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sr-052372-6cC'TY QF Srk1~ITA tvS'JNICA ~~... ,, 13A'T.'1::: tray 22, 1972 ~~ 6 ~ ~^~.~;>i~a~~ u~ 'LCD: Perry Scott, City Manager NSAY 2 3 ~~; Z 1FI{$ y~di aiJ~ QE F'RQPri: J. r . ilutchison, Director of Transportation RE7URaVEO TO THE CIYY CLERK'S OFFICE ;;UBJEC`P; LOS~IER BUS FARES FOR SENIOR CITIZENS FOR F3LING, In evaluating the recent action of the Southern California Rapid Transit District (SCRTD) reducing its one zone fare to ten cents for Senior Citizens, and possibly considering similar action.. by the Santa Monica Municipal Bus Lines, it is import- ant to keep in mind the differences between these two transit agencies. SCRTD covers a very large area, involving travel through many zones, and often requiring numerous transfers, We are informed that, at the recent public hearing, whic'n was held by SCRTD on the above subject, the majority of the complaints which ;were received frcm Senior Ci*_izens, involved total one-way fares of 70 cents or more, In this connection, it should be noted that the recent SCRTD action offers a discount for tra-veI only within the first zone. No reduction has been offered in the eight cent charge for each additional zone, or in the five cent charge for each transfer. Their recent action therefore, is similar to that of a retailer coho otfers a "loss leader'° as a sale item with the knowledge that any additional items purchased will be at the full cost. Santa Monica, on the other hand, has a comparatively simple zone structure, with the maximum practical ride involving only one zone (at O5~) beyond the original boarding zone, and in addition, we do not charge for transfers. Consequently, if we were to reduce our one zcne fare by 50 percent, we have virtually nothing left to "sell" at full price, and our revenue would suffer accordingly. Santa Monica has every reason to be justifiably proud of its transit system. For at least the past 15 years passengers, of all ages, on the Santa Monica 2unicipal Bus Lines have enjoyed a lower fare structure than that enjoyed by passengers on SCRTD. Listed below are the adult fare structures which are in effect at the present time. SCRTD SANTA MONICA Basic One Zone Fare 30fi ~~ 20~ (When tokens purchased @ 5/$1,00) Charge for each additional zone O8fi O5~ Charge for each transfer OSfi None *SCRTD's one zone Senior Citizen fare, which has been 20 cents, will be reduced to "LO cents effective June 1, 1972. ` itay 22, 1972 Perry Scott, City Pianager Re: Locaer Bus fares For Senior Citizens Page 2- The following example, illustrating the application of the above fare charges, will, T believe, more clearly illustrate the arguments used above. EXAI°tPLE Passenger traveling from the Venice Circle (Windward & Main) to Pico Boulevard and La Cienega, has the choice of traveling via SCRTD Lines' ,`75 and j~27, or can use Santa Monica Municipal Bus Lines -0kl and d~7. The resulting total fares are as follows: VTA SCRTiI Regular adult fare ................... ....,........Slp Senior Citizen fare after 6-1-72 .....................31 VIA SANTA MONICA MUNICIPAL BUS LINES Regular adult token fare for all passengers, regardless of age ....................25~ ~- If cash used in lieu of token, add OSp. The above is not an isolated example. Similar savings can be made on travel between downtown Los Angeles and downtown Santa Monica. The above does demonstrate however, that we do not-rely heavily on additional zone and transfer charges for our revenue, and therefore to reduce our prime source of revenue, the one zone fare, would have a serious financial effect. It also demonstrates that, unlike SCRTD, our fares are not high enough to warrant further discount. We have no actual count of the number of Senior Citizens presently using our service, however based on what we feel are reasonable assumptions, we project an annual revenue loss of $150,000 per year if we institute a ten cent Senior Citizens fare similar to that soon to be initiated by SCRTD. (See detailed computation attached) In connection with the recent SCRTD action, it should be noted that the Los Angeles County Supervisors recently committed the County's $1.6 million annual share of new gasoline sales tax funds to SCRTD, and also that the Los Angeles City Council has indicated its willingness to commit its $4.6 million annual share of the same funds to SCRTD. ~~%,~.. ~F. HUTCHISON Director of Transportation JFH/dag Attachment: 1 SANTA MONICA MUNICIPAL BUS LINES COMPUTATION OF REVENUE LOSS TF SCRTD lOp SENIOR CITIZEN FARE INSTITUTED Total :Revenue Passengers, fiscal 1970-71 10,314,897 Less - Estimated number of passengers carried during Weekday Peak Hour periods (50%) 5,157,449 Estimated Non-peak passengers, including all day Saturdays, Sundays and specified Holidays 5,157,448 Estimated number of Senior Citizens included in above figure (30%) 1,547,235 Annual Revenue loss if Senior Citizen fare adopted%', 154 723 Assumes Senior Citizen fare would be reduced to lOq, and also that ail Senior Citizens presently take advantage of our 20p token discount. NOTE - Above does not take into account revenue from any increased riding which may result from lower fare. However, a review of companies which have instituted such fares, reveals that increased riding, if any, is negligible. We do not feel that there are substantial number of Senior Citizens in the Santa Monica area who are not now riding because the fare is 20F.