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HomeMy WebLinkAboutOIG No. 23-11 Trolley Ridership InspectionJoseph M. Centorino, Inspector General TO: Honorable Mayor and Members of the City Commission FROM: Joseph M. Centorino, Inspector General DATE: July 14, 2023 PROJECT: Trolley Ridership Inspection OIG No. 23-11 PERIOD: October 1, 2021 -March 31, 2023 EXECUTIVE SUMMARY This inspection was planned and carried out by the City of Miami Beach Office of the Inspector General (OIG) at the request of Miami Beach Commissioner Ricky Arriola, who expressed concerns regarding the accuracy of the reported ridership figures for the City's free trolley service. Those figures, presented to the July 22, 2022 Finance and Economic Resiliency Committee (FERC) meeting, had been based on an analysis of both manual counts recorded daily by trolley drivers and the Automatic Passenger Counters (APCs) installed in the trolleys and relied upon by the City Transportation and Mobility Department in connection with the 2019 Miami Beach Trolley Passenger Survey data performed by Marlin Engineering, Inc. The City trolley contractor, Limousines of South Florida, Inc. (LSF), is responsible for operating the trolley system, and its subcontractor, TSO Mobile by Tracking Solutions Corp. (TSO Mobile), hired by LSF at the direction of the City, to provide hardware, software, and installation of the APCs, among other equipment. In addition, the City Transportation and Mobility Department is responsible for monitoring and determining compliance with the executed Agreement and Amendments with LSF. OIG staff researched methodologies to test the reliability of the figures reported to the FERC and performed an independent inspection to assess the accuracy of the reported ridership data through visual examination of the limited available footage provided from video cameras installed in the trolleys. The ridership counts derived from the video footage inspection by OIG staff were then compared with the reported number of passengers from the APCs and the manual counts prepared by the trolley drivers. The inspection concluded that the data generated by the APCs installed in City trolleys and the manual counts prepared by the trolley drivers are unreliable indicators of the actual ridership for the trolley system, based on the sampled trolleys examined during March 2023. Despite multiple requests, the OIG did not receive from the contractor all requested video footage or daily manual ridership counts prepared by trolley drivers. On some occasions, substitute video Page 1 of 9 footage of other non-requested trolleys was received instead of the requested footage. The contractor's failure to provide all the requested video footage created a scope limitation for this inspection. However, the Transportation and Mobility Department provided an Excel spreadsheet to the OIG, prepared by TSO Mobile, containing March 2023 trolley drivers' manual counts and APC counts, so that some additional analysis could be completed by OIG staff. In the end, the OIG concluded that, due to the insufficiency of the camera footage provided; the lack of reliable data on which to draw any inference regarding overall ridership; and the skewing of the data due to the fact that among the nine trolleys tested, the ridership of one trolley was included three times (which happened to be the trolley which showed the greatest percentage discrepancy between the reported ridership and that observed by the OIG); no conclusion was warranted concerning the overall ridership in the system, including any assessment of whether the ridership count provided to the City was underreported or overreported. The OIG recommends that the City consider utilizing a more reliable technology for the counting of passengers on its trolley system. Written responses to the draft report were received from the City Transportation and Mobility Department, LSF, and TSO Mobile. Some, though not all, of their comments have been incorporated into this final report. All responses received are attached to this report in their entirety. INTRODUCTION On May 8, 2014, the City of Miami Beach entered into an Agreement with LSF for turnkey operation and maintenance services of a Municipal Trolley System in the City of Miami Beach. According to City Resolution No. 2014-28708, the Agreement provided an option to procure additional equipment, including, without limitation, Global Positioning Systems with capabilities to report, Automatic Passenger Counters, Wi-Fi services, and Automated Voice Information Systems. Pursuant to Article 3, Section 1 of the agreement, the City Administration recommended that the City secure the optional equipment through LSF, for a sum not to exceed $150,000, during the initial five-year term of the Agreement, which the Mayor and City Commission approved and authorized through Amendment No. 1. Amendment No. 1 to the Agreement, approved on September 30, 2014, authorized the execution of a subcontract between LSF and TSO Mobile to equip the trolleys with the following optional equipment: Automatic Passenger Counters (APC), Automated Voice Information System, Wi-Fi services, real-time GPS tracking services (with capabilities to provide mileage, service hours and ridership reports, and capabilities to provide data in a format that is compatible with Miami-Dade County's mobile application, "Miami Dade Bus Tracker") and additional automated stop Page 2 of 9 announcement equipment, with the capability of displaying public advertisements. The OIG recommends that in the future the City enter into a contract directly with the subcontractor to enable direct access to the technology provider. Exhibit B of LSF's contract with TSO Mobile, entered into at the recommendation of the City, states, "The accuracy of our Automatic Passenger Counting Systems is considered to exceed that of a single checker on board a bus and comparable to that obtained by two checkers, one stationed at each door. APC users in the transit systems that have utilized our APC system consistently express satisfaction with the accuracy of our APC system. In the following, the overall concurrence value represents the total number of boardings and alightings 1 counted by the APC system compared to the total number of boardings and alightings counted by experienced manual checkers. The Manual-APC Deviation Range +/-1 represents the percentage of time the manual and APC observations were within one (1) of each other. Implementation of our APC system will result in APC Passenger Count Accuracy levels exceeding 95% concurrence with manual observations." Transportation and Mobility Department management emphasized that the comparison of APC counts to a "single checker on board" is not meant to include the manual trolley driver counts, but there has been no practice to place single checkers on board other than the drivers that could provide the basis for a comparison. Therefore, the OIG relied upon its own visual inspection of riders entering and exiting the trolleys to determine compliance with the Amendment 1 Exhibit B standard cited above. The OIG's testing posited that, if the APC system report indicates 150 passengers rode a given trolley during the day based on the automatic counters, the manually observed video ridership counts by OIG staff should range between 149 and 151, most of the time (95%). It is understandable that the accuracy of the manual counts performed by the trolley drivers may be affected by the other responsibilities of the driver throughout the day, including assisting passengers, driving, communicating with other LSF personnel, etc. Nonetheless, the fact that the manual counts by the drivers are utilized in place of the APC counts when the latter counts are unavailable, as indicated below, makes the accuracy of the trolley driver counts fair for comparison with the OIG counts. Miami Beach trolley service was suspended on March 26, 2020, following the outbreak of the COVID-19 pandemic, and eventually resumed at a reduced service level on February 15, 2021. Therefore, the pre-pandemic analysis involved all trolley operations prior to March 26, 2020, and post-pandemic represented all trolley operations after February 14, 2021. It is worth noting that the City does not base its payments to LSF on ridership but rather on scheduled service hours and established hourly rates as stipulated in Amendment 11 to the Agreement. Scheduled service hours are defined as the requested number of hours by the City for services available to the public for transport along designated routes. Furthermore, the Transportation and Mobility Department stated that fleet size for the trolley system is based on desired frequency of service and service area, and not on ridership. The service hours exclude deadhead hours2, interruptions in service, and idle times exceeding 15 minutes. The free Miami Beach trolley covers the following routes: South Beach Loop A and B, Alighting means to get out a vehicle, especially a train or a bus, according to the Cambridge English Dictionary. Deadhead hours refers to the measurement of time (in hours) when a vehicle travels from its garage or yard facility to the first scheduled pick-up point or any time the vehicle travels from the last scheduled drop-off point to its garage or yard facility. Page 3 of 9 Middle Beach Loop, Collins Express, and North Beach Loop (see Appendix A located at the end of this report). The OIG believes that accurate ridership figures would be helpful in the City's overall assessment of the effectiveness of the trolley program, including the following : • the number of trolleys that should be operating daily; • identification of the busiest and least busy routes; • the most productive hours of operation; • assessment of the trolley program's appropriate funding level. WORK PERFORMED TEST 1 During the July 22, 2022, FERC meeting, the Transportation and Mobility Department presented post-pandemic trolley service metrics. The following presentation extract indicated that daily ridership had decreased by 56% from approximately 14,400 pre-pandemic daily riders to 6,300. MIAMI BEACH Official Webslto ol rh.e Cary of Miom• Beoch Trolley Service rat,ng Houf\ 18h,/<k,y l~ l,r./duy · 17 ~hl(ttft !UM")' 1 S mu, 100lO "''" io ""'" ltid,, J,,p 14.400/S 2S M 6,300/'J M ·56 N/A{d.,lly/aonual) Co"/ponmo $2 30 SJ.00 3 N/A o of veh,clo, '1S IS -40%n ~,vic.o " Some ridership declines can likely be attributed to the changes in trolley operating hours and frequency. Prior to the pandemic, trolley service was available 18 hours a day, operating from 6 a.m . to 12 a.m., with 25 vehicles servicing the public at an average interval of 15 minutes. Following the pandemic, trolley service was initially reduced to 15 hours a day, operating from 8 a.m. to 11 p.m., with 15 vehicles servicing the public at an average interval of 30 minutes. The Transportation and Mobility Department informed the OIG that trolley service was subsequently expanded as of October 1, 2022, to include 21 vehicles servicing the public at an average interval of 20 minutes and operates from 8 a.m. to 11 p.m., which is the current service level. TSO Mobile representatives informed OIG staff that its automatic counter system produces ridership reports that can be accessed through its http://app.tsomobile.com website. OIG staff accessed the corresponding Passenger Counter reports from October 1, 2021, through March 31, 2023, to compute the average daily and monthly ridership. The results indicated an average Page 4 of 9 of 5,205 daily riders from October 1, 2021, through September 30, 2022, and 6,232 daily riders from October 1, 2022 through March 31, 2023. Upon comparing the limited internal TSO Mobile data provided to the OIG with the figures in the post-pandemic analysis presented by the City Transportation and Mobility Department to the FERC covering a broader period, the OIG found those figures to be consistent. As the trolley ridership data before July 1, 2021, was not available, it was not examined by the OIG, so its accuracy could not be determined. TEST2 OIG staff initially sought to determine the accuracy of the 14,400 daily ridership figures reported in the 2019 Passenger Survey conducted by Marlin Engineering Inc. However, TSO Mobile representatives informed the OIG that the 2019 trolley reports and related video footage were unavailable, and, therefore, the accuracy of the related reported ridership could not be verified. Given this limitation, OIG staff had to find an alternative method to assess the accuracy of reported ridership data and to test the reliability of the passenger counting system. In response to initial inquiries made by OIG staff, representatives from Transportation America Inc. (TA), the parent company of LSF, stated that each trolley is outfitted with four interior cameras. The related video footage is stored on a hard drive within the camera system . Customers can only enter or exit the trolley through its one door, and the cameras record all its activities. In emails to the OIG, TA representatives stated that the video recordings would be stored for approximately thirty days, thereby limiting the OIG's analysis to 2023 data. However, after requesting video footage related to the operation of nine trolleys, each operating during a single day within the prior thirty-day period, TA representatives indicated that video footage was only available for up to two weeks, although the Exhibit A of Amendment 5 of the agreement states a minimum period for the storage of recorded data of three weeks. Consequently, OIG staff accessed the daily Passenger Counter reports from March 13 through March 19, 2023, within the designated two-week period, and similarly requested video footage of one day's activities for ten trolleys operating during the same week. The selected sample was stratified to focus primarily on trolleys with higher reported ridership and to avoid those out of service during the designated week. After encountering unexpected difficulties obtaining the requested video footage, TA representatives provided OIG staff with USB flash drives containing most of the recordings. It is important to note that one trolley's video footage was unavailable, and substitute video footage was received for two other trolleys, which resulted in footage for three different days related to a single trolley, MB08, i.e., the footage provided for three out of the nine trolley days examined included the same trolley. The OIG utilized all of this footage but must note that, while the repeated use of footage for one trolley helped to confirm that trolley's inaccurate automatic counter, it would have been far preferable to have received footage for two other trolleys. OIG staff examined approximately 135 hours of video footage pertaining to 4,326 riders, representing 9.4% of the 46,238 riders for the designated week. The number of passengers entering each trolley during the reviewed day was counted and recorded. The table below summarizes the identified variances between the TSO Mobile Passenger Counter reports and the OIG video footage counts: Page 5 of 9 Trolley Date Route• TSO Mobile Report Video Count** Variance Variance% MB08 Thursday, March 16, 2023 South Beach Loop B 297 671 374 125.9% MB08 Monday, March 13, 2023 Collins Express 301 710 409 135.9% MB08 Saturday, March 18, 2023 Collins Express 373 643 270 72.4% MB13 Wednesday, March 15, 2023 Collins Express 557 657 100 18.0% MB15 Thursday, March 16, 2023 North Beach 417 416 (1) -0.2% MB18 Sunday, March 19, 2023 Collins Express 659 749 90 13.7% MB28 Thursday, March 16, 2023 South Beach Loop B 790 388 (402) -50.9% MB30 Wednesday, March 15, 2023 South Beach Loop B 447 441 (6) -1.3% MB31 Friday, March 17, 2023 South Beach Loop A 373 311 (62) -16.6% Trolleys may cover more than one route each day. ** The video count figures include each time the trolley driver entered the vehicle during the examined day as the APC counts would have done the same. The number of times that the trolley drivers was observed entering the vehicle during the sampled days above ranged from three for MB13 to 21 for MB30. The widespread positive and negative variances between the TSO Mobile reports and the OIG video counts raise concerns about the accuracy of the rider counting process. Each variance, except for trolley MB15, exceeded the threshold deviation listed in Exhibit B of the TSO Mobile Contract, some significantly. In addition, trolleys MB28, MB30, and MB31 were equipped with overhead people sensor APCs3, which Transportation and Mobility Department staff presented to the OIG as a newer and better technology than the one used on the other trolleys. As reported in the table above, the associated variances ranging from 6 riders (-1.3%) to 402 riders (-50.9% ), failed to support the assertion that the newer technology is more accurate than the older technology. It also reported higher ridership than observed in the video footage related to all three sampled trolleys examined. Consequently, the OIG recommends that the installation of overhead people sensor APCs for more trolleys be suspended until the reasons for these deficient counts can be determined and corrected. If not possible, other more effective counting methods should be researched and utilized prospectively. Although the objective of the analysis performed was to assess the reliability of the APCs, the outcome of which suggests malfunctions leading to inaccurate reporting of ridership figures, the OIG was also concerned with the inability of TA to provide all requested footage and the occasional submittal of substitute unrequested footage. For example, video footage for an additional eight trolleys was requested from TA representatives on April 18, 2023, pertaining to dates ranging from April 10, 2023 through April 16, 2023, well within the 14 days designated by TA. On April 27, 2023, the OIG received an email from TA stating that three of the eight requested videos were obtained, three were unavailable, and they were in the process of obtaining the remaining two. The OIG was also informed that trolley drivers perform daily manual ridership counts, which are compared with TSO Mobile counts, and used when the APC counts are not available. As a result, the OIG emailed TA representatives on April 27, 2023, requesting the March and April 2023 manual ridership counts, but no response was received. In the interim, the OIG requested and received an Excel spreadsheet from the Transportation and Mobility Department, which was previously provided to the City by TSO Mobile, containing the https ://people-sensing.com/sites/default/tiles/counter datasheet apc-eco engl.pdf Page 6 of 9 APC counts and the daily manual ridership counts prepared by trolley drivers operating in Miami Beach during March 2023. Consequently, the requested April 2023 video footage and daily manual ridership counts prepared by the trolley drivers were no longer pursued from TA. The OIG Auditors' examination of the March 2023 Excel spreadsheet found that the APCs for 202 of the 723 line items were blank (27.9%), containing no count whatsoever. This suggests that APCs installed on many trolleys are not functioning and need repair. After eliminating the 202 blanks from analysis, the OIG compared the remaining 521 reported APC counts with the corresponding trolley drivers' manual counts. Although the +/-1 benchmark stated in Exhibit B of Amendment No. 1 is meant to apply, according to Transportation Department staff, only to a possible manual account "by a single checker on board a bus" and not to the drivers' manual counts, it was still concerning to the OIG that only 5 of the 521 line items were within the stated benchmark. It should be noted that, on those occasions where the APC devices are not functioning correctly and do not report any daily riders, the trolley drivers' manual counts are substituted by the contractor to represent ridership for those days until the devices are recalibrated and repaired, so it is not illogical to compare the reported APC counts to the trolley drivers' manual counts as a reasonable measure of their accuracy. Although not tested by the OIG, it was recommended to the Transportation and Mobility Department Director in a telephone conversation with the OIG that designated staff monitor the submitted monthly Excel spreadsheets, if not already done, to ensure that the repair and recalibration of all malfunctioning APCs occurs within a reasonable time. Three sampled trolleys, MB28, MB30, and MB31, were equipped with the overhead people sensor APCs containing cameras which provide a continuous view of the trolley drivers. The corresponding video footage reviewed by OIG staff found the reliance on manual counts prepared by trolley drivers questionable, as only one (MB30) of the six observed drivers of the examined sampled trolleys equipped with overhead people sensor APCs was noticed recording ridership counts through a clicker hanging from his neck. Although this is not conclusive evidence that manual counts were not recorded by the other trolley drivers, it does raise questions as to the origin and accuracy of the manual counts based on trolley driver input. In a meeting with City staff and TA management, it was stated that the Agreement does not prescribe how trolley driver manual counts must be completed . Given the number of blanks in the APC counts for March 2023 (27.9%), the OIG believes that a defined methodology by which the manual counts are to be performed by the trolley drivers will help result in more accurate ridership figures reported to the City. As a result, it is recommended that these terms be prospectively negotiated and added to the next Agreement. The OIG also compared its video counts from the sampled trolleys examined, each for one day's operation during the week of March 13 through March 19, 2023, with the manual counts prepared by the trolley drivers (see the table below). In doing so, it was determined that the trolley drivers' manual counts were similarly unreliable. Page 7 of 9 Trolley Date Route Drivers Manual Counts OIGVideo Count Variance Variance% MB08 Thursday, March 16, 2023 South Beach Loop B 604 671 -67 -11.1% MB08 Monday, March 13, 2023 Collins Express 758 710 48 6.3% MB08 Saturday, March 18, 2023 Collins Express 768 643 125 16.3% MB13 Wednesday, March 15, 2023 Collins Express 985 657 328 33 .3% MB15 Thursday, March 16, 2023 North Beach 466 416 50 10.7% MB18 Sunday, March 19, 2023 Collins Express 700 749 -49 -7 .0% MB28 Thursday, March 16, 2023 South Beach Loop B 364 388 -24 -6.6% MB30 Wednesday, March 15, 2023 South Beach Loop B 318 441 -123 -38.7% MB31 Friday, March 17, 2023 South Beach Loop A 380 311 69 18.2% In sum, the documentation provided related to March 2023 showed widespread differences between the APC counts and the trolley drivers' manual counts. Furthermore, both counts differed, some significantly, from the OIG video counts performed on the daily activities of nine sampled trolley day-rides. Given the limited documentation received and the small sample in comparison to the population , the OIG cannot conclude whether the APC counts or the manual counts prepared by the trolley drivers are more accurate representations of ridership. The OIG is also concerned that the City may have based some decisions regarding trolley service on these inaccurate ridership figures. Going forward, the Transportation and Mobility Department should periodically conduct its own sample ridership inspections with any deficiencies exceed ing a designated percentage promptly addressed with the contractor until being resolved. Based on the inspection done by the OIG and its communications with the City's Transportation and Mobility Department, LSF, and TSO Mobile, the OIG recommends that the City consider utilizing a more reliable technology for the counting of passengers on its trolley system. cc: Alina T. Hudak, City Manager Rickelle Williams, Assistant City Manager Jose R. Gonzalez, Transportation Department Director Nick Mazorra, COO, Limousines of South Florida, Inc. Wendy Diaz, Sr. Technical Support Manager, TSO Mobile by Tracking Solutions, Corp. Rafael Paz, City Attorney Mark Fishman, First Assistant City Attorney O FFICE OF THE INSPECTOR GENERAL, City of Miam i Beach 1130 Washington Avenue, 6th Floor, Miami Beach , FL 33139 Tel: 305.673.7020 • Hotline: 786.897.1111 Email: CityofMiamiBeachOIG@miamibeachfl .gov Website: www.mbinspectorgeneral.com Page 8 of 9 ,.. '" 1?Y LEGEND O NORtH BEAa-t LOO, COUENS EXPltfSS MlOOU: 8(A0. LOOP 0 SOUTH BEA CH LOOPS _ TRANSFER POINTS ':5 0 ~ ~0 ~ ~ O: =m o ie n 11r For a full list of trolley stops visit. miamibeachtrolley.com ni, M IAMIBEACH !:!. TROLLEY 151UUa ... l41UlJJl ... $ ~ ""l?SJ 11• ..... N ; w E 5 i 9 I ~ ei Ii : ,,. 1 Appendix A .,. .. 1"1i..,..1<.l,,_-...,f'.-" ~· '""· ► 1"'\I SOUTH BEACH LOOP • A ~ ,-~~hv,..,. ...... C1-J "r!JElol(RI' ~ e IIRIIA({ h 1UlM£ Page 9 of 9 :: A TRANSPORTATION AMERICA COMPANY June 21 , 2023 Joseph M. Centorino, Inspector General The Offi ce of Inspector General City of M iami Beach 11 30 Washington A venue 6th Floor Sent Via Email Josepl!Ccntor1no{a m1am 1beaeh1l.gL,, Miami Beach, FL 33139 Re: LSF Response To Draft OIG Trolley llidersbip Inspection Report Dear Mr. Centorino: Limousines of South Florida, Inc. (LSF) thanks the Office of Inspector General (OIG) for the opportunity that was provided to discuss the Draft Trolley Ridership Inspection Report (OIG Report) during the June 16. 2023 Virtual Meeting, by and between the OIG, City staff, and LSF, and to hereby submit Responses/Comments in connection thereto. LSF is committed to ensuring that the public record provides a factual and accurate account of the issues discussed in the OIG's Inspection Report, inclusive of perspectives from all relevant parties -the OlG (as author of the Report), and the City staff and LSF as parties of the Miami Beach Trolley Program Agreement. To this end, attached please find LSF's Response To Draft OIG Trolley Ridership Inspection Report. For purposes of clarity in the public record, LSF's response is provided within the text of the Draft OIG Report that was provided. Specifically LSF provides comments in Blue Italics Font in response to each paragraph of the OI Draft Report immediately after each paragraph in the Memorandum, so tbat the OIG can determine which responses will be incorporated into the Final OIG Report. Consistent with Section 2-256. Sub-Section (h) of the Code of the City of Miami Beach, LSF respectfully requests that this complete Response be nonetheless attached to the Final OIG Report so that LSF' s comments that are not incorporated into the OIG Final Report can be available for anyone that wishes to review LSF's Respons /C mments. If you have any questions, or require any further information, please do not hesitate to advise. Attachment 2766 NW 62nd Street Miami, Florida 33147 Tel305.265.3302 Fax305.265.3303 1 LSF RESPONSE TO DRAFT OIG TROLLEY RIDERSHIP INSPECTION REPORT (All LSF Responses/Comments are in Blue Italics Font) For purposes of clarity ,n the public record. LSF provides comments m Blue Italics Font rn response to each paragraph of the O/G Draft Report 1mmed1ately after each paragraph m the Memorandum so that the O/G can determme which responses will be incorporated rnto the Final OIG Report Consistent with Section 2-256 Sub-Section (h) of the Code of the City of Miami Beach LSF respectfully requests lhal this r,omplele Response be nonetheless attached to the Final OIG Report so that LSF s comments that are nol ,ncorporated into the O!G Final Repo11 can be avaJ/able for anyone that v1ishes to review LSF s Response/Comments TO Honorable Mayor and Members of the City Commission FROM: Joseph M. Centorino, Inspector General DA TE: June 2, 2023 DRAFT PROJECT: Trolley Ridership Inspection OIG No. 23-XX PERIOD: October 1st, 2021 -March 31st, 2023 EXECUTIVE SUMMARY This inspection was planned and carried out by the City of Miami Beach Office of the Inspector General (OIG) at the request of Miami Beach Commissioner Ricky Arriola, who expressed concerns regarding the accuracy of the ridership figures for the City's free trolley service. Those figures, presented to the Finance and Economic Resiliency Com mittee (FERC), had been based on the Automatic Passenger Counters (APCs) installed in th e trolleys and relied upon by the City Tra nsportation and Mobility Department in connection wi th the 201 9 Miami Beach Trolley Passenger Survey data performed by Marlin Engineering, Inc. LSF Comments (All LSF Comments are in Blue Italics Font) LJmousmes of South Florida Inc (LSF) t/1an/(s the Office of Inspector General (OIG) for the opportunity thal was provided to cilscuss the Draft Trolley Rrde,shrp Inspection Report (O/G Repott) during the June 16. :C023 Virtual Meet,ng by and between the O/G City staff ancl LSF, and lo hereby submit Responses/Comments m connection thereto LSF 1s committed to ensurmg that t11e pubflc record prov,cles a factual and accurate occow1/ of the issues chscussed 111 the OIG s Inspection Repon. 1nc1Us1Ve of perspectives from all relevant pa111es -the O/G (as author of the Report) and the City staff and LSF as parties of tf1e M1am1 Beach Trolley Program Agreement With respect to the substance of Paragraph J of the Executive Summary. LSF 1s aware of Commrss1oner A110Jla concerns ahout the accwacy of rrclers/11p figures fat the City s ftee trolley service fn observmg Com111issio11e1 A11iola s specific concerns as expressed from the Commrss1on Oats. LSF notes his concerns that the published rrdersh1p figures may be inflated In fact. based on lus pet sonal observations. Comm,ss,oner Arno/a has speculated that ndersh,p figures were potent,ally inflated, and has therefore. quesltoned whether the City should contmue mve sling rmlltons of doll a, s mto a Program with /owe, -than-, eported ridership ftgw es 1 2 In Chis regard LSF notes that the OlG s lnspec:t,011 dtd not conclude tfle Crty s trolley ndersh1JJ 1gU(es are mflated In (act it was quite the opposite Dunng the designated one-we1::k observation penoci conducted 111 March 2023 the OIG found that ndershrp figures were tmderreponed by almost sixteen percent (16%) In other words during the designated one-week period the Trolley Program transported almost sixteen (16%) more passengers than reported by the APC eqwpment LSF respectfully submits that these details are highly probative, and should be disclosed in the opening paragraph of the OIG 's Inspection Repon The City trolley contractor, Limousines of South Florida, Inc. (LSF), is responsible for operating the trolley system, and its subcontractor, TSO Mobile by Tracking Solutions Corp . (TSO Mobile). ,s the independent party that installs and maintains the APCs. In addition , the City Transportation and Mobility Department 1s responsible for monitoring and determ ining com pliance with the executed Agreement and its Amendments. LSF Comments (All LSF Comments are in Blue Italics Font) LSF notes that its sub-contract Agreement with TSO Mobile was entered mto at the direction of the C,ry Please I efer co Amendment No 1 of the Miami Beach Trolley Program Agreement entered on September 30, 2014, which states. 111 relevant paI1 ThP Contractor shall provide ,ts Optional Services by en/enng into a Sub-contract wa/1 TSO Moh,le Accordingly. LSF respectfully requests that the OIG c/anfy this paragraph 111 the Draft OIG Report as follows The Ctly trolley contractor Limousines of South Florida Inc. (LSF), ,s responsible fo, operatmg the trolley system -and-I_ >>Its<< subcontracto, TSO Mobile by Trackmg Sotur,ons Corp. (TSO Mobde). ,s che independent party >>contracted at the direction of the City<< that installs and mamtarns the APCs. In addition. the Cirv Transportallon ancl Mob1/1ty Department ,s responsible for momtormg and determinmg compliance with the executed Agreement and ,ts Amendments (D/pnsA nc,fp t/1 ;if ;, 11 ncc111ncy LSF.: suaqcsr,011. /hat rill' sr11rl<.e11 r/11nugh are rec:nmmemlerl lo /1p ael1c:tetf from lf11-0/G 01011 RepOJt ..i11rl tlw e l/1Ar .-1Ie > double arrowed and bold<< arb suqgested 1y LSF I /JP ,,(/,/Pd rn•o /he 0/G F,nal Reporr J OIG staff researched methodologies to test the reliability of those figures and performed an independent inspection to assess the accuracy of the reported ridership data through visual examination of the limited available footage provided from video cameras insta lled in the trolleys. The ridership counts deri ved from the video footage inspection by OIG staff were then compared with the reported number of passengers from the APCs and the manual co unts prepared by the trolley drivers. The inspection concluded that the data generated by the APCs installed in City trolleys and the manual counts prepared by the trolley drivers are unreliable indicators of the actual ridership for the trolley system , based on the sampled trolleys examined during March 2023 2 3 LSF Comments (All LSF Comments are in Blue Italics Font) LSF notes ll1at the in tallatio11 of the APr s 1s performecJ by TSO To ensure that there is no misunderstanding as to which entity installs the eqwpment. LSF s11nply reques1s this paragraph 111 the Draft O/G Repo1t be mod1f1ed as follows. OIG staff researched methoclofog1es to test the re/1ab1/1ty of those figures ancf performed an mdependent mspect1on to assess the accuracy of the reported ncfersh1p data through visual exammat1on of the /united available footage provided from video cameras mstalled in the trollevs The ndersh1p counts derived from the video rootage 111spect1on by OIG staff were then comparec/ with the reported numtJer of passengers from the A PCs >>installed by TSO<< and the manual counts prepared by the trolley cit 1vers The inspection concluded that the data generated by the APCs mstalled ->by TSO<< ,n City trolleys and the manual coums prepared by 1he trolley dnvers are unreliable indicators of the actual t idership for the trolley system, based on the sampled trolleys exammed during March 2023 fPIP<1 P. norP //1.Jt fo, w·(.11Ic1cv L F s . uupest1011~ ti/ill a,e ·r11u,,m Ih1r ugh r1re 1ecommenrlecJ to tie Je/P/1:uf Im m the O/G O•dlt Rt!po,t 1ml tho:e Iha/ c1If' ->>double arrowed and bold<< are suqge'terl 1 }· LSr I 1,... a<fOect into II,e OIG F nm RP.µc,rr I The OIG did not receive from the contractor, despite multiple requests, all requested video footage or daily manual ridership counts prepared by trolley drivers. On some occasions substitute video footage of other non-requested trolleys was received instea d of the requested footage. The contractor's failure to provide all the requested video footage created a scope limitation which raises concerns as to the underlying reasons why it wa s not furnished to the OIG and what other deficiencies may exist. However, the Transportation and Mobility Department provided an Excel spreadsheet, prepared by the contractor, containing March 2023 manual counts and APC counts to the OIG. LSF Comments (All LSF Comments are in Blue Italics Font) LSF apolo91zes for any delay m the delivery of requested mformat,on/data As noted m the vanous email exchanges LSF generally responded to commumcaf!ons by the O/G either on the same date 01 w1thlf a reasonable penod Regrettably, the process of oblammg the video footage was delayeci e1tf1e, because of opera1ionallse1v1ce-related respons1bi/Jt1es and/or due to faultvloutdated equipment As LSF noted ctunng the Virtual Meeting with the O/G and City staff. LSF provided the video footage that was available and/or operable as soon as taff was able to retneve ,t l SF and TSO have commumcated to the City that the video eqwpment 1s outdated and shoulcl be replaced As a/so discussed, there 1s new and better passenget cotmte1 equipment and video technology available and LSF ,s w1f/mg to test t/lese new sofvt1ons Respectfully the char actenzat1on that the unava1lab1/ity of video footage raises conce111s as to Ille w1lie1fy111g reasons wily ,twas nm furn1sl1ert to the O/G cind what other cleftc1enc1es may exist' suggests the poss1bJ/1tv of some improper conduct This ,s simply not true nor s11pportable 111 the O/G Report In fact as noted m Parag, aph 1 of this Draft OiG Report the basis for the Inspection Report is to assess the accuracy of the nders/11p figured of t/1e City s free trolley service - 3 4 spectf1calfy whether r1cie1sh1p was mf/ated While the APCs and the manual counts have been dete,rmned unreliable the Draft O/G f11spect1on Report did find that the numbers were uncleneportecl Thus. there 1s no benefrt for LSF to r..le/ay the procluct1on of requested video footage ancJ to suggest that c1nv delay raises co11ce1ns or that there 1s an "1mderly111g 1easo11 for such delay 1s simply not necessa,y and misplaced As such LSF respectfully requests tllat the 0/G modify this paragraph m the Draft OIG Report as follows The OIG did not receive from the contractor, despite multiple requests all requested video footage or daily manual ndership counts prepared by trolley dnvers On some occasions. substitute video footage of other non-requested /101/eys was, ece,ved msleacJ of the 1eqt1e. terJ footaqe The contractor's fa,twe to provide all the requested video footage created a scope /1mitat1on whiGJ:i..-.r-a;ses G01lGefr~./y,AfJ-reasono-w-l=µ; it was noc tu, mshed-J..e.-1.he GJ.G-..aA.d what other del1c,e,1<,ies may exist However. the Transportation and Mob1//ty Department provided an E. eel spreadsheet. prepared by the contractor contammg Marc/1 2023 manual counts and APC counts to the O/G 1P/p.is ru '"' fhnl f, , -11 n11nI,"y LSF ~11,mest1011~ /ml 11e :,;/11ckert tf11,JL1g/1 .-11 e tA(;ommPnrted to hP •e1e1Pct r ,m tne OIG Oral/ Rep ,r 1ml /ho ·e Iha/ a,e »double arrowed and bold< •are sug9es/ert J L F tone m/llF•U ,mo rne OIG ~rnal Report J INTRODUCTION On May 8, 2014, the City of Miami Beach entered into an Agreement with LSF for turnkey operation and ma intenance services of a Municipal Trolley Syste m in the City of Miami Beach. According to City Resolution No. 2014-28708, the Agreement provided an option to procure additional equipment, includ ing, without limitation . Global Positioning Systems with capabilities to report, Au tomatic Passenger Co unters, Wi-Fi services. and Automated Voice Information Systems. Pursuant to Article 3, Section 1 of the agreement, the City Administration recommended that the City secure the optional equipment through LS F, for a sum not to exceed $150,000, during the initi al five-year term of the Agreement, which the Mayor and City Commission approved and authorized through Amendment No. 1. LSF Comments (All LSF Comments are in Blue Italics Font) As noted pre~ musty LSF s sub-contract Agreement with TSO Mobde was entered into ac the di1ect1on ot the City Please refer to Amendment No 1 entered on September 30 '014 which 4 s sraies. 111 relevant par1. TIie Contracro, shall prov,cle its Optional Services by entenng mto a Sub-contract w1fl1 TSO Moblfe " Acco,dm1. /y LSFrespectfully requests thal the O/G clanfy this paragr ap/7 in the 01 aft OfG Report a, follows On May 8 2014. tlie City of M1am1 Beach entered mto an Agreement w,tn LSF for turnkey operation and rnamtenance erv1ces of a M1m1c1pal Trolley System 111 the Ci/ of M1am1 Beach Ace ordmg to City Resolution No 2014-28708 the Agreement p1ov1derl an oplion lo procure additional eq111pment at the City s 1eq11est mc!11cli11g without l1m1tat,on Global Po ,t,onmg Systems with capab1/Jt1es to report. Automatic Passenger Counters W1-F1 services, and Automated Voice Informal/on Systems. Pursuant to Article 3 Section 1 of the agreement the City Admm1strat1on reGOmmem.i-efi direct eel LSF to th8t-+Re City secure the optional equipment through LSF for a sum 101 to exceed S150 000 duflng the initial fire-year term of the Agreemem wl11ch the Mayor a,1d City Comm1ss1on approved and authorized through Amendment No 1 Pie J!il' note that Jo, accuruc~ LSF s s11qoes11011s that c11€ ,tucke, lhrour1n lfr Acommenderl to be lelotud 110111 //11.: 0/G Draft Report ml //Jn c If at cJ/e ·>do11ble arrowed and bold<< Arn S(lgge<:led tiy L sr /0 be d(J//~rl II Ir) rh > 0/G Fm.:11 Reµc1rt I Amendment o. 1 to the Agreement, approved on September 30, 201 4, authorized th e execution of a subcontract between LSF and TSO Mobile to provide a full turn key Tro lley Service , to include equipping the trolleys with the following optional equipme nt: Autom atic Passenger Counters (APC), Automated Voice Information System, Wi-Fi services, real-time GPS tracking services (with capabilities to provide mileage, service hours and ridersh ip reports , and capabilities to provide data in a format that is compatible with Miami-Dade County's mobile application, "Mi ami Dade Bus Tracker") and additional automated stop announcement equipment , with the capability of displaying public advertisements. The OIG recommends that in the future the City enter into a contract directly with the subcontractor to help avoid the perception or the possibility that LSF may exert undue influence on its subcontractor to enhance its rid ership figures and/or perfo rmance image. LSF Comments (All LSF Comments are in Blue Italics Font) LSF does not 0L"i1ect to. nor part,cularly disagrees w1f/1 f/1e 0/G s suggestion that the City should have direct contractual prw,ty with an APC prov1cler to prov1cle I icfers/11p figures fot the City s trolley program Howeve, LSF does ob1ect to the inaccurate suggestion that LSF may be exerting undul➔ 1nflue11cE: 011 Its suhc.ontractor to e11l1a11ce rts ude1sh11, figures ancflor pedormance clata • In tilts regarcl as p1efaced earlier. LSF r!Oces that the City selected TSC Mobile as rts preferred APC vendor based on r.mce. dnd per il1e p1eviously quoted Amendment No 1 to the M1am1 Beach Trolley Progtam Agreement directed LSF to execute a subcontract with TSO LSF believes thrs detail I c11t1cal to understandmg the orrgm of the APC :subcontract ancl tl1e nature of LSF's relationsh1r1 vllh T Moreove, LSF spec1f1cal/y asserts that there Is no basis -in perception or ,n fact -that LSF ,nay exert undue mfluence on the sub-contractor to en/1ance ndersh1p numbers. Indeed, as 5 6 e plained during the Vu1ual Meeting with the O/G and C,ty staff LSF is compensated based on erv1ce hours -NOT by ndersl11p. This fact 1s also ac/11ally acAnowledged m a subsequent paragraph 111 the Draft OJG Inspection Report In fact during the Virtual Meetmg. City staff also expressed tn1s point and fur/he, noted that the number of vehicles was/1s not based on rrdersh1p f1gwes but rathe, on desned head-way times and to mm1m1ze bunching It 1s therefore frankly. ironic that the O/G would suggest that LSF would seek to exen undue 1niluence and/or enhance ndersh1p figures when there 1s clearly no benefit -financial or otherwise -for LSF to do so. In shon such language 1s unsupportable and unnecessanly ,nflammato1y LSF therefore respectfully requests that the OIG modify this paragraph m the Draft O/G Report as follows Amendment No 1 to the Agreement. approved on September 30. 2014. authonzed che execution of a subcontract between LSF and TSO Mobile to provide a full turnkey Trolley erv1ce, to include eqwpp,ng the trolleys w!lh the fol/owmg optional eqwpmenr Automatic Passenger Countets (APC). Automated Voice lnformat,on System. W1-F1 services real-time GP trackmg services (with capalJilit1es to provide mileage. servrce hours and ndership reports and capab1/!l1es to provide data ma format that 1s r.ompal!ble with M1ami-D~de County s mobile application. Mmm1 Dacie Bus T1arke1 ) ami acld1t10naf automated . toµ announcement eqwpment. wllh the capab1/1ty of displaymg public advertisements. The O/G recommends >--and LSF concurs --< that m the future the City enrer mto a l,ont1 act directly with the subcontractor >>, ,n order to directly oversee and manage the performance of the deployed technology.<< l.e-l?elp avoid the f=HY-Gepl-1-0A-el-" the fJ<Jssibi/1/y tha1--~1-1a-y-e--x.en VFKit:1e-1Afl.i:leAOO-en ll.s suhcont-r-acwr to enhanGe-it.s ndersh1f}-IUJ ires--andler r.erferm-anoe ima§e- /Plt--iJSP n ,re ttir1r tor ric ,111 cv LSF" s11gae. lI011s tilat arP-{/rwi,e11 ti11nuqh a,e Iei;ommPn<led lo be .I0Ir>1en 110,n the 0/G Drnft Reporr ana 1/mse 11m1 'lite >>double arrowed and bold<< arP suggostect hy LSF-to/) • c11< ccl ,1110 fh1 OIG Ftr1t1I Rep("T} Exhibit B of the TSO Mobile Contract states, "The accuracy of our Automatic Passenger Counting Systems Is considered to exceed that of a single checKer on board a bus and compara ble to that obtained by two checkers , one stationed at ea ch door. APC users in the transit systems that have utilized our APC system consistently express satisfaction with the accuracy of our APC system. In the following, the overall concurrence value represents the total number of boardings and alightIngs1 counted by the APC system compa red to the tota l number of boardings and alightings counted by experienced manual checkers. The Manual-APC Deviation Range +/-1 represents the percentage of time the manual and APC observations were within one (1) of each other. Implementation of our APC system will result in APC Passenger Count Accuracy levels exceeding 95% concurrence with manual observations." LSF Comments (All LSF Comments are m Blue Italics Font) LSF concurs with rh1s pa, agraph In other words. tf the APC system report indicates 150 passengers ro de a given trolley during the day, the manua l counts will range between 149 and 151. most of the time (95%). Furthermore, Alighting means to get out a vehicle, especially a train or a bus, according to the Cambridge English Dictionary. 6 7 both the manual counts and the APC system report counts should be consistently within the same +/-1 deviation range with the video footage counts performed by OIG staff. LSF Comments (All LSF Comments are in Blue /ta/Jes Font) LSF concurs with this paragraph Miami Beach trolley service was suspended on March 26, 2020, fo llowing the outbre ak of th e COVIO-19 pandemic, and eventually re sumed at a reduced service level on February 15, 2021 . Therefore. pre-pandemic analysis from LSF involved all trolley operations prior to March 26, 2020, and post-pandemic represented all trolley operations after February 14, 2021 . LSF Comments (All LSF Comments are in Blue Italics Font) LSF concws with this paragraph It is worth noting that the City does not directly base its payments to SF on ridership but rather on scheduled service hours as stipulated in Amendment 11 to the Agreement. Scheduled service hours are defined as the requested number of hours by the City for services available to the public for transport along designated routes. The service hours exclude deadhead hours2, interruptions ,n service, and idle times exceeding 15 minutes. The free Miam i Beach trolley covers the following routes: South Beach Loop A and B, Middle Beach Loop, Collins Express , and North Beach Loop (see Appendix A located at the end of this report). Among other benefits, accurate ridership figures are importa nt to help the City Administration to determine the following: • the number of trolleys that should be operating daily; • identification of the busiest and least busy routes through which decisions could be made to add or reduce the number of trolleys or the hours of operation; • whether program costs may be offset by gra nt funding based on the achievement of specific riders hip targets ; and • assessment of the trolley program's overall effectiveness and its appropriate funding level. The first two listed above could impact scheduled service hours, and, therefore, payments due by the City to LSF. LSF Comments (All LSF Comments are in Blue Italics Font) LSF generally concw s w,th the first several sentences of this pa,agraph but again stresses that routes a1e cletermrnecl by the City and have nothmg to do with ridership figures. As LSF noted earlier and City staff conf1m1ed clu11ng the Virtual Meetmg with the OIG and LSF, the number of trol/ev necessary to provide the service was also cletermmed by the City based on trolley route alignment established headways/frequency of service. and to minrm1ze bunching Thus. the numbe1 of trolleys and service hours are not dependent on the number of passengers using the service and 11dersh1p f1gu,es have no impact on tl1P. Tto/ley Programs se1v1c hours a, the amount of payments to LSF Deadhead hours refe rs to the measurement of time (in hours) when a vehicle travels from its garage or yard facility to the first scheduled prck-up point or any time the vehicle travels from the last scheduled drop-off point to its garage or yard facility. 7 8 The, etore LSF respectfully requests that the OIG make the fol/owmg modtficalrons to thrs paragraph 111 the Draft OIG Report to ensure accuracy ,n the public record as follows It 1s wonh noting that tne City does not L1uectly base its payments tn LSF on nciersh1p but rathe1 on scheduled service hours as stipulated in Amendment 11 to t/Je Agreement ScheCluled service hours -are defined as the requested numbe1 of hows by the City for services avarlable to the public fo1 transport along designated routes The service hours exclude deadhead hours 1nterrupt1ons m service and idle tunes exceeding 15 mrnutes >>Routes are determined by the City. and the number of trolleys necessary to provide the service was a/so determined by the City based on established headways and to mmim,ze bunching. Thus, the number of trolleys and service hours are not dependent on the number of passengers using the service<< The free M1am1 Beach trolley covers lhe fo!lowmg routes South Beach Loop A and B. Middle Beach Loop Collins Express and North Beach Loop /see Appendix A located at rhe end of this report) Among other benefits. accurate nclersh1p figures are important to help the City Admm,strac,on to determme the following ._ the rH:Jmhe+-of trolle-ys tJ:l.al-MieHld ee---eµeratmg cJail.y. • -ifiemff.H:;at-10,1 of #1e--01c1&esJ-anfl /easl misy 1m1tes throul§Jh-wf.-11sh--deG1s1ons-oowd iJe made to adfi-0r reduce the nwnbef-el...tr-O!Je-yo--01:..t-he hours of-t}f)eFa~ • wnether prog1am costs may be offse1 by rant fund111g based on the achievement of specific ndershrp targets: and • assessmellt of the trollev prog,am' overall effectiveness and its appropriate funding level The fiFSt two Jisted-abav~uld impaGt-sGheauled servi<:;e-het:Jrs, and. therefar-e,paymenls-due-oy-the-City-to-b.Si=. !p1,.·1:;;, notP 1/1.11 frn ,r:,:11rn<:v L.SF s s11qpesr1om, tl1cir ,Im sr11,.1-.en //11n11t/h nre 1Pr.on,men<fecl In lie <!&!,-red ir ,m rn 0/G DrcJft Re1;m1 net /ho. e /hct! aie >>double arrowed and bold<< i'lte suggesteci 1, F In I1e 11Jclerf min rhe ::JIG F111,1/ ReuCJt/) WORK PERFORMED TEST 1 During the July 22, 2022 FERC meeting, the City Transportation and Mobility Department presented post-pandemic trolley service metrics. The following presentation extract indicated that daily ridership had decreased by 56% from approximately 14,400 pre-pandemic daily rid ers to 6,300. LSF Comments (All LSF Comments are ,n Blue Italics Font) LSF concurs with t!Hs pa,ag,aph. Deadhead hours refers to the measurement of time (in hours) when a vehicie travels trom its garage or yard facility to the first scheduled pick-up point or any time the vehicle travels from the last scheduled drop-off point to its garage or yard facility. 8 9 Trolley Service LSF Comments (All LSF Comments are in Blue Italics Font) LSF conwrs with //11s Chari Some ridership declines can likely be attributed to the changes in trolley operating hours and frequency. Prior to the pa ndemic, trolley service was available 18 hours a day, operating from 6 a.m to 12 a.m., with 25 vehicles servicing the public at an average interval of 15 minutes. Following the pandemic. tro lley service was reduced to 15 hours a day, operating from 8 a.m . to 11 p.m ., with 15 vehicles servicing the public at an average interval of 30 minutes, wh ich is the current service level. LSF Comments (All LSF Comments are in Blue Italics Font) LSF concurs w,th th1c; paragraph TSO Mobile representatives informed OIG staff that its automatic counter system pro duces ridership reports that can be accessed th rough its http://app.tsomo bile.com website. OIG staff accessed the corresponding Pa ssenger Counter reports from October 1si, 2021 , th rough March 3P1, 2023, to compute the average da ily and monthly ri dership. The results indicated an average of 5,205 daily riders from October P 1 2021, through September 301t, 2022. and 6,232 daily riders from October P, 2022 through March 31'1, 2023. LSF Comments (A ll LSF Comments are ,n Blue ltahcs Font) LSF c/oes 1101 ciispute t/Je OIG s 1epresentat1011s 111 this paragraph Upon comparing the lim ited internal TSO Mobile data provided to the OIG to the figures in the post-pandemic analysis presented by the City Transportation and Mobility Departmen t to the FERG covering a broader period , the OIG found those figures to be consistent. As the trolley ridership data before July 1. 2021 . was not available, it was not exammed by the OIG , so its accuracy could not be determined. 9 10 LSF Comments (All LSF Comments are in Blue Italics Font) LSF concurs w1rt1 this paragrap/1 TEST2 OIG staff initially sought to determine the accuracy of the 14,400 daily ridersh ip figures reported in he 2019 Passenger Survey conducted by Marlin Engineering Inc. Howe er, TSO Mobile representatives informed the OIG that the 2019 trolley reports and related video footage were unavailable, and, therefore, the accuracy of th e related reported ridership could not be verified. Given this limitation, OIG staff had to find an alternative method to assess the accuracy of reported ridership data and to test the reliability of the passenger counting system. LSF Comments (All LSF Comments are in Blue Italics Font) LSF cloes nor U1spute r/JP OJG s 1ep,esentat1ons m this pa, □ graph. LSF also adds that as discussed with the OIG and City staff then~ 1s new and better passenge1 counrer eqwpmem c1nd video technology available and LSF 1s w1/fmg to test these new solutions In response to initial inquiries made by OIG staff, re pre sentatives from Transportation America Inc. (TA), the parent company of LSF, stated that each trolley is outfitted with four interior cameras. The related video footage is stored on a hard drive within the camera system. Customers can only enter or exit the trolley through its one door, and the cameras record all its activities. LSF Comments (All LSF Comments are in Blue Italics Font) LSF Joncurs with 1h1s paragraph In emails to the OIG, TA representatives stated that the video recordings would be stored for approximately thirty days, thereby limiting the OIG's analysis to 2023 data. However, after requesting video footage rela ted to the operation of nine trolleys , each operati ng during a single day within the prior thirty-day period , TA representatives indicated that video footage was only available for up to two weeks. LSF Comments (All LSF Comments are in Blue Italics Font) LSF eneral/y concurs with this µaragrap/1, although to unclersco1 e a previous pomt because the eqwpmenr 1s outdated LSF has found that the maximum storage capacity of the memory ca, d was unreliable to fo1ecast. As such LSF p1ov1ded what wa~ ava!lable LSF thererore respect{uf/1 ,equests that the O/G make the follow mg mod1f1cat1ons to the Draft O/G Reporr co this paragraph as follows In emaJ/s to the OJG TA representatives stated that the video reco,dmgs would be sto,ecJ for aµpro 1marelv l/11rty clavs tfle,e/Jy llfnitmg tl1e OIG analysis to 2023 (iata Howeve, afte, ,equestmg video footage r'elateci to the operation of mne troff~ys each operatmg during a smgle day w1lhtn tie pno, thirty-day penod, TA representatives mdtcated that video footage was only available for up to two 10 11 weeks >>, as that is the maximum storage capacity of the outdated memory card.<-< (Pl,>r1s1 not 11,a/ / ll a ·cura( v LSF s11ggesI1011. r/Jat m st11<. '<e, lhrouqn irr-rer.ommendeo to lk lo/(>{11rf from 111 0/~ Orn/I Rcf.]orr c1mi tho..:u lhc1/ 11 u ·>double arrowed and bold ..: are su,mesied b1 LSr r(I ti, .lc/clf'CI 1111, U1e OIG F,niil Reornt 1 Consequently, OIG staff accessed the daily Passenger Counter reports from March 13 through March 19, 2023. within the designated two-week period, and similarly requested video footage of one day's activities for ten trolleys operating during the same week. The selected sample was stratified to focus primarily on trolleys with higher reported ri dership and to avoid those out of service during the designated week. LSF Comments (All LSF Comments are in Blue Italics Font) LSF rtoes not cJ,spute t11e OIG s repr sentat1uns of the methoclology employed m the analysis. After encountering unexpected difficulties obtaining the requested video footage, TA representatives provided OIG staff with USB flash drives containing most of the recordings. It is important to note that one trolley's video footage was unavailable, and substitute video footage was received for two other tro lleys, whic resulted in footage for three different days rel ated to a single trolley, MB08, Le., the footage provided for three out of the nine trolley days examined included the same trolley. The OIG utilized all of this footage but must note that, wh ile the repeated use of footage for one trolley helped to confirm that troll ey's inaccu rate automatic counter, It wou ld have been far preferable to have received footage for two other trolleys. LSF Comments (All LSF Comments are in Blue Italics Font) LSF cloes not dispute tt,e OIG s ,epresentallons of the methodology employed in the analysts and agrees tllat ,t would have been far preferable to have received footage for two other trolleys OIG staff examined approximately 135 hours of video footage pertaining to 4,326 riders, representing 9.4% of the 46,238 riders for the designated week. The number of passengers entenng each trolley during the reviewed day was counted and recorded. The table below summanzes the identified variances between th e TSO Mobile Passenger Counter reports and the OIG video footage counts: LSF Comments (All LSF Comments are in Blue Italics Font) LSF c/oi:,s nor ci1spute the 0/G -rep," entauons ot the rnethodoloqy employed 11 , the analysis. Trolley Date Route • TSO Mobile Report Video Count Va ria nce Variance% MB08 Th ursd ay, March 16, 2023 Sou t h Bea ch Loop B 297 661 364 122.6% M B08 Monday, March 13, 2023 Collins Express 301 703 402 133.6% MB08 Saturday, March 18, 2023 Co llins Express 373 637 264 70.8% M B13 Wednesd ay, March 15, 2023 Coll ins Exp ress 55 7 654 97 17.4% MBlS Thursd ay, March 16, 2023 North Beach 41 7 397 -20 -4 .8% M B18 Sunday, M arch 19, 20 23 Collins Express 659 736 77 11.7% I MB28 Thursday, March 16, 2023 South Bea ch Loop B 790 37 8 -412 -52.2% 11 12 MB30 Wednesday, March 15, 2023 South Beach Loop B 447 420 -27 -6.0% MB31 Fri day, March 17, 2023 South Beach Loop A 373 297 -76 -20.4% Trolleys may cover more than one route each day. LSF Comments (All LSF Comments are in Blue Italics Font) LSF does not cl1spute Ille DIG s 1eprese11tat1ons contamed ,n the Cl1ar1 prepared 111 connection with the OIG Draft Inspection Report The widespread positive and negative variances between the TSO Mobile reports and the OIG performed video counts ra ise concerns about the accuracy of the ri der counting process. Each variance exceeded the threshold deviation listed in Exhibit 8 of the TSO Mobile Contract, some significantly. LSF Comments (All LSF Comments are in Blue Italics Font) LS~ gene,ally oncurs with this paragraph. but agam notes for the public record that there was no evidence of over-reponmg of ndersh,p figures -which ,s the pnmar y slated reason for the O/G s l11spect1011 Repor LSF th I efore respectful/ requests that the OIG modify this paragraph in the Draft O/G Report as follows The widespread positive and negative variances he/ween the TSO Mobile reports and the OIG performed video counts raise ~oncerns about the accurac,y of the nder countmg process Each vanance exceeded the threshold dev,at,on fisted m Exh1b1t §_ of tile rso Mon1re Contract some s1gnd1cantf_y '>However the review did not support a finding that LSF was over-reporting the number of passengers< rPt, c1"P nrirc l/1c11 fo: ,-,, cwar.y L F s ugc,os1w11s (!,at ,H,. 111c1<c•p t/-Jrr,u<1t1 iJlt) 1ec.rJmrnenrlc I 1.-he le/P./1-11I fr, ,r, tnP. 1.J/G [Jr,iff Report. •mrl thosf:: rhw <11 >>double arrowed and bold are suqgestecl 1\ SF rri bP if/t>d, 11 the O/G Ftniil Repr,,r J Also concerning is that Trolleys MB28, MB30, and MB31 were equipped with overhead people sensor APCs· , which Transportation and Mobility Department staff expected to produce more accurate results. The use of the overhead people sensor APCs was presented to the OIG as a newer and better technology tha n the one used on the other trolleys. As reported in the ta ble above, the associated variances, ranging from -6 .0% to -52 .2%, failed to support this assertion. Consequently, the OlG recommends that the installation of new overhead people sen sor APCs for more trolleys be suspended until the reasons for these deficient counts can be determined and corrected. If not possible other more effective cou nting methods should be re searched and utilized prospectively. LSF Comments (All LSF Comments are m Blue Italics Font) LSF concurs wrlh this paragraph and aga,n adds that LSF has commumcated to the O/G and City staff that there 1s new and !Jetter passenger counter eqwpment and video technology available and LSF ,s w1lf111g to test these new sofu/1ons https.//people sen~ing ~0111/s1tes/default/files/counrer datasheet apc-eco engl pdf 4 12 13 Although the objective of the performed analysis was to assess the reliability of the APCs, the outcome of which suggests malfunctions leading to inaccurate reporting of ridership figures, the OIG was also concerned with the inability of TA to provide all requested footage and the occasional submittal of substitute unrequested footage. For exam ple, video footage for an additional eight trolleys was requested from TA representatives on April 18, 2023, pertaining to dates ranging from April 10, 2023 through April 16. 2023, well within the 14 days designated by TA. On April 27. 2023, the OIG received an email from TA stating that three of the eight requested videos were obtained, three were unavailable, and they were in the process of obtaining the remaining two. LSF Comments {All LSF Comments are in Blue Italics Font) As noted 111 response to other para9raphs by the O/G d1scussmg the unavaJ/ab1l1ty of some video ootage LSF again apolog,zes for any delay ,n the delivery of requested information/data As stated in the various email exchanges, LSF generally responded to communicafions by the DIG either on the ame date or wlfhm a reasonable periocl Regrettably the process of obtammg the vrdeo footage was delayed either for ope1at1onal reasons or due to faulty eqwpment As LSF also noce :J dunng the V11 tual Meeting with the OIG and City staff LSF provided the video footage thal was available and101 operable as soon as taff was able to rerneve it LSF and TSO have comm11nica1ed ro the Cit} t11at the v,cleo eqwpment rs dated and should /Je replaced As also discussed the ,s 1ew and better passenger counttt eqwpment and video technology available and LSF 1s w1/fmq to test these new solur,ons. The OIG was also informed th at trolley drivers perform da ily manual ridership counts, which are compared with TSO Mobile counts , and used when the APC counts are not available. As a result, the OIG emailed TA representatives on April 27, 2023, requesting th e March and April 2023 manual ridership counts, but no response was received. LSF Comments (All LSF Comments are m Blue Italics Font) LSF rncorporates and re-states ,ts Comments ,n response to the pnor paragraph m the Dratt O/G Report to t/11s paraqraph as well In the interim, the OIG requested and received an Excel spreadsheet from the Transportation and Mobility Department. which was previously provided to the City by the contractor, con ta ining the APC counts and the manual ridership counts for trolleys operating in Miami Beach during March 2023. Consequently, the requested April 2023 video fo otage and the March through April 2023 daily manual ridership counts were no longer pursued from TA. LSF Comments {All LSF Comments are in Blue Italics Font) LSF mcorporates and re-states ,ts Comments m response lo (he prior paragraph in the Draft OIG Report to tt11s paragraph as well The OIG compared the reported APC counts to the manual counts to determ ine whether each figure would be within +/-1 of the other 95 times out of 100 (95% confidence level), as claimed in Exhibit B of the TSO Mobile contract. The OIG Auditors' examination of the provided March 2023 Excel spreadsheet found that the APCs for 202 of the 723 line items were blank (27.9%), containing no count whatsoever. This analysis suggests that APCs installed on any trolleys are not functioning and need repair. 13 14 LSF Comments (All LSF Comments are in Blue Italics Font) LSF ct es 1101 ci,sµute tl1e O/G s ,ep,esenta/1011s relative ro the rnetl?odology u/1/rze<I m the analysis LSF .:ind TSO Inv" commumcated to rhe City that the video eqwpment 1s datecl. ancl should Lie replaced As also cliscussed. there is new and better passenger counter eqwpment and video tec/Jnology ava1iable . and LSF 1s willing to test these new solutions The trolleys equipped with the overhead people sensor APCs contained cameras which provide a continuous view of the trolley drivers. The OIG fo und the reliance on manual counts questionable, as none of the three sampled tro lleys equipped with overhead people sensor APCs, showed the dnver recording ridership counts during the days examined. Although th is ,s not conclusive evidence that manual coun ts were not recorded by the troll ey drivers, it does raise questions as to the origin and accuracy of the manual count, especially given the high umber of blanks m the APC cou nts. LSF Comments (All LSF Comments are in Blue Italics Font) LSF generally concw with this parag, aph. and aga111 adds that LSF has commumcated to the OIG and City staffthat there is new and better passenger councer eqwpment and video technology available and L SF 1s w1ll111g to test these new solutions After eliminating the 202 blanks from analysis, the OIG compared the remaining 52 1 reported APC counts with the corresponding manual counts. It was determined that only 5 of the 521 line items compared in the Excel spreadsheet (0 .96%} were within th e +/-1 benchmark stated in Exhibit B of the Agreement. The 0.96% correspondence between the APC and manual counts Is far less than the stated 95% confidence level listed in the Agreement, fu rther supporting the OIG's conclusion that reported ridership counts are unreliable. LSF Comments (All LSF Comments are in Blue Italics Font) LSF c!oes not cl1spute tt1e OIG s rep1esentatw11s relative to the meihodofogy utl/1zed 111 tile analysis and adds that while the resu/1s of the mspect1ons were unreliable the ridership figures were underreported LSF and TSO have commurncated to the City that the passenger counter and video equipment 1s oucdated and should be replaced As also discussed. there is new and better 11assenge1 counte1 eqwpment and video technology available. and LSF is willing to test thes ne solutions The OIG also compared its video counts from the sampl ed tro lleys, each for one day's operation during the week of March 13 through March 19, 2023, with the man ual cou nts prepared by the trolley drivers (see the table below). In doing so, it was determined that the manual counts were similarly unreliable. It is worth noting th at four of the nine sampled trolley days resulted in the manual counts being lower than th e OIG video co unts (trolley MB08 on March 16, MB18 on March 19, MB28 on March 16 , and MB30 on March 15 . LSF Comments (All LSF Comments are in Blue Italics Font) LSF incorporates and re-states ,ts Comments m ,esponse to the pno, paragraph m the Draft OIG Repo,1 to this paragraph as well 14 15 Trolley Date Route • Drivers Manual Counts OIG Video Cou nt Variance Variance % MB08 Thursday, M arch 16, 2023 South Beach Loop B 604 661 -57 -~4% I MB08 M onday, March 13, 2023 ! Collins Express 75 8 703 55 7.3% 1MB08 Saturday, March 18, 2023 Colli ns Express 768 637 131 17.1% I MB13 Wednesd ay, March 15, 2023 Col lins Express 985 654 331 33.6% M BlS Thursday, March 16, 2023 North Beach 466 397 69 14.8% M B18 Su nday, March 19, 2023 Collins Express 700 736 -36 -5.1% I MB28 Thursday, March 16, 2023 South Beach Loop B 364 378 -14 -3.8% I M B30 Wedn esday, March 15, 2023 Sou th Beach Loop B 318 420 102 -32.1% MB31 Friday, March 17, 2023 South Beach Loop A 380 297 83 21.8% LSF Comments (All LSF Comments are in Blue Italics Font) L F doe not disf}ufe flu, O/G ~ rerresentat,011s of tile Chat1 prepared ,n connection with the analysis The analysis performed in this report indicates that the City incorrectl y relied on the ridership figures submitted by TA in March 2023. The documentation provided showed widespread differences between the manual and APC counts, contrary to Exhibit B of the Agreement, and both differed from the corresponding OIG video coun ts performed on ni ne sampled trolley days. The OIG is also concerned that the City may have based some decisions on these inaccurate ridership figures, which may al so have been reported to oth er governmental agencies. Going forward, the Transportation and Mobility Department should periodically conduct its own sample ridership inspections with any deficiencies exceeding a designated percentage promptly addressed with the contractor until being resolved. LSF Comments (All LSF Comments are in Blue Italics Font) LSF cannot opme on whethe1 the City incorrectly relied on 11dersh1p data submitted by LSF m Maren of 2023 As noted previously the unrel1abil1ty of some data 1s generally IJased on outdated enwpmenr and technology In this regarcl LSF has communicated to the O/G and City staff that tt1ere is new and bette, passenger counter equ1pmen1 and video technology available and LSF 1s w,llmg to test these new solut,ons. LSF w1her obse1 ve Thar the Agreement between the City does not prescnbe any method for the collect1on ot r 1anual nde1sh1p counts LSF further subm1ls lhat manual co(lnts provided by LSF dnver s cJur,ng the designated obse, vat1on period were approximately 9 4% which is consistent with 111dustry standa, ds and entirely reasonable given lhe other important duties assigned to trolley drivers In trus regard LSF ,e,teraces its conce, n with the suggestion that the Clly vomm1s ,on ma hcive haserl ome decisions n macr-urate rrclersl11p figures " Whtie not cleai/y rated tl1e O/G suggests that the C,ty Comm1ss1on may have allocated rm/lions of ta dollars co funcl <1 program with tnflatecl ridership r,gwes This ,s 1ust not accurate as the OIG lnspecr,on revealed that uder sf11p figures clunng the cfes1gnated obse,vat1on penod were unae, reported not tnflatecl In addition as noted above. ndership figures have not featured prommently 111 the C,tv clec,s,ons 1eqard1ng trolley service hows and payments to LSF. 4, to t/7P, 0/G, 1.on"'"'11s orll1e City tv:1s111g some Jec1c::1ons on lfWccurate nrlersl11p figures agam C!I , staff conf,rmect du1111g the Virrual Meelmg with tl1e OIG ancl LSF that the number of vehicles 15 16 used lot routes and tne number of service hours requested 1s not based whatsoever on r, le1sh1p figures Rather C,ty staff has srated that the number of trolleys determmed for service by the City 1s based on establrshecl heaaways and ro m1mmize bunchrng Thus the nurnber of trolleys ana service hours are not dependent on the number of passengers using the service LSF thererore r"'spectful/y reqCJests that the OIG make the following mod1f1cat1ons to this para<.,raph m the OIG Draft Repo1t as follows The analysis-performed in this report md1Gates Jhat t/:1~ Glly 1ncerr-eGtly--Felie<J-on lhe n,:iBfsh-~ik,1fTes wm-Ril-te!l-by--:fAm Mar~R 2-00-3-. The documentation provided showed w1clespread d1fferences between the manual and APC counts contrary to E. h1b1t B of the Agreement. and both differed from the correspondmg O/G video ;;aunts pe110rmed on n,ne sampled trolley days T-he OIG is a/sG-GGRGemea-that the -G+iy-Ri-a.,· ha~,e based -!:iOllW ctec1sm11s on these inaccurate ndershtp figures. w111Gh may also -hav heen 1'-&f30'1fW le otl~ EWeHRmfmlal e-AGleS:-Gomg forward the Transportation ,ind Mobility Department hou/d period1cally conduct ,t own sample ndersl11p mspect,ons with any deflc1enc1es exceeding a designated percentage promptly add,essed with the contractor until resolved IPlr ;i nut 111•,11, , u c,ir,11 ~ L F "suyuc<111 ,n 1/1,11 ,11 .. /f1Ck£'" //11nu1111 me ,ec ,mmoncle<I lone ,1011.d t, ,m till' OIG .'}al/ KL'on,I .1111, 'nose tha! ,110 • double arrowed and bold < are suaqcs/ed Lw L F 1 111. a(l<t,1 1 1110 //, , 1G F,nal Re1)t111 1 Joseph M. Centorino, Inspector General Date Mark D. Coolidge, Chief Auditor Date cc: Alina T Hudak, City Manager Rickelle Williams, Assistant City Manager Jose R. Gonzalez, Transportation Department Director Appendix A LEGEND - 16                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Alonso, Elisa From: Wendy Diaz <wdiaz@tsomobile.com> Sent: Tuesday, July 11, 2023 2:50 PM To: Centorino, Joseph Cc: Dan Ocampo; Mark Gilmore; Rick Dunn (GPST) Subject: Re: TSO Mobile Comment [ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL ‐USE CAUTION WHEN REPLYING AND OPENING LINKS OR ATTACHMENTS ] Joseph, I wanted to give you some comments on the current Audit for the City of Miami Beach. I wanted to make sure that it was understood that our hardware's performance is at times affected by issues the Trolley's may have. As an example our APC system requires an event of Door Open and Close so that we know they were passengers picked up. If the system does not receive the door open and close it will ignore the count that was just done. There are quite a few of the Trolleys that currently have the door mechanisms not working properly, thus the APC is not working properly. TSO is responsible to provide the service to visualize the results of the data obtained by the equipment, process any hardware failure/replacement when hardware is still under warranty (12 months) or offer an upgrade to the latest technology, in order to resolve issues and/or improve results. Any issues caused by tampering are not covered under warranty and it is the responsibility of LSF to maintain that portion (mechanic and working of the Trolleys). We have on many occasions helped LSF with these issues, because we value the City and we are all working together. TSO provides the hardware and installation of the same. I do know that the City has trolleys still running the older technology for the Passenger Counters. The city has purchased some replacements that will be the newest technology and should be installed soon. We will install them in Trolley MB05 and MB07. Once they are installed you can re audit these for accuracy and notice the difference. Thank you for your time. Best Regards, Wendy Diaz TSO Mobile | a GPS Trackit company Sr. Technical Support Manager wdiaz@tsomobile.com | 1‐877‐477‐2922 Ext. 1109 1 Transportation Department Response In Red Line To Draft Report Honorable Mayor and Members of the City Commission Joseph M. Centorino, Inspector General June 2, 2023 DRAFT Trolley Ridership Inspection OIG No. 23-XX October 1st, 2021 -March 31st, 2023 EXECUTIVE SUMMARY This inspection was planned and carried out by the City of Miami Beach Office of the Inspector General (OIG) at the request of Miami Beach Commissioner Ricky Arriola, who expressed concerns regarding the accuracy of the ridership figures for the City’s free trolley service. Those figures, presented to the Finance and Economic Resiliency Committee (FERC), had been based on an analysis of both manual (i.e. driver) counts and the Automatic Passenger Counters (APCs) installed in the trolleys and relied upon by the City Transportation and Mobility Department in connection with the 2019 Miami Beach Trolley Passenger Survey data performed by Marlin Engineering, Inc. The City trolley contractor, Limousines of South Florida, Inc. (LSF), is responsible for operating the trolley system, and its subcontractor, TSO Mobile by Tracking Solutions Corp. (TSO Mobile), is the independent party that installs and maintains the APCs. In addition, the City Transportation and Mobility Department is responsible for monitoring and determining compliance with the executed Agreement and its Amendments with LSF. OIG staff researched methodologies to test the reliability of those figures and performed an Commented [WR1]: To OIG: Should reference date when figures were presented to the FERC Commented [WR2]: Which figures? independent inspection to assess the accuracy of the reported ridership data through visual examination of the limited available footage provided from video cameras installed in the trolleys. The ridership counts derived from the video footage inspection by OIG staff were then compared with the reported number of passengers from the APCs and the manual counts prepared by the trolley drivers. The inspection concluded that the data generated by the APCs installed in City trolleys and the manual counts prepared by the trolley drivers are unreliable indicators of the actual ridership for the trolley system, based on the sampled trolleys examined during March 2023. Based on the OIG’s inspection of the limited video footage available, the APCs appear to be under-reporting actual ridership figures while the driver counts appear to be over-reporting actual ridership figures. Page 1 of 8 Draft Report Trolley Ridership Inspection June 2, 2023 The OIG did not receive from the contractor, despite multiple requests, all requested video footage or daily manual ridership counts prepared by trolley drivers. On some occasions, substitute video footage of other non-requested trolleys was received instead of the requested footage. The contractor’s failure to provide all the requested video footage created a scope limitation which raises concerns as to the underlying reasons why it was not furnished to the OIG and what other deficiencies may exist. However, the Transportation and Mobility Department provided an Excel spreadsheet, prepared by the contractorTSO Mobile, containing March 2023 manual counts and APC counts to the OIG. INTRODUCTION On May 8, 2014, the City of Miami Beach entered into an Agreement with LSF for turnkey operation and maintenance services of a Municipal Trolley System in the City of Miami Beach. According to City Resolution No. 2014-28708, the Agreement provided an option to procure additional equipment, including, without limitation, Global Positioning Systems with capabilities to report, Automatic Passenger Counters, Wi-Fi services, and Automated Voice Information Systems. Pursuant to Article 3, Section 1 of the agreement, the City Administration recommended that the City secure the optional equipment through LSF, for a sum not to exceed $150,000, during the initial five-year term of the Agreement, which the Mayor and City Commission approved and authorized through Amendment No. 1. Amendment No. 1 to the Agreement, approved on September 30, 2014, authorized the execution of a subcontract between LSF and TSO Mobile to provide a full turnkey Trolley Service, to include equipping the trolleys with the following optional equipment: Automatic Passenger Counters (APC), Automated Voice Information System, Wi-Fi services, real-time GPS tracking services (with capabilities to provide mileage, service hours and ridership reports, and capabilities to provide data in a format that is compatible with Miami-Dade County’s mobile application, “Miami Dade Bus Tracker”) and additional automated stop announcement equipment, with the capability of displaying public advertisements. The OIG recommends that in the future the City enter into a contract directly with the subcontractor to enable direct access to the technology provider. to help avoid the perception or the possibility that LSF may exert undue influence on its subcontractor to enhance its ridership figures and/or performance image. Exhibit B of the TSO Mobile Contract states, “The accuracy of our Automatic Passenger Counting Systems is considered to exceed that of a single checker on board a bus and comparable to that obtained by two checkers, one stationed at each door. APC users in the transit systems that have utilized our APC system consistently express satisfaction with the accuracy of our APC system. In the following, the overall concurrence value represents the total number of boardings and Page 2 of 8 Draft Report Trolley Ridership Inspection June 2, 2023 alightings1 counted by the APC system compared to the total number of boardings and alightings counted by experienced manual checkers. The Manual-APC Deviation Range +/-1 represents the percentage of time the manual and APC observations were within one (1) of each other. Implementation of our APC system will result in APC Passenger Count Accuracy levels exceeding 95% concurrence with manual observations.” In other words, if the APC system report indicates 150 passengers rode a given trolley during the day, the manual counts will range between 149 and 151, most of the time (95%). Furthermore, both the manual counts and the APC system report counts should be consistently within the same +/-1 deviation range with the video footage counts performed by OIG staff. Miami Beach trolley service was suspended on March 26, 2020, following the outbreak of the COVID-19 pandemic, and eventually resumed at a reduced service level on February 15, 2021. Therefore, pre-pandemic analysis from LSF involved all trolley operations prior to March 26, 2020, and post-pandemic represented all trolley operations after February 14, 2021. It is worth noting that the City does not directly base its payments to LSF on ridership but rather on scheduled service hours and established hourly operating rates as stipulated in Amendment 11 to the Agreement. Scheduled service hours are defined as the requested number of hours by the City for services available to the public for transport along designated routes. Furthermore, fFleet size for the trolley system is based on desired frequency of service and service areacoverage, and not on ridership. The service hours exclude deadhead hours2, interruptions in service, and idle times exceeding 15 minutes. The free Miami Beach trolley covers the following routes: South Beach Loop A and B, Middle Beach Loop, Collins Express, and North Beach Loop (see Appendix A located at the end of this report). Among other benefits, Aaccurate ridership figures are important to help the City Administration to determine the following: • the number of trolleys that should be operating daily; • identification of the busiest and least busy routes through which decisions could be made to add or reduce the number of trolleys or the hours of operation; ; • whether program costs may be offset by grant funding based on the achievement of specific ridership targets; and • assessment of the trolley program's overall effectiveness. and its appropriate funding level. The first two listed above could impact scheduled service hours, and, therefore, payments due by the City to LSF. Ridership figures are not used to determine the number of trolleys that should be operating, hours of operation, grant eligibility, or the appropriate funding level for the program. WORK PERFORMED 1 Alighting means to get out a vehicle, especially a train or a bus, according to the Cambridge English Dictionary. 2 Deadhead hours refers to the measurement of time (in hours) when a vehicle travels from its garage or yard facility to the first scheduled pick-up point or any time the vehicle travels from the last scheduled drop-off point to its garage or yard facility. Page 3 of 8 Draft Report Trolley Ridership Inspection June 2, 2023 TEST 1 During the July 22, 2022 FERC meeting, the City Transportation and Mobility Department presented post-pandemic trolley service metrics. The following presentation extract indicated that daily ridership had decreased by 56% from approximately 14,400 pre-pandemic daily riders to 6,300. Some ridership declines can likely be attributed to the changes in trolley operating hours and frequency. Prior to the pandemic, trolley service was available 18 hours a day, operating from 6 a.m. to 12 a.m., with 25 vehicles servicing the public at an average interval of 15 minutes. Following the pandemic, trolley service was reduced to 15 hours a day, operating from 8 a.m. to 11 p.m., with 2115 vehicles servicing the public at an average interval of 230 minutes, which is the current service level. TSO Mobile representatives informed OIG staff that its automatic counter system produces ridership reports that can be accessed through its http://app.tsomobile.com website. OIG staff accessed the corresponding Passenger Counter reports from October 1st, 2021, through March 31st, 2023, to compute the average daily and monthly ridership. The results indicated an average of 5,205 daily riders from October 1st, 2021, through September 30th, 2022, and 6,232 daily riders from October 1st, 2022 through March 31st, 2023. Upon comparing the limited internal TSO Mobile data provided to the OIG to the figures in the post-pandemic analysis presented by the City Transportation and Mobility Department to the FERC covering a broader period, the OIG found those figures to be consistent. As the trolley ridership data before July 1, 2021, was not available, it was not examined by the OIG, so its accuracy could not be determined. TEST 2 OIG staff initially sought to determine the accuracy of the 14,400 daily ridership figures reported in the 2019 Passenger Survey conducted by Marlin Engineering Inc. However, TSO Mobile representatives informed the OIG that the 2019 trolley reports and related video footage were unavailable, and, therefore, the accuracy of the related reported ridership could not be verified. Page 4 of 8 Draft Report Trolley Ridership Inspection June 2, 2023 Given this limitation, OIG staff had to find an alternative method to assess the accuracy of reported ridership data and to test the reliability of the passenger counting system. In response to initial inquiries made by OIG staff, representatives from Transportation America Inc. (TA), the parent company of LSF, stated that each trolley is outfitted with four interior cameras. The related video footage is stored on a hard drive within the camera system. Customers can only enter or exit the trolley through its one door, and the cameras record all its activities. In emails to the OIG, TA representatives stated that the video recordings would be stored for approximately thirty days, thereby limiting the OIG’s analysis to 2023 data. However, after requesting video footage related to the operation of nine trolleys, each operating during a single day within the prior thirty-day period, TA representatives indicated that video footage was only available for up to two weeks. Consequently, OIG staff accessed the daily Passenger Counter reports from March 13 through March 19, 2023, within the designated two-week period, and similarly requested video footage of one day’s activities for ten trolleys operating during the same week. The selected sample was stratified to focus primarily on trolleys with higher reported ridership and to avoid those out of service during the designated week. After encountering unexpected difficulties obtaining the requested video footage, TA representatives provided OIG staff with USB flash drives containing most of the recordings. It is important to note that one trolley’s video footage was unavailable, and substitute video footage was received for two other trolleys, which resulted in footage for three different days related to a single trolley, MB08, i.e., the footage provided for three out of the nine trolley days examined included the same trolley. The OIG utilized all of this footage but must note that, while the repeated use of footage for one trolley helped to confirm that trolley’s inaccurate automatic counter, it would have been far preferable to have received footage for two other trolleys. OIG staff examined approximately 135 hours of video footage pertaining to 4,326 riders, representing 9.4% of the 46,238 riders for the designated week. The number of passengers entering each trolley during the reviewed day was counted and recorded. The table below summarizes the identified variances between the TSO Mobile Passenger Counter reports and the OIG video footage counts: Trolley Date Route * TSO Mobile Report Video Count Variance Variance % MB08 Thursday, March 16, 2023 South Beach Loop B 297 661 364 122.6% MB08 Monday, March 13, 2023 Collins Express 301 703 402 133.6% MB08 Saturday, March 18, 2023 Collins Express 373 637 264 70.8% MB13 Wednesday, March 15, 2023 Collins Express 557 654 97 17.4% MB15 Thursday, March 16, 2023 North Beach 417 397 -20 -4.8% MB18 Sunday, March 19, 2023 Collins Express 659 736 77 11.7% MB28 Thursday, March 16, 2023 South Beach Loop B 790 378 -412 -52.2% MB30 Wednesday, March 15, 2023 South Beach Loop B 447 420 -27 -6.0% MB31 Friday, March 17, 2023 South Beach Loop A Total: 373 4,214 297 4,883 -76 -669 -20.4% -15.8% Formatted Table Page 5 of 8 Draft Report Trolley Ridership Inspection June 2, 2023 * Trolleys may cover more than one route each day. The widespread positive and negative variances between the TSO Mobile reports and the OIG performed video counts raise concerns about the accuracy of the rider counting process. Each variance exceeded the threshold deviation listed in Exhibit B of the TSO Mobile Contract, some significantly. However, it is important to note that the OIG’s limited review did not support a finding that APCs wereas over-reporting the number of passengers as the APCs appear to be under- reporting the number of passengers based on the video footage available. In addition,Also concerning is that Trolleys MB28, MB30, and MB31 were equipped with overhead people sensor APCs3., which Transportation and Mobility Department staff expected to produce more accurate results. The use of the overhead people sensor APCs which was presented to the OIG as a newer and better technology than the one used on the other trolleys. As reported in the table above, the associated variances, ranging from -6.0% to -52.2%, failed to support that the newer technology is more accurate than the older technologythis assertion. Consequently, the OIG recommends that the installation of new overhead people sensor APCs for more trolleys be suspended until the reasons for these deficient counts can be determined and corrected. If not possible, other more effective counting methods should be researched and utilized prospectively. Although the objective of the performed analysis was to assess the reliability of the APCs, the outcome of which suggests malfunctions leading to inaccurate reporting of ridership figures, the OIG was also concerned with the inability of TA to provide all requested footage and the occasional submittal of substitute unrequested footage. For example, video footage for an additional eight trolleys was requested from TA representatives on April 18, 2023, pertaining to dates ranging from April 10, 2023 through April 16, 2023, well within the 14 days designated by TA. On April 27, 2023, the OIG received an email from TA stating that three of the eight requested videos were obtained, three were unavailable, and they were in the process of obtaining the remaining two. The OIG was also informed that trolley drivers perform daily manual ridership counts, which are compared with TSO Mobile counts, and used when the APC counts are not available. As a result, the OIG emailed TA representatives on April 27, 2023, requesting the March and April 2023 manual ridership counts, but no response was received. In the interim, the OIG requested and received an Excel spreadsheet from the Transportation and Mobility Department, which was previously provided to the City by the contractor, containing the APC counts and the manual ridership counts for trolleys operating in Miami Beach during March 2023. Consequently, the requested April 2023 video footage and the March through April 2023 daily manual ridership counts were no longer pursued from TA. The OIG compared the reported APC counts to the manual counts to determine whether each figure would be within +/-1 of the other 95 times out of 100 (95% confidence level), as claimed in Exhibit B of the TSO Mobile contract. The OIG Auditors’ examination of the provided March 2023 Excel spreadsheet found that the APCs for 202 of the 723 line items were blank (27.9%), containing no count whatsoever. This analysis suggests that APCs installed on many trolleys are not functioning and need repair. When TSO identifies that APC devices are not functioning correctly and in need of repair, TSO uses drivers’ manual counts for those days until the devices are recalibrated and repaired. https://people-sensing.com/sites/default/files/counter_datasheet_apc-eco_engl.pdf Page 6 of 8 3 Draft Report Trolley Ridership Inspection June 2, 2023 The trolleys equipped with the overhead people sensor APCs contained cameras which provide a continuous view of the trolley drivers. The OIG found the reliance on manual counts questionable., as none of the three sampled trolleys equipped with overhead people sensor APCs, showed the driver recording ridership counts during the days examined. Note that the Agreement does not prescribe the manner by which driver manual counts must be completed. Although this is not conclusive evidence that manual counts were not recorded by the trolley drivers, it does raise questions as to the origin and accuracy of the manual count., especially given the high number of blanks in the APC counts. Commented [GJR3]: Not relevant. Accuracy of drivers’ counts are irrespective of APC counts. After eliminating the 202 blanks from analysis, the OIG compared the remaining 521 reported APC counts with the corresponding manual counts. It was determined that only 5 of the 521 line items compared in the Excel spreadsheet (0.96%) were within the +/-1 benchmark. stated in Exhibit B of the Agreement. The 0.96% correspondence between the APC and manual counts is far less than the stated 95% confidence level listed in the Agreement, further supporting the OIG’s conclusion that reported ridership counts are unreliable. The OIG also compared its video counts from the sampled trolleys, each for one day’s operation during the week of March 13 through March 19, 2023, with the manual counts prepared by the trolley drivers (see the table below). In doing so, it was determined that the manual counts were similarly unreliable. It is worth noting that four of the nine sampled trolley days resulted in the manual counts being lower than the OIG video counts (trolley MB08 on March 16, MB18 on March 19, MB28 on March 16, and MB30 on March 15). Commented [GJR4]: Not sure as to the relevance of this paragraph or what it is trying to convey as Exhibit B does not call for APC counts to be compared to driver counts. Trolley Date Route * Drivers Manual Counts OIG Video Count Variance Variance % MB08 Thursday, March 16, 2023 South Beach Loop B 604 661 -57 -9.4% MB08 Monday, March 13, 2023 Collins Express 758 703 55 7.3% MB08 Saturday, March 18, 2023 Collins Express 768 637 131 17.1% MB13 Wednesday, March 15, 2023 Collins Express 985 654 331 33.6% MB15 Thursday, March 16, 2023 North Beach 466 397 69 14.8% MB18 Sunday, March 19, 2023 Collins Express 700 736 -36 -5.1% MB28 Thursday, March 16, 2023 South Beach Loop B 364 378 -14 -3.8% MB30 Wednesday, March 15, 2023 South Beach Loop B 318 420 -102 -32.1% MB31 Friday, March 17, 2023 South Beach Loop A 380 297 83 21.8% Total: 5,343 4,883 460 8.61% Formatted Table Commented [GJR5]: However, TSO’s monthly exercise of blending both data sources ultimately yields more accurate ridership figures as shown by the results of the two independent OIG tests. The analysis performed in this report indicates that the City incorrectly relied on the ridership figures submitted by TA in March 2023. The documentation provided showed widespread differences between the manual and APC counts, contrary to Exhibit B of the Agreement, and both differed from the corresponding OIG video counts performed on nine sampled trolley days. The OIG is also concerned that the City may have based some decisions on these inaccurate ridership figures, which may also have been reported to other governmental agencies. Going Commented [GJR6]: As noted previously, the trolley service level since inception has been based on initial policy decisions regarding desired frequency of service, service area (i.e. routes), and hours of operation, not on ridership. Ridership has not been a criteria in current or prior service levels nor a factor in terms of payments to LSF. Payments are based solely on number of service hours and contractually established hourly operating rates minus any performance penalties including service interruptions and on-time performance penalties. forward, the Transportation and Mobility Department should periodically conduct its own sample ridership inspections with any deficiencies exceeding a designated percentage promptly addressed with the contractor until being resolved. Page 7 of 8 Page 8 of 8 ___________________________ ___ ________ ___________________________________ ________ Draft Report Trolley Ridership Inspection June 2, 2023 Joseph M. Centorino, Inspector General Date Mark D. Coolidge, Chief Auditor Date cc: Alina T. Hudak, City Manager Rickelle Williams, Assistant City Manager Jose R. Gonzalez, Transportation Department Director Appendix A