers and airport employees will use airport public transit services rather than private vehicles to travel to the airport. To accurately answer this question, current, detailed information about the JWA air passenger market was needed. An extensive air passenger survey was conducted in June/July 2008. Interview staff intercepted and surveyed 2,500 passengers waiting at the airport departure gates. The survey included questions about reasons for airport choice, airport preference, travel behavior, destination, demographic characteristics, and perceptions and use of mass transit. The survey also included questions detailing the exact location of travelers prior to leaving for the airport, permitting passenger origins to be geocoded by zip code. Analysis of this data produced a visual mapping of travel patterns and air passenger concentrations within the Orange County. The analysis also revealed airport access travel times, which critically influences whether air passengers will use public transit services, since air passengers place greater value on convenience and time savings over cost when choosing an airport access mode. Some of the key findings from the survey are: • Passenger Demographics ■ 51% male passengers versus 49% female passengers • 51% reported annual income over $100,000 • Residents and Visitors • 46% Southern California residents o 40% Orange County, 6% from surrounding counties ■ 54% visitors o 11.5% from Northern or Central California • Trip Purpose • 45% were business travelers o 37% were business travelers and 8% convention travelers ■ 52% were leisure travelers o 25% visiting family /friends and 27% vacationing. Airport Access & Ground Transportation ■ 51% of residents were dropped off by another driver ■ 40% of total passengers were dropped off • Use of public transit to the airport was less than 2% • Travel Time from Local Origin to JWA • Average travel time to JWA was 25 minutes • Travel time ranged from 12 — 42 minutes • Air Passenger Origins • Zip codes with highest passenger concentrations o Anaheim zip 92802 —11.7% • Newport Beach zip 92660 — 5.9% • Irvine zip 92641-4.1% • Costa Mesa zip 92626 — 3.9% Geographic Distribution of Air Passenger Density Forty-three percent of all JWA air passengers are concentrated in three distinct geographic areas: the Anaheim - Garden Grove Resort, John Wayne Airport -South Coast Metro, and South Orange County. Anaheim - Garden Grove Resort Area — This area attracts 13.9 percent of JWA air passengers. Over 95% of these air passengers are visitors. The overwhelming majority (56 - 74 percent) use some type of transportation service- either taxi, limousine, bus, or shuttle services to travel to JWA. Only about 22 percent rent private vehicles. This indicates a fairly large group market segment already using airport bus and shuttle services and who may be more amenable to higher- occupancy public or private transit services if priced right with convenient service offerings. John Wane Airport -South Coast Metro — This area attracts 14.1 percent of JWA passengers during peak travel season, equating to about 1.3 million air passengers per year. Two - thirds are visitors and one -third are residents. The vast majority of visitors, whether traveling for business or leisure stay at local hotels and about 51 percent travel to JWA by taxi/limo or courtesy hotel shuttle. Over 40 courtesy hotel shuttles access JWA daily. Since the purpose of this study is to evaluate ways to reduce traffic congestion and increase air quality, if one shuttle service could be coordinated for all the local hotels, it would significantly reduce vehicles trips. South Orange County - Fourteen percent of JWA passengers come from South Orange County during peak travel season, equating to about 1.3 million air passengers per year. From the resident - visitor split we observe that this area has a broad split between the resident base in Aliso Viejo and the visitor base in Laguna Beach. Evaluation of Transit Options Three JWA transit alternatives were evaluated: bus /shuttle service to rail (I Shuttle), express bus service or Bus Rapid Transit (BRT), and light rail. Bus /Shuttle Service to Rail - The I Shuttle is an example of this type of transit alternative. The I Shuttle is new shuttle service that links the Tustin Metrolink Station to John Wayne Airport. Air passengers can take Metrolink from the closest station to their home, travel to Tustin and then catch the I Shuttle into JWA. Different alignments and various locations were evaluated for the Metrolink station terminus. Based on this evaluation, the I Shuttle has already adopted the most cost - efficient and fastest route. While the route may be the most cost - effective choice, there are operational and service characteristics that would inhibit most air passengers from using this service. Multiple station stops and inconvenient operating hours will deter most air passengers from using the I Shuttle. Travel times almost double for most air passengers using Metrolink/I Shuttle versus private vehicles and the cost savings are not significant, so only a small market segment will be attracted to this transit option. Express Bus Service/Bus Rapid Transit (BRT) - OCTA's regional BRT service between Brea and Irvine will provide daily high - frequency limited -stop bus service. Total travel time for the entire route has not yet been calculated, but is estimated to be 55 - 65 minutes for the State College Route from north Orange County into John Wayne Airport. The travel time alone makes this an unlikely choice for most airport passengers since most can access JWA within 25 minutes. However, the BRT route does serve areas of high concentration of JWA employees and may be a viable commuter service for them. Light Rail Service from Metrolink to JWA - The financial feasibility of a light rail connection from any nearby Metrolink station to the airport would be difficult to justify. With the estimated cost in the billions of dollars and the relatively small passenger base out of John Wayne Airport, the potential demand does not justify a large scale capital project. A light rail link would operate in essentially the same way as the I Shuttle, so ridership would not vary much with the substitution of light rail for bus service to the airport, but the capital costs would be many times greater. Evaluation of Light Rail Alignment from Irvine to TWA — OCTA requested that the previous light rail alignments from Irvine to JWA be evaluated to determine whether they are appropriate routes given the areas of dense air passenger concentrations. It would be very difficult to attract a significant number of air passengers onto an airport rail system, even if it is located along the most densely concentrated air passenger zones. Freeway and surface street travel times to JWA are faster than Metrolink rail travel, and reported average travel times between Irvine and JWA are only 19 minutes. For rail service to be successful between Irvine and JWA, there. would need to be significant travel time savings or other important advantages as compared to private vehicles to attract air passengers to an airport rail system. Ridership Estimates The following is the ridership estimate for air passengers and airport employees using the I shuttle and the OCTA BRT. Ridership Estimate - I Shuttle and OCTA BRT John Wayne Airport However, ridership will remain low without a focused marketing campaign that targets air passengers to increase awareness of public transit options to JWA. Conclusions and Recommendations By far the most important factor in determining whether airport- transit service will attract a significant number of air passengers is the difference in travel times. Air passengers will choose rail or transit service over the convenience of using a private vehicle if there is a significant travel time advantage. Passengers 10.0 MAP Employees Total Passenger's 10.8 MAP Employees Total Daily Ridership Low Case 450 40 490 490 80 570 Base Case 1,220 100 1,320 1,310 190 1,500 High Case 1,820 240 2,060 1,960 480 2,440 of Total Base Low Case 1.6% 0.8% 1.5% 1.8% 1.5% 1.8% Base Case 4.5% 2.0% 4.1% 4.8% 4.0% 4.7% High Case 1 6.6% 5.0% 6.4% 1 7.2% 10.0% 7.6% However, ridership will remain low without a focused marketing campaign that targets air passengers to increase awareness of public transit options to JWA. Conclusions and Recommendations By far the most important factor in determining whether airport- transit service will attract a significant number of air passengers is the difference in travel times. Air passengers will choose rail or transit service over the convenience of using a private vehicle if there is a significant travel time advantage. For this study, JWA passengers originating travel within Orange County averaged 25 minutes travel time to JWA. When compared to projected travel times by rail /shuttle service such as the I Shuttle or the BRT, travel times almost doubled. From the standpoint of time savings, travel by private vehicle will be much faster than the proposed BRT or shuttle services, so public transit will not attract significant air passengers traveling to JWA. Even though airport transit won't attract a significant market segment, the study identified ways to decrease traffic congestion around John Wayne Airport. A critical finding was the number of JWA passengers visiting the Disney Resort. Rather than renting private vehicles, the majority use some form of transit to get to and from the airport. Substituting high- quality, fast and reliable public or private high- occupancy airport transit service will not be much different from their current airport access travel behavior. Focusing marketing efforts, including competitive pricing, on higher occupancy transport could reduce traffic congestion at JWA. Another significant finding was the number of hotel courtesy shuttles that access JWA from the surrounding cities of Irvine, Newport Beach, and Costa Mesa. Over 40 shuttle services transport hotel guests to the airport every day, some providing service every half hour, whether there are passengers waiting or not. Consolidating hotel shuttle services into one system could reduce traffic congestion considerably. The report's conclusions support the fact that while John Wayne Airport is a major ground transportation trip generator, a significant investment in a dedicated airport transit link will not be cost - efficient. However, there is a small pool of passengers that may use the I Shuttle or BRT if the services are better tailored to the needs of airport passengers and the services are marketed more effectively. Based on this analysis, it is recommended that the cities of Newport Beach and Costa Mesa do not pursue additional study on light rail or other transit connections into John Wayne Airport. The consultant team does not believe there is a great enough demand from JWA passengers to use public transit to cover the necessary capital and operating costs of an airport link. City of Newport Beach BUDGET AMENDMENT 2008 -09 EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations fJ SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: NO. BA- 09BA -034 AMOUNT: $a7,5zs.00 Increase in Budgetary Fund Balance Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance To increase revenue estimates and expenditure appropriations to accept the Assistance to Firefighters Grant and to recognize the required 20% matching funds from the City for Rapid Intervention Crew (RIC) Tactics and Firefighter Survival Training. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3601) Fund /Division Account 2320 48941 EXPENDITURE APPROPRIATIONS (3603) Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Signed. Signed: Signed: Description General Fund - Fund Balance Description Fire: Ops - Assistance to Firefighters Grant Description 2320 Fire: Operations 9032 Assistance to Firefighters Grant Financial Approval: Administrative Services Director Administrative Appro I: City Manager City Council Approval: City Clerk Amount Debit Credit $9,505.00 $38,021.00 $47,526.00 Date D Date Date