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SR-1000-001-02 (2) BBB:DEVEL:JC:PC:F:\STAFFREPORTFOR FARE Council Meeting: March 6, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Scheduling a Public Hearing Concerning Bus Fare Adjustments Introduction This report requests that the City Council set May 22, 2001 as the public hearing date to consider proposed adjustments to the City’s Big Blue Bus fare structure. The last fare adjustment was implemented July 1, 1991. Background Since the adoption of the first Big Blue Bus Service Improvement Program in Fiscal Year 1997, the Big Blue Bus has increased service by 30 percent, and passenger boardings have increased 14 percent. During the same period, the operating cost per passenger increased 28 percent. Since the implementation of the 50 cent fare in 1983, the operating cost per passenger has increased 126 percent. An expanded workforce and the increased cost of labor, fuel and materials have contributed to the increase in operating expenses. Traffic congestion system-wide requires the deployment of more buses to maintain the same frequency of bus service. The cost of providing transit service has been steadily increasing for the Big Blue Bus since the last fare adjustment ten years ago. As part of the Big Blue Bus triennial Line-by-Line Analysis process and Service Improvement Plan update, surveys of Big Blue Bus passengers have been conducted and travel patterns have been analyzed to determine what service improvements are needed over the next five years. Future service costs and future fare revenues have been projected. Fare restructuring is necessary to permit the Big Blue Bus to stay within Los Angeles County Metropolitan Transportation Authority’s county-wide farebox return guidelines and finance future service improvements. In addition to the on-board passenger surveys that were conducted, the potential fare increase was discussed at a series of community outreach meetings held between January 13 – 20, 2001. Broadly defined fare scenarios were presented to the public to determine customer opinions of various restructuring options. Prior to the proposed public hearing, specific information about the fare structure to be presented to the City Council will be made available to the public for review approximately three weeks prior to the fare hearing. Discussion Before considering a fare change, the City Council must hold a public hearing. Notice of the hearing will be advertised in the newspaper and posted in all buses thirty days prior to the hearing. In order to allow time to prepare notices, staff recommends that the hearing be scheduled for the City Council meeting of May 22, 2001. Details of the proposed fare structure will be provided to the City Council and public in advance of the public hearing at a community outreach meeting. Budget Impact There is no budget impact associated with this item. Recommendation City staff recommends that the City Council set May 22, 2001 as the date of a public hearing to consider adjustments to the City’s Big Blue Bus fare structure and authorize staff to publish all appropriate notices. Prepared by: John Catoe, Director of Transit Services Joe Stitcher, Deputy Director of Transit Services Paul Casey, Senior Transit Programs Analyst