SR 08-24-2021 3D
City Council Report
City Council Meeting: August 24, 2021
Agenda Item: 3.D
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Community
Engagement & Customer Experience
Subject: Authorization of Participation in LA Metro’s Fareless System Initiative Pilot
Program
Recommended Action
Staff recommends that the City Council authorize the Department of Transportation
(DOT) Big Blue Bus (BBB) to participate in Phase I of LA Metro’s proposed 18-month
Fareless System Initiative Pilot Program. Phase I includes providing free transportation
to K-12 students and Community College Students whose school districts and boards
approve participation in the LA Metro Pilot Program.
Summary
On May 25, 2021, staff advised Council of the Los Angeles County Metropolitan
Transportation Authority (LA Metro) Fareless System Initiative Pilot through an
Information Item, outlining the program intent and potential impacts. Since that time, the
LA Metro Board has provided direction to the Metro staff on a Phase I approach for the
pilot, directing staff to include the LA County Municipal Operators (Munis) as well as
assuring that funding is secure for the pilot program (see Attachment).
Seeking to provide financial relief to transit riders and increase flagging ridership, Metro
has approved a Fareless System Initiative (FSI) pilot program. Phase I would allow K-12
customers to ride fare-free during an 18-month period. Community College customers
would also be eligible to participate in the pilot program, starting in the fall 2021
semester. To ensure the success of the pilot program across Los Angeles County, LA
Metro invited the Municipal and Local Transit Operators (Munis) to participate. Staff
recommends that the Santa Monica Department of Transportation (DOT), Big Blue Bus
(BBB) division, participate in the pilot program.
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Discussion
Over the past several months, an FSI Ad Hoc Committee comprised of representatives
from LA Metro and several Munis including BBB has been meeting to evaluate LA
Metro’s proposed FSI pilot program. The Munis have participated as they are supportive
of the goal of encouraging increased ridership as we emerge from the pandemic and
normal life returns. LA Metro staff initially recommended a 23-month pilot that would
provide fare-free rides for grades Kindergarten through 12th grade (K-12) and
community colleges starting in October 2021, and then expanding to low-income LA
County residents in January 2022. The LA Metro board ultimately decided to move
forward with the K-12 and community college portion of the plan for 18 months starting
October 1, 2021, while delaying the phase of the proposal that would serve low-income
customers until an ongoing funding source can be found.
Encouraging K-12 students to ride BBB would increase ridership and take cars off the
road during crucial peak traffic periods. The pilot program also helps establish a positive
comfort level about public transit for young riders that will carry on throughout their lives.
The pilot program has been made available to school districts throughout the LA Metro
service area, who can opt-in to the program if they desire. LA Metro has informed BBB
that the Santa Monica portion of the Santa Monica-Malibu Unified School District has
indicated interest in participating, but they have not yet signed up for the pilot program.
School districts must register to participate, as TAP cards are distributed to students
through the schools.
Regarding the community college segment of the program, BBB has had a long and
successful relationship with Santa Monica College (SMC) working to reduce car trips
and parking demand in Santa Monica and to increase ridership through the Any Line,
Any Time Program. Because of the success of the existing program, we view expansion
to other community colleges as a benefit that will likely improve ridership. The existing
contract with SMC runs through the pilot period of the program and will remain in place.
With an anticipated October startup for K-12 customers, staff will be available to
facilitate the pilot program, but the pilot program rollout is dependent on LA Metro staff
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finalizing agreements with the school districts. LA Metro will work directly with the
school districts and supply each district directly with TAP cards. BBB staff will create an
internal working group to address the operational questions and communication issues
associated with a change in fare policy. Staff will work closely with LA Metro to have a
unified communications strategy and ensure that the required changes to the TAP
program and mobile validators are correctly implemented.
Cost
The exact costs of the program are uncertain. K-12 customers make up 8 percent of
BBB ridership, but the cost of BBB participation is dependent on how many schools
participate in the FSI and how well LA Metro and the schools facilitate communication
and distribution of passes. Regarding community colleges, the SMC contract with BBB
will remain in place for the duration of the pilot program and so will the income from that
contract. Only fares from students at other community colleges who do not have an
agreement with BBB but who are already riding BBB will be affected by this pilot
program. Those fares are estimated to be minimal due to BBB not directly serving any
other community college campuses.
The estimated impact upon fare revenue is a potential reduction of approximately
$350,000 to $550,000 for the 18-month pilot period based on initial information
received. The financial impact estimate is a broad range due to not being able to fully
predict the impacts of COVID upon ridership and the uncertainty of Metro and school
districts implementing effective distribution and use controls on the passes. The motion
that the LA Metro Board approved required LA Metro to allocate the same source of
funds that Metro was using for their portion of FSI to pay for the Municipal and Local
Operators, which is American Rescue Plan Act of 2021 (ARPA) funds. BBB would also
use ARPA funds to pay for this pilot program, as well as to pay for ongoing operating
shortfalls caused by the COVID-19 pandemic. In addition, LA Metro is asking
participating school districts to pay $3 per student per year, but the actual revenue to
the participating transit systems from that funding source is expected to be minimal.
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Pilot Performance Metrics, Duration, and Community Engagement
Thus far, few performance criteria have been established to measure the success of the
FSI. Although increasing ridership is a core metric, other metrics regarding equity,
community impact, and student retention have yet to be finalized for the pilot program. It
may, therefore, be difficult to end the pilot program without a clear understanding of
whether the FSI is meeting its targets. To address this concern, LA Metro has contacted
the ENO Center for Transportation, a well-respected non-partisan think tank that tackles
critical multimodal transportation issues, to ask them to prepare performance metrics for
the pilot.
Agreement with LA Metro
LA Metro has yet to supply final contract language. Initial discussions, however, have
reinforced an intention to allow Munis, including Big Blue Bus, to withdraw from the pilot
program before the end of the pilot with a simple 30-day notice of intent to withdraw. If
that should happen, BBB would undertake a public engagement process as part of any
fare and operating changes that effect customers.
Any pilot in excess of six months that affects the BBB fare structure currently requires
that BBB conduct a Title VI evaluation and conduct public hearings to gain community
feedback. BBB is in discussions with LA Metro and the other participating Munis
regarding how this analysis and outreach should be done. The discussion includes
whether the Federal Transit Administration might provide a waiver for a longer pilot
program under the circumstances so that the agencies have enough time to gather
sufficient data and analyze it for impacts.
At this time, the size, nature, and timing of this pilot still present unknowns for the Munis
and for LA Metro. However, the opportunities afforded to encourage youth and
Community College student participation in transit, and the potential to positively affect
the lives of these constituencies in the BBB service area have led staff to make the
recommendation that, despite the unknowns, BBB should still participate in the Fareless
System Initiative program.
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Financial Impacts and Budget Actions
Big Blue Bus anticipates a revenue loss of approximately $350,000 to $550,000 over
the 18-month course of the pilot program which is scheduled to begin on October 1,
2021. A fee of $3 per student per school district per year should reimburse a minimal
amount. The remaining farebox revenue loss would be made up by existing funding
sources which will allow Big Blue Bus to maintain a positive fund balance over the five-
year forecast. Staff will provide an update to the City Council on the financial impacts of
the program’s first quarter in early 2022.
Prepared By: David Feinberg, Transit Government Relations Officer
Approved
Forwarded to Council
Attachments:
A. LA Metro Fareless System Initiative Board Report
B. Written Comments
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Metro
Board Report
Los Angeles County
Metropolitan Transportation
Authority
One Gateway Plaza
3rd Floor Board Room
Los Angeles, CA
File #: 2021-0372,File Type: Motion / Motion Response Agenda Number: 45.
REVISED
REGULAR BOARD MEETING
MAY 27, 2021
Motion by:
DIRECTORS GARCETTI, MITCHELL, AND KREKORIAN
Fareless System Initiative
Metro’s Fareless System Initiative (FSI) is one of the most transformative efforts Metro can take to
help Los Angeles County emerge from the pandemic, advance equity, reduce transportation
emissions, simplify students’ return to school, and increase ridership.
The pandemic has hit students hard. Once the Department of Public Health and schools deem it safe
for students to fully return to in-person learning, Metro, municipal operators (munis), and school
districts should do everything possible to make the transition back effortless for these families.
Studies across the country have shown that the lack of access to transportation is a barrier to student
attendance and, therefore, academic success.
Moreover, Metro riders’ median household income is $19,325 systemwide, with approximately 70
percent of Metro riders considered low-income under federal Department of Housing and Urban
Development definitions. Many of our riders depend on Metro to reach their jobs as essential
workers, and during the pandemic they suffered unavoidable financial impacts. Fareless transit would
alleviate some of this burden, helping Los Angeles County get back on its feet.
As the FSI pilot has been developed, the following items remain to be finalized:
1.An efficient implementation process, as well as agreements with the school districts, needs to
be put in place to distribute fareless K-12 and Community College student passes.
2.A final funding plan needs to be created.
3.A key concern of municipal operators is the continuation of existing funding agreements with
community colleges. These funding agreements have, in many cases, taken years to
negotiate. While FSI remains a pilot, these agreements and processes should be kept in
place.
4.A mission statement and goals are necessary to help communicate the need for this program.
5.The existing FSI Task Force that developed the pilot should be re-formed to focus on
implementation.
Board action is required to ensure these key areas of risk can be addressed and to provide clarity on
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Packet Pg. 45 Attachment: LA Metro Fareless System Initiative Board Report (4661 : LA Metro Fareless System Initiative)
File #: 2021-0372,File Type: Motion / Motion Response Agenda Number: 45.
FSI’s advancement and next steps.
SUBJECT:FARELESS SYSTEM INITIATIVE
RECOMMENDATION
APPROVE Motion by Directors Garcetti, Mitchell, and Krekorian that the Board direct the Chief
Executive Officer to implement the Fareless System Initiative, subject to a final financial plan and
while pursuing cost-sharing agreements.
WE FURTHER MOVE that the Board direct the Chief Executive Officer to:
Administrative Coordination
A.Develop strategies to streamline and simplify the eligibility process for participants, striving to
remove as many barriers to entry as possible;
1.Include an evaluation of a self-attestation process for low-income riders;
B.Partner with school districts on administrative coordination to enable availability at pilot launch
to all LA County school and community college districts (based on each district’s interest),
including but not limited to any required Memoranda of Understanding or TAP coordination;
Funding
C.In partnership with implementation partners and key stakeholders, pursue and support federal
and state opportunities and legislation to fund the Fareless System Initiative, both the pilot
phase and any permanent program (should the Board decide to continue past the proposed
pilot period), including but not limited to the federal Freedom to Move Act;
D.Pursue reasonable cost-sharing agreements with school districts;
1.Seek to take advantage and leverage any existing student transportation fee programs
(e.g., student-approved LACCD fees);
2.Seek to preserve existing funding agreements between school districts and transit
operators;
a. Wherever municipal operators have existing fareless agreements with
community college districts, consider accepting muni student transit passes on
Metro for the duration of the pilot;
3.Seek new funding agreements for districts without any existing discounted or fareless
student pass programs (e.g., U-Pass);
E.Consider pursuing private funding opportunities, including but not limited to philanthropic
partnerships;
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Packet Pg. 46 Attachment: LA Metro Fareless System Initiative Board Report (4661 : LA Metro Fareless System Initiative)
File #: 2021-0372,File Type: Motion / Motion Response Agenda Number: 45.
Follow-Up
F.Report to the Board monthly on the development, launch, and performance of the Fareless
System Initiative. The first update should include:
1.A mission statement and goals for the FSI pilot;
2.Lists of interested municipal operators, school districts, and community college districts;
3.An update on the refined FSI financial plan; and
4.Identification of a cross-departmental implementation team.
HAHN AMENDMENT: Direct the Chief Executive Officer to prepare a financial plan for the
implementation of a Fareless System Initiative that meets the conditions provided below to the
Board’s satisfaction:
1.Municipal and local operators that choose to participate will be fully included and provided the
same type of fare subsidy as Metro transit operations, in order to ensure a seamless rider
experience regardless of geographic location or transit provider;
2.The initiative is funded without reducing existing transit operations or state of good repair
expenditures or by using regional funding typically committed to bus and rail transit operations
or intended for the capital program;
3.Opportunities to expand or adjust existing fare subsidy programs to maximize community
benefit have been studied and presented to the Board; and,
4.An initiative can be scaled and/or targeted in a manner that best aligns with Metro’s Equity
Platform, adopted by the Board in March 2018.
MITCHELL AMENDMENT: Direct Metro CEO to Continue the current fare collection policy in
perpetuity until the Metro Board is satisfied with a financial plan for Fareless.
BONIN AMENDMENT:
1.Report back in the financial plan with information on the costs, including administration,
technology, and enforcement, of the proposed pilot program compared to a universal fare-free
system.
2.Include in the overall final program evaluation:
a.Reach of the program, including student and low-income participation rates.
b.Effectiveness of the program in improving mobility, increasing student attendance and
performance, shifting travel behavior, reducing automobile use, and increasing transit
ridership.
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Packet Pg. 47 Attachment: LA Metro Fareless System Initiative Board Report (4661 : LA Metro Fareless System Initiative)
File #: 2021-0372,File Type: Motion / Motion Response Agenda Number: 45.
c.The net cost of the program and cost per rider.
SOLIS AMENDMENT: Report back on the feasibility of using the Federal American Rescue plan
funding for the pilot.
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Packet Pg. 48 Attachment: LA Metro Fareless System Initiative Board Report (4661 : LA Metro Fareless System Initiative)
August 24, 2021
Re: City Council Agenda Item 3D
Dear Mayor Himmelrich, Mayor Pro Tem McCowan, and City Councilmembers,
The League of Women Voters of Santa Monica supports the staff recommendation
in agenda item 3D, to authorize the Department of Transportation (DOT) Big Blue
Bus (BBB) to participate in LA Metro’s Fareless System Initiative Pilot Program,
including providing free transportation to K-12 students and Community College
students whose school districts and boards approve participation in the LA Metro
Pilot Program.
This pilot program can help to increase use of public transportation services and
other viable alternatives to reduce vehicle miles traveled, minimize harmful effects of
transportation on the environment, facilitate use of transit and other alternatives to
single occupant vehicles, reduce vehicle miles traveled, and mitigate the effect of
commuting costs experienced by low income persons.
We appreciate your consideration in the matter of agenda Item 3D.
Sincerely,
Natalya Zernitskaya
President
League of Women Voters of Santa Monica
Laurene von Klan
Natural Resources Chair (Off-board)
League of Women Voters of Santa Monica
OFFICERS
President
Natalya Zernitskaya
Vice President, Program
Barbara Inatsugu
Secretary
Sharon Hart
Treasurer
Karen Carrey
DIRECTORS
Cathie Gentile
Jason Islas
Angela D. Scott
Ann Williams
Item 3.D 08/24/2021
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Packet Pg. 49 Attachment: Written Comments [Revision 1] (4661 : LA Metro Fareless System Initiative)
1
Vernice Hankins
From:Council Mailbox
Sent:Tuesday, August 24, 2021 8:26 AM
To:councilmtgitems
Subject:FW: Approval of Item 3D Fareless Pilot
‐‐‐‐‐Original Message‐‐‐‐‐
From: Climate Action <lvonklan@gmail.com>
Sent: Monday, August 23, 2021 5:10 PM
To: Christine Parra <Christine.Parra@SMGOV.NET>; Council Mailbox <Council.Mailbox@SMGOV.NET>; Gleam Davis
<Gleam.Davis@SMGOV.NET>; Sue Himmelrich <Sue.Himmelrich@SMGOV.NET>; Kristin McCowan
<Kristin.McCowan@SMGOV.NET>; Oscar de la Torre <Oscar.delaTorre@SMGOV.NET>; Phil Brock
<Phil.Brock@SMGOV.NET>; Lana Negrete <Lana.Negrete@SMGOV.NET>
Cc: Judy Abdo <judyabdo@gmail.com>; Amy Butte <amyrbutte@gmail.com>; Cris Gutierrez <crisclimate@gmail.com>;
Kent Strumpell <kentstrum@gmail.com>; Amy Sullivan <amyransullivan@gmail.com>; Mica Williams
<micabrynn@gmail.com>; lvonklan@gmail.com
Subject: Approval of Item 3D Fareless Pilot
EXTERNAL
Dear Council members:
Climate Action Santa Monica supports the staff recommendations for Big Blue Bus to participate in the Metro Fareless
System Initiative Pilot. This program will support our goal of reducing unnecessary car trips to bring students to school
by providing them with an affordable transportation alternative. Replacing car trips with transit trips will help alleviate
the intense traffic congestion that occurs around our schools and help our city meet our greenhouse gas reduction goals.
Thank you,
Climate Action Santa Monica
Item 3.D 08/24/2021
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Packet Pg. 50 Attachment: Written Comments [Revision 1] (4661 : LA Metro Fareless System Initiative)
1
Vernice Hankins
From:Nikki Kolhoff <nhkolhoff@yahoo.com>
Sent:Tuesday, August 24, 2021 1:58 PM
To:councilmtgitems; Council Mailbox
Subject:City Council Meeting August 24, 2021 - Items 3D (Free Bus) and 13F (Mandatory Vaccination)
EXTERNAL
Dear City Council -
I support approval of Item 3D for free bus rides for K-12 students. The discounted monthly passes
still cost too much to encourage less frequent ridership and this is important to getting kids to/from
Samohi.
I support approval of Item 13F requiring vaccinations for employees, volunteers, and contractors. This
is essential to reducing the negative impact of Covid and I hope SMMUSD does the same, including
for students for whom the vaccine has been approved.
Please add this to the public record of each item.
Thanks,
Nikki Kolhoff
Santa Monica Resident
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Packet Pg. 51 Attachment: Written Comments [Revision 1] (4661 : LA Metro Fareless System Initiative)