R-6708
e
e
(CCS)
RESOLUTION NO 6708
~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAKTA MONICA RESCINDING RESOLUTION KO. 6105 (CCS)
PERTAINING TO FARES ON THE SANTA MONICA MUNICIPAL
BUS LINES ~~D ESTABLISHING A ~EW FARE STRUCTURE.
WHEREAS, the Clty Councll flnds that the fare lncrease proceeds wlll
be used for one or more the purposes detalled ln Publlc Resources Code Sectlon
21080 and therefore is not subject to the California Environmental Quality Act's
provlslons, and
WHEREAS, the Clty Councll has held a publlC hearlng after the publl-
catlon of adequate notlce and has consldered comments expressed by the publlc;
and
~~ERE~S, the Clty Councll has glven conslderatlon to the effect on
energy conservat~on, and the econOffilC, envlronmental and soc~al lmpacts of the
fare changes,
~OW, THEREFORE, THE CITY COUNCIL OF THE CITY OF Sfu~A MONICA DOES
RESOLVE AS FOLLOWS;
SECTION 1. Resolutlon Number 6105 (CCS) is hereby resclnded In its
entlrety.
SECTION 2. The fare structure hereafter set forth shall be become ef-
fectlve at 4:00 a.m. on the 3rd day of July, 1983 and the fees set forth thereln
shall be charged on the munlclpal bus llnes of the Clty:
Local Fares:
Cash
Tokens
School Tlckets
College Tlckets
.50
10 for $4.50
10 rides for S2.00
10 rldes for S3.50
SECTION 3. Notwlthstandlng the above general fare structure detalled
ln Sectlon Z, a flat rate of twenty ($.20) cents for local trlps shall be charged
persons who have attalned the age of sixty-two (62) or more years and who have
obtalned and dlsplay ldentlflcatlon from the Transportatlon Department or such other
ldentlflcatlon as mandated under State or Federal law.
SECTIO~ 4. Kotwlthstanding the above general fare structure detalled
ln Sectlon 2, a flat rate fare of twenty ($.20) cents shall be charged to ellgible
persons who have obtalned and dlsplay a handlcapped ldentlflcatlon card from the
Transportat1on Department. Such hand~capped ~dentif1cat1on card shall be lssued to
those persons who, 1n the dlscretlon of the Transportat1on Department, utillz1ng
rules set forth by the Federal Urban Mann Transportation Admlnlstratlon, are deemed
to be handIcapped.
SECTION 5. Legally bllnd persons who d1splay appropr1ate Identlflcat10n
as determlned by the Transportatlon Department, whlch shall Include, but not be
llmlted to, a TransportatIon Department Identlflcatlon card, a whIte cane, a seelng-
~-
e
e
-2-
eye dog or a card lssued by the Brallle Instltute, shall rlde free.
SECTION 6. Notwlthstandlng the above general fare structure, the
followlng fares will be charged passengers travellng on freeway bus serVlce
between the Santa Monlca!West Los Angeles area and DOh~town Los Angeles.
Freeway Fares:
Cash
Senlor Cltizens
HandIcapped
Blind
$ .80
40
.20
Free
SECTION 7. Transfers shall be Issued between the varlOUS lines of
the Santa MonIca MunIclpal Bus L1nes at no additIonal charge to passengers for
continuous travel In the same general dlrectlon.
SECTION 8. Inter-Agency transfers shall be issued to passengers for
$ .10.
SECTION 9. The school tlckets here1nbefore referred to ln SectIon 2
of this resolut1on shall be avaIlable only to students attendIng an elementary
school, JunIor hIgh school or high school and valld only for travel to and from
schoOl on regular school days between the hours of 7 A.M. and 6 P.M.
SECTION 10. The college t1ckets herelnbefore referred to In Sect10n 2
of th1S resolution shall be ava1lable only to students 20 years of age and under,
regularly attending a recogn1zed college or unIvers1ty and val1d only for travel
to and from school between the hours of 6 A.M. and 6 P.M.
SECTION 11. The establishment of the fare structure set forth In thIS
ResolutIon 1S not subject to the CaIIfornla EnVIronmental qualIty Act of 1970
pursuant to PublIC Resources Code SectIon 21080 (b) (8). The C1ty Council f1nds
that the fare structure 1S for the purpose of meetIng operating expenses, In-
clud1ng employee wage rates and frlnge benefits, purchaSing or leas1ng supplIes,
eqUipment or materlals, and obta1n1ng funds for capital projects necessary to
maIntaln serVlce wIth1n eXlst1ng service areas The facts underlying these
f1ndings are contained In the follow1ng documents, WhICh are Incorporated into
thIS Resolutlon by thIS reference as additlonal fIndIngs:
1. Staff Report requesting publlc hearlng on fare adjustment for
~mnIcipal Bus L1nes, May 24, 1983.
2. Staff Report: PubliC HearIng on fare adjustment for MunICIpal
Bus Lines, June 21, 1983.
SECTION 12. The City Clerk shall certIfy to the adoption of thIS re-
solutIon and the same shall become effectlve on July 3, 1983, and thenceforth and
thereafter the same shall be ~n full force and effect.
e
APPROVED AS TO FORM:
~ 1.." ~
CIty Attorney 0
n__ III
e
-3-
e
e
AJOPT~: ~~D APPROVED -H:S
21st
CAY
OF
June
, 1 983 .
~'4'~:A
MAYOR
I HEREBY CERTIFY THAT THE FOREGOING RESOLUTION
NO. 6708(CCS)_WAS DULY ADOPTED BY THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ~T A MEETING THEREOF HELD ON
June 11
, 1983 BY THE FOllOWING COUNCIL VOTE:
,A.YES:
COUNCILMEMBERS: Conn, Epsteln, Jennings, Press, Reed
and r-Iayor Edwards
NOES:
CDUNCI~MEMBE~S: Zane
ABSE~T:
COUNcrLMEMBE~S: None
ABSTAIN:
COUNCILME~BE~S: None
ATTEST:
h~
e
sant~onlca, Cahforma 1(.... C.
MAY 2 4 \983
TO'JFH'HD dag
Councll MeetIng May 24, 1983
TO'
Mayor and Clty Councl1
FRO~1
CIty Staff
SUBJECT
;\ f\10TION TO SET A PUBLIC HEARING ON A PROPOSED FARE ADJUSTNENT
FOR THE SA~~A MONICA MUNICIPAL BUS LINES
IntroductIon
SInce 1980, the Santa MonIca MunICIpal Bus LInes has maIntaIned a 35~ cash fare
on Its BIg Blue Buses. Increased operatIng expenses SInce that tIme have made It
necessary to consIder an Increase In the baSIC fare for FY 1983-84, ThIS Increase
In fare to a level currently charged by SCRTD and all other major munIcIpal oper-
ators In Los Angeles County would also permIt the CIty to be elIgIble for Propo-
51tlon A fare SubSIdIes
ThlS report requests that the City CouncIl set a date
and tIme for a publIC hearIng to consIder a proposal to Increase the baSIC fare
and make other fare adjustments on the.Santa MOTIlca ~runIcIpal Bus LInes
Background
Reasons for the Fare Increase:
The CIty CouncIl last adopted a general fare Increase (to 35~) for the Santa MonIca
~~nlclpal Bus LInes on October 28, 1980
ThIS fare Increase enabled the ~llinlclpal
Bus LInes to collect over 50% of the operatIng expenses necessary to run the system
from passenger fare revenues In FY 1980-81. Increased operatIng expenses have SInce
dImInIshed the percentage contrIbuted by users of the system. It IS estImated that
patrons WIll be paYIng about 40% of operat1ng expenses In FY 1982-83 WIthout an
Increase In fares, thlS contrIbutIon wl1l decllne to 33% In FY 1983-84. Durlng
FY 1980-81. FY 1981-82 and FY 1982-83, costs lncreased $3.5 mIllIon, whIle fare
revenues Increased only $50,000. ThlS rise In operatlng costs IS prlmarlly attrl-
buted to Increased wages and fringe benefIts for TransportatIon Department employees
($1 8 ml1l1on), hIgher costs for fuel and 011 ($550,000), and repaIr parts and
t (- C
MAY 2 4 1983
.
TO JFH HO dag
CouncIl MeetIng
e
May 24, 1983
enta
MonIca, Callforn~a
serv~ces ($700,000)
These Increased expenses have been met by hIgher SubsIdIes
from federal and state fundIng sources. However, revenues from these sources
are not expected to Increase In the future, and may In fact declIne due to budget
problems In WashIngton and Sacramento.
PropOSItIon ~, whIch enacted the 4% sales tax for publIc tranSIt In Los Angeles
County, stIpulated that for the perIod from FY 1982-83 through FY 1984-85, a por-
tlon of the funds would be allocated to reduce the baSIC fare (prImarIly for SeRTD)
to 50~ and adJust other fares accordIngly.
Iflplementatlon of a baSIC cash fare of 50~ would qualIfy Santa ~onlca for subsIdy
from the PrOpOSItIon ~ Fare ReductIon Program. The Los Angeles County TransportatIon
CommIssIon (LACTC), WhIch admInIsters the Prop. A program, has, upon agreeIng ~lt~
the local POlICY board on a Memorandum of UnderstandIng, relnbursed operators for
the amount of theIr operatIng defICIt In a gIven year
The FY 1983-84 Budget and
Short Range TranSIt Plan for the MunICIpal Bus LInes IndIcate a reImbursement level
from the program of up to $1.5 mIllion 1n FY 19&3-&4. The adoptIon of an ellglble
fare under PropOSItIon A would guarantee suffICIent SUbSIdy fundIng to maIntaln
stable fares for FY 1983-84 and FY 1984-85
In FY 1985-86, the Fare ReductIon
Program WIll be replaced wlth a substantIally smaller dIscretIonary fundlng program
admlnlstered by the LACTC as almost half of the funds must be dIverted to raIl
purposes,
WIth the exceptIon of the CIty of Santa ~ronIca, all of the maJor munICIpal operators
in Los Angeles County as well as the Southern Callfornla Rapld TranSIt Dlstrlct are
partlclpatlng In the Fare Reductlon Program. SCRTO> Long Beach, Culver CIty, Tor-
rance, Gardena and Hontebello adopted SW base fares one year ago as part of a general
fare adJustment to brIng fares to PropositIon A levels
-2-
TO JFH.HD dag
CouncIl \1eetlng
e
1>1ay 24, 1983
_ta
MonIca, CalIfornIa
Present and Proposed Fare Sturctures'
In order'to help meet r~slng expenses, to Increase the fare box contrIbutIon by
our rIders and to render the CIty elIgIble for Fare ReductIon subsIdIes, the
followIng fare structures are suggested for City CouncIl consIderatIon
For comparIson purposes, current fares are also llsted
Current Alt. #1 Ut #2
Local Cash Fare 35 50 50
Token Fare .30 45 45
Freeway Fare 1 00 .80* 80*
SenIor Freeway Fare .50 .40* 40*
Students (Thru HIgh School)
10-rlde card 175 20 20
College students (under 21) .35 50 35 (lO-nde card)
SenIor CItIzens .15 20 20
DIsabled .15 20 20
Transfers to SCRTD and
Culver CIty 20 .10* 10*
Blg Blue Bus Transfers Free Free Free
Bhnd Free Free Free
* Interpretatlon of fares allowed under PrOpos1tlon A permIt reductlon
of these fare categorIes
Both of the alternatIves are elIgIble for ProposItIon A subsIdIes. ~lternatIve #2
provIdes a reduced fare for college students who buy a 10-rlde card for $3.50 Cur-
rently, SCRTO offers a college student monthly pass for $4 00, whIle Culver CIty
provIdes a 20~ fare for college students
AlternatIve #2 would permIt the Munl-
clpal Bus LInes to remaIn somewhat competItIve by retaInIng the 35~ fare for college
students under 21 years of age
However, adoptIon of a specIal college student fare
would reverse the CIty CouncIl's deCIsIon to elimInate college student dIscounts at
the tIme of the last general fare Increase In 1980
Legal RequIrements to Increase Fares
The CIty CouncIl may set fares upon adoptIon of a resolutIon
However, State and
Federal requirements mandate a more complex procedure. To satIsfy Federal regulatIons,
-3-
TO JFH HO' dag
CouncIl Meetlng
e
~anta ~onlca, CalIfornIa
~tay 24, 1983
the CIty may only Increase fares after
(1) uSIng a locally developed process to
SOlICIt and conSIder publIC comment; (2) haVIng glven proper conslderatlon to the
VIews and comments expressed by the publIC, and (3) haVIng gIven conSIderatIon to
the effect on energy conservatIon, and the economIC, envIronmental and SOL ldl ~mpJlt
of the change In fare.
Under Cr.apter 356, Statutes of CalIfornIa (1978), the State reqUIres that lr lle~ of
fIlIng an enVIronMental Impact statement, a fIndIng be made that the fare ]ncrea~e
WIll be used for at least one of the follo\oJlng purposes, (1) to ]l',eet operatl'1g C\.-
penses, IncludIng employee wage rates and frInge benefIts, (2) to purchase or lease
supplIes, eqUIpment or materIals, (3) to meet fInanCIal reserve needs and reqUlre-
ments, (4) to obtaIn funds for capItal projects necessary to maIntaIn serVIce WIthIn
eXIstIng serVIce areas, or (5) to obtaIn funds necessary to maIntaIn such Intra-CIty
transfers as are authorized by CIty charter. The CIty must Incorporate Its ~rItten
flndlngs as part of the publlc hearIng record. CIty staff would prepare a proposed
flndlngs statement for the CounCIl's consideratIon at the publIC hearIng
FInanCIal AnalYSIS
Staff estImates that by adoptIng the AlternatIve #1 fare structure, the Departrr-ent
would receIve about 5730,000 ~n addItIonal fare revenue
Under 'lternate #2, KhlCh
Includes the speCIal college dIscount fare, the Department could expect approxImatelv
$680,000 addItIonal fare revenue
Both prOJectIons Include allowances for patronage
declInes resultIng from the recent stabIlIzatIon of gasolIne prIces and Increased
fare competItIon from $CRTD and Culver CIty. In addItIon to the Increased fare re-
venues, the CIty would also become elIgIble for up to $1,500,000 In Proposltlon 4
Fare ReductIOn Program subsId~es as a result of adoptIng PropOSItIon A fares The
-4-
~
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~anta MonIca, CalIfornIa
TO JFH HO. dag
CouncIl MeetIng
May 24, 1983
receIpt of these funds would be subject to the executIon of a Memorandum of Under-
standIng wIth the LACTC
Staff has engaged In lengthy negotIatIons WIth L~CTC
staff over the past several ~onths and wIll present the proposed Memorandum of
UnderstandIng for CouncIl consIderatIon at the publIC hearIng
If the CIty CouncIl chose not to adopt a ProposItIon A fare structure, the CIty
would be InelIgIble for Fare ReductIon Program SubSIdIes
The proJected Proposltlo~
A SUbSIdy needs would then have to be recovered from other sources of fundIng, In-
eludIng even hIgher fares. If the CIty CouncIl agrees to set a publIC hearIng on
June 21, 1983 to consIder a fare adJustment, City staff wIll present a recommended
fare for CouncIl consideratIon at that meetIng
RecommendatIon
CIty staff recommends that the CIty CouncIl set a publIC hearIng concernIng the
adJustment of fares on the Santa MonIca MunIcIpal Bus LInes for ItS meetIng of
June 21, 1983.
Prepared by
J. F. Hutchison) DIrector of TransportatIon
Hank DIttmar, Transportatlon Program Speclallst
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e
e
ADD 70
II-c
"OTICE OF DUBUC HEARI'IG
SAN!; '~~"'ICA \llJIo,.ICIPA.L !\~JS LI'\ES
~ROPOSED ~\RE CYA\GfS
'1~~ 2 ~ s:
\otlce :s 'JerebY gnen tlJat a publ1C lJeanl"g '..:ll be 11Cl<3 bit :he Cav
~Ollnc~l ot :he Cltv of Santa '~~l~a at the Sdnta ~onlca Cltv Hail I
:685 'lam Street. Santa \!onlca. ,all forn:a, or> Tue~dav. June 21, 19<;',
to !"CU:'lve comments on possIble fare Lhanges for patrons Jt tl'c Sant'l
\IOl\~L-l ':Un1cipa: Bus Llnes T'le 11edr1ng "Ill ')C 'lelJ a<; ..in .lgendL:eJ
~ar: :Jt the Cav Council meet1ng ".hICh St::LTtS 3: - ,1' ;J m
:1
r;'e C::, CC:J'1':l~ mav 'illopt a rare struct;;re SL.:':l~eql"en~ to :~e :)ubl1.::
.1e..L~1""'g ....j,lCi-L reflects .a. corb1r.at..:.:)f1 ~f change.., ~o ~."'e I,...Ul"~efl: -L''''~'''
-;.-:.df.;:;r .e.....t~uc:t.lirlng of t}~e fJ.T€' .....Stet"'! ~he\. '''lll '!1a;"'~ tile:.... jeL-1""tlon~
r-~~r ;.,. :;~::dJer:..n~ t;l~ eff"'c\...t: un ~n~" s:.y ,-O""'l:'~T\..Lt::.or Lnj r-"e ....:)i..- L ~l J :..11-
. ':T.::r~me"'-~J~ arJ. -::'";:OT"O~.l..... :.moa;:t:::o .:=t _I-.dngl"lg t.lrc~ .:::Ln~i,:::- ..-"l'....~l~ ...:;:ao'l._=.::
V: ~lle ~earlng, :he C~!\.' Col.;nL=..l '.,:::.11 3.fford J.n ;):)por:un-: t. fOl ...nt~re""''t~~
~er'~-.Jrs .JT J.g.en"::les to sUbPlt .e.:..~~'e!' vr-3i lv or :.... :"'i"l.t::.ng '''':~~en;..e ...l"'Ld
-e.:o:",:"'eraat lOr'S "'1 t" r-esrect to ,'hall' glllg :he c3.re 5t1 ~c:,lre
!lJ
~i'e Lit~~ CcunL1I ~ll1 ~~e ~Q~~l~eTl"g :)0~~~b~e a~lu~tme~ts :0 ~~~u:~r ~1re'.
...tuuo;:.Y)t ~"1res, ~C'!1iOr .1nc. til~3blet"; :::Llres~ t'"'(pr~..,~ ....~res 'nJ J.....tcl --=i.~er:c'."-
t-~n~ter rc-e::, C'Lir~he-!"". the Ll~\ :....,-::H.:r-Cli ...:l~ be C0'1~1c.er:.~g D-u$~:i'l.
i.lt~"i":.ng ":},e or "It'Jore :)f t:':'e ba.::-l.': e:e"""er~s DE the f:lre ..,t~'J\..-tu""e ~:~e~::
~r.:...lli1..!.:..ng iJut not l1."Illted =::0 the e! :i?;lb.i.ll.~\,r ....eaulre....el"'lts tor ...!~E' c-f tl-.e
~tuJ~~! JLscoun~ card
rhe ~€"r'~ :..ce .lr-ea af=ected bv t~e fare change::. gene:rall \.' 1,..::1'1 :"e =..:.e~..:-:" :..t--'.:-J
,$ :'le \ ~:... of Sanca \lonlca and adJacent CO'lll'lUnltles, l~cluC:lng Paclf~c
::>a ~ 1 sa:ies. 8re'ltliOocl, lI'est\\'ood. I~est LOS ;ngcl es. Bever! wooe. "-anc"~o
~a~~, ?alms, .~ar VISta, ~rIna del ReY, Ve~lce and WeStc~es!er
" c:e~:r:;JtlOn of r-ecom'llended OPtlOn~ for a f::tre crange ~~ a\d~la;'le, ;Jpon
rec~est. fr-on the Santa 40nlca 'mnlCloal Bus LInes off~ce, 1"20 S:xt~
~tr-ee!, :,a"ta 'lonlca, Cal.1fornla ~040' -\lthough tre"e fare optlOns are
" ~ll~b:c for- reVIe" prlor tc ,nd J~rl~5 the publIc hear:ng It -u"t ~e
unJers;:ood t'lat the L1tv Councll IS 1n no "av bound bv the"e opt :ons 1l"
..t~ I..-O.l..,lde-ratlOn of tr-e =are ~tTu{.ture and ~aV' well develau '1 f~Te
.,:ru...tt.:rc totaL Lv dlfferent tha" the DPt10n" available for re\'lCw
::nlfi.ronme"1t.
Co~par-eri to other actlons t~e Santa \~nlca '~rIclpa! Bus ~lnes "o;Jld f1~d
~ece~"arv to ...over a SImIlar percentage of opera:~ng exper'~es. IfCluClQg
,cr' lce ~utbacks, these tare c~3.nges are 'lOt antICipated to 'I3.ve a ~lgnlf-
L...'ltt :l<.:verse 1mpa...t upon the Santa \101"1<:30 ~lunlclpaL Bus Ll'leS' ~er\':.ce
lrea
il '-L:er-lv \nd han'IIC1.:iped
)C~tlon O'm) of t~e Urban ~a,,~ T,'l'lspOrtat10n ~ct
rr.:l\'lC:c::- tha.~ elderiy .:l.J"'c. h.i.-I"llLL~a..~e-c.:. "e~sor-s are
--';-OC-'l.3 1 t tbe p-er:k...'LGur ~.J-:e dur:n6; .~0'1-pe:..!J... "In;..r-=
o~ :96~j a~ 3~e~ded,
C ';)~ge j ~r c'or~ ".Ir'
:)ate
\1a vo~
~r~roved as to Fa~
-'1' . ~) 1.-...... k_ _.~~-,
'>t? ,-..........., ~- ..~.~ .:e-'
~
Clt\ \ttor'\ev
f-.DD
I (-C
To
....;v ~ j '.~J
TD JFH "HO" cb
Council Meetlng
e
~anta Monlca, CalIfornIa
June 21, 1983
'i-/J
TO'
Mayor and CIty Council
JUN 21 1983
FROM
City Staff
SUBJECT
PUBLIC HEARING AND ADOPTION OF RESOLUTION ON FARE ADJUSTMENT
FOR MUNICIPAL BUS LINES AND APPROVAL OF A ~ffiMORAND~1 OF
UNDERSTANDING FOR FARE SUBSIDY FUNDS
IntroductIon
At Its meeting of May 24, 1983, the Santa MonIca Clty Councll set a publlc
hearlng for the CounCll meetlng of June 21, 1983 to consIder a proposed
adJustment to the fares of the Santa Monica MunIc~pal Bus Llnes ThIS
report recommends that the CIty Councl1 approve speclfled adJustments to
the ~llinlclpal Bus Llnes' fares, as well as authorlze the executlon of a
~emorandum of UnderstandIng wlth the Los Angeles County TransportatIon
Commlsslon to receIve Proposltlon A Fare Reductlon Subsldles
Background
In response to the Clty staff recommendation contalned In the May 24th staff
report, the Clty Councll, on ~my 24. 1983, (Agenda Item llC) approved a proposal
to hold a publlC hearlng on a fare Increase at Its June 21, 1983 meetlng.
Subsequent to the CounCll action, a publIC notIce of the hearlng was publlshed
In the Santa Monlca Evenlng Outlook of May 26, 1983 and cards were posted on
all Blg Blue Buses to publlclze the hearlng.
Reasons for the Pare Increase'
The Clty Councll last adopted a general fare lncrease (to 35t) for the Santa
Monlca Munlclpal Bus LInes on October 28, 1980. ThIS fare Increase enabled
the MunICIpal Bus Lines to collect over 50% of the operatlng expenses necessary
to run the system from passenger fare revenues In FY 1980-81
Increased operatIng
'7-/J
J U N 2 1 19B3
TO JFH 'HO cb
Councll \1eetlng
tit
June 21, 1983
4Itanta Monlca, Callfornla
expenses have since dlmlnlshed the percentage contrlGuted bv users of the system
It 1S estlmated that patrons wlll be paYlng about 40% of operatlng expenses In
FY 1982-83. Wlthout an lncrease In fares. thlS contrlbutlon w1II decl1ne to
33% In FY 1983-84. Our1ng FY 1980-81. FY 1981-82 and FY 1982-83, costs lncreased
$3 5 mllllon, whlle fare revenues increased only $50,000
ThlS rlse In operat~hg
costs lS prlmarlly attr1buted to increased wages and frlnge beneflts for Trans-
portatlon Department employees ($1 8 ml1110n). hlgher costs for fuel and 011
($550,000). and repalr parts and serVlces ($700.000). These lncreased expenses
have been met by hlgher Subsldles from federal and state fundlng sources
Ho\\'cver,
revenues from these sources are not expected to lncrease ln the future, and may
1n fact decllne due to budget problems 1n Washlngton and Sacramento
Proposltlon A, whleh enacted the \% sales tax for publlC translt In Los Angeles
County. stlpulated that for the perlod from FY 1982-83 through FY 1984-85, a
portlon of the funds would be allocated to reduce the baslc fare (prlmarlly for
SCRTO) to 50~ and adJust other fares accordlngly.
Implementatlon of a bas1c cash fare of 50~ would quallfy Santa Monlca for SUbSldy
from the Proposltlon A Fare Reduction Program. The Los ~ngeles County Transportatlon
CommlSSlon (LACTC), whleh adminlsters the Prop. A program. has, upon agreelng wlth
the local POllCY board on a Memorandum of Understandlng, re1mbursed operators for
the amount of the1r operating def1cit 1n a glven year.
Wlth the exceptlon of the C1ty of Santa MonIca, all of the major munlc1pal operators
In Los ~ngeles County as well as the Southern Callforn1a Rapid Translt 01strlct are
partlc1patlng 1n the Fare Reduct10n Program. SCRTO, Long Beach, Culver Clty,
Torrance, Gardena and Montebello adopted 50~ base fares one year ago as part of a
general fare adJustment to brIng fares to Proposlt10n A levels
-2-
TD:JFH:HD cb
CouncIl Meet~ng
e
June 21. 1983
The fares proposed are as follows:
Local Cash Fare
Token Fare
Freeway Express Fare
Students thru hIgh school
College Students (under 21)
SenIor C~tlzens
DIsabled
Transfers to SCRTD and
Culver CIty
SenIor Freeway Fare
Big Blue Bus Transfers
Bhnd
~anta 4onlca, CalIfornIa
Current
Proposed
35~
304:
1.00
1. 75
N/A
15ct"
15ct'
2 Oct"
504;
10 for $4 50 (454; a rIde)
804:*
10 ride card for $2.00 (20~ a rIde)
10 r~de card for $3.50 (35~ a rIde)
20~
204;
104; *
50ct:
FREE
FREE
404;*
FREE
FREE
* ReductIon of fares permItted under the terms of PropOSItIon ~
I~tersystem Monthly Pass
In response to a COmMent from the publIC at the CIty CounCIl meetIng of May 24,
1983, the CounCIl dIrected CIty staff to evaluate the pOSSIbIlIty of developIng
an Intersystem monthly bus pass WhICh could be used on all bus systems In Los
Angeles County. Staff has studIed the use of monthly passes on several occaSIons
(1975, 1977 and 1982) and has each tIme found the uIsadvantages of such a program
outweIgh the advantages. The baSIC problems WIth monthly pass programs In general
and JOInt programs In partIcular are brIefly summarIzed below.
Monthly pass programs result In a SIgnifIcant loss of fare revenue per passenger.
Passes guarantee unlImIted use In a calendar month and thus elimInate the control
over usage
Industry studIes have repeatedly found that tranSIt users only purchase
passes If they result In a fInancial advantage to the user. ThIS loss of revenue
must eventually be borne by other users of the system In the form of hIgher cash
fares
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TD"JFH'HD:cb
CouncIl Meetlng
e
June 21, 1983
4Itanta MonIca, CalIfornIa
The BIg Blue Bus currently offers tokens to regular users at reduced rates
These
tokens allow frequent rIders tD enJoy a controlled dIscount as well as most of the
convenIence of a monthly pass program.
~dmInlstratlve expenses of monthly pass programs are also hIgh. The passes must
be prInted (wIth a dIfferent and unIque desIgn each Month to help prevent counter-
feltlng and abuse); securely stored; dIstrIbuted, usually on a commiSSIon basIs,
and marketed. A study of Sacramento RegIonal Translt1s pass program found that
admInIstratIve costs averaged 3~ for every trIp taken on the pass.
The countYWIde pass concept poses addItIonal diffIcultIes beyond those outlIned
above for a pass program. The countywIde pass would result In a loss of IdentIty
for the Blg Blue Bus as patrons would use any bus system equally. Further, the
CIty CounCIl's abIlIty to set Big Blue Bus fares would be abridged, as pass
prices would undoubtedly be pegged to the prevaIlIng RTD rate.
FInally, and most Importantly, the sale of passes on a countywide baSIS poses
Insoluble problems concernIng the equitable dIstrIbutIon of revenues. Revenue
from the sale of passes would probably remain WIth the company whIch made the
sale, regardless of which company actually prOVIded the service for WhICh the
pass was utIlIzed. Thus the ObVIOUS IncentIve would be to sell "passes" rather
than "serVIce", whIch could then lead to all kInds of probl ems, IncludIng
competItIon for sales, duplIcatIon of sellIng efforts, etc" etc
It is important to note that the BIg Blue Bus partICIpates In the CountYWIde
Interagency Transfer program WhlCh makes It posslble to transfer between bus
syste~s wlthout paYIng two full fares, In addltlon, the PropOSItIon A fares
proposed by staff Include a reductIon In the cost of thIS Intersystem transfer
from 20t to 104:
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TD:JFH:HD:cb ~
Councll Meet1ng June 21, 1983
4Itanta Monlca, Callfornla
For these reasons, Clty staff respectfully recommends agaInst pursulng the
development of a countYWlde monthly pass program Or the InstItutIon of a BIg
Blue Bus monthly pass.
College Student DIscount
Prior to the last general fare Increase ln 1980~ the Munlclpal Bus Llnes extended
a dlscount to full tIme college students, under age 21, travelIng to and fro~
school durlng school hours. At the tIme that the baS1C fare was raIsed to 35~,
staff recommended that the speCIal college student dlscount be ellmlnated The
Clty Councll agreed and elImInated the dIscount at that tIme.
CIty staff presented the CIty Council with two optlons related to the college
student fare at the May 24, 1983 City CounCIl meetIng. One optIon 1S to charge
college students the full fare of 50~> whlle another optIon IS to make avallable
a IO-rIde card for $3.50 to college students between the ages of 18 and 20
CIty staff respectfully recommends that the City Council adopt a college student
dlscount rate of $3,50 for a 10-rlde card. ThIS recommendation IS made WIth
some ~lsglvIngs, as CIty staff does not belIeve that attendance at a college
or unIverSIty necessarIly relates to the need of an IndIVIdual for a dIscounted
fare
DespIte thIS fact, however, staff belIeves that a college student dIscount
fare should be Instituted for the duratIon of the PropOSItIon A Fare SUbSIdy
program. The InstItutIon of thIS fare would allow BIg Blue Bus fares for UCL4
students to remaIn somewhat competItIve WIth the 20~ college student fares
offered by Culver C1ty ~~nicIpal Bus LInes and the Southern CalIfornIa RapId
I
Transit DistrIct. If fares are ralsed to 50~ for college students, the results
would be a further patronage dec11ne on BIg Blue Bus Llnes servlng UCLA.
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TO JFH HD'ch
CouncIl MeetIng
e
June 21, 1983
411Lnta MonIca, CalIfornIa
MeetIng State and Federal ReqUIrements
In order to meet applIcable Federal reqUIrements, It IS necessary for the CIty
CouncIl to consIder energy conservatIon, as well as the economIC, envIronmental
and socIal impacts of the fare change. The fares proposed by staff WIll merely
brIng BIg Blue Bus fares into line wIth those already charged by other munIcipal
bus operators In Los Angeles County and by the Southern CalIfornIa RapId TransIt
DIstrIct
The ImpositIon of these 50~ fares has not resulted In signIfIcant
adverse Impacts.
In addItIon, many routes are operatIng near or at capacity durIng the peak hours
An Increase In rates IS certaInly more attractIve than the other optIon, to
reduce serVIce. The latter would mean decreased carrYIng capaCIty on already
heaVIly loaded lInes and would certaInly dIscourage patronage
~ccordlng to CalIfornIa statute, a fare Increase IS exempt from the CalIfornIa
EnVIronmental QualIty Act (CEQA} reqUIrements, if the funds are used for one
or more of the fOllOWIng purposes
(1) to meet operatIng expenses, IncludIng
wage rates and frInge benefIts; (2) to purchase or lease supplIes, eqUIpment
or materIals, (3) to meet fInancIal reserve needs and reqUIrements, (4) to
obtaIn funds for capItal projects necessary to maIntaIn serVIce WIthIn
eXIstIng serVIce areas, or (5) to obtaIn funds necessary to maIntain such
Intra-CIty transfers as are authorIzed by C1ty charter. In short. tranSIt
fare Increases are VIrtually exempt from CEQA SInce there IS almost nothIng
else for wh1ch the proceeds from a fare Increase could be legally used. In
any event, Department costs have increased conSIderably SInce the last fare
lncrease In 1980.
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TD'JFH'HD'cb
CouncLl Meetlng
JUn.l, 1983
~anta MonIca, Callfornla
Memorandum of Understandlng for PropositIon A Fare Subsldles
In order for the CIty to recelve PropositIon A Fare ReductIon SubsIdles, the
Los Angeles County TransportatIon Commlsslon and the CIty must execute a
Memorandum of UnderstandIng (MOU). ThlS MOU IS a standard document WhlCh has
been agreed to by the other transit operators In the County. Briefly, the
Memorandum sets forth the conditions under WhICh the CIty may receIve up to
$1 mIllIon In Prop. A fare SubsldIes
In addltIon to adoptIng Prop. A fares,
the CIty must agree to lImit servIce hours to FY 1981-82 levels, to maIntaIn
serVIce standards and to submIt to a complIance audlt
The lImItatIon of
serVIce hours was Imposed by the CommISSIon ln order to prevent tranSIt
operators from expandIng service WIth funds WhICh were Intended to compensate
for fare reductIons. In VIew of the recent declIne in passengers due to the
recent stabIlIzatIon of gasolIne prIces and Increased fare competItIon WIth
SCRTD and Culver CIty, staff does not VIew thIS lImitatIon as a problem
Through lengthy negotlations, CIty staff were also successful In negotiatIng
a clause In the MOV WhICh, In effect, wlll allow Santa MonIca to carryover
funds which have been accumulated through operatIng economIes durIng the last
few years to FY 1985-86, when the Prop ~ Reduced Fare program IS replaced
WIth a Much smaller dIscretIonary program admInIstered by LACTC
In addItIon,
the Memorandum allows the City to lImit its contrIbution of PropOSItIon ~
Local Return funds to the minImum amount reqUIred by L4CTC ($165,000), thus
allOWIng the C1ty the flexlbillty to reserve these funds for FY 1985-86 and
beyond when much of the Propos1t1on A ,fund IS devoted to rall tranSIt purposes
FInally, the Memorandum guarantees two years of fare stabIlIty for the MunICIpal
Bus LInes,
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TO'JFH:HD:cb
CouncIl MeetIng
Juna, 1983
~nta MonIca, CalIfornIa
FInancial AnalysIs
Staff estImates that the adoptIon of the proposed fare structure would generate
approxImately $680,000 In addItIonal fare revenue. ThIS estImate Includes an
allowance for patronage declInes resultIng from the recent stabIlIzatIon of
gasolIne prIces and Increased fare competItIon from SCRTO and Culver CIty. In
addItIon to the Increased fare revenues, the CIty would be elIgIble for approxl-
mately $1,000,000 In PropoSItIon A Fare Reduction Program SubSIdIes upon adoptIng
PropOSItIon A fares and authorIZing the CIty Manager to execute a Memorandum of
UnderstandIng WIth the Los Angeles County TransportatIon CommISSIon. The preVIOUS
estImate of $1.5 mIllIon In PropOSItIon ~ SubSIdIes has been adjusted downward due
to Increased estImates of State and Federal formula allocatIons. The actual amount
of PropOSItIon A Fare SUbSIdy IS dependent upon the Department's actual expenses
To the extent that operatIng economies are effected, the PropOSItIon A SUbSIdy WIll
be reduced
I
The amount cannot be increased WIthout renegotIatIng the Memorandum
of UnderstandIng.
RecommendatIon
Subject to the comments received at the publIC hearIng, CIty staff recommends
that the CIty CounCIl:
1 Adopt the attached resolution adjUstIng fares for the Santa MonIca MunICIpal
Bus LInes effectIve July 3, 1983
2 ~uthorIze the Mayor and CIty Manager to execute the attached Memorandum of
Understandlng wlth the Los Angeles County TransportatIon Commlss10n to re-
Irnburse the CIty of Santa Monlca an amount up to $1,000,000 for ltS
partICIpatIon In the Fare Reductlon Program.
Prepared by' J F. Hutchlson, Dlrector of TransportatIon
Hank DIttmar, TransportatIon Program SpeCIalIst
Attachments.
1. Resolutlon authoriZIng adJust~ent of fares
2, NotIce of Pub11C HearIng
3. Draft Memorandum of UnderstandIng WIth Los
~ngeles County Transportatlon CommISSIon
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