sr-071409-1gCity Council Meeting: July 14, 2009
Agenda Item: ~ -'
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Mini Blue TIDE Ride Service
Recommended Action
Authorize the continuation of existing TIDE Ride service through Labor Day and the
elimination of weekday service beginning September 8, 2009, while staff continues to
obtain business and community input on options for downtown community transit
services.
Executive Summary
The Big Blue Bus (BBB) originally proposed eliminating the TIDE Ride and other low
productivity services due to funding reductions. City Council directed staff to conduct
additional community outreach prior to considering this recommendation. Extensive
outreach with community and business groups has taken place and consensus has
been reached on the need to redesign the TIDE Ride.
In order to achieve an effective service redesign, staff proposes the establishment of a
business stakeholder steering committee to work with BBB staff on service, vehicle,
financing and marketing issues through FY 2009-10. While this effort is being
conducted, it is recommended that the TIDE Ride operate during weekends- only
beginning September 8, 2009.
The annual savings for this project is estimated at $444,000 until an alternative solution
is proposed and implemented..
Background
Pursuant to development agreements between five hotels (Casa Del Mar, Doubletree
Guest Suites, Loews Santa Monica Beach Hotel, Sheraton Delfina, and Shutters on the
Beach) and the City of Santa Monica, approximately $231,000 per year is contributed
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toward operation of a shuttle service in downtown Santa Monica. The TIDE Ride, as it is
known today, has been operated by the BBB since 1993, in conformance with these
development agreements. Beginning as a summer-only service, the TIDE Shuttle has
operated year-round since 1996. When this expansion occurred, the cost of the TIDE
service grew in excess of the development agreement contributions. After operating
more than 14 years, the TIDE Shuttle was rebranded to become part of the new Mini
Blue service and re-named the TIDE Ride in 2007.
In FY 2009-10, Big Blue Bus operating revenues are estimated to be 8.4% lower than
the prior fiscal year, as a result of impacts of the economic downturn on countywide
transit subsidies and the elimination of the State Transit Assistance Fund (STA). This
fiscal outlook, combined with ridership increases on the system's most productive
routes, required BBB to evaluate numerous service redeployment and efficiency
options.
The BBB system's average number of passengers per hour is double the national
average as reported by the American Public Transportation Association. The TIDE Ride
is the least productive route currently operated by BBB with an average ridership of 12
passengers per hour, as compared to the system average of 50 passengers per service
hour, despite efforts over the years to market the service through a wide variety of
media which targeted residents, shoppers and tourists. As a result, the TIDE Ride along
with other inefficient segments of BBB's system was proposed for elimination.
Discussion
In December of 2008, BBB conducted four community meetings, which were attended
by residents and transit users. At these meetings, service changes were discussed and
the. subject of reducing and eliminating poor performing lines was presented. In
February 2009, City Council conducted a public hearing- on service changes which
included the recommendation for the elimination of the TIDE Ride. At the conclusion of
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this hearing, Council recommended that the BBB conduct additional public outreach and
report back to Council
Since February 2009 the following public meetings were held at various locations
throughout the City:
• Outreach Meetings:
March, 12tH 18tH 21St
April 21St
May 1St ym 13m 19m
June 3`d 8m
• Convention & Visitors Bureau meeting: May 7tn
• Teleconference 5 sponsoring hotels: March 20tH & May 18tH
• One-on-One Meeting with Montana Business Improvement District: May 13tH
• Presentation to Convention & Visitors Bureau Board: May 13tH
• Presentation to Main St. Merchants Association: June 3rd
• Presentation to Ocean Pacific Neighborhood Association: June gtn
A core group of stakeholders consisting of sponsoring hotels, the Convention & Visitors
Bureau, Business Improvement Districts, and the Chamber of Commerce met on
several occasions to review the TIDE Ride issues. In addition, separate meetings were
held with neighborhood groups. Outreach also included teleconference calls with key
stakeholders such as the participating hotels and a special presentation made to
General Managers of Santa Monica hotels. For those businesses and/or individuals that
could not attend an outreach meeting, a survey was created and distributed to gather
additional information. Notices were also posted on the BBB web-site in January
through March and an E-blast was sent on February 5, 2009.
The survey, suggested by TIDE Ride stakeholders, was created as an alternate means
to gather information. Survey questions covered- the basic topics discussed in the
outreach meetings. This survey was made available for approximately seven weeks
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from March 24th to May 7tt'. A total of 45 responses were received, representing 36
businesses, three Business Improvement Districts and two sponsoring hotels.
In an effort to maintain a clear and consistent message and to facilitate the process a
Business Outreach Liaison was selected to work specifically on this issue. The
objectives were. to maintain a record of all public outreach efforts to stakeholders,
follow-through with the ideas of the participating stakeholders, and provide feedback;
i.e. on-line survey and weekly E-mail updates.
The results of the survey reflected the findings of the public outreach meetings. Overall
respondents were open to the idea of community transit. Unfortunately, the current
TIDE Ride service did not fit the needs of either businesses or residents since it did not
serve key area of interests, hours of operation were limited and the vehicle type was not
attractive. Both BBB and the stakeholders agreed that it would make sense to reduce
the service to the weekend and redesign the line to better fit the needs of the business
community.
The outreach results suggested that there were .two distinct transit needs in our
community: service for tourism and service for the local community; and, that neither
market segments were being adequately serviced by the existing route. All participants
in this outreach process concluded that the TIDE Ride should. be redeveloped to benefit
the needs of the hotels and tourists, while new Mini Blue routes will need to be
developed to better serve the needs of the neighborhoods. Therefore; a strategy has
been developed to help address the issues of the tourism market's transit needs (see
attachment). A steering committee is proposed to assist the BBB with. expediting the
outreach process. The committee will be comprised of a representative of sponsoring
hotels, Bayside District, Main Street Merchants Association, Montana Ave Business
Improvement Districts, Pico Business Improvement Districts, Convention & Visitors
Bureau, and Santa Monica Chamber of Commerce. The steering committee will work
with BBB staff to facilitate discussion, decision making process, and provide feedback.
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A similar process will be conducted during the same timeframe to address the broader
community needs (see attachment).
The goal of this effort is to complete the strategies for redesigning the TIDE Ride and
implement improved service by July 2010.
Financial Impacts & Budget Actions
Annualized operating expense for the TIDE Ride is approximately $657,000. Weekend-
only TIDE Ride service will be funded using the existing annual development agreement
contributions, which will result in an operating cost savings of approximately $444,000
annually. The cost savings will offset reductions in transit subsidies resulting from the
elimination of State transit funding.
Prepared by:
Philip Castillo, Advertising Coordinator/Business Outreach Liaison
Approved:
ie Negriff
of Transit
Forwarded to Council:
a f
P. a ont Ev
City Manager
Attachment
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SERVICES
JULY2070
• Ous Shelters
• Vehicles
• Signage
• Marketing