Suffolk plans to cut ties with HRT by end of year

SUFFOLK

In an effort to cut costs, city leaders plan to eliminate Hampton Roads Transit bus service by the end of the year and hire a private firm to provide public transportation.

City Manager Selena Cuffee-Glenn suggested last week that cutting ties with HRT could save the city $233,000 next fiscal year. The plan is part of the fiscal 2012 budget she presented to the City Council last week.

She called for dropping the city’s contract with HRT effective Jan. 1 and exploring service with I-Ride, a private operation run by Senior Services of Southeastern Virginia that serves Isle of Wight County and Franklin.

“Based on the cost to Suffolk and the poor ridership, we need a new business model,” city spokeswoman Debbie George said. She said the proposed budget would pay for six months of HRT service while the city investigates “a model less costly and more efficient for taxpayers.”

The move comes as HRT considers cutting two of the city’s four bus routes because of low ridership after conducting an efficiency study of its bus system.

The transit agency proposed eliminating the Holland Road/Paul D. Camp route between downtown and Paul D. Camp Community College. It also suggested cutting the Kingsboro/Wilroy Road route northeast of downtown.

Daily ridership on those routes are the lowest in the city, averaging just 73 and 82 respectively.

HRT also recommended cutting three other routes – one each in Virginia Beach, Portsmouth and Hampton. Doing so, it said, would save $4.2 million a year – $2.2 million of which would be reinvested in the most popular routes and $2 million to be returned to the agency and its member cities.

The HRT board is expected to vote on the proposal in May.

Suffolk’s buses are among the worst performers in the HRT system. The average subsidy per ride throughout the system is $2.23. Suffolk’s subsidy ranges from $6 to $13.50 per passenger. At 9.2 percent, Suffolk also has the lowest farebox recovery rate in the HRT system. The other cities cover 20 to 25 percent of costs from fares.

State and federal aid pays for 41.3 percent of the costs and the city contributes 49.5 percent.

This fiscal year, the city’s contribution to HRT is $755,000. Nearly $275,000 of that goes toward administrative costs, which is shared equally among the seven cities that make up HRT.

After reviewing the study, HRT president and CEO Philip Shucet recommended that Suffolk consider other options and suggested I-Ride as a possible alternative.

“We felt it was our responsibility to make them aware of this demand service that in our judgment could be substituted for our service and provide a service at a lower cost to the city and potentially to the rider as well,” Shucet said.

Although I-Ride service in Isle of Wight County and Franklin is aimed mainly at the elderly, it accepts riders of all ages. It runs regularly scheduled routes and charges a $1 fare. HRT bus fares are $1.50.

If Suffolk drops out of HRT, the other cities would have to absorb Suffolk’s share of the agency’s overhead. But they also will share the state and federal funds that are now applied to Suffolk’s service.

An early estimate of the overall financial impact to the other cities shows they would have to pay an additional $340,000, Shucet said, which would be divided among them based on how much bus service each city has.

“If we were a private company, we wouldn’t be giving away business, but we’re not a private company,” Shucet said. “If there’s something better that serves the purpose of public transportation more efficiently, I think that’s good.”

Jeff Sheler, (757) 222-5563, jeff.sheler@pilotonline.com

Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com