Post by ferryfast admin on Sept 12, 2007 13:19:58 GMT -5
Audit of state ferries finds "overuse"
Sept. 11, 2007
By MARGIE DOYLE
Editor
www.tacomadailyindex.com/portals-code/list.cgi?paper=86&cat=23&id=1062470&more=0
On Sept. 4, the auditing firm of Ernst and Young LLP released a performance audit of the Washington State Ferry (WSF) system.
Perhaps most relevant to San Juan Islands users of WSF is the audit's tenth finding and recommendation -- for overall WSF operations -- which state that "WSF provides a level of service above what traffic volumes demand," and recommends that WSF "Change WSF's ferry service schedule to reduce operational losses."
The audit's first nine findings and related recommendations deal with the Eagle Harbor maintenance facility on Bainbridge Island, which services all WSF ferries.
The audit issued by Ernst and Young gives 10 findings and 10 recommendations under two audit areas: the WSF maintenance facility at Eagle Harbor; and WSF route service operations, which is covered in the tenth finding and recommendation.
Management responses follow each finding, and auditor's comments follow several of the management responses. The report also gives the background and structure, and lists the capital assets, including vessels and terminals, of WSF.
The audit was commissioned by the State Auditor's office to evaluate "14 performance elements identified by the 2006 Legislature," according to the performance audit fact sheet released by the State Auditor's office.
That document states that the audit was charged to "explore ways to lower operating costs, capital maintenance costs and capital acquisition costs, which may offset financial difficulties caused by fuel prices or the need to increase fees."
In Finding 10, the audit concludes, "WSF has underused round-trip runs that should be removed from the schedule."
Their finding, which applied to all WSF routes, was that "WSF provides a level of service above what traffic volumes demand."
The audit went on to state that "The Anacortes-San Juan Islands-Sidney, BC route has
four boats in the winter, spring, and fall schedules and five during the summer schedule.
The service hours are reduced during the winter schedule to match reduced demand.
"Like the balance of the state-maintained transportation network, WSF does not operate a system that witnesses constant, steady traffic patterns. Traffic volumes fluctuate considerably during the course of a service day, between weekdays and weekends, and between seasons.
"From the vehicle traffic and vehicle capacity data, it is clear that the capacity-utilization ratio is considerably low during non-peak periods. WSF ferries make a large number of trips during non-peak periods with vessels running relatively empty. A primary reason for this operating profile is that, as a vital part of the regional transportation network, WSF is expected to provide a level of service to the community."
The report lists the causes for "an extensive level of service during low traffic periods of the day" as:
-- State transportation business plans and Transportation Commission guidance to achieve a specific level of service
-- Labor agreements between the unions and the state
-- Customer expectations and historical precedence of meeting ... expectations
While the audit mentioned the efforts by WSF to control costs, it went on to analyze "underused ferry operations ...to determine the amount of cost savings to the state by reducing ferry operations during the low-traffic demand periods. The analysis yields two cost savings opportunities through labor and fuel, resulting in potential savings of $9.6 million annually."
The audit gave a model of "two consecutive runs that have a capacity usage level of 45 percent or lower would result in the recommendation of one of those two round-trip runs to be removed from the schedule. The consolidation of passengers to the remaining run could reach 90 percent vehicle capacity usage and therefore would not create a boat-wait."
However, State Transportation Commissioner and former San Juans' Ferry Advisory Committee Chair Bob Distler doesn't agree with the findings of the audit.
Distler said, "I think [the audit's] cost savings are overstated, because of the labor considerations."
However, Distler pointed out that the Anacortes-Sidney run was one route that could be considered as an under-used route. "It's a question of how long the Sidney boat should operate. The hiatus during the winter schedule could be extended...to after Thanksgiving, instead of January 1." The current 12-week suspension, Distler said, was made "when fuel costs were half of what they are now."
The ferry system is not a business, Distler said, "It's a public service."
To view the full, 82-page report by Ernst and Young, go to www.sao.wa.gov/PerformanceAudit/audit_reports.htm.
The report will be the subject of a public hearing before the Joint Legislative Audit and Review Committee on Wednesday, Sept, 26, at 10:00 a.m. in the Senate Hearing Room 4, John A.Cherburg Building, Olympia, and at the House Appropriations Subcommittee on General Government and Audit Review on Friday, Sept. 28, at 1:30 p.m. in the House Hearing Room B, John L. O'Brien Building, Olympia.
Sept. 11, 2007
By MARGIE DOYLE
Editor
www.tacomadailyindex.com/portals-code/list.cgi?paper=86&cat=23&id=1062470&more=0
On Sept. 4, the auditing firm of Ernst and Young LLP released a performance audit of the Washington State Ferry (WSF) system.
Perhaps most relevant to San Juan Islands users of WSF is the audit's tenth finding and recommendation -- for overall WSF operations -- which state that "WSF provides a level of service above what traffic volumes demand," and recommends that WSF "Change WSF's ferry service schedule to reduce operational losses."
The audit's first nine findings and related recommendations deal with the Eagle Harbor maintenance facility on Bainbridge Island, which services all WSF ferries.
The audit issued by Ernst and Young gives 10 findings and 10 recommendations under two audit areas: the WSF maintenance facility at Eagle Harbor; and WSF route service operations, which is covered in the tenth finding and recommendation.
Management responses follow each finding, and auditor's comments follow several of the management responses. The report also gives the background and structure, and lists the capital assets, including vessels and terminals, of WSF.
The audit was commissioned by the State Auditor's office to evaluate "14 performance elements identified by the 2006 Legislature," according to the performance audit fact sheet released by the State Auditor's office.
That document states that the audit was charged to "explore ways to lower operating costs, capital maintenance costs and capital acquisition costs, which may offset financial difficulties caused by fuel prices or the need to increase fees."
In Finding 10, the audit concludes, "WSF has underused round-trip runs that should be removed from the schedule."
Their finding, which applied to all WSF routes, was that "WSF provides a level of service above what traffic volumes demand."
The audit went on to state that "The Anacortes-San Juan Islands-Sidney, BC route has
four boats in the winter, spring, and fall schedules and five during the summer schedule.
The service hours are reduced during the winter schedule to match reduced demand.
"Like the balance of the state-maintained transportation network, WSF does not operate a system that witnesses constant, steady traffic patterns. Traffic volumes fluctuate considerably during the course of a service day, between weekdays and weekends, and between seasons.
"From the vehicle traffic and vehicle capacity data, it is clear that the capacity-utilization ratio is considerably low during non-peak periods. WSF ferries make a large number of trips during non-peak periods with vessels running relatively empty. A primary reason for this operating profile is that, as a vital part of the regional transportation network, WSF is expected to provide a level of service to the community."
The report lists the causes for "an extensive level of service during low traffic periods of the day" as:
-- State transportation business plans and Transportation Commission guidance to achieve a specific level of service
-- Labor agreements between the unions and the state
-- Customer expectations and historical precedence of meeting ... expectations
While the audit mentioned the efforts by WSF to control costs, it went on to analyze "underused ferry operations ...to determine the amount of cost savings to the state by reducing ferry operations during the low-traffic demand periods. The analysis yields two cost savings opportunities through labor and fuel, resulting in potential savings of $9.6 million annually."
The audit gave a model of "two consecutive runs that have a capacity usage level of 45 percent or lower would result in the recommendation of one of those two round-trip runs to be removed from the schedule. The consolidation of passengers to the remaining run could reach 90 percent vehicle capacity usage and therefore would not create a boat-wait."
However, State Transportation Commissioner and former San Juans' Ferry Advisory Committee Chair Bob Distler doesn't agree with the findings of the audit.
Distler said, "I think [the audit's] cost savings are overstated, because of the labor considerations."
However, Distler pointed out that the Anacortes-Sidney run was one route that could be considered as an under-used route. "It's a question of how long the Sidney boat should operate. The hiatus during the winter schedule could be extended...to after Thanksgiving, instead of January 1." The current 12-week suspension, Distler said, was made "when fuel costs were half of what they are now."
The ferry system is not a business, Distler said, "It's a public service."
To view the full, 82-page report by Ernst and Young, go to www.sao.wa.gov/PerformanceAudit/audit_reports.htm.
The report will be the subject of a public hearing before the Joint Legislative Audit and Review Committee on Wednesday, Sept, 26, at 10:00 a.m. in the Senate Hearing Room 4, John A.Cherburg Building, Olympia, and at the House Appropriations Subcommittee on General Government and Audit Review on Friday, Sept. 28, at 1:30 p.m. in the House Hearing Room B, John L. O'Brien Building, Olympia.