SR-09-24-2013-9ACity Council Meeting: September 24, 2013
Agenda Item: 9 -A
To: Mayor and City Council
From: Edward F. King, Director of Transit Services
Subject: Big Blue Bus Fare Policy Update and Public Hearing
Recommended Action
Staff recommends that the City Council:
1. Hold a public hearing in accordance with Federal Transportation Administration
Circular 9030.1D and receive public comments regarding the recommendation
to:
a. Approve the elimination of the Big Blue Bus local transfer to be
implemented on January 1, 2014.
b. Provide a modification to the BBB Fare Policy through the introduction of
SmartCards for the payment of fares on BBB service.
2. Appropriate the budget increases as outlined in the Financial Impact and Budget
Actions section.
Executive Summary
The Big Blue Bus (BBB) currently offers one of the lowest one -way cash fares in the
region at $1.00 regular fare and $.50 for seniors /disabled and is committed to holding
the fare steady in FY 2013 -14. The recommended fare policy eliminates BBB local
transfers and introduces a new fare card known as the "SmartCard," which would
expedite boarding and provide customers more flexibility with fare payment. The
elimination of local transfers affects less than five percent of total BBB ridership. Riders
traveling under the Senior /Disabled /Medicare fare would not experience a fare increase.
The maximum impact on customers riding regular fare is $1.00 per roundtrip or a total of
$1.00 for unlimited trips using a day pass. Staff estimates that this will have a minimal
impact on ridership.
If implemented, the elimination of local transfers would increase farebox revenues by
approximately $325,620 annually. It is proposed that any efficiencies and the increase
in revenue be used to provide additional revenue service hours to address routes that
are currently overcrowded or have poor schedule adherence in addition to rider
education for SmartCard migration.
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FTA Circular 9030.1 D requires an opportunity for a public hearing or public meeting for
any fare increase. Since the elimination of local transfers would represent a fare
adjustment for some BBB customers, a public hearing is required for the recommended
Council action to eliminate local transfers. In addition to FTA guidelines, transit agencies
must adhere to Title VI. Title VI is a Federal statute and provides that no person shall,
on the grounds of race, color, or national origin, be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under any program or activity
receiving Federal funds. A Title VI evaluation was performed on the changes proposed
in this staff report and there was no discovery of significant disparate impact on low
income or minority populations as a result of these changes.
On June 12, 2012, staff recommended the Big Blue Bus upgrade its automatic fare
collection system to current technology to enable passengers to use the latest fare
media, provide a more reliable, easy to use system for passengers and operators, and
also provide BBB with the latest in report writing and accountability for the City. Based
on staff recommendation and Council discussion, City Council authorized the City
Manager to negotiate and execute a contract with LECIP Inc., a Japan -based company
with headquarters in Des Plaines, Illinois, to purchase and install all hardware, software,
and training for an integrated Automatic Fare Collection System (AFC).
Discussion
SmartCards
BBB plans to replace its existing fare collection system in early 2014 with an Automatic
Farebox Collection (AFC) system that would enable BBB customers to use Smartcards
(stored value cards), pre -paid period passes, a mobile app with an (Phone or Droid, pay
a regular cash fare or obtain a day pass. The objectives of the AFC system are to
provide a state -of- the -art, open access, user - friendly, fare collection system that can
accept currency, convenience passes, magnetic stripe cards, and smart cards. The
AFC system would maximize:
• Ease of use for customers
• Ease of operation for Motor Coach Operators
• Expedite the boarding process to reduce dwell time at bus stops and terminals
• Ease of maintenance for support staff
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• Reliability of system performance
• Accuracy and security of information
• Cost effectiveness of operations
• Extended service life of the system
• Flexibility to purchase fare media on line
The AFC would address all phases of fare collection, validation, and processing. This
includes, but is not limited to:
• Cash and other fare media acceptance
• Recording each transaction associated with the time and location of the fare
accepted
• Accurate compilation of transactional records to permit a complete audit of
revenues collected and analysis of passenger boarding statistics
• Easy maintenance of all hardware and software components of the AFC
• Integration /compatibility of City of Santa Monica identification and parking card
as well as other City service access functionality
Therefore, staff recommends introducing SmartCards into the BBB system.
Local Transfers
Staff has analyzed various fare policy options to be implemented concurrent with the
AFC implementation based on the following goals:
• Retain the $1.00 base fare as adopted in the Biennial Budget
• Reduce the opportunity for customers to evade the fare
• Expedite boarding at stops and terminals to reduce dwell time
• Provide customers more options and flexibility for fare payment
Eliminating local transfers and moving to SmartCards support BBB's continued efforts to
improve on -time performance, increase efficiencies, and provide greater flexibility to
customers. Boarding speed is improved with less cash handling as well as with fewer
onboard transactions such as issuing transfers. Staff conducted an informal test of 100
boardings using cash and purchasing transfers. The average transaction took
approximately 23 seconds. Eliminating BBB transfers would significantly reduce this
dwell time.
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The proposal to eliminate local transfers would increase fares for approximately 3.8
percent of BBB ridership as Senior /Disabled /Medicare ridership using transfers would
not incur any change. BBB's base fare of $1.00 is one of the lowest in the region as
illustrated in the Regional Transit Fares table below. In order to keep the base fare
affordable and impact as few customers as possible, staff evaluated eliminating local
transfers. BBB does not anticipate a deficit in the coming fiscal year. Therefore, it is not
necessary to raise the base fare at this time, however, BBB strives to maintain this
positive financial situation in the long term. Through staff reductions, reduction in
overtime and the reallocation of resources from unproductive routes to high performing
routes, BBB is extracting efficiencies wherever it can, thereby avoiding a base fare
increase.
Eliminating the local transfer would represent a fare increase to approximately 3.8
percent of the total ridership. The revenue of approximately $325,620 generated would
help support rider education toward SmartCard use. In addition, the elimination of local
transfers would encourage more passengers to move to pre -paid fare media that offer
unlimited rides. Most transit properties that implement day passes also eliminate local
transfers to encourage the use of the day pass. Efficiencies realized from the printing
and administrative processing of transfers and the additional revenue realized would
also be used to provide new service to routes that are overcrowded and /or need
additional service due to schedule adherence issues.
REGIONAL TRANSIT FARES'
CI
Big Blue
Bus
Culver
CityBus
Long Beach
Transit
Foothill
Transit
Metro
Omnitrans
Base Fare
$1.00
$1.00
$1.25
$1.25
$1.50
$1.50
Senior Fare
$0.50
$0.35
$0.60
$0.50
$0.55
$0.60
Base
Transfer Fare
$0.50
$0.25
no local
transfers
$0.50
no local
transfers
no
transfers
Senior
Transfer Fare
$0.25
1 $0.10
no local
transfers
$0.25
no local
transfers
no
transfers
CI
BBB issued approximately 2,410,744 transfers in FY 2011 -12 and 2,200,000 transfers
in FY 2012 -13. Thirty -four percent of all BBB transfers sold are local transfers with the
remaining balance being Interagency Transfers that would continue to be available.
This amounts to approximately 825,487 local transfers in FY 2011 -12 and 753,324 local
transfers in FY 2012 -13, which is less than five percent of BBB's total annual ridership
of 19 million. Based on ridership data, 12.2 percent of local transfers are purchased
under the Senior /Disabled /Medicare (S /D /M) fare and 87.8% are under the regular fare.
The table below reflects these percentages in numbers of riders.
S /D /M customers currently using local transfers would not experience a fare increase in
making a roundtrip as a result of the elimination of local transfers since the existing
S /D /M day pass is deeply discounted at $1.50. The current fare for these customers
using local transfers is $1.50 for a roundtrip (2 regular rides @ $.50 plus 2 transfers @
$.25 = $1.50). Given that the day pass for this fare category is also $1.50, there would
be no impact provided they purchase the day pass.
Customers riding under the regular fare category would experience a maximum change
in cost of $1.00 per roundtrip. The current fare for these customers using local transfers
is $3.00 for a roundtrip (2 regular rides @ $1.00 plus 2 transfers @ $.50 = $3.00). With
the elimination of local transfers, the roundtrip regular fare would be $4.00 (2 regular
rides @ $1.00 plus 2 BBB local connections @ $1.00 = $4.00) and the regular fare day
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Fare Category
FY 2011 -2012
FY 2012 -2013
Regular Transfers
724,778
661,418
S /D /M Transfers
100,709
91,906
Total Transfers
825,487
753,324
Percent S /D /M
12.2%
12.2%
Percent Regular
87.8%
87.8%
S /D /M customers currently using local transfers would not experience a fare increase in
making a roundtrip as a result of the elimination of local transfers since the existing
S /D /M day pass is deeply discounted at $1.50. The current fare for these customers
using local transfers is $1.50 for a roundtrip (2 regular rides @ $.50 plus 2 transfers @
$.25 = $1.50). Given that the day pass for this fare category is also $1.50, there would
be no impact provided they purchase the day pass.
Customers riding under the regular fare category would experience a maximum change
in cost of $1.00 per roundtrip. The current fare for these customers using local transfers
is $3.00 for a roundtrip (2 regular rides @ $1.00 plus 2 transfers @ $.50 = $3.00). With
the elimination of local transfers, the roundtrip regular fare would be $4.00 (2 regular
rides @ $1.00 plus 2 BBB local connections @ $1.00 = $4.00) and the regular fare day
b1
pass costs $4.00. Therefore, the maximum impact on customers riding regular fare is
$1.00 per roundtrip or a total of $1.00 for unlimited trips using a day pass. Staff
estimates that this will have a minimal impact on ridership.
Public Outreach
BBB staff conducted outreach through BBB email alerts, website updates and direct
outreach to SMC riders informing them of the fare policy recommendations to Council.
In addition, BBB staff conducted a community meeting on August 21, 2013 from 6 to 8
pm at the Santa Monica Main Library where both. the service change and fare policy
recommendations were presented. Approximately 45 people attended the meeting. Six
attendees expressed concerns about the financial impact of eliminating local transfers.
A Title VI evaluation was performed on the changes proposed in this staff report and
there was no discovery of significant disparate impact on low income or minority
populations as a result of these changes.
Next Steps
After the public hearing, if the elimination of local transfers and introduction of
SmartCards are approved, staff would conduct outreach and education to communicate
the policy decisions and what riders can expect going forward. The elimination , of
transfers, if approved, would go into effect January 1, 2014. The introduction of
SmartCards onboard BBB, if approved, would take place beginning Spring 2014.
Financial Impacts & Budget Actions
The proposed elimination of local transfers would increase annual revenues by
$325,620 at account 41642.402000. With implementation scheduled for January 1,
2014, revenues for FY 2013 -14 would increase by $162,810, prorated to reflect a partial
year. The elimination of local transfers requires changes to the FY 2013 -15 budget as
follows:
1. Increase FY 2013 -14 adopted revenue budget at account 41642.402000 in the
amount of $162,810.
2. Increase FY 2014 -15 approved revenue budget at account 41642.402000 in the
amount of $325,620.
Prepared by: Suja Lowenthal, Transit Government and Community Relations Manager
Forwarded to Council:
Edward F. King Rod Gould
Director of Transit S rvices City Manager
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