DOE/CS-0031
V
A
N
P
O
o
I
N
G An Update
May 1978
Prepared By
U.S. Environmental Protection Agency
and
U.S. Department of Energy
Assistant Secretary for
Conservation and Solar Applications
Transportation Programs Office
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DOE/CS-0031
UC-96
V
A
N
P
O
o
I
N
G An Update
May 1978
Prepared By
Robert Gray
U..S. Environmental Protection Agency
and
Lew Pratsch
Ruby Starling
U.S. Department of Energy
Assistant Secretary for Conservation
and Solar Applications
Transportation Programs Office
Washington, DC 20461
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
Stock No. 061-000-00084-4
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NOTICE
This report was prepared as an account of work sponsored by the
United States Government. Neither the United States nor the United
States Department of Energy, nor any of their employees, makes any
warranty, express or implied, or assumes any legal liability or
responsibility for the accuracy, completeness, or usefulness of any
information, apparatus, product, or process disclosed, or represents
that its use would not infringe privately owned rights. Reference
herein to any specific commercial product, process, or service by
trade name, mark, manufacturer, or otherwise, does not necessarily
constitute or imply its endorsement, recommendation, or favoring by
the United States Government or any agency thereof. The views and
opinions of authors expressed herein do not necessarily state or
reflect those of the United States Government or any agency thereof.
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ACKNOWLEDGMENTS
This report represents an update of the publication, Vanpoollng;
A Summary and Description of Existing Vanpool Programs, January 1976,
by Mr. Ira Forstater and Mr. Ed Twomey of the Environmental Protection
Agency.
We would like to thank the many individuals who provided information on
their vanpool programs. Due to space limitations, we are sorry that it
was not possible to include a summary on each vanpool program as in the
previous report. This was brought about by the substantial growth in
vanpool programs from 33 to over 120.
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TABLE OF CONTENTS
I. Preface 1
II. An Introduction to Vanpooling 3
III. State-by-State Sunumnary of Existing Vanpool Programs 12
- Name of Company
- Location
- Date Started
- Current Number of Vans
IV. Vanpool Program Summaries 22
V. Vanpool Cost and Fare Calculation 66
VI. Bibliography of Vanpool Resource Materials 69
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PREFACE
In April 1973, the 3M Company of St. Paul, Minnesota initiated the
first employer sponsored commuter van program in the United States.
Since that time and often following 3M's example, over 100 employers
have sponsored vanpool programs. In addition, two other significant
types of vanpool programs are operating: the third-party approach,
where vans are provided and vanpools organized by other than the
employer or employee; and the individually owned and operated approach,
where a commuter provides the van and organizes the vanpool.
During this period, many excellent publications have been printed
dealing with the development, operation, programs, and benefits of
vanpooling. Yet, the rapid expansion of the van concept has left many
of the descriptions of specific programs outdated. It was with this
information gap in mind that the Office of Transportation Programs,
Department of Energy, and the Office of Transportation and Land Use
Policy of the Environmental Protection Agency decided to conduct a
survey of commuter van programs.
The Department of Energy is currently providing grant funds to states
to implement energy conservation plans under the provisions of Title III
of the Energy Policy and Conservation Act of 1975. In order to be
eligible for these funds, each plan must include five specific programs
activities, some of which relate to transportation. The promotion of
mass transit and ridesharing is one of the areas specified as a required
energy conservation measure. In addition, the Environmental Protection
Agency plans to develop model vanpooling regulations within the next
year to satisfy one of the requirements in the Clean Air Act Amendments
of 1977. Some areas already have vanpooling regulations in their State
Implementation Plans.
The purpose of this booklet is twofold: (1) to present in one source
the current data on a cross-section of vanpool programs; and (2) to
allow prospective vanpool sponsors to analyze and compare the various
approaches used by those programs already in operation. The key
characteristic of vanpool programs is that each is a unique adaptation
to a particular situation. A knowledge of these possible variations
should prove helpful to an employer planning to embark on a vanpool
project.
Above all, it is hoped that this publication will further the exchange
of information among vanpooling companies, prospective vanpooling
sponsors, and all levels of government that is so vital to the successful
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expansion of the commuter van concept. To that purpose, each summary
description of a program contains a contact name and phone number so
that interested persons can obtain more specific information. The best
advocates and sellers of the vanpool concept are frequently the very
persons who are actually running the programs. In most cases, these
people are more than willing to share their time and expertise with
interested individuals or corporations.
The material contained herein is the result of information gathered in
1975 and 1976, and updated in 1977. The rapid growth of vanpooling
renders a project such as this partly outdated almost as soon as it is
completed. However, this report can continue to serve prospective
vanpoolers as a source of information on programs already under way—
programs which will have answered many of the questions a prospective
vanpooler is likely to raise and which will have also solved many of
the problems that a perspective vanpooler is likely to encounter.
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INTRODUCTION
What is Vanpooling?
Vanpooling is a commuter transportation mode in which employees whose
residence are geographically clustered ride to and from their work
sites in a van—a van which is driven and maintained by one of the
employee passengers. A van can carry from 8 to 15 riders and the
average vanpool travels 50 miles to and from work each day, saving a
total of 5,000 gallons of gasoline each year per van.
Vanpools are organized on a permanent basis by major employers for
their employees, by third parties and by individuals on a cost-sharing
fare plan. Vanpools eliminate the costs to the community of providing
for paid drivers, purchasing expensive equipment, and maintaining
operations (which usually must be subsidized by taxpayers).
The primary advantage of vanpools over carpools is the added convenience
of relaxing while being "chauffeured" to and from work for approximately
$35 per month. A survey of vanpool users, half former carpoolers and
half former drivers traveling alone, found that 82 percent considered
vanpooling more convenient than their previous mode. As a transporta-
tion means, vanpooling comes very close to the commuter's dream of
personalized door-to-door transit at low cost.
Following is a cross-section of the three vanpool strategies found to
be the most effective:
A. Employer Sponsored Vanpools — Typically, the employer
purchases the vans, assists in the formation of the vanpools
and recovers vanpool capital and operating expenses through
rider fares of $25 to $45 per month. This approach is the most
widely practiced of the organized vanpool approaches and for a
large company is relatively easy to initiate. Insurance is often
readily available as companies usually include the vans under
their fleet policies.
1. The 3M Company in St. Paul, Minnesota, started a six van
pilot program in April 1973, before the oil embargo and now
has 108 vans in service. Increased vanpool and carpool
activity at the 3M Company headquarters has resulted in 1.6
percent fewer commuter vehicles arriving each day even
though employment increased 23 percent during the period.
2. The Tennessee Valley Authority (TVA) in Knoxville,
Tennessee, now has a total of 257 vanpools in operation in
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eight cities. At Knoxville (3,200 employees) employees
driving alone to work dropped from 65 percent to 18 percent
as a result of increased use of carpools, vanpools, and
buspools. At another site about one-half of the employees
are in vanpools. The TVA credit unions financed the vans
since Federal agencies are not yet allowed to acquire vans
for vanpools.
3. The Continental Oil Company (CONOCO) in Houston, Texas,
currently has a total of 91 vans operating in seven states.
When the vanpool program was launched in March 1975, in
Houston, 25 percent of the employees carpooled, but today
36 percent are carpooling and 16 percent are vanpooling.
4. The Prudential Insurance Company in Newark, New Jersey,
established a vanpool program to enable employees to
maintain their jobs when Prudential moved from the city to
a suburban location. By the end of 1977, over 108 vanpools
were operating at seven sites throughout the Nation.
B. Third-Party Sponsored Vanpools — Third-party operators, some
for profit and some for nonprofit, emerged in 1976. Developing
a third-party program is more difficult to establish than
employer-sponsored programs. This is due to regulatory
constraints on "third-party" entry into the transportation
market and the reluctance of insurance companies to insure
them. Third-party operations have emerged only in states which
have recently deregulated vanpools.
1. Commuter Computer Vanpool, Inc., in Los Angeles, California,
represents a unique combination of both the private and
public sectors. With management and marketing assistance
of the Atlantic Richfield Company (ARCO) and the financing
from Crocker National Bank, 85 vanpools were in operation
by the end of 1977. The number of vanpools is expected to
grow significantly in 1978.
2. Knoxville Commuter Pool, Knoxville, Tennessee, developed
a new approach—essentially that of a transportation broker
where the buyers and sellers of services regardless of mode
were brought together. The goal was to best serve the
consumers' needs and desires. With a well developed
marketing approach, all extra buses, both public and private,
are in use. In the past year, 50 multi-employer vanpools
have been formed. Many of the vans are being purchased by
the drivers who will continue to operate as owner/operator
vanpools.
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C. Individually Owned and Operated Vanpools — No attempt has been
made to determine the number of individually owned vanpools
throughout the Nation. However, indications are that they are
more numerous than all the vanpools in organized vanpool
programs. One in Washington, B.C. has been operating for over
10 years.
In many respects, they are easier to form than formally organized
vanpools. Insurance is available at the same rates as automo-
biles driven the same distance and number of days. They are
often viewed as a "big carpool" by the regulatory authorities.
Financing can be accomplished just like a new car. In fact,
the van is replacing the station wagon as a family vehicle.
The major disadvantages are that owner-operated vanpools have
difficulty establishing a rider base due to a lack of viable
matching services. Some regulatory commissions will not allow
the driver to make a profit, thus destroying the incentive of
some individuals to run a vanpool.
It On the Shirley Highway bus and carpool lanes, 1-395 in
suburban Washington, D.C-, a recent count identified 40
vanpools in one hour. It is estimated that there are over
100 individually owned and operated vanpools in this
metropolitan area.
2. At the Social Security Administration in Baltimore, a new
approach to assisting in the formation of individually
owned vanpools was begun in November 1976. By December
1977, 16 vanpools were operating, with 20 more pending.
3. At the military industrial complex in the Norfolk, Virginia
area and the Brown's Ferry Nuclear Power Plant in Alabama,
over 100 individually owned and operated vanpools are known
to be in operation.
Vanpools Complement Carpooling Activity
On the surface, it may seem that vanpooling is simply an alternative to
carpooling. In practice, however, it has been discovered that vanpools
not only supplement but also encourage the growth of carpools. For
example:
1. At the 3M Company in St. Paul, Minnesota, 1,000 (or 14.3
percent) of 7,000 employees were engaged in carpooling in 1970.
Today, 108 vans, including six privately owned, are in opera-
tion with over 1,000 participants, representing 10.5 percent of
the current labor force of 9,500. At the same time, employee
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participation in carpooling has doubled, and over 2,000 (or
more than 21 percent) of the employees are currently using
carpools. Thus ride-sharing has increased from 14.3 percent to
31.5 percent of 3M employees.
2. At CONOCO in Houston, Texas, about 25 percent of the 1,200
employees were carpooling in March 1973 when 10 vanpools were
initiated. Today, 44 vans are in operation, and 36 percent are
carpooling for a total of 52 percent ride-sharing.
3. Although precise figures for other companies are not available,
Cenex, General Mills, Aerospace, Hoffmann-LaRoche, and other
companies have found that vanpool programs have not diminished
the level or growth of their employees' carpooling activity.
Vanpools Impact on Public Transit
A common question about vanpools is, "Will vanpools draw commuters from
public transit?" The answer is generally, no. The average vanpool
trip is 25 miles one way and the average transit commuter travels 6
miles one way. In fact, the market best served by vanpools, essen-
tially the 27 percent of commuters traveling in excess of 10 miles to
work, consume 69 percent of commuter vehicle miles of travel. While
approximately 93 percent of the vanpools serve suburban or rural
employment locations, only 5 percent serve Central Business Districts
(CBD) locations. The remaining 2 percent of sponsors indicated both
CBD and suburban work locations.
Vanpool Growth
The number of vanpools have doubled in each of the last 4 years since
the 3M Company developed the concept; there are now over 150 sites
nationwide. The list includes companies like Corning Glass Works,
General Mills, Hoffmann-LaRoche, Chrysler, Montgomery Ward, Southern New
England Telephone, and Hewlett-Packard. These programs now have nearly
2,000 vans serving over 20,000 commuters. The energy savings is over
10 million gallons of gasoline per year. The reduction in air pollut-
ants is estimated at 4,000 tons each year. These figures do not
include the estimated 2,000-3,000 driver-owner-operated vanpools
believed to be in existence in the United States.
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VANPOOL GROWTH
Number of Number of Number of
Sponsors Sites Vanpools
April 1973 1 6
April 1974 15 125
April 1975 25 240
April 1976 56 643
April 1977 86 1,100
February 1978 122 163 1,986
How Do Vanpools Work?
While third-party vanpool programs vary considerably in their operation,
a typical employer-sponsored vanpool program works on the basis of the
following five major elements:
1. Preliminary Planning — Major planning steps include:
o dissemination of information on the benefits of vanpools
to employees,
o identification of employee resident location through
distribution of a simple questionnaire,
o analysis of the level of employee interest through a
simple survey, often taken at the same time residential
location information is obtained,
o establishment of the initial number of vanpools, for each
area, on the basis of available participants.
2. Development of Administrative Procedures and Details — At most
sites, vanpool related administrative and supervisory costs are
assumed by the employer. These are generally modest and, in
some cases, negligible. The employer's costs are compensated
for by the reduction in parking facilities required, reduction
of parking space maintenance costs, possible employer use of
vans during-working hours, reduction in employee absenteeism
and tardiness, greater employee loyalty, greater employee
accessibility to work sites resulting in improved labor supply,
greater productivity of vanpooling employees, and improved
public and community relations.
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A successful vanpool works on the basis of simple and minimal
administration and many of these responsibilities are delegated
to the vanpool driver/coordinator.
Administration of the program falls to people involved either in
transportation, personnel, or administrative services. The
legal, traffic, insurance, and pubic relations departments may
also be involved in initiating the program. The responsibil-
ities of the administrators include organizing resident clus-
ters, selecting driver/coordinators, holding pool formation
meetings, accounting, and, in some instances, collecting
fares.
3. Development of Operating Procedures and Details — The vanpool
driver/coordinator receives free commuter transportation,
personal use of the van during nonbusiness hours at a minimal
charge, all passenger fares above the break-even minimum, and
is responsible for the following operating procedures:
o obtaining special driver's license where necessary,
o training backup drivers and getting necessary licenses,
o maintaining minimum ridership (with the administrator's
help),
o- keeping records of van operations and log sheets of
riders for each day,
o servicing, maintaining, and cleaning the van as necessary,
and all pertinent accounting,
o collecting fares (where this function is delegated),
o getting group agreement on schedules and related
arrangements which are satisfactory for each vanpool.
4. Ordering of Vans — In a typical program, vans are purchased
or leased by the employer, and operated on a nonprofit self-
supporting basis. The employees who commute in the vans cover
the depreciation and operating costs by paying monthly fees.
The initial van purchase costs are assumed by the employer and
are recovered from passenger fares over a period of 4 years.
If the van is leased, monthly employee payments cover the
leasing charges.
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5. Plans for Expanding the Program — Some of the most successful
vanpooling companies have found that a realistic plan for
expansion is essential for the growth of the program. In the
absence of a growth plan, administrators tend to become satis-
fied with the fulfillment of the initial plan, and employee
interest tends to abate without sustained company promotion to
increase vanpool participation. When faced with the responsi-
bility to fulfill self-developed expansion targets, vanpool
administrators tend to be more innovative in developing ways
and means to sustain employee interest and develop demand for
vanpools. This approach is well founded, because the evidence
reveals that over 90 percent of all employees who have partici-
pated in vanpools intend to stay with them.
Employer/Employee Benefits in Vanpooling
Vanpooling offers substantial benefits to employers such as saving
investment funds in land and parking facilities; improving employee
relations by providing a service of great economic value; increasing
employee morale, punctuality and productivity; broadening the potential
employee market by making more remote areas accessible to the work
site; reducing traffic congestion at rush hours; and incurring valuable
public relations advantages by enhancing the company's reputation
through contributing to community and national efforts to reduce energy
consumption and environmental pollution.
Major companies have observed that vanpooling has greatly improved
company loyalty and identification among their employees. This attitude
stems from the awareness of the benefits accrued from such a service.
These include:
o Estimated annual gasoline savings of $400 in commuting costs
for employees who previously drove alone in a standard-sized
automobile, making a daily 20-mile round trip to work, and even
greater savings on longer trips.
o Additional savings of $1,000 a year or more if the employee
disposed of his or her second car.
o Allowing long-distance commuters to continue to commute despite
rising cost of commuting.
o Guaranteed door-to-door all-weather service.
o Comfortable and relaxed chauffeured commuting.
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10
o Opportunity to meet fellow employees and to develop new
friendships and interests.
o Elimination of long trying walks during bad weather
conditions, after parking.
o Reduced traffic congestion at company site.
o Various company incentives to encourage vanpooling, such
as preferred parking, initial free rides for regular
vanpoolers and special recognition within the company.
Companies with existing programs are so enthusiastic about the results
achieved that they are willing to provide technical assistance to
others concerning the establishment and operation of their vanpool
programs.
Costs of Vanpool Program
The cost of initiating and sustaining a vanpool program is one of the
primary concerns of management. While a vanpool system is not always
self-supporting, it is capable of recovering most of its costs.
Methods of calculating expense rates vary according to company intent,
accounting procedures and geographic locations.
For example, most firms do not include in the fixed cost schedule the
administrative experience borne by the company, nor the imputed interest
on capital which could have been utilized elsewhere. Depreciation may
be calculated on the basis of purchase price alone or by subtracting
anticipated trade-in value of the van. Also, investment tax credits
may alter the cost structure. Almost all documentation of vanpooling
experience indicates that it is potentially self-amortizing.
Administrative expenses, plus the capital involved in a purchase
agreement, are generally the only costs assumed by the company. These
relatively modest costs should be weighed against the possible financial
benefits to the firm. Such savings might accrue by eliminating the
necessity to construct increased parking facilities, the elimination of
some parking maintenance costs, and even freeing up current parking
space for building expansion. Company use of the van during working
hours can also be a low-cost method for intra-company communication and
mail delivery. The operational mileage charge to the company can be
credited to the vanpool account to reduce vanpool administrative costs.
Once a viable program is established, the administrative responsibility
of the company is minimal, as major operational and bookkeeping duties
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11
are delegated to the individual driver/coordinator. It should be
stressed that the most successful programs are those that have the most
enthusiastic endorsement of management. The greater the initial effort
expended in setting up an efficient and well-organized system, the less
time and attention is required to supervise the program once it is
under way.
To implement the program, groundwork must be laid with employee surveys,
van route planning, publicity and demonstration. The most important
step at this stage is to select driver/coordinators since they will
ultimately assume the responsibility for the management of each indi-
vidual pool of riders.
Vans must be purchased, local regulations must be investigated, and a
bookkeeping system must be set up whereby income, expenses, and vanpool
experience can be recorded. Once established, the vanpool program is
primarily in the hands of its participants. The driver/coordinator is
responsible for maintaining the vehicle, facilitating communications
among passengers, handling all the record keeping, and often collecting
the fares. The most effective programs are those in which maximum
authority and responsibility are delegated to the driver/coordinator.
The company's responsibility at this point is directed toward updating
passenger information, collecting individual van records for bookkeeping
purposes, maintaining compliance with state and local regulations,
promoting the program among employees, assigning new vanpools, and
general supervision and planning.
Companies considering the establishment of a vanpool program are often
concerned about the extent to which employees will participate. Active
employee participation is a direct function of management's support and
promotion of the project. This involves the education of employees as
to what vanpooling is, communication of its many benefits, and the use
of incentives to elicit employee response. Existing evidence shows
that if management backs vanpooling, employees will participate. Once
an employee starts vanpooling, he or she is likely to continue in the
program.
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STATE-BY-STATE
SUMMARY
OF
EXISTING VANPOOL PROGRAMS
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13
STATUS OF U.S. VANPOOL PROGRAMS
Date Number
Company/Organization Started of Vans
ALABAMA
Tennessee Valley Authority, Hollywood
(See Knoxville Headquarters listing) 12
Tennessee Valley Authority, Athens
(See Knoxville Headquarters listing) 2
Tennessee Valley Authority, Stevenson
(See Knoxville Headquarters listing) 3
Tennessee Valley Authority, Muscle Shoals
(See Knoxville Headquarters listing) 17
ARIZONA
Sperry Flight Systems, Phoenix 4/74 11
Fiesta Paratransit, Scottsdale 8/77 3
CALIFORNIA
Southern California Commuter Bus, Huntington Beach 1972 2
3M Company, Los Angeles
(See St. Paul Headquarters listing) 1
Ampex Corporation, Redwood City 3/74 5
Ralph M. Parsons Company, Pasadena 3/74 35
Douglas Oil, Costa Mesa
(See Houston CONOCO Headquarters listing) 1
Aerospace Corporation, Los Angeles 4/75 20
Caltrans Vanpool Project, Sacramento 7/75 24
Caltrans Vanpool Project, Los Angeles
(See Sacramento Headquarters listing) 3
Caltrans Vanpool Project, San Francisco
(See Sacramento Headquarters listing) 8
Prudential Insurance Company of America, Los Angeles
(See Newark Headquarters listing) 13
Golden Gate Bridge, San Rafael 9/75 24
University of California, San Francisco 9/75 20
C. F. Braun & Company, Los Angeles 11/75 28
Pinetree Transportation Company, Long Beach 11/75 100
Northrop Corporation, Hawthorne 1/76 6
Commuter Computer, Los Angeles 4/76 85
City of Los Angeles, Los Angeles 5/76 4
Fluor Corporation, Irvine 7/76 36
Hewlett Packard, Palo Alto 9/76 11
SRI International, Menlo Park 11/76 1
University of California, San Diego - La Jolla 7/77 6
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14
University of California, Berkeley
Conservation Industries Commuter Vans, San Diego 1/78
COLORADO
Statitrol, Lakewood
CONOCO, Denver
(See Houston Headquarters listing) 3
Johns-Manville Corporation, Denver 10/76 1
CONNECTICUT
American Can Company, Greenwich 7/74 4
CONOCO, Stamford
(See Houston Headquarters listing) 1
Southern N. E. Bell Telephone, New Haven 2/76 10
General Dynamics Corporation, Groten 5/77 45
Aetna Life & Casualty Company, Hartford 9/77 3
Northeast Utilities, Hartford 11/77 4
Yale University, New Haven 12/77 1
Combustion Engineering, Windsor 1/78 3
Connecticut General Insurance, Bloomfield 1/78 2
DISTRICT OF COLUMBIA
Department of Transportation, Washington, D.C. 5/77 12
FLORIDA
Prudential Insurance Company of America, Jacksonville
(See Newark Headquarters listing) 4
GEORGIA
Modnar, Atlanta !/73 10
HAWAII
Vango, Hawaii, Honolulu 9/77 10
ILLINOIS
Montgomery Ward, Chicago 10/74 19
Zenith Radio, Chicago 9/76 7
Allstate Insurance, Northbrook 11/77 10
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15
McMaster Carr Supply Company, Chicago
G. D. Searle & Company, Skokie
IOWA
Winnebago Industries, Forest City
KENTUCKY
Greater Louisville Chamber of Commerce, Louisville
LOUISIANA
CONOCO, Lafayette
(See Houston Headquarters listing)
CONOCO, Lake Charles
(See Houston Headquarters listing)
State Times-Morning Advocate, Baton Rouge
MARYLAND
Commercial Credit Equipment Company, Baltimore
Baltimore County Government, Towson
Social Security Administration, Baltimore
Peterson, Howell and Heather, Baltimore
Vango, Inc., Linthicum
Aberdeen Proving Ground, Aberdeen
MASSACHUSETTS
Prudential Insurance Company of America, Boston
(See Newark Headquarters listing)
New England Mutual Life Insurance Company, Boston
Polaroid, Needham Heights
Eckel Industries, Ayer
Massachusetts General Life, Newton Lower Falls
Digital Equipment Corporation, Maynard
MICHIGAN
Chrysler Corporation, Detroit
State of Michigan - State Employee Vanpool Program,
Lansing
Detroit Edison, Detroit
11/77
2/78
12/7A
1/78
12/77
5/76
10/76
10/76
12/76
9/77
1/78
10/75
10/75
1976
8/76
4/77
6/74
4/77
10/77
29
9
2
16
1
18
5
9
1
5
1
1
8
75
37
10
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16
10/73
1/74
4/74
Fall 1974
Minneapolis
St. Paul
MINNESOTA
3M Company, St. Paul 4/73
3M Company, Second Location, St. Paul
(See St. Paul Headquarters listing)
3M Company, Hastings
(See St. Paul Headquarters listing)
Cenex, South St. Paul
General Mills, Inc., Minneapolis
Medtronics, Minneapolis
Honeywell Corporation, Minneapolis
Prudential Insurance Company of America
(See Newark Headquarters listing)
Richfield Bank and Trust, Minneapolis
Minnesota Mutual Life Insurance Company
Grain Terminal Association, St. Paul
Blue Cross Blue Shield, St. Paul
National Car Rental, Bloomington
Minnesota State Employees Vanpool Program,
St. Paul
Cargill, Minneapolis
Commuter Services Share-A-Ride Program, Minneapolis
MISSISSIPPI
CONOCO, Aberdeen
(See Houston Headquarters listing)
Tennessee Valley Authority, Yellow Creek, luka
(See Knoxville Headquarters listing)
MISSOURI
Hallmark Cards, Inc., Kansas City 11/77
City of Kansas City, Kansas City 1/78
MONTANA
Cenex, Laurel
(See South St. Paul Headquarters listing)
NEBRASKA
10/75
1/76
3/76
4/76
Spring 1976
9/76
1/77
1/78
108
8
2
20
20
1
4
5
1
1
2
3
3
10
6
7
1
2
3
3
Offutt Van Pool, Omaha
5/77
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17
NEW HAMPSHIRE
Digital Equipment Corporation, Merrimack
(See Maynard Headquarters listing) 2
NEW JERSEY
Hoffraann-LaRoche Pharmaceuticals, Nutley 6/74 36
Fablok Mills, Murray Hill 1/75 3
Prudential Insurance Company of America, Newark 7/75 108
Prudential Insurance Company of America,
South Plainfield
(See Newark Headquarters listing) 59
A.T. & T. Longlines, Bedminister 10/75 67
Nabisco, Hanover 10/75 13
Schering Plough, Kenilworth 10/75 15
Sandoz, Inc., East Hanover 12/75 3
Bell Telephone Laboratory, Holmdel 2/76 13
Educational Testing Service, Princeton 5/76 3
Laminating Corporation of America, Eatontown 7/76 5
Mini-Transportation, Fort Monmouth 12/76 1
Allied Chemical Company, Morristown 1/77 3
Beckton-Dickinson, East Rutherford 4/77 1
Boy Scouts of America, North Brunswick 10/77 1
New Jersey Bell Telephone Company, Newark 1/78 3
Ortho Pharmaceutical Corporation, Somerset 1/78 2
NEW YORK
Corning Glass Works, Corning 6/74 17
NEW MEXICO
State Employees Commuter Association, Rio Rancho 3/75 6
NORTH DAKOTA
Basin Electric Power Cooperative, Bismarck 9/77 1
OKLAHOMA
CONOCO, Ponca City
(See Houston Headquarters listing) 20
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18
OREGON
Tektronex, Inc., Beaverton 1/76 6
PENNSYLVANIA
Gulf Research and Development, Pittsburgh 8/74 2
Consolidated Coal, Pittsburgh
(See Houston CONOCO Headquarters listing) 2
Consolidated Coal, Washington
(See Houston CONOCO Headquarters listing) 1
Prudential Insurance Company of America, Dresher
(See Newark Headquarters listing) 2
Scott Paper, Philadelphia 8/75 2
General Electric, Philadelphia 2/76 3
Smith Kline, Philadelphia 4/76 12
University of Pennsylvania, Philadelphia 9/77 2
RHODE ISLAND
Allendale Insurance, Johnston 2/77 3
Old Stone Bank, Providence 12/77 1
TENNESSEE
Tennessee Valley Authority, Knoxville 6/74 257
Tennessee Valley Authority, Hartsville
(See Knoxville Headquarters listing) 169
Tennessee Valley Authority, Norris
(See Knoxville Headquarters listing) 1
Tennessee Valley Authority, Chattanooga
(See Knoxville Headquarters listing) 17
Tennessee Valley Authority, Raccoon Mountain -
Chattanooga
(See Knoxville Headquarters listing) 1
Tennessee Valley Authority, Soddy Daisey
(See Knoxville Headquarters listing) 3
Tennessee Valley Authority, Spring City
(See Knoxville Headquarters listing) 4
Kayo Oil, Chattanooga
(See Houston CONOCO Headquarters listing) 1
Knoxville Commuter Pool, Knoxville 3/76 58
TEXAS
Texas Instruments, Dallas 3/74 14
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19
CONOCO, Houston 3/75 91
CONOCO, Big Springs
(See Houston Headquarters listing) 1
CONOCO, Carizzo Springs
(See Houston Headquarters listing) 1
CONOCO, Fall City
(See Houston Headquarters listing) 1
CONOCO, Midland
(See Houston Headquarters listing) 1
CONOCO, Pecos
(See Houston Headquarters listing) 1
Prudential Insurance Company of America, Houston
(See Newark Headquarters listing) 1&
Hughes Tool, Houston I/76 6
Brown & Root, Houston 2/76 15
Aramco Services, Houston 3/76 10
Mitchell Energy, Houston 9/76 6
Gulf Oil, Houston !/77 35
Mobil Oil, Houston 2/77 14
Comet-Rice, Houston 6/77 l
Armco, Houston 7/77 2
Mason & Hanger - Silas Mason Company, Inc., Amarillo 7/77 24
Crum & Forster Insurance Companies, Dallas 11/77 1
United Service Automobile Association, San Antonio 12/77 5
VERMONT
Erving Paper Mills, Brattleboro 10/73 6
VIRGINIA
Alan M. Voorhees & Associates, McLean 1/74 1
Reston Commuter Bus, Inc., Reston 2/74 3
Tidewater Regional Transit, Norfolk 10/77 63
WASHINGTON
University of Washington, Seattle 10/76 8
Recreational Equipment, Inc., Seattle 3/77 2
Rainier Bank, Seattle 7/77 8
Intalco Aluminum, Ferndale 11/77 1
WYOMING
CONOCO, Casper
(See Houston Headquarters listing) ^
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CANADA
Polisar, Ltd., Ontario Fall 1966 16
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VANPOOL PROGRAM
SUMMARIES
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22
AEROSPACE CORPORATION
LOS ANGELES, CALIFORNIA
The joint ride-sharing program of the Aerospace Corporation and the Air
Force's Space and Missile Systems Organization began in June 1972 with
the introduction of a carpool matching service and a charter bus
operation. Although the carpool program was quite successful, the
organizations felt that the greater flexibility and efficiency of vans
over bus and carpools warranted the introduction of a vanpool program.
Initiated in April 1975, the program now includes a total of 20 vans -
18 are company leased and 2 are privately owned.
According to the managers of the Aerospace/Samso Commute-A-Van
Program, three significant features have been primarily responsible for
its success: the van style, the method of procuring the vehicle, and
the fare structure. In determining the type of van to be used, rider
comfort was a major consideration. Consequently, those vans which were
intended for use over longer routes were furnished with airplane-type
reclining seats. According to the company, the additional ridership
induced by this feature more than compensates for the additional cost
of the seats and the reduced passenger capacity per van.
The vans are procured by the company through leasing, with the full
cost assessed to the passengers. Fuel and maintenance service, partially
provided by Aerospace facilities, is charged to each van on a per-mile
basis. Finally, the program utilizes a commercial liability insurance
policy costing $46 per month per van in combination with a van program
insurance pool which assesses each van $10 per month.
Aerospace employs a unique fare system combining monthly and daily
charges. Each regular rider is charged 1/3 of his share of the costs
on a monthly basis. The remaining 2/3 is divided by 17 and is assessed
daily. Through this procedure, each van breaks even if the riders
miss, on the average, one day a week. Both the company and van riders
are in agreement that this fare plan provides the greatest equity.
According to Aerospace/Samso, sincere management support for vanpooling
is essential for the success of a van program. While vanpooling
assures the prompt arrival of employees in the morning, it also guaran-
tees their speedy departure at the end of the day. Management must
find this situation compatible with the operations of the company, or
be willing to reimburse employees requested to work overtime. Conscious
decisions must be made concerning the size and scope of the program, the
degree to which the company is willing to subsidize the vanpools, and
the amount of publicity desired.
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Clearly, the Aerospace/Samso van project has been a fruitful one. The
attractions of a low cost, comfortable, and convenient ride to work
have made vanpooling competitive with more traditional modes of commuting,
especially for those employees traveling longer distances. The result,
according to a company study, is a reduction in vehicle miles traveled
of two million miles annually with energy savings of 130,000 gallons of
gasoline.
For additional information on the Aerospace/Samso Commute-A-Van Program,
contact James Baynes, the Aerospace Corporation, Energy and Resources
Division, Los Angeles, California 90009, (213) 648-7170.
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ARAMCO SERVICES
HOUSTON, TEXAS
Aramco Services initiated a vanpool program in March 1976 and currently
has 10 vans in operation. It is anticipated that this service will be
extended as the need arises.
The fare structure is similar to that of CONOCO in Houston, Texas. The
fare is based on mileage traveled with the administrative costs being
absorbed by the company. Furthermore, the parking costs of the van are
absorbed by the company. The payment of the fares is handled through a
direct payment each month to the driver by the passengers. As an
incentive for the driver, he is permitted to use the van during off-
hours if he supplies the gasoline.
The van is used primarily for commuting, however, business trips are
permitted if the designated driver of the van is the actual driver on
such trips. The normal commuting trips range between a minimum of 15
miles one way to a maximum of 25 miles one way. The van is insured
under the general company umbrella policy.
There are several unique characteristics of this program. The van is
obtained through a lease agreement with a standard term of between
30-36 months. However, at the termination of this lease period, the
driver of the van has an option to buy the van at its depreciated
value. It is felt that this arrangement is a significant factor in
attracting drivers to the program. A further unique feature of the
program is that the van does not provide door-to-door service. Rather,
the passengers assemble at designated park-and-ride locations in order
for the van to pick them up.
For additional information on Aramco Services vanpooling program,
contact Norman Murrell, Aramco Services, Houston, Texas 77002,
(713) 641-5870.
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CALTRANS VANPOOL PROJECT
SACRAMENTO, CALIFORNIA
In order to test the feasibility of vanpooling, the California
Department of Transportation initiated a demonstration vanpool project
in July 1975 with 3 leased vans. The program has expanded to 4 sites
throughout the State with a total of 24 vanpools; all but the initial
3 vans are purchased by the State. In addition, Caltrans, with
major funding from the State Energy Conservation Program is starting a
new vanpool program called Rides for Bay Area Commuters (RIDES)
in San Francisco, California. RIDES is a nonprofit corporation
designed to provide a standardized vanpool leasing program to be
made available to major public and private employers and employee
groups.
RIDES has established a Master Agreement to be used to guarantee
individual leases between vanpool users and the leasing company.
The leasing company was chosen by competitive bidding and is
responsible for leasing and fleet administration services. RIDES
conducts the initial marketing, identifies and assists in organizing
each vanpool and the leasing company is largely responsible for the
vanpools once they have been established.
Under the initial Caltrans vanpool program, the drivers are required to
obtain Class 2 (chauffeur's) licenses; one driver and two alternate
backup drivers are licensed for each van. Drivers ride free to compen-
sate for their coordination activities which include keeping a daily
log of mileage and passengers, collecting passenger fares, and sched-
uling maintenance. The vans are available for State use during the
day and drivers/participants are not permitted private use of the
vehicles. All maintenance work, except service covered by warranty,
is done in State equipment shops. The equipment shop pays all
operating costs and bills the van account on a mileage fee basis to
recover costs.
The State Insurance Office provides general and liability insurance
coverage for the program through the State's master policy. The
premiums are assessed pro rata to individual departments based upon
vehicle inventory. The liability coverage is $2 million and general
coverage is $50 million. The State Insurance Office also acquired
property damage insurance to protect the lessor against damage to the
original three leased vans.
Rates are calculated on the basis of 11 regular riders per van.
Although the vans are fully subscribed, the daily passenger load
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is in the range of 9 to 10 persons, due to vacations, travel schedules,
and other factors which cause persons to vary their routines.
Occasional riders may ride on a "space available" basis for a fare of
approximately $2 per day. Fares are collected monthly in advance by
the drivers and are deposited in a special account. A mileage charge
for State use of the vans is also credited to the vanpool account.
Lease payments and all other costs are paid from the account as they
become due.
Over a period of 3 years, Caltrans has been instrumental in the
passage of State legislation related to ride-sharing. The first
piece of legislation (AB 918, 1975) deregulated vanpools provided
that the vanpool has a seating capacity of 15 passengers or less, and
the driver is traveling from place of residence to place of employment.
It also provided funding for Statewide ride-sharing programs. Bill AB
3267, 1976 permits the use of State-owned cars and vans on a full
reimbursement basis, and Bill AB 4139, 1976 removes 10-12 passenger
vans from the bus classification on safety regulations.
For further information concerning these vanpool programs, contact
Jack Derby, California Department of Transportation, 1120 N Street,
Sacramento, California 95814, (916) 445-3087.
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CENEX
ST. PAUL, MINNESOTA
In October 1973, Cenex (Farmers Union Central Exchange, Inc.) launched
its Commute-A-Van program in response to the energy crisis. The
program began with 2 vans, and has since expanded to include 20 vans
that transport approximately 160 of the company's 620 St. Paul
employees. A vanpooling program has also been initiated at Cenex1s
Laurel, Montana refinery consisting of one van in operation.
Each 12-passenger van operates on a break-even basis, with fares
calculated on a 10-passenger occupancy. Vans are leased and riders are
charged a fare of approximately 8.5 cents per mile plus fixed costs for
trips ranging from 4 to 51 miles one way. Fares are collected through
payroll deductions. Both drivers and other company employees are
permitted to use the vehicles on nonbusiness days at a minimal cost.
Due to the low occupancy rate per van, the fares do not finance
all of the expenses of the van program. However, Cenex believes
that the money it spends results in substantial benefits for the
company. Vanpooling has enabled a saving of about 120 parking spaces
in an already overburdened facility. In addition, the company has
found the vans to be helpful in attracting employees to a relatively
isolated site.
Employees are equally enthusiastic about the program. Many have
realized substantial savings over their previous mode of commuter
travel. Also, the flexible mileage and passenger requirements are
strongly appreciated. As a result of this enthusiasm, the company
plans to expand vanpooling in accordance with employee demand.
For additional information on Cenex1s Commute-A-Van program, contact
Hal Schueble, Cenex, P.O. Box 6, South St. Paul, Minnesota 55165,
(612) 451-5468.
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CHRYSLER CORPORATION
DETROIT, MICHIGAN
In response to rising fuel costs, increasing traffic congestion, and
lack of parking space, Chrysler Corporation initiated a pilot vanpool
program in mid-1974 at its Syracuse, New York plant. The company has
expanded the program to include seventy-five 12-passenger vans at its Detroit,
Michigan headquarters and other plants.
The van program is operated on a break-even basis, with fares
calculated on the assumption of 9 paying passengers. As opposed
to most other vanpool operations, Chrysler includes administrative
expenses in its cost estimates. The fares per passenger range from
$21.50 to $39.50 per month. The insurance is a self-insured policy
for collision; liability is under the general corporate policy and
physical damage coverage is under a policy which costs approximately
$17 per month per van.
Recognizing the important role played by the driver/coordinators
in ensuring the success of the commuter van program, the company
believes that they should be carefully selected. Drivers are required
to have good driving and work records and obtain the recommendation of
their supervisors. In return for their services in driving and main-
taining the vans and keeping financial and passenger lojs, the drivers
ride free, retain the fares of the 10th and llth paying pasengers, and
are permitted use of the vehicles during nonbusiness hours.
In addition, Chrysler believes that only with the full support of
top management can a vanpool project achieve any degree of success.
Promotion of vanpooling, therefore, includes departmental meetings,
mailings to employees, display areas, and the encouragement by top
officials. In order to further increase the attractiveness of
vanpooling, Chrysler also provides the vans with preferred parking
spaces.
According to the Chrysler Corporation, vanpooling offers employees
convenient, reliable, low cost transportation while enabling the
company to help improve the quality of life in the communities in which
its plants are located. As a result, further expansion of the program
is anticipated.
For additional information on the Chrysler Commuter Vanpooling Program,
contact Tom McDonald, Chrysler Corporation, P.O. Box 1919, Detroit,
Michigan 58231, (313) 956-5351.
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COMMUTER COMPUTER
LOS ANGELES, CALIFORNIA
Commuter Computer began its vanpool project in April 1976 with 20
leased vans. As of March 1978, the program has 85 vans operating,
all of which are 10-passenger maxi-vans with airline-type reclining
seats, luxury interiors and individual stereo earphones.
The vanpool program is a multi-company effort utilizing the services
of Commuter Computer, an area-wide carpool matching service and non-
profit corporation, which represents a unique combination of the
private and public sectors. Each of the businesses in downtown Los
Angeles were contacted by a representative of Commuter Computer
who explained the availability of the program and explored possi-
bilities of fare incentives for employees on the part of participating
firms.
An agreement to underwrite 100 percent financing of the first 20 vans
for the pilot program was made through Crockerbank Leaseplan. The
administration of the maintenance program is handled by the lessor.
This plan encompasses all aspects of fleet cost management, from the
control of operating expenses, supervision, processing and payment of
all bills to the reporting of all expenses on a per mile, per month
and cumulative basis. The total cost is billed to the Vanpool Program
at the end of each calendar month.
The fares range from $58 for a 30-mile round trip to $79 for a 100-mile
round trip. Vans travel an average daily distance of 70 miles round
trip for a fare of approximately $70 per month. ARCO permits their
vanpoolers to apply the cost of the free parking space they are
entitled to towards the monthly vanpool fare, thus substantially
reducing the monthly fare. As an incentive, each driver who maintains
a full van for a month is awarded $30.00. Insurance is carried through
Travelers Insurance Company for a premium of $104.00 per month per
van.
Experience in this project, utilizing high cost luxury vans, indicates
that such a vanpool operation would be more successful if substantial
subsidies were available from employers or the Federal Government.
For additional information concerning the Commuter Computer vanpool
program contact Arthur Schreiber, President, Commuter Computer,
Los Angeles, California 90012, (213) 380-RIDE.
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CONTINENTAL OIL COMPANY (CONOCO)
HOUSTON, TEXAS
The Continental Oil Company began its commuter van pilot project
in March 1975, as a program to conserve energy resources. The program
began with the purchase of three 12-passenger vans and now consists of
91 vans, transporting commuters over daily distances of between 20 and
70 miles. CONOCO has vanpools at 11 sites in 7 states, including a
number of small employment sites. For example, at Carizzo Springs,
Texas, a site has 10 of 14 employees in a vanpool and in Casper,
Wyoming, 20 of 78 employees are vanpooling.
Pool coordinators for the program are chosen by a selection committee
on the basis of driving and work records as well as attitude toward the
program. Viewing the coordinators as the essential factor in ensuring
the success of the van program, CONOCO has delegated them with major
responsibility for the pool operation: driving the van, maintaining
passenger levels above 8, keeping the vehicle clean and serviced,
training back-up drivers, collecting fares, keeping vanpool records,
and providing off-street parking for the van. The drivers are also
required by the State to obtain a chauffeur's license. In return, the
drivers ride free, and have personal use of the van at a variable
mileage charge depending on distance driven each month.
The CONOCO commuter van program is operated essentially on a break-even
basis, although the company does absorb all administrative costs.
CONOCO is phasing out the driver incentive of paying the driver the
10th, llth and 12th fares in favor of reduced rider fares. The break-
even costs for a vanpool are divided by 8 as the base fare. If
there are 10 riders, the total cost is divided by 10 rather than 8,
thus reducing each rider's fare.
The vanpool program has met with the overwhelming approval of
management and employees alike. According to a survey of the program,
93 percent of the participants have found vanpooling to be equal to or
more convenient than their previous mode of travel to work. Thirty
percent indicated that they plan to sell a car or not buy an additional
one as a result of the program. The company estimates that each van
takes 7 automobiles off the road during rush hour, and saves
approximately 8,000 gallons of gasoline per year.
CONOCO has been a leading promoter of the vanpool concept among
other employers, and has assisted many employers in starting a vanpool
program. The company intends to continue expanding vanpooling both
in Houston and at its other United States locations.
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For additional information on the Continental Oil Company approach
to vanpooling, contact William Fortune, Continental Oil Company,
5 Greenway Plaza East, Houston, Texas 77001, (713) 965-1484.
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CORNING GLASS WORKS
CORNING, NEW YORK
In an effort to conserve energy, reduce employee commuting costs, and
to minimize parking space needs, the Corning Glass Works initiated its
vanpool program in mid-1974 with the purchase of three 12-passenger
vans. Since that time, the program has expanded to 17 vans.
Differing from other van programs, the drivers for Corning vanpools
select their own passengers and establish the routes. However, the
company has set a minimum of 10 passengers per vehicle, and 15 miles
per route. A sliding rate scale is used to determine fares. The
minimum rate is $1.00 per day and the maximum is $1.40 per day
depending on mileage.
Fares are collected by means of payroll deduction, it being the opinion
of the company that drivers should be free to concentrate on the
operation of the van. In return for his services, the driver receives
a free ride and is permitted to use the van for personal purposes at no
charge.
Corning provides an additional incentive for employees to vanpool by
offering preferred parking spaces. Both the management and its
employees view the van program as a continuing success and the rider-
ship figures support this viewpoint. In fact, the program did not lose
a passenger in the past 1 1/2 years of its operation. For the
minimum 15-mile one-way route, each rider saves approximatley $650 per
year on vehicle operation and maintenance costs alone. Also, the
company has found that each van frees approximately seven spaces in an
overcrowded parking facility. To date, the program has experienced no
regulatory restrictions.
For additional information on the Corning Glass Works vanpool
experience, contact Dale Culberson, Corning Glass Works, Houghton Part
A-3, P.O. Box 158, Corning, New York 14830, (607) 974-8773.
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ERVING PAPER MILLS
BRATTLEBORO, VERMONT
In 1972, when Erving Paper Mills opened a new plant in Brattleboro,
Vermont, the company was faced with a situation in which 150 of the
300 Brattleboro employees were forced to commute a minimum of 25
miles from their residences near the old Erving, Massachusetts
facility. Thus, in order to reduce the cost of commuting for
employees, prevent the loss of many highly skilled personnel,
and help reduce the company's use of fuel and impact upon the
environment, the company began to explore the possibility of
instituting a vanpool program. It did so the following year
with the purchase of 6 vans.
The operation of Erving Paper's van program is of special
interest because the vehicles are used to serve the plant on
a tri-shift basis. Most of the company's vans are used for
two or three shifts each day, depending upon the residence
and shift assignments of employees interested in pooling.
Despite this heavy use of the vans, maintenance has presented
little problem.
The average route is about 35 miles one way, with employees
paying $1.25 a day for the commuter van service.
The company is entirely satisfied with the program. Employees
enjoy the convenience of the vanpools, and have consequently
continued working for Erving Paper Mills despite the long
commuting distance. An estimated 300 gallons of gasoline are
saved each week as a result of the vanpooling. In addition,
the company is pleased to have been the recipient of Industry
magazine's 1974 "Ecologue Flag" for having made the most
important contribution by a Massachusetts company to the
improvement of the environment.
For additional information on the multi-shift van system of
Erving Paper Mills, contact John Provost, Erving Paper Mills,
Vernon Road, Brattleboro, Vermont 05301, (617) 544-2711.
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GENERAL MILLS, INC.
MINNEAPOLIS, MINNESOTA
Following 3M's example and concern about a severe lack of public
transportation during a period of rising fuel prices, General Mills
began its commuter van program on January 1, 1974. The initial
purchase was 5 deluxe 12-passenger vans; within 3 months the fleet was
expanded to 10 vans. General Mills now has 20 vans serving over 10
percent of the company's 1,800 employees.
General Mills considers the pool coordinators to be the key to a
successful vanpool program. The company selects its coordinators
according to interest in the program and past driving and work records.
In addition, coordinators are required by Minnesota law to obtain a
"Class B" chauffeur's license. Each coordinator is delegated the
responsibility of driving and maintaining the van, keeping expense and
performance records, and handling billing and scheduling matters. As
an incentive for achieving maximum ridership, the pool coordinator is
permitted to keep the fares from the 10th and llth passengers as his
profit, or use the money to reduce the fares of his riders.
In order to minimize operating costs and maximize van use, General
Mills encourages the utilization of the vans throughout the day.
Arrangements have been made to use a vehicle for shuttle service
between buildings at the company's location. Free transportation
is available to commuter van participants for medical appointments
and emergencies, and income obtained from the business use of the
vans furthers the reduction of commuter costs. Pool coordinators are
permitted use of the vans during nonbusiness hours at a minimal cost of
7 cents per mile.
In the opinion of General Mills, vanpools are attractive to both
the company and employees because of their reliability, flexibility,
low cost, and convenience. Since 44 percent of the vanpool partici-
pants formerly drove to work alone, the program has significantly
reduced traffic congestion near the office and has eliminated the
need for approximately 100 parking spaces. The program has also
provided the company with a broader labor market by opening employment
to those who previously lacked the necessary transportation. Perhaps
most important, vanpooling has had a marked positive effect upon
employee morale and work efficiency, causing employees and company
alike to view the program as an overwhelming success.
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For additional information on the General Mills commuter van program,
contact Karen Timman, General Mills, Inc., P.O. Box 1113, Minneapolis,
Minnesota 55440, (612) 540-2311.
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GOLDEN GATE BRIDGE
HIGHWAY AND TRANSPORTATION DISTRICT
SAN FRANCISCO, CALIFORNIA
In September 1975, as part of its promotion of vanpooling among Bay
Area companies, localities and individuals, the Golden Gate Bridge,
Highway and Transportation District (GGB), organized a vanpool for
its own emplyoyees, transporting an average of 9 passengers about
92 miles round trip per day.
In an effort to expand the use of vanpools among commuters traveling
in the Golden Gate corridor, GGB initiated the Vanpool Demonstration
Project in September 1977 with funding from the Urban Mass Transportation
Administration (UMTA). Thirty-five vans were purchased under the UMTA
grant - 17 luxury 10-passenger vans with airline reclining seats and 18
deluxe 12-passenger vans. Even though the fare is $50 per month for
the luxury van, $9 more than the deluxe van, for an average 80-mile
round trip, the luxury van has proven to be more popular with commuters.
Insurance is provided by Golden Gate, depending on the distance
traveled and the cost of the van. Liability coverage is $1,000,000.
All aspects of insurance coverage for the vans have not been finalized;
however, an insurance binder has been issued. Coverage is provided at
a cost of $1,415 per year for the luxury van and $1,250 for the smaller
model.
Drivers are guaranteed 6 months' use of a van after which they are
encouraged to purchase their own to continue existing vanpools.
A variety of marketing techniques have been instigated; such as
placing a van in downtown San Francisco where interested persons
may walk up and talk to a GGB staff member and distributing informative
vanpool brochures on the Golden Gate Bridge and on buses. Effective in
April 1976, no toll to cross the Bridge is charged for carpools of
three or more.
GGB is concentrating on full capacity use of the vans and plans
to keep three in reserve for back-up purposes if needed. Opinions
of participating riders and drivers have been very favorable towards
the program. A slide presentation has been compiled incorporating
results of taped interviews with individual commuters.
For additional information about the van program and promotional
campaign of the Golden Gate Bridge, Highway and Transportation District,
contact John Shellenberger, Box 9000 Treisido Station, Golden Gate, San
Francisco, California 94129, (415) 457-3110.
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GULF RESEARCH AND DEVELOPMENT
PITTSBURGH, PENNSYLVANIA
Prompted by a combination of events, including employee interest
in vanpooling and Environmental Protection Agency regulations requiring
a reduction in vehicle miles traveled, Gulf Research began its vanpool
program in August 1974, with the leasing of two 12-passenger vans.
Gulf is located about 15 miles outside of Pittsburgh and 1 mile
away from the edge of the metropolitan bus system. The company is
isolated and without any mass transit service. Thus, when Gulf closed
a satellite facility and transferred the employees to the main plant,
it decided to use vanpools to enable the workers to commute without a
large additional cost. Two vans currently transport these employees
from 60 to 80 miles each day at a monthly cost of $26 to $29 per
passenger.
In addition, until recently the company operated a third van as a
transfer shuttle. The bridge going across a nearby river had closed
down to all but pedestrian traffic. Gulf's shuttle allowed employees
to walk across the bridge and then be transported the several miles to
work by van. The fare for the shuttle was $6 per month. When the
bridge reopened an attempt to expand the vanpool program to include
this third bus failed.
The commuter van program at Gulf is operated on a break-even basis,
although the company does subsidize the program to a certain extent
by absorbing administrative costs and paying for van lubrication and
oil changes. The vanpools are also permitted to use the company's fuel
pumps at a bargin price of 2 cents above wholesale.
According to the Director of Gulf's vanpool program, vans are made
available to interested employee groups and are given every advantage
of cost that accrues to the company as a result of its size and volume
of purchases. The vans are also permitted to use special parking
places adjacent to the plant buildings. However, the company is
hesitant about giving vanpoolers preference over carpoolers by heavily
subsidizing vanpooling, but not carpooling.
This presents the program administrators with a problem, because
it has been Gulf's experience that reduced commuting costs is the
major characteristic of vanpooling which will attract new riders. Over
short distances, carpooling is able to match the cost of vanpooling.
It is only over longer distances, when the replacement value of the
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automobile becomes an important consideration, that the economic benefit
of vans becomes significant.
Gulf considers vanpooling to be a generally favorable program.
Employees are very happy and think vanpooling is terrific. The riders
calculated the cost of a subscription bus service and found that it
would cost $35 per month per person while making the trip to work 20
minutes longer. It is understandable, then, that Gulf's experience
has been that it is the poolers themselves who really make the program
work.
For additional information on the van program of Gulf Research and
Development, contact Jared B. Wills, Gulf Research and Development,
P.O. Box 2038, Pittsburgh, Pennsylvania 15230, (412) 362-1600.
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HOFFMANN-LaROCHE PHARMACEUTICALS
NUTLEY, NEW JERSEY
A poor public transportation system and the onset of the energy
crisis originally prompted Hoffmann-LaRoche to search for alternative
methods of employee transport—including carpools, subscription
buses, company bicycles, and walking. The vanpool program actually
began with a brain-storming session resulting from a television report
on the 3M vanpooling project. During spring 1974, the company
initiated an aggressive promotional campaign. Presentations were made
to employees during lunch and questionnaires were distributed.
The program became operational with the purchase of 3 vans in June 1974;
there are now 36 vans serving 425 of the company's 6,000 employees. It
is expected that the program will expand in the future. The vanpool
program is operated on a cost-sharing basis, with fares for the various
routes ranging between $18 and $30 per month. The driver's share of
the costs are considered to be offset by his efforts in coordinating
the pool, and each driver is permitted to use the van on weekends at a
cost of 5 cents per mile. The New Jersey Public Utility Commission
considers the vans to be passenger vehicles and not subject to
regulation.
The 12-passenger vans are fully equipped and are leased with an
option to buy. This method of securing vans appears especially
well-suited for companies unwilling to make a large capital investment
at one time or uncertain about the possible success of vanpooling at
their location.
Based upon their experience, Hoffmann-LaRoche believes that vanpooling
accrues maximum benefits over longer distance routes. One-way routes
of under 10 miles do not seem as economical or attractive to employees
who can often drive to work more quickly and with less expense.
However, the parking preference granted the vanpools does much to
ensure that even such short distance runs are a success.
There is strong agreement at Hoffmann-LaRoche that vanpooling is
at the company to stay. Both management and the employees are very
enthusiastic about the program. The reduced costs and tension in
commuting have contributed to a significant boost in employee morale.
Traffic congestion in the plant vicinity has also been reduced.
Hoffmann-LaRoche has even sponsored seminars to encourage other area
companies to begin vanpooling.
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For additional information on the Hoffmann-LaRoche commuter van
program, contact Robert Wald, Hoffmann-LaRoche Pharmaceuticals,
340 Kingsland Street, Nutley, New Jersey 07110, (201) 235-3898.
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KNOXVILLE COMMUTER POOL
KNOXVILLE, TENNESSEE
The City of Knoxville Public Transportation Brokerage Service Project,
Knoxville Commuter Pool (KCP), was a demonstration as well as research
project co-sponsored by the Urban Mass Transportation Administration,
Tennessee State Department of Transportation and the City of Knoxville.
The University of Tennessee Transportation Center was responsible for
the implementation of the project. The objective was to establish an
operational organization that would promote the greatest possible
utilization of transportation vehicles both public and private through
the brokerage approach throughout the metropolitan area.
To date, the project is progressing extremely well. Ride-sharing
express buses (private and public) and vanpools carry 27 percent as
many riders as the traditional transit system. In September 1976,
the Knoxville Transit Corporation's express bus program carried
24,509 riders in addition to regular route ridership. The private
bus line carried 26,040 riders and the vans carried 24,360 riders.
The traditional transit system carried only 41,068 riders during
the same period.
Since the initial demonstration program, which included 50 vans, KCP
has established a vanpool lease operation in order to promote the
employee/owner/operator concept. The KCP vanpool operation essen-
tially is a private operator multi-employer/employee program. It is
felt that the real potential for vanpool commuting does not lie with a
company-sponsored program, but with the van privately owned and operated
as a small commuting business.
Acting in its broker capacity, KCP has used vanpools and carpools
as an effective means of shifting transit service from low density,
high cost areas to high density, more profitable areas. Vanpools
have also been used to preserve service in rural areas where intercity
carriers are abandoning services and to provide service to the unem-
ployed, welfare recipients who do not have transportation to get to
work.
The Knoxville Commuter Pool program is effectively showing that
there are many diverse public transportation needs but that riders
desire service tailored to their specific needs. It has shown that
there is no shortage of drivers, that demand exists and grows rapidly
once consumers have confidence in the concept, that there is an abun-
dance of vehicle capacity and willing entrepreneurs if institutional
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barriers can be eliminated. Also, the KCP program shows that it is
more important to coordinate transportation services to meet individual
travel rather than to coordinate the planning of a specific type of
transportation system.
For additional information on the Knoxville Commuter Pool, contact
John Beeson or Frank Davis, Transportation Center, University of
Tennessee, Knoxville, Tennessee 37916, (615) 637-RIDE.
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MASON & HANGER - SILAS MASON CO., INC.
AMARILLO, TEXAS
The Pantex Vanpool Program began in June 1977, with one 15-passenger
van serving a group of employees from Clarendon, Texas. During the
first month, 6 more vanpools were formed and by November 1977, a
total of 20 individually owned vans were in operation, transporting
270 people to work at the Pantex Plant.
As a result of the successful initial vanpool operation, the concept
of owner-operator vans spread quickly throughout the plant. New
rider groups were formed from contact with commuters who had expressed
interest in ride-sharing by completing a questionnaire or by telephone.
The program was also reviewed in the company monthly bulletin. Grammar
schools were used as the focal point to identify the origin of vanpools.
The financing of the vans was handled through the Pantex Federal
Credit Union which made 100 percent loans available to those who
would participate in the vanpool program. The loans were made at
a 9 percent interest rate over a 48-month period.
While several insurance companies were totally uninterested, Pantex1s
insurance requirements were readily accepted by the State Farm
Insurance Company. However, since the program has expanded, many
insurance agencies have now indicated that they would be happy to
insure the vans. Each owner-operator has the choice of taking insurance
with any company that will provide adequate coverage. Coverage costs
range from $300 to $350, depending on the size of the van, i.e.,
13-passenger or 15-passenger.
The Pantex vanpool offers door-to-door pick-up in most instances
and a common pick-up point for others. Consideration is being given
to the feasibility of changing some of the existing traffic lanes
to provide vanpool pick-up points. The complete expense of the van
and its operation is paid for by the vanpool if it averages 10 passen-
gers per day. That is the main reason for encouraging a 15-passenger
vehicle; then a daily average of 10 passengers is easily accomplished.
The average Pantex vanpool travels 33 miles one way. The fare is
approximately $30.00 per month, which is established by the driver
who identifies all the costs and discusses them with the riders.
For each van in operation, Pantex indicates a yearly saving of approxi-
mately 8,000 gallons of fuel. The organization and operation of 20
vanpools has resulted in a gain of 160 parking spaces at the plant.
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Additional information may be obtained by contacting Marvin Thompson,
Vanpool Coordinator, Education and Training Center, Mason & Hanger—
Silas Mason Co., Inc., P.O. Box 30020, Amarillo, Texas 79177,
(806) 335-1581.
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3M COMPANY
ST. PAUL, MINNESOTA
In April 1973, the 3M Company initiated the first company-sponsored
vanpool program in the United States. Beginning with a pilot program
of six 12-passenger vans, the Commute-A-Van Program had grown by
January 1978 to include 108 purchased vans serving more than 1,000 of
the company's 10,000 employees.
As a large suburban complex with a growing workforce, 3M was faced with
the prospect of expending large sums to enlarge the capacity of its
parking facilities. In addition, traffic congestion near the 3M Center
had presented a severe problem for some time due to limited access
routes. In an effort to resolve these difficulties, the company
participated in an area-wide home-work travel survey in 1970. The
result was the institution of a major traffic improvement, ride-sharing
project, including company-sponsored vanpools.
For the pilot van program, six areas with varying trip characteristics
were chosen. The number of employees in these locations ranged from 67
to 277, with route distances varying from 5 to 32 miles one way. In
January 1973, a special employee survey was conducted to determine the
degree of interest in pooling from these selected areas. The response
was excellent, and by the end of April, the pilot vans were in service.
Within a short time, it was evident that the Commute-A-Van concept
was very successful and popular with the participants. Extreme
interest was generated among other 3M employees and long waiting
lists of employees and self-formed groups for additional vans began to
appear. In July 1973, 3M management approved a proposal to expand the
program.
Each vanpool consists of a pool coordinator, a necessary number
of back-up drivers, and a minimum of eight paying passengers. The
driver is selected on the basis of employment and driving record,
supervisor recommendations, willingness to obtain the required Class "B1
license, and interest in the program. The driver becomes responsible
for the complete operation of the vanpool. In return for his services,
the driver rides free, retains the fares of the 9th through llth
passengers, and has unlimited personal use of the van at a charge of
9 cents per mile.
Maintenance for the vehicles is obtained by the drivers. Although
the vehicles can be serviced at the 3M garage, the company does not
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subsidize this operation. Thus, the charges to the pool are comparable
to that of other area service stations. Since the Comtnute-A-Van
Program was begun, it has become apparent that some back-up capability
is needed in the event of a van breakdown or maintenance condition. It
appears that 1 backup vehicle for 25 operating vans is sufficient;
back-up vans can also double as utility vehicles when not required for
vanpooling.
In April 1974 and again in August 1976, a complete questionnaire
survey was made of the van program participants. The surveys revealed
that almost 25 percent of the riders use the vehicles 4 days or less
each week. However, the convenience of the van service and the many
accompanying benefits (such as free preferential parking) has led over
97 percent of the participants to express their intention to continue
using the van as a means of commuting.
Furthermore, the company has realized enormous benefits as a result of
the vanpool program. Calculations show that these vans save over 750
parking spaces. Combined vanpool and carpool activity at the 3M
Company headquarters has resulted in 2 percent fewer commuter vehicles
arriving each day even though employment increased 23 percent.
The 3M Commute-A-Van Program has been an outstanding success. The
enthusiasm created for vanpooling at 3M has resulted not only in the
continued expansion of that company's program, but also in the forma-
tion and structure of many of the other van programs listed within this
booklet.
For additional information on the 3M Commute-A-Van Program, contact
Robert D. Owens, 3M Company, 3M Center, St. Paul, Minnesota 55101,
(612) 733-9648.
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MODNAR
ATLANTA, GEORGIA
Starting with the purchase of 1 van in January 1973, Modnar is now a
public corporation, operating 10 vans in the Atlanta metropolitan area.
At present, Modnar offers daily commuter transportation from two suburban
areas to the Atlanta business district. In addition, one of the vans
serves a Peachtree City shopping trip. The corporation recognizes two
classes of passengers—regular and casual. Regular passengers have
monthly standing reservations and are charged the daily base fare of
between $1.50 and $3.00. Differing from other van programs, each is
required to pay for a minimum of two-thirds of the van trips made.
Casual passengers make reservations on a space available basis and pay
a fare of not more than 150 percent of the base fare. Drivers of the
vans ride free and obtain an incentive fee.
Established as a public service and with the intention of marketing
vanpooling to area employers, Modnar does not operate as a profittnaking
organization. Fares are calculated to finance half of the out-of-pocket
costs of the van ride, and additional revenues result from the rental
of vans to outside groups and the leasing of advertising space in the
vans.
Modnar has applied for and received a certificate of public convenience
and necessity to operate as a common carrier for the 9-county Atlanta
area. Modnar is now authorized to run vanpools in nine counties but
the trips must be greater than 10 miles one way and no pools can begin
and end in a county which is served by the regular mass transit system.
Modnar believes that this approach has the potential for yielding the
highest van utility rate because it does not limit participation to the
employees of a particular company. Thus, such a van program appears
well-suited for areas containing a number of small companies in close
proximity.
For additional information on Modnar and the common-carrier approach to
vanpooling contact Dr. Stephen Dickerson, School of Mechanical Engineering,
Georgia Institute of Technology, Atlanta, Georgia 30332, (404) 894-3255.
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MONTGOMERY WARD
CHICAGO, ILLINOIS
In October 1974, Montgomery Ward responded to the energy shortage with
the initiation of its commuter vanpool program. The company began with
six 12-passenger vans leased from their regular leasing company, and
has since expanded the program to include 19 vans transporting approxi-
mately 200 Montgomery Ward employees.
Previous to beginning its vanpool program, the company requested
clearance from the Federal, state and local commerce and transportation
agencies. This process was time consuming—taking 6 months—but
clearance has enabled the program to operate free of any legal or
regulatory restrictions.
Montgomery Ward's vans travel over a variety of urban and suburban
routes, ranging from 15 to 45 miles in length. Rider fares finance all
costs except for administrative overhead, but the company anticipates
that it may become necessary to include this in the fare calculations
as the program expands. As in other van programs, the pool coordinator
rides free, keeps the fares of the 9th and llth passengers, and is
permitted personal use of the van at a charge of 8 cents per mile.
One major concern of the company is maintenance. Currently, the fleet
administrator is responsible for ensuring that the manufacturer's
preventive maintenance suggestions are performed. The van drivers
obtain service for minor mechanical difficulties. Increased expenses
due to major maintenance problems are anticipated during the later
years of the van's life, and with it higher fares.
Both the company and its employees are delighted with the operation of
the van program thus far. In addition, the company estimates that each
van removes four automobiles from the road. Consequently, vanpooling
is viewed as beneficial for employees as well as the public at large.
For additional information on Montgomery Ward's vanpool experience
contact John Hunt, One Montgomery Ward Plaza, General Distribution,
5-South, Chicgo, Illinois 60671, (313) 467-3606.
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NABISCO
HANOVER, NEW JERSEY
On October 20, 1975, Nabisco moved from its facilities in New York
City to a new location in East Hanover, New Jersey. In planning for
the move, management realized that the lengthy commuting distance
would prevent many workers from continuing their employment with
Nabisco. In order to minimize this occurrence and provide their
employees with an economical and energy-efficient means of commuter
transportation, the company developed a multi-faceted ride-sharing
proposal. The program, which began on the date of the move, consists
of charter buses, company automobiles, extensive carpooling and 13
vans.
Nabisco explains the tremendous interest in pooling at its facility
as the result of a situation which was ready for ride-sharing. In
addition to the sudden lengthening of commuting distances, pooling
was also encouraged by the availability of only 400 parking spaces
for the company's 1,000 employees.
The van program is now operating quite well; the participants and
the company are quite happy with its progress. The leased 12-passenger
vehicles carry employees over daily round trips of between 60 and 120
miles. The fare for a 100-mile round trip is about $46 per month. The
driver rides free; in cases where several people share the driving, all
of their fares are reduced accordingly.
For additional information on the Nabisco commuter van program contact
Robert Kalitka, Nabisco, River Road, Hanover, New Jersey 07936,
(201) 884-2981.
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NEW MEXICO STATE EMPLOYEES' COMMUTER ASSOCIATION, INC.
RIO RANCHO, NEW MEXICO
During 1975, as a means of conserving energy, the Governor of New
Mexico authorized the Energy Resources Board (ERB) to investigate the
possibility of a commuting system for State employees. A travel
inventory and a transportation study were conducted by the ERB. In
addition, the Governor authorized the Department of Motor Vehicles to
work with the ERB in an effort to find a solution to State employees'
commuting problems.
As a result of meetings held between the Commissioner of Motor Vehicles
and the commuters, the State Employees' Commuter Association, Inc.
(SECA), a nonprofit organization, was formed and a Board of Directors
was elected. Several meetings were conducted by the Board with car
dealers and insurance companies in Santa Fe and Albuquerque, with the
assistance of the Governor's Office, the ERB, and the Department of
Motor Vehicles. Bus companies were also invited to offer bids. After
considering all data available, the Board concluded that a vanpool
program would be the most beneficial commuting system.
In March 1976, meetings were held in Santa Fe to finalize"plans for
leasing SECA1s first 15-passenger van. Some delay was encountered in
van delivery and locating insurance coverage. In fact, insurance was
the main concern of the SECA Board of Directors. Coverage on the van
for 1 year was finally obtained at an approximate cost of $1,800. As a
result of DOE insurance studies which resulted in new classifications
and rates accepted in 46 states in 1977, adequate coverage can now be
obtained for about $600.
The pilot pool consisted of a van leader, a backup driver and 13
passengers. The passengers paid on a biweekly payroll deduction basis
for a reserved seat, with fares ranging from 75 cents to $2.00 daily,
round trip. Neither the van leader nor the backup driver were compen-
sated in any way. The fare was based on the total amount for the
lease, operation and maintenance of the unit, divided into 15 equal
parts. Most of the members who dropped out of SECA because of the time
it took before the progam started reported that they were forced to
make other plans because of the payroll deduction which required them
to pay for their seat for 1 year to guarantee the lease even if they
were not using it every day.
Due to the administrative burden entailed in operating the program by a
nonprofit organization, the growth potential is limited. However, it
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is felt by participating commuters that vanpooling significantly
contributed towards solving many area transportation problems. Some
vanpoolers have found that they can sell their second car and save
approximately $1,000 a year in addition to their commuting cost savings.
During the latter part of 1977, under provisions of Section 3 of the
Emergency Highway Energy Conservation Act, the Federal Highway
Administration of the Department of Transportation authorized grant
funding, interest free, to the ERB for the purchase of ten 15-passenger
vans by SECA.
Additional information may be obtained by contacting Dr. St. Arnaud
Nicolas, President, State Employees' Commuter Association, 4800 Palmas
Drive, SE., Rio Rancho, New Mexico 87124, (505) 827-3111.
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RALPH M. PARSONS COMPANY
PASADENA, CALIFORNIA
In early 1974, the Ralph M. Parsons Company moved from Los Angeles
to its new headquarters in Pasadena. Although only 10 miles away
from its previous location, the Pasadena site was not well served
by the metropolitan bus system which so many employees had used for
commuting. In order to alleviate this problem, the company began its
vanpool program in March of that year.
Initiated with 3 leased 12-passenger vans, the program now includes
35 vehicles serving approximately 400 of the company's employees
each day. A minimum one-way route of 25 miles was established early
in the program in order to ensure that the vans were available to
those employees who would most benefit from pooling. Current routes
range from 25 to 50 miles in length, with at least 10 routes over 50
miles.
In return for the service, riders pay a biweekly fare on a graded
schedule consisting of four levels - $17, $18, $19 and $20. The
fare which a rider owes is determined by the route length, with those
traveling over 50 miles one way paying $20 every payday.
The pool coordinators are required by the state to obtain a Class
2 (chauffeur's) license. The drivers are responsible for the entire
van operation, including the securing of the necessary number of
passengers. In return, the coordinators ride free and are permitted
the free personal use of the vehicles. In addition to the special
licenses, vans are required to carry certain safety equipment and must
have special mechanical adjustments performed on the vehicle.
The vans, which are parked at a service station, save Parsons about
300 parking spaces at its overburdened parking facilities. Further-
more, the company found the van program to be an important factor in
attracting a number of highly skilled people to the plant. The
participating employees fully appreciate saving costs in commuting,
while being spared the daily anguish of driving through heavy Los
Angeles freeway traffic. As a result, the company anticipates the
continued expansion of its vanpool program.
For further information on the Ralph M. Parsons Company program,
contact Dr. Henry Francis, Ralph M. Parsons Company, 100 Walnut,
Pasadena, California 91124, (213) 440-2477.
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POLISAR, LTD. COMMUTER VAN COOPERATIVES
SARNIA ONTARIO, CANADA
In 1966, the first commuter cooperative began operating at the Canadian
company of Polisar, Ltd. Since that time, seven additional commuter
cooperatives have been formed to expand the service to 16 vans carying
a total of 500 workers daily. It is the associations rather than
Polisar which own the vehicles. The commuter associations are nonprofit
and generally have one van which transports 30 to 35 members on three
shifts. However, some of the commuter groups, such as the North End
Commuters Association, have grown to include over 100 members using
three vans.
Associations were initiated due to a scarcity of parking facilities
at Polisar and concern about air pollution. In order to join a van
association, employees are required to pay a minimum initiation fee,
as well as join the Polisar Credit Union to allow for deductions
of the van fares from their paychecks. Through their fees members
become part owners of the van. The members also elect officers who
administer the van program on a daily basis.
The vanpool program at Sarnia is unique in that the vans are utilized
for three shifts per day. Because members' shifts may change quite
frequently, there is no one permanent van driver. Instead, all members
are required to drive when necessary, the particular drivers for
the day being determined by who lives closest to the driver on the
next shift. Each member has a plastic disc displaying his name and
address, which he places on the appropriate peg of a board located
in the van. Through this method the participants are able to indicate
the next time they will be commuting. The route for a particular
shift is therefore determined by the driver by putting the disc from
the proper peg in location order. Members are then picked up at
their doors and driven to a special parking place at Polisar. The van
is left at the space for the shift getting off from work at that
time. After dropping the new passengers off at their homes, the driver
parks the vehicle in the driveway of the driver for the following
shift, and walks home.
The commuter associations obtain vehicle maintenance in a number
of different ways. While some groups have designated one person as
being responsible for securing fuel and repairs, others have the
vans fueled and serviced at regular intervals. Finally, some associ-
ations with relatively compact pickup areas have the vans dropped off
at a local gas station upon completion of the homebound route. The
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station checks fuel and maintenance during the interim period, and the
driver for the next shift picks up the vehicle there.
By using the van for three shifts, 7 days a week, the commuter
cooperatives are able to minimize costs and members fees. The average
yearly fixed cost is approximately $1,800 and operating costs come
to about 9 cents per mile. As a result, the member in an average club
of 30 to 35 participants pays a weekly fee of between $2.00 and
$3.00, with money left over at year's end being returned. The multi-
shift method has worked well, and the associations reimburse members
for expenses incurred because of any mixup. In all, van riders find
the service to be both economical and convenient and are generally
pleased with the program.
For additional information on the Sarnia commuter van cooperatives,
contact Frank Hubbard, Polisar, Ltd., Sarnia, Ontario (519-337-8251),
or Tom Deveraux, 1151 St. Laurent Drive, Sarnia, Ontario.
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PRUDENTIAL INSURANCE
NEWARK, NEW JERSEY
Introduced to the vanpooling concept by literature on the 3M
experience, Prudential Insurance decided that such a program might be
an excellent means for them to reduce fuel consumption and vehicle
emissions. Thus, in July 1975, the company purchased the first van of
its current 108-vehicle vanpool program.
The company's 12-passenger vans provide door-to-door service for
employees, transporting them the 25 to 35 miles to one of Prudential's
satellite offices. The Prudential vanpool program is unique in that
it involves "reverse" commuting, i.e., picking up employees in the
City of Newark and taking them to suburban locations. Vanpooling is
one of the benefits offered to new employees.
The vehicles, which are insured under a general fleet policy and
self-insured for collision, are also used for general company business
during the day. Like other van programs, Prudential operates on
a break-even basis. However, the method fare calculation and collec-
tion used by the company is unique. At the end of each month,
Prudential sends the van driver a bill based on "chargeable' miles"
(total van mileage minus company business use miles). The charge of
10 cents per mile, which must be paid by the driver within 5 days,
finances all fixed and operating costs other than gasoline, which is
purchased by the driver. It is the responsibility of the driver and
passengers to determine the amount, method, and time of fare payment to
the driver. Through this procedure, the company is able to leave
such issues as fare payment during vacations to each pool group. This
allows the fare system to achieve a degree of flexibility not permitted
by the general fare collection procedure.
From its start, Prudential's vanpool program has received an extremely
enthusiastic response. The riders' appreciation of the convenient
commuter service and its corresponding effect on employee morale
have impressed the program directors as well as non-pooling employees.
For additional information on the Prudential vanpool program, contact
Pete Torgersen, Prudential Insurance Company of America, Prudential
Plaza, Newark, New Jersey 07101, (201) 877-7776.
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RESIGN COMMUTER BUS
RESTON, VIRGINIA
In 1969, the growing community of Reston, Virginia initiated its
subscription bus service to the Washington, B.C. metropolitan area.
Since that time, the service has become a non-profit corporation
providing low-cost commuter bus service (RCB) for 2,400 Reston resi-
dents each day.
In February 1974, RCB began operating a 12-passenger van between
four pick-up points in Reston and Rockville, Maryland - 30 miles away.
The van service, complementing the large bus system, now includes
three vans taking 35 commuters from their homes to the Pentagon,
Crystal City, National Airport and Bethesda.
The van program, which is operated by the RCB office staff under
a board of directors and officers, purchased its deluxe vans in part
with an interest free loan from RCB covering a 25 percent down payment.
The remaining cost of the vans was financed through a 10 percent
loan extending over 3 years. Since RCB is a non-profit organization,
the van system is run on a break-even basis, with passenger fares
servicing all costs. Fares, which are based upon eight paying passen-
gers, range from $42 to $44.50 per month.
Van drivers are required by RCB to secure a chauffeur's license
(not required by state law) in order to ensure better drivers and
minimize insurance costs. Drivers are given free rides, and are
responsible for obtaining fuel and minor repairs. Regular maintenance
for all vans is provided by a private garage.
When RCB first began its van operation, the service was determined
by the State Corporation Commission to be subject to regulation as
a common carrier. However, RCB was able to obtain an amendment to
existing Virginia law exempting "mini-buses" from SCC regulation
as long as their routes and schedules do not coincide with those
of certified carriers.
The van program has proven to be an important supplement to RGB's
Commuter Bus System. Riders realize significant savings over the
costs of automobile commuting, and perhaps more important for Reston,
the commuter transportation program has proven to be a significant
factor in the decision of many people to move to Reston.
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For further information on Reston Commuter Bus, Inc., contact
Lawrence Frisbee, Reston Commuter Bus, Inc., 11404 Washington Plaza
West, Reston, Virginia 22090 (703) 437-7800.
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SCOTT PAPER COMPANY
PHILADELPHIA, PENNSYLVANIA
In August 1975, Scott Paper became the first Philadelphia company
to experiment with vanpooling. Scott's two leased vans transport
19 employees over daily routes of 25 and 45 miles. A third van serves
as an airport shuttle and backup commuter van.
The vanpool program is funded entirely by the passenger fares; the
company strongly believes that it should not subsidize any one partic-
ular group of employees. Fares are calculated on the basis of eight
paying passengers, and are currently $24.80 and $29 per month. Since
Scott has a fleet of leased cars, the vans are covered by a fleet
insurance policy for about $40 per month per van.
Perhaps the most unique feature of the Scott Paper commuter van program
is the method of promotion. The company, assisted by the Delaware
Valley Regional Planning Commission, held special employee meetings
and distributed vanpool questionnaires. The project was also well
publicized in the company's daily paper. Once a potential group
was established, Scott borrowed a van for a week from its leasing
company, Automotive Rentals. Through this arrangement, the two
prospective pool groups were able to become acquainted with vanpoolf.ng
at no cost to themselves. So far, this trial-run procedure has proven
to be successful in establishing permanent vanpools.
One problem which Scott Paper did face in the planning stages of
its van project was uncertainty as to the financial wisdom of entering
into such a new venture. As a result, the company decided to entej:
into an "Abort Agreement" under the carpool demonstration provisions of
the Emergency Highway Energy Conservation Act, Public Law 93-239, as
amended. Under such an agreement, the Federal Government consent* to
fund 90 percent of losses incurred should the vanpool project be forced
to terminate during the life of the agreement (12 months). Despite the
attractiveness of such a plan, Scott found that the 7 month delay in
their van program which resulted as the details of the agreement were
worked out had a detrimental effect on employee interest. By the time
the plan went through, enthusiasm for vanpooling had been reduced
considerably. Consequently, the Director of Scott Paper's Program
believes that it is not worthwhile for a company to attempt to get an
Abort Agreement unless it is considering the purchase of a large number
of vans.
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For additional information on the Scott Paper Company's vanpool
program, contact Robert Mantell, Scott Paper Company, Industrial
Highway Plaza One, Philadelphia, Pennsylvania, (215) 521-5000,
extension 300.
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SPERRY FLIGHT SYSTEMS
PHOENIX, ARIZONA
In response to the energy crisis in late 1973, Sperry Flight Systems
began a search for a reliable and economical means of transporting
employees to supplement their existing carpool program. Borrowing the
idea of vanpooling from the 3M Company, the Sperry Sponsored Transit
Program began in April 1974 with four 12-passenger vans.
The program now includes 11 vans providing commuter service for 130
of Sperry's employees at its three Phoenix locations. The company
provides liability, collision, and comprehensive damage insurance
coverage for drivers, passengers, and the vans.
Operating on a break-even basis, fares are calculated to cover all
costs of the program based upon a 9-passenger per van ridership.
Each rider is required to pay for a full month (20 days), and is
reimbursed for rides not taken if he or the driver fills his seat
during the absence. Additionally, Sperry reimburses fares lost by
a rider who has been requested to work overtime.
Recognizing the significance of the pool coordinators to the success
of the vanpooling program, the company has established stringent
qualification requirements. Drivers and alternate drivers'are chosen
by lottery from candidates who have been satisfactorily employed
by Sperry for at least 1 year and have not had over two traffic
violations in the previous 3 years. In addition, each driver
and alternate is required to obtain a Class A chauffeur's license
and complete a course in defensive driving certified by the National
Safety Council. The pool coordinator is responsible for driving
and maintaining the van, establishing pick-up points and schedules,
collecting fares, and filing a monthly expense report. In return, the
driver rides free, keeps the fares of the llth and 12th passengers, and
is permitted to use the van during nonbusiness hours at a minimal
cost.
According to the Director of the Sperry Sponsored Transit Program,
maintenance of the vans initially proved to be a problem. With
each driver using different maintenance companies, Sperry had little
control over the quality and costs of service. Additionally, pool
coordinators found it necessary to take time off from work to obtain
van maintenance because such service is unavailable in the Phoenix
area during evenings or weekends. This situation was resolved,
however, when Sperry signed an agreement with the company from which
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they lease their vehicles. The leasing company now arranges for
the pick-up, repairs, and return of the vans. Sperry has found
that such a procedure allows for more economical and efficient
maintenance.
Through the operation of its van program, Sperry has found that vans
are most economical when serving commuters living over 20 miles from
the plant, with a waiting list of several people to ensure maximum
ridership. Vanpools with one-way routes of less than 10 miles have
not been successful because the financial and time costs of vanpooling
at such distances is greater than that of driving alone or carpooling.
In summary, Sperry Flight Systems is pleased with the progrss of
its van program to date. Promotion is vociferous and on-going and
the company expects to expand its van fleet as employee interest
permits.
For additional information on the Sperry Sponsored Transit Program,
contact Betty Dearling, Sperry Flight Systems, Mail Staton 101E,
P.O. Box 21111, Phoenix, Arizona 85036, (602) 942-2311, extension
211.
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TENNESSEE VALLEY AUTHORITY
KNOXVILLE, TENNESSEE
In June 1974, in response to the energy crisis and traffic congestion
in the Knoxville business district, the Tennessee Valley Authority
(TVA) initiated a vanpool program in cooperation with the TVA Employees
Credit Union. The program began with six 12-passenger vehicles and
has since been expanded to a total of 226 vanpools at 10 sites in
2 states.
Initially begun as a demonstration project, the vanpool program has
become an integral part of a comprehensive employee commuter transpor-
tation program that transports TVA workers to relatively isolated rural
nuclear power plant construction sites, to congested central business
districts in Knoxville and Chattanooga, and to outlying power produc-
tion facilities. TVA has saved at least $10 million by reducing the
need for additional parking and highway facilities. The vanpool
program has also reduced tardiness and absenteeism, increased employee
morale and is credited with tripling minority employment on one major
construction project.
The vanpool program is administered by three TVA Credit Unions, each
having a Vanpool Project Committee. There are five members on each
project committee—three appointed by TVA and two appointed by the
respective credit union. The operation of the TVA program is particu-
larly interesting due to legal restraints which prevent the agency
from directly administering it. Federal Law (3) USC Section 638(a)(c)
(2) forbids the utilization of Government-owned vehicles for
transporting Government employees between their homes and place of
employment. As a result, an agreement was drawn up between TVA and the
TVA Employees Credit Union (a private agency) delegating the responsi-
bility for leasing the vans and administering the program to the Credit
Union.
The vans were originally leased from Hertz Rent-A-Car for a period
of 2 years. To avoid downtown parking costs and to make full use of
the vans, the credit union subleased the vans to several local
Community Action Agencies between the hours of 8:30 A.M. to 4 P.M.
Because of administrative and logistical problems, the subleasing
arrangement had a nearly ruinous effect on the program. TVA soon
realized that its policy of subleasing vans at operating cost was not a
good financial decision, and terminated the agreement in January 1976.
As the program expanded, the Knoxville Project Committee decided
to purchase the vans instead of leasing them because of the significant
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monetary advantages of purchasing, such as fleet discounts and
additional revenues from the resale of vans.
TVA operates a program to ease the transportation problems associated
with construction of their Hartsville Nuclear Plant. Maximum traffic
will occur during the middle 2-1/2 years of a 10-year construction
period when there will be approximately 6,000 construction workers
employed on the site. In August 1977, 49 percent of the 2,500
construction workers were traveling in vanpools and 5 percent in buses.
The average vehicle occupancy of all vehicles is 3.5. TVA has a goal
of 5.0 persons/vehicle during peak construction activity. This
approach is designed with the primary purpose in mind of reducing
vehicular traffic on state routes.
The operating cost of each van is 11 cents per mile, and fares are
established to finance this and the fixed costs. Fares are paid weekly
by construction workers and monthly by all other employees by means of
payroll deduction or by check. Monthly subscription fares for riders
range from $13.25 to $62.25 per month, depending on the distance from
work.
Van drivers are not required to have any kind of special license,
only a valid driver's license. In March 1976, the Tennessee General
Assembly passed a bill (House Bill No. 2184) exempting vanpools from
the regulatory powers of the State Public Service Commission (PSC).
Major credit for the passage of this legislation must be given to
the professors at the Unversity of Tennessee's Transportation Center
who initiated and followed the legislation through the House. The
bill limits ride-sharing programs to operators "engaged primarily in
the hauling of fifteen (15) or fewer passengers to and from their
regular places of employment, taxicabs and airport limousines
excepted "
For additional information about the TVA vanpool program, contact
Stanley Stokey, Tennessee Valley Authority, 301 West Cumberland Avenue,
Knoxville, Tennessee 37902, (615) 632-4325.
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TEXAS INSTRUMENTS, INC.
DALLAS, TEXAS
As a result of Environmental Protection Agency transportation control
regulations and a desire to conserve fuel and reduce pollution,
Texas Instruments began its carpool program in March 1974. Part of
a comprehensive ride-sharing effort by the company, the "Trans-I-Van"
program is modeled after that of 3M. Initiated with the purchase
of five 12-passenger vans, the program now operates 14 vehicles
traveling 60 to 130 miles round trip each day. The company has also
provided one additional van to serve as a backup in case of emergency.
Texas Instruments publicizes its van program by word of mouth and
through the use of a special poster displayed on company bulletin
boards. With a 13,000 car lot, the company does not have a shortage
of parking spaces. However, both carpools and vanpools do receive
preferential parking.
Fares for the van program are established so that all fixed and
operating costs will be financed at the end of 4 years. A conse-
quence of this method of funding the program is that the company incurs
a loss on new vans and a profit on old ones due to depreciation
considerations. By evenly spreading the fixed costs of the van over a
number of years, the fares are prevented from being artificially high
during the first years of a pool.
Similar to most other van programs, drivers are required by the
state to obtain chauffeur's licenses. In addition, Texas Instruments
requires that a driver must have a good driving record, be a
responsible individual, and be able to provide off-street parking for
the van.
For additional information on Texas Instruments Trans-I-Van program,
contact Marvin Powers, Texas Instruments, Mail Station 361, 13500 North
Central Expressway, P.O. Box 5474, Dallas, Texas 75222, (214) 238-3787.
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UNIVERSITY OF CALIFORNIA
SAN FRANCISCO, CALIFORNIA
The University of California instituted an employee vanpooling program
in September 1975 with two 12-passenger vans. Since that time, the
program has expanded to a total of 20 vans in operation.
The vans are used for commuting purposes and also are employed during
the day as shuttle buses. The average commuting trip is 25 miles
one way. The average fare is $32 per month; however, each passenger's
fare varies according to the distance traveled. As an incentive,
the driver of the van rides free but is not permitted private use of
the van. Insurance is handled through two University of California
insurance policies which cost a total of $260 per van.
For further information concerning the University of California
(San Francisco) vanpooling program, contact James Wood, University
of California, Business Services Office, 1379 Third Avenue,
San Francisco, California 94143, (415) 666-1511.
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WINNEBAGO INDUSTRIES
FOREST CITY, IOWA
With 70 percent of their 2,700 employees commuting from out of town,
the situation at Winnebago Industries was ripe for a company-sponsored
ride-sharing program. The company began a vanpool in December 1974,
as a result of a high absentee rate due to transportation inadequacies
and expensive commuting costs due to the energy shortage. Beginning
with 10 vehicles, the program has since expanded to the current 29 vans
serving over 700 employees daily. Also, three 40-passenger chartered
buses are used to supplement the van operation.
The van program uses Winnebago vehicles—twenty-six 21-passengers and
three 40-passengers. Operated on a break-even basis, the vans transport
employees an average of 70 miles round trip each day for a charge of
$28 per month. Drivers receive a portion of the income as well as a
free ride.
In the opinion of the Program Director, the only ongoing problem has
been that of securing good drivers with the necessary qualifications.
Otherwise, the van program has worked well. Despite the fact that
several of the vans transport employees from residences in Minnesota,
the company has experienced no regulatory restrictions to date.
Vanpooling has resulted in tremendous savings for both the company and
its employees. Consequently, most routes have waiting lists of people
who would like to participate in the pool program.
For additional information on the Winnebago vanpool program contact
Shirley Machenk, Winnebago Industries, P.O. Box 152, Forest City, Iowa
50436, (515) 582-3535.
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V A N P 0 0 L
COST and FARE
CALCULATION
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VANPOOL COST
AND FARE CALCULATION
Sample
Your Van
A. Calculate the monthly fixed cost of a
purchased vehicle
1. Determine the cost per month for
depreciation purposes
Start with the cost of the vehicle
Subtract immediate depreciation (tires)
Less salvage value (after 4 years)
Equals depreciable value
2. Add other annual expenses
License, registration, taxes
Insurance
Equals other fixed expenses
3. Monthly fixed cost (items 1 plus 2 above)
4. Add optional maintenance contract
Total Monthly Fixed Cost
$7,400
- 200
$7,200
-2,800
$4,400 or
$ 92/month
$ 120
+ 460
$ 580 or +$ 48/month
$140/month
+$ 35/month
$175/month
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Sample Your Van
B. Or calculate the monthly fixed cost
of a leased vehicle
1. Start with your monthly leasing cost $140/month
2. Add maintenance contract (if not in lease) 35/month
3. Add insurance (if not in lease) 40/month
Total monthly fixed cost $215/month
C. Calculate per mile operating costs
for purchased and leased vehicles
GO
1. Start with the cost of gasoline
(60^/gal. 7 9 mi/gal.) $0.067/mile
If you included a maintenance
contract on A or B, gas is your only
per mile cost. Otherwise:
2. Add the cost of oil change, filter and
lubrication 0.005/mile
3. Add other maintenance cost 0.012/tnile
4. Tire costs over the life of the van 0.006/mile
Total operating cost/mile $0.09 /mile
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Sample Your Van
D. Calculate passenger fares
Start with each van's daily round
trip distance 50 miles
Multiply this by your average
number of workdays in a month x20 = 1,000 miles
Multiply this by your per mile
operating cost from C x$0.09 = $ 90/month
Add the van's monthly fixed cost
from A or B + $ 140 = $230/month
Divide this cost by your breakeven
number of passengers T 9 = $ 26/nionth
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BIBLIOGRAPHY
0 F
V A N P 0 0 L
RESOURCE
MATERIALS
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A VANPOOL BIBLIOGRAPHY
EMPLOYER GUIDES
Highway Users Federation, How To Pool It, Washington, D.C., U.S.D.O.T.,
F.H.W.A., May 1975.
Pratsch, Lew W., Car Pool and Bus Pool MatcjiingJ?uide (4th ed.),
Washington, D.C., U.S.D.O.T., F.H.W.A., January 1975.
U.S. Department of Transportation, Federal Highway Administration, User
Documentation for the FHWA Car Pool Matching Program, 2nd ed., Washington,
D.C., U.S. Government Printing Office, June 1975.
Commonwealth of Massachusetts, Department of Public Works, Masspool - A
Vanpool Program Guide, Boston, Massachusetts, July 1976.
Federal Energy Administration, Vanpool Implementation Handbook, Washington,
D.C., February 1977.
Department of Energy, Vanpool Implementation Manual, Washington, D.C.,
December 1977.
VANPOOL PROGRAMS
California Department of Transportation, Demonstration Van Pool Project -
Sacramento Metropolitan Region, Sacramento, California, June 1975.
Continental Oil Company, Van Pooling - A Commuting Alternative That
Works, Houston, Texas, July 1976.
Chrysler Corporation, Commuter Van Pooling Operations Guide for
Employers, Detroit, Michigan, September 1976.
Owens, Robert D., and Sever, Helen L., The 3M Commute-A-Van-Program,
St. Paul, Minnesota, 3M Company, January 1977.
Report to Ontario Ministry of Transportation and Communications,
Demonstration Project, Car Pool Concepts, Sarnia Van Pool Operations,
Vol. I, Ontario, Canada, DeLeuw Gather, Ltd., June 1974.
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Tennessee Valley Authority and TVA Employees Credit Unions, Van Pooling
- Go Via Van, Knoxville, Tennessee, August 1976.
Shallbetter, Clarence, and Herzberg, Gary G., COMMUTER CLUB People Who
Are Going Places. Includes three reports: Final Report, April 1977;
Marketing Plan, January 1977; and Operations Manual, March 1977.
GENERAL VANPOOL INFORMATION
Baltimore Regional Planning Council, The Potential of A Regional Van
Pooling Program (preliminary reconnaissance), by Emery Hines, Baltimore,
Maryland, May 1975.
Kirby, Ronald F., et al., Paratransit: Neglected Options for Urban
Mobility, Washington, D.C., The Urban Institute, 1975.
Department of Energy, Marketing Plan to Accelerate the Use of Vanpools,
Washington, D.C., December 1977.
Reed, Marshall P., Jr., The Econ om ic Cost of Commuting, Washington,
B.C., Highway Users Federation, July 1975.
Shallbetter, Clarence, and Herzberg, Gary G., Shared Ride Services,
Minneapolis, Minnesota, Public Service Options, July 1975.
U.S. Department of Transportation, Car Pool Incentives and
Opportunities, Washington, D.C., February 1975.
Miller, Gerald K. , and Green, Melinda A., Guidelines^for the
Organization of Commuter Van Programs, Washington, B.C., The
Urban Institute.
Urban Transportation and Energy, The Potential Savings of Different
Modes, a study prepared by the Congressional Budget Office, September
1977.
Davis, Frank, Jr., and Burkhalter, David A., Vanpooling Institutional
Barriers, Department of Energy, Washington, D.C., December 1977.
Environmental Protection Agency, Vanpooling: An Overview,
(908/1-78-001) Denver, Colorado, February 1978.
Environmental Protection Agency, Air Quality Impact of Transit
Improvement^ Preferential Lane and Carpool/Vanpool Programs,
Washington, D.C., March 1978.
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