4. Existing Vanpool Programs

There are numerous organized commuter vanpool programs in the United States. Some of these programs are fairly new while others have been in place for decades. The majority of these programs operate with some form of government incentives but some operate without subsidies. Some programs involve a form of partnership between participating commuters and a governmental entity while others involve a three-way partnership involving commuters, government, and a commercial vanpool facilitator. Others represent only an informal agreement among a group of commuters.

The following subsections of this chapter describe a variety of vanpool programs that are in place around the United States. Many of these programs have common themes but some have features which are uniquely designed to meet the needs of local commuters, funding sources, etc.

While this review cannot discuss all the vanpool programs in existence in the United States, it will include a wide variety of programs. Selection criteria include levels of government that are involved in various programs (federal, state, local, etc.), funding sources, urban vs. rural programs, etc. The ultimate goal is to identify features which make programs successful. Special attention will be paid to identifying features that may be well-suited to relatively rural environments like North Dakota.

4.1 Federal Programs

In addition to encouraging state and local governments to promote vanpooling, the federal government also encourages its employees to commute via vanpool. On April 22, 2000, President Clinton issued Executive Order 13150 which directed federal agencies to subsidize commuting costs for employees who use transit and vanpools to get to and from work. The order was aimed at reducing greenhouse gas emissions and other forms of pollution and to help reduce roadway congestion.

Executive Order 13150 initially targeted federal employees in and around Washington, D.C., but it has since been expanded to include all federal employees. The program is administrated by the U.S. Department of Transportation under contract with other agencies. Each agency is required to finance the cost of the project within their normal operating budget. Current monthly subsidies are a maximum of $105 per employee. In effect, federal agencies pay up to $105 of an employee's monthly commuting costs if he or she commutes via transit or vanpool.

This benefit is provided tax-free. Assuming a federal and state tax-related savings at 33%, this incentive has an annual pre-tax value of approximately $1,680 for participating employees. Vanpooling is reportedly a popular option, especially in areas that are not served by conventional transit (Skipper - 2005).

Chapter 3 discussed other major federal programs which are in place to promote commuter vanpooling. Some of these programs create tax advantages for participating employers and employees, some create assistance programs which promote the creation of vanpools, some allow federal funding to be used to facilitate state and local vanpool-creation projects, and some encourage federal workers to commute via transit and vanpools. Several federal agencies are involved in this promotional effort.

Virtually all of the state and local vanpools programs which are discussed in this chapter involve incentives which are provided by the federal government. In most cases, however, these federal incentive programs are not funded with monies that are earmarked for vanpooling. Rather, available federal funds are part of larger programs which have flexible guidelines to allow state and local administrators to use the funds in a variety of ways. In each case, a decision was made at the state or local level to use at least a portion of available funds to create incentives to vanpool. As the following discussions indicate, in many cases additional state and local incentives were added to further encourage workers to commute via vanpool.

4.2 State Programs

This portion of Chapter 4 is devoted to presentations regarding state-sponsored vanpool programs that may hold promise for North Dakota. These presentations include discussions regarding programs that are being run in Utah, New Jersey, Connecticut, Michigan, Hawaii, Maine, Colorado, and Idaho.

4.2.1 Utah

UTA Rideshare is a quasi-state agency that promotes and provides transportation services in Utah. The Utah Transit Authority (UTA) has two programs that individuals can use to establish and operate vanpools. One program provides vehicles on a lease-basis and one helps individuals purchase vehicles for use in vanpooling (www.utarideshare.com).

Under the lease program, UTA uses approximately $540,000 per year in CMAQ money to purchase vanpool vehicles. These vehicles are purchased under state contract at prices substantially lower than would be achievable by individual buyers (e.g. $23,000 for a 12-passenger van). UTA then leases these vehicles to groups or individuals for use as vanpools. UTA leases typically cover fuel, insurance, and maintenance.

Lease costs are quite low given UTA's purchasing capabilities, self-insurance program, and nonprofit structure. In July 2005, UTA's monthly rider charge for vanpool with 10 paying riders and a daily round-trip commute of 50 miles was approximately $50 per month.

UTA drivers typically ride at no cost. Vehicles are assumed to have a usable life of eight years or 100,000 miles, whichever comes first. At the end of that time, the pool is given a new replacement vehicle and the old vehicle is either sold or kept for backup service.

As is the case with many vanpool programs, UTA allows pools to dissolve with 30-days notice. Pool participants also enjoy a guaranteed ride home program which provides up to six rides home per year.

In July 2005, the program had 264 vanpools in operation. It expected to have funding for another 23 pools in the latter half of 2005 and has 60 groups or individuals waiting for vehicles.

Using FHWA funds provided via the Utah Department of Transportation (UDOT), UTA also has a program which allows individuals to purchase vans interest-free. Individuals who are interested in establishing a vanpool must submit an application to UTA, along with purchase bids from at least two dealers. Upon completion of a credit check, an approved application may proceed with the vehicle purchase. The applicant is required to make a vehicle down payment of 6.77% plus taxes and license. The remainder of the vehicle's cost is paid for by UTA. The applicant's initial payments and subsequent UTA loan payments are financed, along with other operating costs, via monthly payments from pool participants. Drivers ride at no charge.

Drivers are allowed to use the vehicle for personal travel except to the extent that this use may not interfere with the vanpool's needs and related usage may not exceed 30% of the vehicle's total. Drivers are required to submit monthly reports, along with loan payments. Pools are subject to audits in the form of verification phone calls to pool participants and/or assessment audits conducted by UTA, UDOT, or FHWA.

With only three pools in the program, the UTA's purchase program is far less popular than its lease program. Reasons for this differential include the lease program's easy termination and vehicle maintenance provisions and its low monthly costs.

UTA's vanpools operate throughout Utah. Given the provisions of the federal workforce transportation program (Executive Order 13150), the program is especially attractive to federal employees (Miklos - 2005).

4.2.2 New Jersey

New Jersey has a state-promoted Vanpool Sponsorship Program which is run by NJ Transit, a transportation services affiliate of the New Jersey Department of Transportation (NJDOT) - (www.njtransit.com/db_ep_vanpool.shtml). NJ Transit uses FTA funds to provide eligible vanpools with monthly operating subsidies of $150; these subsidies are divided among each pool's riders. With 144 vanpools and over 1,250 riders in the program, annual subsidy payments total about $260,000 or about $208 per participant.

New Jersey's vanpool program began in 1998 and requires that applicants work through a local Transportation Management Association (TMA) to complete funding requests. Monthly subsidy payments can go directly to owner-operators but in virtually all cases they are sent to certified vanpool vendors that are leasing vehicles to pools. Leases are typically based on an estimated vehicle life of five years or 120,000 miles, whichever comes first.

The largest vendor, Vanpool of New Jersey, is a local company. It is considered the most competitive vendor in the New Jersey market; it has 93 pools in operation. National vendor VPSI has 35 pools in service. NJDOT is also recognized as a program vendor; it leases state-owned vehicles to its employees for use in vanpooling. NJDOT has nine pools in operation (Stocker - 2005). Vanpool of New Jersey General Manager Mark Tornquist estimates that it costs about 5 cents per passenger mile to operate a vanpool with 11 paying passengers, plus fuel. Based on this estimate, a pool with a 50 mile daily round-trip commute would see monthly rider fees of approximately $55 plus an additional $13 per month per passenger for fuel (Tornquist - 2005).

Some of New Jersey's TMAs make additional incentives available to program participants. Typical incentives include guaranteed rides home in case of emergency and short-term empty seat subsidies. NJDOT has a statewide ride-matching service that TMAs can use to help vanpools organize and find replacement riders.

Participation in the New Jersey vanpool program has declined from over 200 pools to the current level of 144. Program administrator Sally Stocker speculates that much of this decline is due to employer demands related to extended workdays. These demands make it difficult for employees to commit to riding in a pool with consistent commute schedules. (Stocker - 2005).

4.2.3 Connecticut

Easy Street is a statewide commuter vanpool service sponsored by the Connecticut Department of Transportation (www.easystreet.org). The department works with three private, nonprofit companies which cover various parts of the state to operate its 300-pool program. CMAQ monies are used to purchase vans and operate the program. These funds are basically an interest-free loan which is repaid as monthly pool revenues repay the original vehicle purchase price and cover ongoing operating costs. This interest-free feature was important when interest rates were high but it is of virtually no value when commercial rates are low and dealers are offering interest-free financing.

The monthly fare for a person traveling a total of 50 round-trip miles each day in a minivan is $112, including fuel. The fare for people traveling the same distance in a 12 or 15 passenger van is $100 per month. Passengers receive a $25-$50 reward for recruiting new passengers. The program also features a traditional guaranteed ride home program.

Pool vehicles are purchased directly by pool operators from authorized vendors. Vehicle titles remain with the program when vehicles reach the end of their useful life (100,000 miles). Easy Street drivers use fleet credit cards to purchase fuel, a program which avoids state fuel taxes. Maintenance is performed by commercial vendors and is paid for by the program. Insurance is provided via a state insurance program at a rate of $238 per vehicle per year, an extremely attractive rate compared to $2,000 per vehicles prices charged by some commercial providers.

The Department of Transportation is reportedly rethinking the way that the Easy Street program functions and may restructure it within the next few years. Two major changes that are being considered are the elimination of third-party vendors and the creation of a state bond fund to provide short-term financing. Eliminating third-party vendors would allow the DOT to work more directly with pool operators and to have greater control over program costs and pool operations. Utilizing a state bond fund to finance the program would facilitate cash management and eliminate requirements associated with the use of federal funds (Jolly - 2005).

4.2.4 Michigan

MichiVan is a vanpool program that is run by the Michigan Department of Transportation (MDOT) -- (www.vpsiinc.com/Home/index.asp?OID=27). The program was initiated when MDOT solicited proposals from commercial vendors to help establish and operate vanpools around the state.

MDOT ultimately contracted with VPSI. The vendor is responsible for helping organize and running vanpools. Once pools are established, they submit operating data and rider fees to VPSI. The company, in turn, compiles aggregate reports and submits them to MDOT, along with a corresponding bill to cover each pool's operating subsidy plus the management fee that MDOT has agreed to pay VPSI for its services. MDOT chose to contract for operational and administrative services since it seemed cost-effective to do so, thereby avoiding related costs associated with fleet management, ride matching, promotions, etc.

MDOT negotiates operating lease rates with VPSI based on the number of miles run by each pool each month and sets corresponding rider fares. As of August 2005, the monthly lease rate for a seven- to eight-passenger pool operating 50 miles round trip per day was $940 and the passenger fare was $50. If such a pool had six paying passengers and collected $300 in fares, VPSI would bill MDOT for the $640 balance.

In addition to the monthly fee that is used to recover a portion of VPSI's lease, passengers are also responsible for paying their pool's fuel expenses. With six paying passengers, this expense increases each rider's total monthly fee to approximately $73.

As of June 2005, MDOT had 133 vanpools in operation under its MichiVan program. These pools transported an average of 1,103 riders, up 135 from the preceding quarter. For the quarter, MDOT paid approximately $175,000 to subsidize the operations of these pools plus an additional $73,000 to VPSI to administer the program. Operational subsidizes therefore equal about $440 per pool per month or about 46% of the amount required to operate a 50-mile-per-day pool. The cost of the program, including administrative costs, equals approximately $620 per pool per month or about $75 per rider.

The vast majority of MichiVan's costs are covered with FTA CMAQ funds. About $195,000 in annual state funding is provided from gasoline tax revenues (Reustman - 2005).

4.2.5 Hawaii

The state of Hawaii has a program very similar to Michigan's. The Hawaii Department of Transportation also contracts with VPSI to run its program and uses CMAQ funds to finance related administrative costs and rider subsidies. Hawaii has approximately 150 vanpools operating in its Vanpool Hawaii program. Monthly fees vary by island. The fee for a person with a 50 mile round-trip commute in a 15-passenger van ranges from $55 to $72, plus fuel (www.vanpoolhawaii.com/vanpool/costs/big_isle.htm).

4.2.6 Maine

GO MAINE is a commuter program that has been operated by the Maine Department of Transportation since the late 1970s (www.gomaine.org/vanpool/). MaineDOT is actively involved with the program but it also contracts with the Greater Portland Council of Governments to assist with its implementation and day-to-day operations. As of July 2005, nine pools were operating in the program. Plans call for the addition of three more pools during each of the next five years.

MaineDOT uses about $175,000 in federal CMAQ monies and $115,000 in Maine Turnpike revenues each year to finance its GO MAINE program. MaineDOT purchases program vehicles and sets rider fees. Fees are established for each route and do not vary with month-to-month fluctuations in rider numbers. Monthly rider fees are set at a level that is intended to cover the fully allocated cost of running the program's vehicles, exclusive of program administration expenses. The estimated fare for a 50-mile daily round trip is $54 (Kish - 2005).

MaineDOT uses its own mechanics to maintain program vehicles. Vanpool operators are encouraged to fuel vans at department fueling sites. In cases where using a state fueling site is impractical, vanpool operators may use a department credit card to pay for fuel. Via this program, pool operators have virtually no out-of-pocket expenses. MaineDOT indicates that many of its vehicles achieve a vehicle life of 200,000. Other than the savings associated with purchasing vehicles via state contract, using state employees to maintain them, and running them on fuel purchased at state bulk rates, there are no state subsidies built into the GO MAINE vanpool program. (Moreau - 2005).

GO MAINE riders have access to an emergency ride home program which provides them with up to two trips per month with a maximum of eight trips per year. Service is provided via taxi. For longer trips, needy passengers are provided with a rental car.

The program has also been revised to encourage participation by state employees. Participants are provided with preferred parking plus they can use the state's flexible spending account program to gain related tax savings. GO MAINE also has real time computer software to facilitate ride matching by all potential carpoolers and vanpoolers.

4.2.7 Colorado

The Colorado Department of Transportation's website encourages vanpooling as a commuter option and the department employs a travel demand management coordinator. The site indicates that more than 100 pools are operating in the Denver, Colorado Springs, and Ft. Collins areas (www.dot.state.co.us/CommuterChoice/Vanpool/Vanpool.htm).

Colorado is like many other states to the extent that is does not have a significant vanpool program at the state level. Calls to the Colorado Department of Transportations or visits to its website direct inquiries to one of the local vanpool programs that are in operation in the state. Each of Colorado's local vanpool programs will be discussed later in this chapter.

4.2.8 Idaho

The Idaho Transportation Department provides financial assistance, via FHWA Surface Transportation Program funds, to support four local ridesharing agencies in the state. Assistance totals approximately $67,000 per year and is used by metropolitan planning organizations to promote carpooling and vanpooling and to support ride-matching services (http://itd.idaho.gov/PublicTransportation/aboutus.html).

4.3 Local Programs

As indicated in the preceding subsection, many of the vanpool programs in the country are operated at the local level in urban areas. Despite North Dakota's relative lack of urban areas, looking at a sampling of these programs may provide valuable insights concerning attractive program features and funding alternatives. The following subsections discuss programs that are in operation in the Twin Cities, Ft. Collins, Denver, Colorado Springs, Boise, Missoula, and Fargo.

4.3.1 Twin Cities

The Minneapolis-St. Paul Metropolitan Council is a regional planning agency that encompasses seven counties in the Twin Cities region. The council promotes vanpooling in the Twin Cities metropolitan area via its Van-Go! program (www.metrocommuterservices.org/van_go.htm). The program was initiated in 2001 and had 55 pools in operation as of May 2005.

The Metropolitan Council contracts with VPSI to promote and administer Van-Go! It uses CMAQ and FTA 5307 funds for administrative purposes and to subsidize pool operations. As of May 2005, VPSI also had contracts with 15 unsubsidized pools that were operating in the Twin Cities region.

Program participants typically lease vehicles from VPSI but it is also allowable for employers to lease vans for use by employees. The monthly lease rate includes vehicle maintenance and liability insurance. Each pool's driver is responsible for pool operations, driving, submitting monthly reports, etc. Approximately 55% of each pool's monthly vehicle lease is paid by the council. Rider fees are set to recover the remainder of the lease plus other expenses such as fuel.

Based on an average monthly lease rate of $1,250, each pool receives a monthly subsidy of nearly $690 or about $63 per passenger in a pool with 11 paying riders. The after-subsidy, out-of-pocket cost per passenger in a pool with 11 paying riders is approximately $62. Adding the cost of fuel to this monthly fare increases the total cost per rider to about $75 per month (Arnold - 2005).

The Metropolitan Council provides additional incentives to encourage participation. Primary drivers receive $200 after their first six months of driving and $100 per year thereafter. Backup drivers receive $50 per year. Drivers also ride free and are allowed to use the vehicle for limited personal purposes. The program also has a guaranteed ride home feature which provides pool participants with two $25 transit vouchers every six months. These vouchers are to be used when emergency situations necessitate an unscheduled trip home. Lease agreements between VPSI and established pools may be cancelled with 30 days notice.

The Metropolitan Council works with several Twin Cities TMOs and major employers to promote ridesharing throughout the urban area. Electronics retailer Best Buy has 12 vanpools in operation as a part of the Van-Go! program in the Twin Cities area (Christianson - 2005).

4.3.2 Ft. Collins

There are three vanpool programs in operation in Colorado's Front Range region. These programs serve the region around Greeley and Ft. Collins, the seven-county Denver metropolitan area, and the area around Colorado Springs. An informal consortium, Front Range Vanpool Services, is used to jointly market the programs.

The regional Metropolitan Planning Organization operates the VanGo/SmartTrips vanpool program that serves Ft. Collins, Greeley, and the surrounding areas (www.smarttrips.org). The program was originally operated by the city of Ft. Collins but was subsequently taken over by the MPO. With 45 pools in services and 300 riders, VanGo is Colorado's largest vanpool program. The primary route for many of the program's pools is from Ft. Collins, Loveland, and Greeley to Denver and Boulder, a one-way distance of approximately 60 miles. Nine of the program's pools were started during the first half of 2005.

Program funding comes from rider fares, FHWA Surface Transportation Program funds that are administered by the Colorado Department of Transportation, and National Transit Database (FTA Section 5307) monies that comes to the program via Denver's Regional Transportation District (RTD) transit system. Passenger fares cover the vast majority of the program's non-administrative costs.

A lack of funding forces VanGo to operate with vehicles that are leased from a local automobile dealership. Dealers are reportedly reluctant to lease vehicles to the program for long periods of time because relatively old, high-mileage vehicles have little residual value. Lease terms are therefore for two-year terms and an estimated 60,000 miles of use. Lower program costs would be achievable if the program could purchase vehicles and run them for longer periods of time. VanGo hopes to procure CMAQ funding in the future to facilitate outright vehicle purchases, hopefully under a government contract price.

VanGo sets rider fees on a per vehicle basis. Monthly fees include all costs including lease payments, maintenance, fuel, and insurance. Vehicle maintenance is performed by transit system personnel in Ft. Collins and Greeley and fuel is procured with fuel cards at transit service prices ($1.60 vs. $2.25 per gallon). Insurance is provided via a government risk-sharing program at a savings of approximately $100 per vehicle per month over current commercial rates ($1,200 vs. $2,400 per year). As of mid-2005, the monthly fee for a daily round-trip commute of 50 miles in an eight-passenger van is $70-$80.

Approximately 80% of VanGo's pools involve long-distance, round-trip commutes of 120 miles of more, much of which is in high traffic conditions. Participants are, therefore, reluctant to drive on a full-time basis. As a result, all of the program's pools share driving duties among several of the pool's participants and most pools split month pool costs among all of the pool's riders.

Given safety issues related to larger vehicles, all of the program's vans have a capacity of 12 passengers or less; 80% of the vans have a capacity of seven to eight passengers. Operating smaller vehicles also facilitates pick-up and drop-off duties because there are fewer people involved. The program has been operating with a large number of Chevrolet Astro minivans. Chevrolet is discontinuing production of its Astro model and the program has selected the Toyota Sienna minivan as its replacement vehicle.

In addition to paying for the program's administrative costs, VanGo also subsidizes pools by paying expenses associated with empty seats. When pools run at less than capacity, participants are not required to pay an additional amount to cover the fully allocated costs associated with the pool. VanGo pools run 89% full. The vast majority of the program's vanpools were instigated by individuals with little or no employer involvement. Riders who recruit new passengers receive two weeks of free rides, as do newly recruited riders. New riders receive their free passage during their second month of riding.

VanGo has a guaranteed ride home feature like most other vanpool programs. Up to twice a year, participants can either hire a taxi or rent a car to make emergency trips home. Cab and rent-a-car companies bill VanGo directly for incurred costs. VanGo administrators indicate that the program is used very sparingly; perhaps in aggregate as little as six times per year (Blair - 2005).

4.3.3 Denver

Denver's RideArrangers program is operated by the Denver Regional Council of Governments and the Regional Transportation District (RTD) - (www.drcog.org/index.cfm?page=Vanpool). CMAQ funds are used to purchase program expansion vehicles and FTA National Transit Database (FTA Section 5307) funds are used to subsidize pool operations. As of July 2005, RideArrangers had 56 pools in service. Program growth is anticipated. RTD considers the program as one means of addressing local transportation needs that cannot be readily satisfied with its traditional transit and paratransit services.

RideArrangers purchases vans under a state contract. Seven-passenger minivans account for 85% of the fleet. New vehicles cost approximately $20,500. The life expectancy of vehicles is 100,000 miles or about five to six years of use. Vehicles have a salvage value of about 18%.

Vanpool operators are issued fleet credit cards which are used for fuel and maintenance. RideArrangers also provides insurance coverage which is purchased commercially from Lancers Insurance of Long Beach, New York. Lancers is the largest vanpool insurer in the country.

RideArrangers sets fares for all vanpools in its program. Fares are based on the number of people in each pool and the miles traveled. The fare for a minivan with six passengers and at a 20-40-mile, one-way trip is $85 per month, including fuel. It is estimated that this fare would be doubled without the subsidy being provided via RTD. As is the case with most vanpool programs, drivers ride free.

RideArrangers uses local cab companies to provide program participants with a guaranteed ride home in case of emergencies. Cab operators bill RideArrangers directly for costs incurred. The guaranteed ride home feature is considered necessary but it is seldom used (Bates, 2005).

4.3.4 Colorado Springs

Colorado Springs' Ridefinders program is operated by the city of Colorado Springs with CMAQ monies (www.springsgov.com/Page.asp?NavID=3928). Vanpooling is only one of the program's components and its overall $300,000 annual budget is divided among several transportation demand management projects. Ridefinders has 12 vanpools in service and has money available to grow at a rate of about one pool per year; demand exceeds supply.

Ridefinders purchases vans, provides maintenance with local transit system personnel, provides fuel at state fueling sites or with system credit cards, and insures vanpools with coverage through a commercial provider. With all associated expenses being paid by Ridefinders, it is in a position to set fares for each pool. Fares are set based on the number of people in each pool and the miles traveled. Pools with eight or few members pay a flat per person rate; pools with more riders pay lower per person rates. Drivers ride free.

Most of Ridefinders' pools operate between Colorado Springs and Denver – a one-way trip of about 75 miles. For comparison purposes with other programs, Ridefinders' shortest trip length is 80 miles roundtrip. Riders in those pools pay a monthly fare of $85, including fuel. Because of the length of the daily commute and the quality of maintenance being provided, Ridefinders vans typically achieve a vehicle life of up to 150,000 miles.

Ridefinders has a guaranteed ride home program that is virtually identical to the one in place in Ft. Collins. As is the case in Ft. Collins, it is seldom used. Most of the program's pools were instigated by individuals; few employers have taken the initiative to get directly involved with promoting vanpooling to their employees (Evergreen, 2005).

4.3.5 Boise

Commuteride is a 25-year-old vanpool program operated by the Ada County Highway District in southwest Idaho (www.commuteride.com/alttrans/vanpooling/index.html). The district's program grew from 25 pools in 2001 to 60 in mid-2005 and another 15 are scheduled for the near future. Pools operate in six counties but they must originate or terminate in Ada County. Twenty-five of the program's pools serve military personnel.

The program is largely self-supporting but it does receive $40,000-$60,000 per year in FHWA Surface Transportation Program funds to help administer the program. It also uses FTA Section 5309 funds to help purchase vehicles but the primary benefit of this funding source is to permit timelier vehicle purchases; related payments are eventually offset as fares are collected from resulting pool operations. Vehicle depreciation rates are based on a six-year estimated vehicle life.

Commuteride operates exclusively with 15-passenger vans. The program purchases vehicles and provides commercial insurance via Lancers Insurance. Maintenance is performed by approved local vendors and fuel is purchased with fleet credit cards. Commuteride sets pool fares based on 12 paying passengers per pool. Full-time drivers ride free but many pools operate with multiple drivers. In such cases, all pool passengers are assessed a monthly fee but gift cards are used to recognize frequent drivers. All pools originate at designated locations; there are no home pick-up points. The monthly fare for a pool traveling 50 round-trip miles per day is $80. A recently fare increase had little, if any, impact on ridership.

Commuteride provides vanpool riders with up to six guaranteed rides home per year; with a maximum total cost of $300. Related services are provided by local taxi operators. To attract new riders, the program also has a first month free program. The national Commuter Checks program is also available to allow employers to purchase vouchers that can be used to provide their employees with tax-free commuting benefits. As discussed in Chapter 3, participating employers also benefit via reduced payroll taxes.

Commuteride also employs employer assistance representatives to work with local employers to encourage ridesharing. Rider fares are gradually being increased to help cover some of the administrative costs associated with the Commuteride program (Hochett, 2005).

4.3.6 Missoula

Vanpool services in Missoula and the surrounding region are managed by the Missoula Ravalli Transportation Management Association (MRTMA) - (www.mrtma.org/car_pool.htm). Missoula has a population of approximately 60,000 and serves as the regional hub for Missoula County and the surrounding area.

MRTMA is a private, nonprofit organization that is funded by the Montana Department of Transportation with matching funds from a consortium of Ravalli, Missoula, and Lake County organizations. Its mission is to develop transportation alternatives for area residents.

MRTMA's vanpool program started in 1997. In many respects, it is very similar to other programs but it is unusual in others, specifically in the way that it accepts occasional riders and uses pool vehicles during the day for noncommuting purposes. These features will be discussed in greater detail later.

The program grew out of a consultant's recommendation concerning traffic congestion on Highway 93 in western Montana. It was originally funded with FTA Section 5311 monies and started with one donated van. Shortly thereafter, the program began leasing vans from VPSI. Later, MRTMA took greater control of the program and began purchasing vans to transport area commuters.

Program funding comes from a variety of sources including state-directed CMAQ funds, the city of Missoula, Missoula County, the Missoula Parking Commission, and the University of Missoula. Earmarked FTA Section 5309 funds were procured with the help of U.S. Sen. Conrad Burns to assist with program capital improvements and acquisitions.

MRTMA has nine, 13-passenger vans in operation and transports about 120 riders per day on a regular basis. These riders work at 65 different worksites around the region. Program vehicles are purchased by MRTMA with the above-mentioned 5309 funds. Vehicle life expectancy is estimated at five years or 100,000 miles, whichever comes first. In most cases, vehicles reach the 100,000 mile threshold and the five-year threshold concurrently.

MRTMA solicits bids to maintain its vans. The program has one backup vehicle but each pool is expected to have its own alternate plan in case of breakdowns or other periods of unavailability. Fuel is purchased at the state rate at commercial service stations using program credit cards. Liability insurance is purchased commercially through Lancer Insurance at a $1 million per occurrence level.

As with most vanpool programs, drivers ride free in exchange for managing the pool, collecting fees, and cleaning/maintaining the vehicle. The program uses a local taxi company to provide guaranteed rides home in case of emergency. Riders can make emergency trips home up to four times per year. There is a 50-mile limit on such trips; MRTMA has a prepaid account with the local taxi company for any related fares. The guaranteed ride home feature is seldom used (Haines, 2005).

MRTMA's vanpool program is somewhat unique in that it accepts occasional riders on a space-available basis. The program's fare structure provides for commuters who ride one, two, or three times per week or on a full-time basis. Commuters can call MRTMA if they need a ride on a particular day and will be put in touch with a vanpool driver if a corresponding pool has available capacity.

MRTMA worked with the Montana Department of Transportation when Highway 93 was under construction to develop numerous park-and-ride sites along the corridor. These sites and designated shopping centers and churches serve as typical pick-up points.

Fares start at approximately nine cents per mile for full-time riders and escalate for persons who commit to ride for longer periods of time. The fare for a person who rides 50 miles per day and who commits to a monthly fare is $76 per month, including fuel.

As discussed in Chapter 3, TMAs such as MRTMA are created for transportation demand management purposes. They operate programs and provide technical assistance to area businesses in an attempt to influence driving patterns and to reduce congestion on local roads.

MRTMA may be unique given the fact that it not only promotes ridesharing but also owns vans and operates a vanpool program. It may also be one of the least populated TMA regions in the country. TMAs usually exist in urban areas with considerable traffic congestion. The Missoula region does have traffic congestion in some corridors but it has far fewer residents than a typical TMA. MRTMA is the only TMA in Montana.

MRTMA is also atypical in that it uses vanpool vehicles from 9 a.m. to 3 p.m. for noncommuter purposes. During the day when pool vehicles are not in use, they are available for use to transport elderly and disabled citizens that cannot be served by other local transit services. Transit service drivers pick up vehicles at worksites and use them to provide related services. Vehicles are refueled and returned to the worksite in time for the commuters' trip home.

MRTMA's vanpool program is the only active program in Montana. There is reportedly interest being expressed by other urban areas in the state and MRTMA's program may serve as a template for other areas (Hellegaard, 2005).

4.3.7 Fargo

The Fargo-Moorhead Metropolitan Council of Governments (F-M COG) - (www.fmmetrocog.org) formally initiated a local vanpool program in September 2005; it contracted with VPSI to promote and administer vanpooling in the Fargo-Moorhead area. VPSI will work through a local vehicle dealership to provide vans and F-M COG will use FTA Job Access Reverse Commute (Section 3037) grant monies to subsidize each pool's operations.

F-M COG had approximately $26,000 available to get the program started. VPSI's monthly lease rate will vary depending on the size of the van involved and the miles traveled each month. The lease rate for a nine-passenger van traveling 1,100 miles per month (50 miles per workday) is $1,200, plus fuel. Lease rates include maintenance and insurance.

F-M COG encourages participation via subsidies offered to the pool and drivers. During the first year of operation, each pool will be given $50 per month to offset a portion of the pool's fuel costs. An additional 10% subsidy will be given to offset a portion of each pool's vehicle lease expense. Drivers will be given an additional subsidy to cover 50% of their monthly lease-related fare.

Assuming fuel costs at $2.75 per gallon, usage at 50 miles per day, and vehicle mileage at 12 miles per gallon, monthly fuel costs should equal about $252. FM-COG will cover $50 of this amount during the pool's first year of operation, thereby making each passenger's monthly fuel expense at about $22. Adding this expense to the subsidized lease expense mentioned earlier yields monthly passenger fares of $142 for nondrivers and $88 for the driver. The estimated cost per passenger, without fuel, will be approximately $120 per month during each pool's first year of operation.

As discussed in Chapter 3, additional tax-related savings may be realized if participants have access to an employer-provided flexible spending account that allows pre-tax payroll deductions for vanpooling. Based on the example set forth in Figure 3.1, participants could realize related savings of $35 per month, thereby reducing their net monthly commuting costs to $80. Driver savings would be lower since tax-related saving estimates are based on total monthly costs that are higher than those that would be paid by drivers.

FM-COG's JARC grant extends over a three-year period. The council hopes to start five vanpools per year during this timeframe. Subsidy adjustments may be made if the initial offering proves to be insufficient to attract participants.

F-M COG decided to contract with VPSI to manage the program, rather than running it with local personnel. The decision was based on the limited amount of funding that was available for the program and a lack of involvement by local transit administrators. If the program shows significant growth, it may become feasible for F-M COG or local transit operators to get involved with program operations (i.e. vehicle procurement, fuel, insurance, maintenance).

Routes of potential interest include daily commutes between Fargo-Moorhead and Wahpeton (56 miles one-way), between Fargo-Moorhead and Gwinner (86 miles one-way), and Fargo and Grand Forks (78 miles one-way (Kunza, 2005). F-M COG believes that having a local TMO to assist with ongoing promotions would be highly beneficial.