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SR-05-27-2014-3CTo: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Big Blue Bus Unlimited Ride Transit Program with Santa Monica College Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute an agreement to renew the "Any Line, Any Time" unlimited ride transit program between the Big Blue Bus and Santa Monica College (SMC) for a three -year term covering the period July 1, 2014 through June 30, 2017. SMC will reimburse the Big Blue Bus for transit services in the amount of $ 4,213,753 over the three year term. Executive Summary Big Blue Bus (BBB) has had annual agreements with SMC to provide unlimited access to BBB transit services for all student, staff, and faculty members who choose to participate in the "Any Line, Any Time" program. Under this agreement, BBB charges SMC a fixed annual amount for all passengers with a valid, activated SMC identification card bearing a current semester sticker. The SMC Partnership was most recently renewed at the May 14, 2013 Council meeting for the period of July 1, 2013 — June 30, 2014. Staff recommends renewing the agreement for an additional three years through June 30, 2017 and increasing the fixed annual amounts to $1,356,551 (FY 2014 -15), $1,404,030 (FY 2015 -16) and $1,453,172 (FY 2016 -17). Background In 2007, Santa Monica College was the primary trip generator in Santa Monica; however, most of the 34,300 students and 1,700 staff commuted by automobile. Insufficient parking capacity at the campus led to the need for perimeter parking at the City's beach lots and was a significant community safety and traffic concern. As a result, SMC and the City asked for Big Blue Bus' assistance in developing a comprehensive transportation solution. A one -year demonstration project with SMC was initiated in 1 February 2007. SMC agreed to reimburse BBB for trips taken by students, faculty and staff presenting their school identification cards on the Crosstown Ride and a new service known as the Line 6 SMC Commuter, operating from the Palms /Mar Vista area to SMC, was added. In August 2008, a third route was added - the Sunset Ride - connecting the Bundy and Main campuses. Council authorized the implementation of the "Any Line, Any Time" program with SMC with the adoption of the Fiscal Year 2008 -10 Short Range Transit Plan adopted on March 25 2008. The Big Blue Bus implemented the unlimited ride transit program with SMC in the fall of 2008. A fixed annual amount for the "Any Line, Any Time" program was established in 2008 by multiplying two factors. The first factor was an average rate per boarding of $0.625, which was based on the estimate that half of all SMC riders would be eligible for the under 21 years of age youth fare of $0.50, and that the other half would fall into the regular fare category of $0.75 per boarding. The second factor was the 1,951,168 passengers counted by surveyors boarding and alighting at bus stops adjacent to SMC in the spring 2007 Line -by -Line Analysis before the program went into effect. These two factors total an annual fare amount of $1,219,480. The agreement was most recently renewed on May 14 2013 for FY 2013 -14, increasing the fixed annual amount to $1,317,040, representing an eight percent increase over FY2012 -13 ($1,219,480) due to ridership growth. During the past year, the City and SMC have engaged in discussion on the importance of program continuation and the appropriate level of financial support given the significant increase in the number of students utilizing the service. Staff recommends entering into the proposed three -year agreement to provide for sustained financial planning for both SMC and the City, as well as acknowledging the success of the program as there have been sustained incremental increases in the number of students /staff riding BBB. `a Discussion Last fiscal year, a record number of SMC students and staff used BBB service. There was a 9% increase in ridership over FY11 -12 with over 2.6 million boardings. As of March 2014 fiscal year -to -date, SMC boardings are just over 2 million, a strong indication that ridership is on track to equal or surpass last year's record. To accommodate these ridership patterns, BBB has dedicated an additional 28.3 hours per day of service to the corridors /lines that primarily service students to and from SMC. These include Lines 3, 7, Rapid 3, and Rapid 7. SMC agreed to the proposed 3% increase in FY 2014 -15, an increase of 3.5% in FY 2015 -16, and an increase of 3.5% in FY 2016 -17. Financial Impacts & Budget Actions The agreement to renew the "Any Line, Any Time" unlimited ride transit program between the Big Blue Bus and SMC is for a three -year term. SMC will reimburse the Big Blue Bus for transit services in the amount of $1,356,551 in FY 2014 -15, $1,404,030 in FY 2015 -16, and $1,453,172 in FY 2016 -17. The required budget actions will be included in the Proposed FY 2014 -15 exception -based budget. Prepared by: LaRhonda Staggers, Senior Administrative Analyst Approved: Edward F. King Director of Transit 3 Forwarded to Council: Rod Gould City Manager Reference: Amended Agreement No. 9735 (CCS)