sr-052372-6cC'TY QF Srk1~ITA tvS'JNICA
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,, 13A'T.'1::: tray 22, 1972 ~~ 6 ~ ~^~.~;>i~a~~
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'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.