Cost per User as Key Factor in Project Prioritization: A Case Study of the San Francisco Bay Area

Efforts to accommodate increasing and dispersed demand for travel in the face of mounting traffic congestion, escalating construction costs, lim­ ited right~ ofway, and diminished air quality have caused planning agen­ cies to adopt plans that would enhance transit choices. Faced with fiscal limitations, the need to prioritize the ever-growing list of improvement projects is paramount. To meet this need in the development of the Bay Area System Plan for Regional Express Bus Service in California, a survey ofexisting literature on capital investment prioritization in trans­ portation was conducted. This review led to development ofa simple pri­ oritization methodology with which to analyze the projects. Unit costs per ride were calculated to facilitate comparisons between the various proposals. The cost estimation procedure involved a systematic sequence of analyses that included the development and quantification of concep­ tual design elements, application of unit capital as weil as operation and maintemlllce costs, and matching of annualized costs with annual rider­ ship to derive unit costs per affected ride. Results revealed that the greater majority of proposed improvements could be implemented at a relatively low total cost. The estimates also suggest that most proposed Improvements will not odd very significant additional costs per ride to existing operatiollS. The case study demonstrates the utility of a prioriti­ zation method that emphasizes the user benefits of projects and illustrates an approach that could be used by other agencies.