SR-1000-001-02 (3)
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Counc:ll I-Ieetlng
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Californla
May 24, 1983
M~~ 2 4 \9B3
TO
~ayor and Clty Councll
FRml'
Clty Staff
SUBJECT
A MOTION TO SET A PUBLIC HE~RI~G ON A PROPOSED FARE ADJUSTIJE~T
FOR THE SANT>\. tIO\JICA ~llliICIPAL BUS LINES
Introductlon
Slnce 1980, the Santa Monlca MunlClpal Bus Llnes has malntalned a 35~ cash fare
on ltS Blg Blue Buses
Increased operatlng expenses Slnce that t1me have made It
necessary to conslder an lncrease ln the baslc fare for FY 1983-84. This lncrease
In fare to a level currently charged by SCRTD and all other major munlcipal oper-
ators In Los ~ngeles County would also permlt the Clty to be ellglble for Propo-
sltlon ~ fare subSldies
This report requests that the Clty Councll set a date
and tlrne for a publlc hearlng to conslder a proposal to lncrease the baS1C fare
and make other fare adjustments on the Santa Monlca Munlclpal Bus L1nes.
Background
Reasons for the Fare Increase
The Clty Councll last adopted a general fare lncrease (to 3S~) for the Santa Mon1ca
~funlclpal Bus Lines on October 28, 1980. Thls fare lncrease enabled the ~funlclpal
Bus Llnes to collect over 50% of the operatlng expenses necessary to run the system
from passenger fare revenues In FY 1980-81. Increased operatlng expenses have Slnce
dlminlshed the percentage contrlbuted by users of the system
It 1S estlmated that
patrons ,,111 be paYlng about 40% of operatlng expenses ln FY 1982-83. I'll thout an
lncrease In fares, thIS contrlbutlon wlll dec1lne to 33% ln FY 1983-84. DurIng
FY 1980-81, FY 1981-82 and FY 1982-83, costs lncreased S3.S rnill1on, whl1e fare
revenues Increased only $50,000. ThlS r1se In operating costs 1S pr1marJly attrl-
buted to Increased wages and frlnge beneflts for Transportat1on Department employees
(Sl.8 rnllllon), hlgher costs for fuel and 011 (S550,OOO), and repalr parts and
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MAY 2 4 \983
TD:JFH:HD:dag
CouncIl Meeting
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May 24, 1983
41tnta MonIca, CalIfornIa
serVIces ($700,000)
These Increased expenses have been met by hIgher SubsIdIes
from federal and state fundIng sources. Ilowever, revenues from these sources
are not expected to Increase In the future, and May In fact declIne due to budget
problems In WashIngton and Sacramento.
ProposItIon A, whIch enacted the ~% sales tax for publIc tranSIt In Los ~ngeles
County, stIpulated that for the perIod from FY 1982-83 through FY 1984-85, a por-
tlon of the funds would be allocated to reduce the baSIC fare (prImarIly for SCRTD)
to 50~ and adJust other fares accordIngly.
ImplementatIon of a baSIC cash fare of 50~ would qualIfy Santa ~Ionlca for subSIdy
from the PropOSItIon A Fare ReductIon Program. The Los Angeles County TransportatIon
CommIsSIon (LACTC), WhICh admInIsters the Prop A program, has, upon agreeIng with
the local POlICY board on a ~emorandum of UnderstandIng, reImbursed operators for
the amount of theIr operatIng defIcIt In a gIven year. The FY 1983-84 Budget and
Short Range TranSIt Plan for the ~mnlclpal Bus Lines IndIcate a reImbursement level
from the program of up to $1.5 mIllIon In FY 1983-84. The adoptIon of an elIgIble
fare under PropOSItIon A would guarantee suffICIent SUbSIdy funding to maIntaIn
stable fares for FY 1983-84 and FY 1984-85
In FY 1985-86, the Fare ReductIon
Program WIll be replaced wIth a substantially smaller dIscretionary fundIng program
admInIstered by the LACTC as almost half of the funds must be dIverted to raIl
purposes.
WIth the exceptIon of the CIty of Santa ~1onlca, all of the maJor municipal operators
In Los ~ngeles County as well as the Southern CalIfornIa RapId TranSIt DIstrlct are
partIcipatIng In the Fare ReductIon Program. SCRTD, Long Beach, Culver CIty, Tor-
rance, Gardena and }1ontebello adopted 50~ base fares one year ago as part of a general
fare adJustment to brIng fares to PropOSItIon ~ levels.
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Counc 11 ~Ieetlng
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:>Iay 24, 1983
4Itnta MonIca, CalIfornIa
Present and Proposed Fare Sturctures
In order to help meet rIsIng expenses, to Increase the fare box contrlbutlon by
our rIders and to render the CIty ellglble for Fare ReductIon subsldles, the
followlng fare structures are suggested for City CouncIl conSIderatIon.
For comparlson purposes, current fares are also llsted.
Current Alt. #1 Alt. #2
Local Cash Fare .35 .50 SO
Token Fare .30 .45 .45
Free\"ay Fare 1.00 .80* 80"
Senlor Freeway Fare .50 .40* .40*
Students (Thru Hlgh School)
10-rlde card .175 .20 .20
College students (under 21) .35 .50 .35 (10-nde card)
SenIor CItIzens .15 .20 .20
DIsabled 15 .20 20
Transfers to SCRTD and
Culver City .20 .10* .10*
BIg Blue Bus Transfers Free Free Free
BlInd Free Free Free
* InterpretatIon of fares allowed under ProposItion A permIt reductIon
of these fare categorIes.
Both of the alternatIves are ellglble for ProposItIon A Subsldles. AlternatIve #2
provldes a reduced fare for college students who buy a la-rIde card for $3.50. Cur-
rently, SCRTD offers a college student monthly pass for ~4.00, whlle Culver City
provldes a 20~ fare for college students
Alternatlve ~2 would permIt the ~illnl-
clpal Bus LInes to remaIn somewhat competItIve by retaIning the 35~ fare for college
students under 21 years of age. However, adoptIon of a specIal college student fare
would reverse the Clty CouncIl's deciSIon to elImInate college student dIscounts at
the tIme of the last general fare Increase In 1980.
Legal ReqUIrements to Increase Fares.
The CIty Councll may set fares upon adoptIon of a resolutIOn. However, State and
Federal requlrements mandate a more complex procedure. To satIsfy Federal regulatIons,
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Councl.1 Neetl.ng
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~anta Monlca, Callfornl.a
Hay 24, 1983
the Cl.ty may only l.ncrease fares after: (1) uSlng a locally developed process to
sollclt and conslder public comment; (2) havlng glven proper conslderatlon to the
Vl.ews and comments expressed by the pubIlc; and (3) havlng glven conslderatlon to
the effect on energy conservatl.on, and the economic, envlronmental and social lmpact
of the change l.n fare
Under 01apter 356, Statutes of Callfornla (1978), the State requlres that In lleu of
flll.ng an envlronrnentaI lmpact statement, a findlng be made that the fare lncrease
wlII be used for at least one of the followlng purposes; (1) to meet operatlng ex-
penses, lncIudlng employee wage rates and frlnge benefits; (2) to purchase or lease
supplles, equlpnent or materlals; (3) to meet financlal reserve needs and requlre-
ments, (4) to obtal.n funds for capltal proJects necessary to malntaln serVlce wlthln
eXlstlng serVlce areas, or (5) to obtal.n funds necessary to maintaln such lntra-city
transfers as are authorlzed by Cl.ty charter. The City must lTICOrporate ltS wrltten
flndlngs as part of the publlc hearl.ng record Clty staff would prepare a proposed
flndlngs statement for the Councll's consideration at the publlc hearlng.
Flnancl.al Analysl.s
Staff estlmates that by adoptlng the AIternatlve #1 fare structure, the Department
would recel.ve about $730,000 In addltlonal fare revenue
Under Alternate ~2, whlch
lncludes the speclal college dl.scount fare, the Department could expect approxlmately
$680,000 addltlonal fare revenue
Both prO]ectlons lnclude allowances for patronage
decllnes resultl.ng from the recent stabl.llzatl.on of gasoll.ne prl.ces and l.ncreased
fare competl.tion from SCRTD and Culver Cl.ty. In addl.tion to the l.ncreased fare re-
venues, the Cl.ty would also become ell.gl.ble for up to $1,500,000 l.n Proposl.tl.on ~
Fare Reductl.on Program subsldles as a result of adoptl.ng Proposltl.On A fares. The
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CouncIl MeetIng
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4Itnta MonIca, CalifornIa
May 24, 1983
receIpt of these funds would be subject to the executIon of a Memorandum of Under-
standIng WIth the LACTC. Staff has engaged In lengthy negotIatIons WIth L~CTC
staff over the past several months and WIll present the proposed ~emorandum of
UnderstandIng for CounCIl conSIderatIon at the publIC hearIng.
If the CIty CounCIl chose not to adopt a PrOpOSItIon ~ fare structure, the CIty
would be InelIgIble for Fare Reduction Program SubSIdIes
The prOjected PropOSItIon
A subsIdy needs would then have to be recovered from other sources of fundIng, In-
eludIng even hIgher fares. If the CIty Council agrees to set a publIC hearIng on
June 21, 1983 to conSIder a fare adjustment, CIty staff WIll present a recommended
fare for Council conSIderatIon at that meetIng.
RecommendatIon
CIty staff recommends that the City CounCIl set a publIC hearIng concernIng the
adjUstMent of fares on the Santa MonIca ~mnIcIpa1 Bus LInes for ItS meetIng of
June 21, 1983.
Prepared by: J. F. HutchIson, DIrector of TransportatIon
Hank DIttmar, TransportatIon Program SpeCIalIst
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ADD
7t:.
MAY 2 4 1983
II-c
NOTICE OF PUBLIC HE~RING
SA\T>\ }JQNICA ~1U';ICIPAL BUS LIl\ES
PROPOSED F~RE C~4NGES
Not~ce ~s hereby glven that a publlc hearing wlll be held by the Clty
Counc~l of the Clty of Santa Monlca at the Santa MonlCa C~ty Hall,
1685 ~a~n Street, Santa Mon~ca, Ca1~forn~a, on Tuesday, June 21, 1983,
to rece~ve comments on poss~ble fare changes for patrons of the Santa
~on~ca ~llin~cipal Bus L~nes. The hear~ng will be held as an agend~zed
part of the C~ty Councll meetlng whlch starts at 7 30 p.m
II. The C~ty CounCll may adopt a fare structure subsequent to the pub1~c
hearing wh~ch reflects a comblnatlon of changes to the current fares
and/or restructurlng of the fare system. They wlll make thelr dec~s~ons
after cons~derlng the effect on energy conservat~on and the soclal, en-
Vlronmental and economlC lmpacts of changlng fares and/or reduclng serv~ce.
~t the hearlng, the Clty Councll wlll afford an opportunlty for ~nterested
persons or agencies to submlt elther orally or ~n wTltlng eVldence and
recommendat~ons loil th respect to chang~ng the fare structure.
III. The C~ty Councl1 w~ll be conslderlng poss~b1e adjustments to regular fares,
student fares, sen~or and dlsab1ed fares, express fares and ~nter-agency
transfer fees. Further, the Clty Counc~l wll1 be conslderlng posslbly
alter~ng one or more of the baslc elements of the fare structure ltse1f,
lncludlng but not 11m~ted to the ellg~b~l~ty requlrements for uSe of the
student dlscount card.
IV. The serv~ce area affected by the fare changes generally can be descrlbed
as the C~ ty of Santa 'Ionlca and adJ acent conunun~ t~es, lnc1uding Pac ~f~c
Pal~sades, Brentwood, Westwood, West Los Angeles, Beverl~.ood, Rancho
Park, Palms, ~hr Vlsta, ~arlna del Rey, Venice and Westchester.
V. A descr~pt~on of recommended opt~ons for a fare change lS available, upon
request, from the Santa ~~nlca Munlcipal Bus L~nes offlce, 1620 Slxth
Street, Santa Mon~ca, Callfornla 90401. Although these fare optlons are
available for review pr~or to and durlng the publ~c hearing lt must be
understood that the Clty Councll lS In no way bound by these opt1ons ln
lts cons~deratlon of the fare structure and may well develop a fare
structure totally dlfferent than the optlons available for review.
VI. A. Envlronment
Compared to other actlons the Santa Mon~ca Munlc~pal Bus Llnes would flnd
necessary to cover a slmllar percentage of operatlng expenses, ~ncludlng
serVlce cutbacks, these fare changes are not anticlpated to have a slgnlf-
lcant adverse lmpact upon the Santa Monlca Munlclpal Bus L~nes' serVlce
area.
B. Elderly and HandlCappe?
Sectlon 5(m) of the Urban Mass Transportatlon Act of 1964, as amended,
prov~des that elderly and handicapped persons are charged no nore than
one-half the peak-hour fare dUTlng non-peak hours.
Date
Mayor
Approved as to Form
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C~ ty A.ttorney
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To
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MAY 2 4 1983
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PRiJPCSED ::-4.RE CEA\TES
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\:::n:L:-e ~s ~ereb" g~ye- t~3.t e. ~l.:.bll"; ~e...:rlng ".-,:1: be heir.. :.v t'le C..:.tY
::)u..,c~': of -:::he Cltv a:: Sa"'1~.:i ':on:;.ca :o:.t :~e San:a \10TIl:::;:L Cl";:Y "':3.:1.
It-53 '1a!n Street, Santa \fCT11C3-. ;-::i-l1 fo!"n13.. 011 TuesC;1"., JL:.J"Ie .:::, 19';;:;,
~o "!:'eCel"e ";O"TJUllents on pos.:s~jle =~re -;.. '1<7.nges f::)"~ patrons 0= tIlE" S;;;.~~a
'lorlC..l 'fur-lL:::.':)a~ Bus ~1'1eS T~ie ;'<?a~l"'g ;..-~ll ;""e ;,.eld a.:: an :>.genul=l."'8.
p~rt 3f :'1e C.:t'\' Coun::::1l -ee:::=-'1g ,,;"h:;'" S-::~Y~.5 at - 3;'. U -.
II "'"11e Clt". ':::oun;:11 mav :1dop'!: 3. fare -=::t.::'~ctJre subSeG-:,J.ei"": :::0 t'=ic PUj::1"::
'-ea:::.-:!ng '''-''lC;-'' ref:ect-s. s- c;::;lIl::r~at::i.o"" 07 ':-~~mge5 -:0 t:"'e ":::.Lr:-e'"1t. fare~
'injfQr :-estructt:.rplg uf ~h~ !'are s".3te~ :~leV 'nil '1Ia~e ~"'-eE' de:::"SlO"""'S
G.f~~:'" ;:O'l5-:::....:er:r:.g t-~-e effect ::::'"} e"1-~rg} CO~ISer'atlO"'1 a'"1.d ~~e .5oc::..a:. e--
-'-:';:--Jngert;:].1 a-,c e>:-::rrcrl(: ::.rmact.=: Tr ::h:r"lgl"""'g tares a-.d,...or red~C1T}g serCIC.e
''t. ::"e near-Hog. ::ne (l..'":.V C01.:-n:::ll ..::..11 3.f!:orcl- an :)P?C~'t1::'il.~~,. i"Oi "-rt..!:!-:'estec.
~er5::ns or age'l'-:les to ~,;]~~lt e.:t~'-eT arall\-" or :;.- h'r1t.:..,g "'\.'lc..en~:2' an':
:"'e":C'ITl"'enda~10n5- ',,1!:'-' ::-es?:ec-: :a c;..ang::ng the f.;:::;.ye .st::::'ucture
III --hJ-.e ;:::-:'1:',' CaUi"-cl1 ....111 ":Ie- cOll::5:.derl'1g ?OS51~le ad'u~tmeTJ.ts "::-0 ::::'E:g'.11ar f:lres,
5t:...idept :;ares, se"'lor ard. d:;.sabie;i :::z-res. t"xn::-c-s;:: fares and .:.nt.-er-ae:enc....
t:-a....sfe~ fee:::: FU"!'-::--e::, !-'~e ::::;..tv '-..fJt:.r,.;:::.i \:'lil be ::op_:ade:nng :;Josslbl\
i.lt~~l'1g One Cr mOTe :)f t~e jaslc eleT'1ents o~ tre :::;:tre st::-uc:::ure l'";se::f,
:.-;;:lud.:"'lg ::,u:: "ot 11rJ.ted to the ellgl.bll::.tv reaalre'le.....t5 for u.':€ 0= t.he
stujer.t 2.:"SCGur'-t ca~d
n oe se~'. :~e Hea affec~ed ~\' ~h~ ::'are c~anges generallv can be jesc~:~ec
3.s ~:'e C:.!-y of Sar:ta 'loTIlca a....ci ad1acen~ COl'"'J'lUn~tleS, J.'1C1Uc.lng '.JaClflC
PalIsades. Breni:l'.ood, ~,'estl"oDG., "est Los -\ngelesJ Be\erlV'wood. ;a'1c"1o
Par<, palms, ~~r .~-l~ta~ ~!aTl.na de.!. ~e\', -""-enl.;:e and I'iestc"est.er
... descrIptIon 0-:: recorl!lended 0Dt:..ons fDr a fare c'lange lS a'-'dl.lab:e, upon
-:-ecues":. [Tom :-""'-e Sar-t.a "\on::.;:a ~!unl~11?al 9.-....s: L::'1es off:...c.e~ :&2.0 S-~",,:n
St~ee::.~ Sa"'ta ~-lonlcaJ ':allfor'l1a :){1.!Ol :\It:hougr- t"ese fare apt:l.ons are
3....allal::l~ =or re' le\.l; ?t'lO-:' ~c ane. "':l.::rlr-g the -PU;..,:i,lC i;.e.arl'1g :..t: ~1..L~t be-
u""c.ers"t~-;)d :hat :he Clty COlJ.ncll l.S l'l ....0 '~'av bou~-d by these opt:ons _
~-r5 ca"'s::;,derat.:...o, .of t,e- =a~e- .5t~UC!.l1r{' ape. !\"lav l\:ell c.evel:Jp a !.c;.re
st:::'ul".tuYe totallv -;i1ffere~"t thiin tr.e optlO"'s a1,.;::l.J.lalJle for re\-l.e-,.,:
'-I -; =.....'cl-=O"lme..,t
Cor:Ja~eci ~o Qt~'ler act::J,s t.....e Santa '-fonlca ~1ur.1Clnal 3us !.lne~ '.;ot;ld f:""Ic
1e:e.::~a"I"V to ::o';:er a :51ID11ar ~e:r::e"TJ.1:age or operat.~"'g eXDe'"1Ses. 1.'1;:h:.d1ng
::,er'"lCe cut:Jac:':s, tJ-.-ese iare c'Iange3 are not a.....'tlc.:.pated to have a 31gnlf-
..:.-.,::3'lt ~::'l'-erse ::"'"'JpaCt '..lDOn t.ne Santa ~[onlc~ "1U'11c.lpal Bus i.::..nes r ser'-::ce
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