Transit Cost Allocation Model Development

The analysis indicates that a one-variable model based on vehicle miles does not account for the route operating efficiencies in terms of operating speed as well as vehicle utilization. A two-variable model consisting of unit cost factors for vehicle miles and vehicle hours more accurately reflects the route efficiency in terms of operatig speed, but does not account for economy relative to vehicle utilization. The three-variable cost allocation model consisting of unit cost factors for vehicle miles, vehicle hours, and peak vehicles more accurately reflects both efficiency measures. The analysis of route costs suggest that the greater the difference in the speed and peak vehicle utilization of a route from the system-wide average, the larger the disparity in individual route cost results from the three formulas. The paper recommends utilization of a three-variable cost allocation model for operational planning purposes.