SR-6-M (70)
6-11
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srtpsh91
council Meeting:
Santa Monica, California
March 12, 1991
TO: Mayor and City Council
FROM: city staff
SUBJECT: Authorize the Filing of an Update to the Short Range
Transit Plan, the Filing of Applications for Funds and
Set a Date for a Public Hearing concerning Bus Fare
Adjustments
Introduction
This report requests that the City Council authorize the city
Manager to file an update to the Short Range Transit Plan (SRTP)
in order for the Santa Monica Municipal Bus Lines to remain
eligible for federal and state transit funds,
and file
applications for funds based on the SRTP.
In addition, this
report requests that the city council set a date for a public
hearing concerning proposed adjustments to the Santa Monica
Municipal Bus Lines fare structure.
Backqround
In accordance with requirements of the Los Angeles County
Transportation
commission
and
the
Federal
Urban
Mass
Transportation Administration (UMTA), every three years, the city
must submit an SRTP, in order to remain eligible for federal and
state funding assistance.
The SRTP examines existing services,
serves as justification for future projects and presents a
three-year financial plan for the Santa Monica Municipal Bus
Lines.
In addition, the SRTP also projects the Municipal Bus
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~ fit
Lines' capital program for the next three years, including fleet
replacement, facility improvement, equipment modernization and
other capital needs.
A complete SRTP for fiscal years 1991-93 was adopted by the City
Council on February 27, 1990. This year and next, the LACTC and
UMTA require updated financial and operating information only. A
complete Plan will again be prepared in 1993.
Revenue projections included in the update assume an increase in
the basic cash fare from $.50 to $.60, with other discount and
express fares being adjusted also, to become effective at the
beginning of FY 1991-92; the first change in fares since July,
1983. This would permit the Municipal Bus Lines to stay within
LACTC's county-wide farebox return guidelines and help defray
some of the cost increases which have occurred during the past
eight years.
Before considering any fare change, the city council must hold a
public hearing. Notice of the hearing will be advertised in the
newspaper and posted in each of the buses approximately thirty
days prior to the hearing. In order to permit time to prepare
the notice and post signs, staff recommends that the hearing be
held at the City Council meeting of June 11, 1991. Specific
details of the proposed fare structure changes will be provided
to the City Council in advance of the public hearing.
Financial Analysis
A three-year financial forecast is contained in the SRTP update.
Financial projections to be submitted for fiscal year 1991-92
will serve as the basis for preparation of the Transportation
Department budget, which will be considered by the city council
during the city budget process. Fiscal years beyond 1991-92 will
again be addressed in next year's SRTP update and in future city
budgets.
The Municipal Bus Lines' financial plan forecasts the use of
transit subsidy funds based on its formula share of LACTC's
projected county-wide allocation of transit funds for fiscal
years 1991-92 through 1993-94. For FY 1991-92, the formula
allocation funds to be received by the Transportation Department
for operating purposes are projected at $9.0 million. Projected
capital expenditures in the amount of $1.2 million are fully
funded from subsidy sources.
Operating revenues generated by the Bus Lines (fares, charter,
advertising, interest and lease revenues) are estimated to
increase by 13% over last year to approximately $9.1 million.
This is primarily due to the proposed passenger fare increase
mentioned above, which is assumed to produce approximately $1
million in additional farebox revenues.
Recommendation
City staff recommends that the City Council:
1) Authorize the City Manager to file the required updates to
the Short Range Transit Plan; and,
2) Authorize the City Manager to file applications for transit
subsidy funds made available by the Los Angeles County
Transportation Commission; and,
3) Set June 11, 1991 as the date of a public hearing to
consider adjustments to the Santa Monica Municipal Bus Lines
fare structure and authorize staff to publish all
appropriate notices.
Prepared by: J. F. Hutchison, Director of Transportation
Stephanie Griffin, senior Administrative Analyst