HomeMy WebLinkAbout04-17-2012 c8 slo transit pass bulk sale discountsII
counci lagenda Report
Meeting Dat e
April 17,201 2
Item Number
L C 8
C I T Y O F S A N L U I S O B I S P O
FROM :
Jay D . Walter, Director of Public Work s
Prepared By : John Webster, Transit Manage r
SUBJECT :SLO TRANSIT PASS BULK SALE DISCOUNT S
RECOMMENDATIO N
Adopt a Resolution approving a pass sale discount of 15% for bulk purchases of fifty (50) or more SL O
Transit passes, effective May 1, 201 2
DISCUSSIO N
On October 10, 2010, the City Council last approved modifications to SLO Transit fares . Since that
date, SLO Transit staff has received requests for bulk pass discounts from various agencies such a s
the YMCA, local schools and other non-profit groups . The current SLO Transit fare resolution doe s
not allow for a bulk purchase discount beyond what is available for seniors and disabled passenger s
on a single pass basis . Staff contacted the San Luis Obispo Regional Transit Authority (SLORTA )
and they indicated that SLORTA also does not currently provide any bulk purchase discounts beyon d
what is currently available to the general public .
On March 28, 2012 a request was made by Community Action Partnership of San Luis Obispo Co .,
Inc . (CAPSLO) for transit pass discounts to be used at the Veterans Stand-Down event on May 24 ,
2012 . CAPSLO has requested a bulk purchase discount for SLO Transit single ride passes wher e
none is currently available . CAPSLO has also applied for a grant that would provide up to $500 fo r
SLO Transit pass purchases in connection with this event .
City staff has analyzed this request, and similar bulk purchase requests from other local agencies .
Given the nature of this request, and the unavailability of bulk purchase discount from other transi t
providers such as SLORTA, staff is recommending that a fifteen (15%) discount be authorized fo r
bulk purchases of fifty (50) or more passes for the SLO Transit system . This discount would b e
available to CAPSLO and any future user who purchases a minimum of 50 SLO Transit passes .
FISCAL IMPAC T
Table 1 reflects the existing SLO Transit pass categories, the per-unit cost and the 15% propose d
bulk rate discount on a per pass basis .
SLO Transit Pass Bulk Sale Discount Page 2
Table 1 – Current and Proposed Bulk Purchase Fare s
SLO TRANSIT PAS S
CATEGORY
COST
(Per Unit)
Bul k
Purchas e
Discoun t
(15%)
Bul k
Purchase
Cost (ea .)
SINGLE RIDE $1 .25 $(0 .19)$1 .0 6
1 DAY $3 .00 $(0 .45)$2 .5 5
3 DAY $6 .00 $(0 .90)$5 .1 0
5 DAY $10 .00 $(1 .50)$8 .5 0
7 DAY $14 .00 $(2 .10)$11 .9 0
ADULT 16 RIDE $20 .00 $(3 .00)$17.0 0
SENIOR/DISABLED 15 RIDE $9 .00 $(1 .35)$7 .65
31 DAY ADULT $37 .00 $(5 .55)$31 .4 5
31 DAY STUDENT $25 .00 $(3 .75)$21 .2 5
31 DAY SENIOR/DISABLED $12 .50 $(1 .88)$10 .63
Using the CAPSLO grant funding amount of $500, staff has estimated CAPSLO would be able t o
purchase approximately 471 single ride passes . With the proposed 15% bulk rate discount, thi s
would equate to a total savings of $88 .75 for CAPSLO . Staff believes this slight reduction i n
potential SLO Transit revenue is acceptable in light of the increased benefit of improving custome r
relations, promoting the use of alternative transportation methods and supporting local agencies fo r
various events .
ALTERNATIVE S
1.Deny pass modification .The City Council could choose to deny the transit pass bulk far e
modification for SLO Transit at this time, thereby deferring any discounts for bulk pas s
purchases . Staff is not recommending this alternative based on the limited number of request s
for bulk purchases and the benefit that a slightly reduced price would provide in support o f
local agencies such as CAPSLO for various events .
2.Revise the proposed pass modification .The City Council could choose to revise th e
proposed bulk purchase discount to five or ten (5-10%) percent . Staff is not recommending a
revision to the bulk purchase discount as the proposed fifteen (15%) percent is reasonabl e
and is not expected to greatly impact SLO Transit revenue projections .
ATTACHMENT
Fare Modification Resolutio n
T :\Council Agenda Reports\2012\2012-04-17\SLO Transit Bulk Pass Sale Discount (Walter-Webster)\CAR-SLO Transit Buis Pass Sale Discoun t
(Walter-Webster)v3 .doc
RESOLUTION NO .
(2012 Series )
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O
APPROVING THE FARE STRUCTURE FOR SAN LUIS OBISPO ("SLO")TRANSI T
WHEREAS,cash and prepaid fares on SLO Transit changed in October 2010 in accordance wit h
the Council adopted Short Range Transit Plan ; an d
WHEREAS,following a public hearing that was property noticed, the City Council adopte d
Resolution No . 10223 (2010 Series) approving the current fare structure for SLOT Transit ; and
WHEREAS,staff is recommending that Council approve a pass purchase discount of fiftee n
(15%) percent for bulk purchases of fifty (50) SLO Transit passes or more ("Bulk Pass Discount"); an d
WHEREAS,approval of the pass purchase discount of fifteen (15%) percent for bulk purchase s
of fifty (50) SLO Transit passes or more does not result in a fare increase or reduction in transi t
services ; an d
WHEREAS,the City Council finds based on data presented that the Bulk Pass Discount does no t
appreciably increase the costs of providing service ;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that :
SECTION 1 :The current fare structure as set forth in Exhibit A attached to Resolution No .
10223 (2010 Series) is hereby amended to add the following after paragraph 22 :
23 .BULK PASS DISCOUNT
a . A bulk pass discount of fifteen (15%) percent shall be applied for SLO Transit pass sale s
of fifty (50) or more .
SECTION 2 : The Bulk Pass Discount as set forth herein shall be effective May 1, 201 2
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On motion of , seconded by , and on the followin g
vote :
AYES :
NOES :
ABSENT :
the foregoing resolution was passed and adopted this day of , 2012 .
Jan Howell Mar x
Mayo r
ATTEST :
Sheryll Schroeder, Interim City Cler k
APPROVED AS TO FORM :
/s/ Andrea Visveshwara for
Christine Dietric k
City Attorney
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