HomeMy WebLinkAbout04-04-2017 Item 01 Public Hearing - 2017 Transit Fares and Advertisement Rates Meeting Date: 4/4/2017
FROM: Daryl Grigsby, Public Works Director
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: 2017 TRANSIT FARES AND ADVERTISEMENT RATES ANALYSIS
RECOMMENDATION
As recommended by the Mass Transportation Committee (MTC):
1. Adopt a Resolution approving the new transit fare and interior bus advertisement rates; and
2. Set June 18th 2017 as the date for the new fares to be implemented.
As recommended by Staff:
1. Adopt the recommendation of the MTC for the Regular 31-Day Monthly pass with a revision
to limit the increase to $40 instead of $41.
2. Adopt the recommendation of the MTC for the Senior 31-Day Monthly pass with a revision
to limit the increase to $20 to be half the Regular 31-Day Monthly Pass.
DISCUSSION
Background
The City of San Luis Obispo adopted the current Short Range Transit Plan (SRTP) in August of
2016. This plan outlines the needs and growth for the SLO Transit system over the course of the
next five to seven years. These recommendations are largely based on data analysis, needs
assessments and public comments. Specifically, the top four feasible public comment request
were for 1) longer academic schedules, 2) longer summer schedules, 3) longer weekend
schedules, and 4) more frequency. Implementation of these recommendations will largely
improve the current transit services, making the system more practical and functional by better
meeting the needs of the current 1.2 million local transit riders. In addition, it is anticipated that
the changes in service will attract more individuals to use the improved public transit system.
The recommendations for expansion of service come with financial challenges. Most notably, the
City must continue to meet the state mandated 20% Farebox Ration that is explained below.
Implementation of changed routes extended to new and underserved areas, increase in
frequencies along heavier transit-use corridors and the expansion of operating hours all come
with an associated cost increase.
The last general fare increase occurred eight years ago in 2009. As the new services come-on
line, and more importantly, to ensure a solid transit funding source to match our necessary grants
it is now time to consider changes to the transit fare for SLO Transit.
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Fare Revenues
Though transit operating costs are largely subsidized by both the federal and state governments,
there is a State requirement for locally generated funds that requires we capture minimum fare
amounts for operations. California Public Utilities Code Section 99268.3 states, in part:
(a) In the case of an operator which is serving an urbanized area, and which was
eligible for (Transportation Development Act) funds under this article …, the operator
shall be eligible for such funds in any fiscal year, …, if it maintains, for the fiscal year, a
ratio of fare revenues to operating cost, as defined by subdivision (a) of Section 99247, at
least equal to one-fifth [20%]…
Failure to meet the set forth 20% farebox recovery ratio can jeopardize future state assistance for
use of TDA funds which is a, significant funding source for SLO Transit. The City historically
hovers near the 20% farebox recovery amount and sets its service levels in anticipation of both
farebox and local match requirements for TDA funds.
The Cal Poly subsidy agreement has helped the City meet these requirements. Annual increases
in the subsidy agreement have helped offset the annual increases in the purchased transportation
costs. The City is continuing to work with Cal Poly for a revised multi-year subsidy agreement
that will continue to help meet the farebox requirements for the system and ensure services to the
campus.
Based on proposed implementation of the Short-Range Transit Plan and the contractual operating
escalation costs of roughly 3% annually; SLO Transit operational costs for the next five fiscal
years have been estimated and are shown in the table below:
Table 1: Five Year Projection
16/17 17/18 18/19 19/20 20/21
New Operational Costs $3,851,522 $3,915,604 $4,013,887 $4,100,213 $4,223,220
New 20% FareBox Amount $770,304 $783,121 $802,777 $820,043 $844,644
Current Farebox w/o Change $710,251 $724,456 $738,945 $753,724 $768,799
Difference -$60,053 -$58,665 -$63,832 -$66,319 -$75,845
5 Year Projection
As shown, there is a projected annual farebox recovery short fall ranging from $58k to $75k
during the five-year period. There are only two ways to address this deficiency: 1) cut back
service to meet the expected revenue amount, or 2) increase the base revenue to match expected
funding for needed service. Due to the long period of time since the last fare changes, staff
believes that adjusting fares at this time is most appropriate to meet the expectations of the
community.
The primary way to address these short falls is with a fare change in the transit system’s base
fare, going from $1.25 to $1.50. This fare would now match the base fare for both the RTA and
South County Area Transit services that have been in place for several years. Other fares would
then be adjusted accordingly with strategic and subsequent changes to match each desired group
or user need. Adjusting these fares will go a long way in addressing the annual projected
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shortfall and help secure continual state and federal support for our local transit system;
producing roughly $55 to $75k in additional revenues. This estimate has been calculated using
industry elasticity study metrics to account for potential initial loss of riders that could occur
with the fare adjustments.
Mass Transit Advisory Recommendations
Staff initially presented the subject to City’s Mass Transportation Committee (MTC) on January
8th 2016, followed by an initial public outreach meeting regarding these potential fare changes
which was held on January 31st.
A Special MTC meeting was convened on February 8th to review the public comments captured
over a 30-day period (see Attachment C - Public Comment). MTC discussed these issues in
depth and debated the merits of staffs recommended changes to the rates. Final recommended
rate structures as adopted by the MTC are (see Attachment D - 2/8/17 meeting minutes):
1. Supports the change to the cash base rate fare from $1.25 to $1.50 and the half fare
discount for the Senior/Disabled Cash Fare from 60 to 75 cents
2. Supports the subsequent strategic changes to the lower tier passes (e.g. 1, 3, 5 and 7 day
passes)
3. Supports an initial change in the Senior monthly pass from $12.50 to $14 in FY 2017-18
then followed by $1.50 to $2 increments, depending on the need, over the co urse of the
next four years until the $22 threshold is met
4. Recommended that the Regular 31 Day Monthly pass increase by $1 increments for the
next four years to a maximum of $41.
5. Recommended continuance of the 15 and 16-day Punch Passes, with changes to the fare
to be reflective of the changes in the base cash fare.
Staff Final Recommendations
The MTC recommendations varied slightly from staff’s suggested rate changes. Staff has
reviewed the MTC recommendations and concurs with most. The following outlines staff’s
review of these issues and final recommendation for Council.
Continuation of the 15 and 16 Day Punch Passes
Staff initially recommended their discontinuation of the 15 & 16 Day Punch passes because of
low volume sales. MTC believes it is important to keep the passes for users that preferred a
validation pass as opposed to a limited time pass. Staff concurs in continuing the 15 & 16 Day
Punch Passes and recommends Council approved an increase in each proportional to the cash
base fare (see table below).
31 Day Regular Monthly Pass
Staff initially proposed no increase to the Regular 31 Monthly pass. The MTC felt it was
important to increase the base pass to parallel the changes being requested of other users. The
MTC recommended an increase of the base pass with an annual increase of $1 per year for the
next four (4) years. This recommendation would result in a final approved cost of $41 for the
pass in 2020. Staff supports the recommendation of the MTC but recommends increasing the
pass cost by $1 only for three year (achieving a $40 base) and reviewing the needed increase
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thereafter.
31 Day Senior Monthly Pass
The MTC concurred with staff’s recommendation to increase the Senior monthly pass ($1.50
increase in year 1) however they felt that each year change thereafter should be reviewed and
established based upon need and should range between $1.50 and $2 up to the recommended
$22.00. The current Senior pass is significantly discounted from the regular 31 Day pass (37%).
Staff supports the recommendation of the MTC but recommends establishing the Senior changes
to be consistent with the 31 Day Regular pass to reach alignment by 2020. Doing this will result
in a $1.50 increase in each of the first two years (2017, 2018) and then $2.00 each year until
2020. This will result in the Senior pass being $20.00 and 50% of the Regular pass of $40.
Combining the MTC and the slightly modified staff he proposed staff recommendation the
proposed Fare structure changes for Council consideration would be as follows:
Table 2: Fare Changes
PASS TYPE CURRENT MTC STAFF
Senior/Disabled Discount $0.60 $0.75 $0.75
Cash Fare $1.25 $1.50 $1.50
1 Day Pass $3.00 $3.25 $3.25
3 Day Pass $6.00 $7.00 $7.00
5 Day Pass $10.00 $12.00 $12.00
7 Day Pass $14.00 $15.00 $15.00
Senior/Disabled 31 Day $12.50 $22.00* $20.00*
Student 31 Day $25.00 $25.00 $25.00
Regular 31 Day $37.00 $41.00 $40.00
15 Ride Sen/Dis Punch
Pass $9.00 $11.25 $11.25
16 Ride Reg Punch Pass $20.00 $24.00 $24.00
Effective June 18, 2017
*Annual incremental changes; $1.50 the first year and $2 after until reaching $20
Staff is proposing that these changes be noticed, per the City’s adopted Far e Change Notification
Policy, and go into effect in tangent with the service enhancements which become effective June
18th, 2017.
Advertising Rates
Staff is also recommending other revenue enhancements to mitigate the impact of a fare change
on the general public.
City Resolution NO. 8885 (1998) allows for interior advertising on SLO Transit vehicles. To-
date, interior advertisement rate revenues have been nominal and under promoted. With the
addition of three replacement buses, outfitted with video infotainment system, there is the need
to revisit current ad rates and further promote this as a potential local funds revenue generator to
help offset fare increases. Historically non-profits have advertised for free on transit vehicles.
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The no cost use of the limited area on the vehicles has resulted in these ads taking up the clear
majority of onboard ad space. While we are conscious of the need to promote our non-profit
partners having the use of this area remain free cannot continue as it limits SLO Transit’s ability
to seek higher revenue amounts from for profit sponsors. Staff is proposing to increase the For
Profit rates for ad space and set the Non Profit amounts between 60% - 75% of the For Profit
amounts for the various categories of advertising. Complementing the rate changes would be a
new marketing campaign by the SLO Transit staff to promote the use of these ad areas by Profit
and Non Profit agencies and companies.
Table 3: Proposed Interior Transit Advertising Rates
BUS ADVERTISING RATES Per MONTH
13 Fixed-Route
Vehicles
Current After
Non-Profit
Rates
For Profit
Rates
Non-Profit
Rates
For Profit
Rates
(2) 11 x 17 car
cards per bus $0 $350 $250 $400
(2) 11 x 28 car
cards per bus $0 $450 $350 $500
(26) 5x2 ¾ Hand
Holds $0 $150 $75 $150
(3) Video
Infotainment
System
N/A N/A $300 $400
(1) Modesty Panel N/A N/A $250 $350
Package Discount N/A N/A $925 $1,500
Trolley (2) 11x17
car cards for 3
Months
N/A N/A N/A $250
*No fee for advertising City Services, Events and Sponsored Events.
It is anticipated that paired with the more active promotion, roughly $6,000 to $12,000 in annual
advertisement revenue could be generated and used to help offset the need to increase fares to
address the farebox issue. MTC unanimously supported this recommend advertisement rate
changes. Ultimately, the Council has the discretion to set these rates at what it feels best for the
community. Staff is not proposing to change other existing transit advertising policies at this
time.
Summary
No fare increase or rate change is ever easy for public services. However, with the increased
services being implemented this summer through the SRTP changes, and knowing that general
public rates have been maintained for many years, it is time to adjust the fares to keep pace with
increased costs of the system. SLO Transit has been fortunate that it has been able to maintain
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the base fare for so long and only propose this increase as it has become necessary.
Public transit is viewed as a significant method by which to reduce traffic impacts, green-house
gases and as a method to help the socio-economically challenged. The proposed fare changes
ensure the local obligation in farebox is met in order to continue to deliver state and federal
funding while enabling implementation of the SRTP which will improve local transit services
community wide and benefit all users of the system.
FISCAL IMPACT
There is no impact to the General Fund with these recommended changes. Transit fares have not
changed in over seven years. Without any changes to current transit fares, there is an annual
farebox recovery shortfall ranging from $58k to $75k compounding annually and jeopardizing
further State funding assistance. Adjusting these fares, combined with new ad rates, will address
the annual projected shortfall and help secure continual state and federal support for our local
transit system.
Staff will present a full Transit Fund analysis in June of this year. Should Council adopt any fare
or other policy changes, any financial impacts will be incorporated into the Transit Fund
analysis.
ALTERNATIVES
Modify fare changes to other amounts with direction to staff. This however may have
other unintended consequences which staff would need to review and which may delay
full implementation of the SRTP.
Deny fare changes with direction to staff to maintain or cut back transit service to reflect
the lower locally generated fare revenues.
Attachments:
a - 2017 Fare Increase Resolution - Draft
b - Major Service Reduction & Fare Increase Public Notification Policy
c - Fare Analysis - Public Comments
d - 02-08-2017 MTC Minutes DRAFT
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R ______
RESOLUTION NO. _____ (2017 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE FARE AND INTERIOR BUS
ADVERTISING RATES FOR SAN LUIS OBISPO (SLO) TRANSIT
WHEREAS, cash and prepaid fares on SLO Transit have not changed since August 2005;
and
WHEREAS, the City’s most recently adopted Short Range Transit Plan calls for an
expansion of transit service to better meet the needs of its riders; and
WHEREAS, SLO Transit has a responsibility to meet locally generated funds obligations
associated expenses with expansion of service
WHEREAS, SLO Transit conducted an initial public outreach and meeting about
proposed fare changes on January 31st 2017 collecting public comment; and
WHEREAS, the Mass Transportation Committee recommended approval of the new fare
and advertising rate structures; and
WHEREAS, City Council approves and determines transit fare and advertising rates.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that the following fare and bus advertising rate structure for San Luis Obispo (SLO) Transit is
hereby adopted:
PASS TYPE CURRENT PROPOSED
Senior/Disabled Discount $0.60 $0.75
Cash Fare $1.25 $1.50
1 Day Pass $3.00 $3.25
3 Day Pass $6.00 $7.00
5 Day Pass $10.00 $12.00
7 Day Pass $14.00 $15.00
Senior/Disabled 31 Day $12.50 TBD*
Student 31 Day $25.00 $25.00
Regular 31 Day $37.00 TBD*
15 Ride Sen/Dis Punch
Pass
$9.00 $11.25
16 Ride Reg Punch Pass $20.00 $24.00
Effective June 18, 2017
*Pending Council Recommendation
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Resolution No. _____ (2017 Series) Page 2
R ______
*No fee for advertising City Services, Events and Sponsored Events.
BE IT FURTHER RESOLVED, that said fare and bus advertising rate structure shall go into
effect starting Monday, June 19, 2017.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2017.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
Non-Profit For Profit Non-Profit For Profit
Two 11 x 17 $0.00 $350.00 $250 $400
Two 11 x 28 $0.00 $450.00 $350 $500
Thirteen 5 x 2 3/4 $0.00 $150.00 $75 $150
Infotainment
S ystem
N/A N/A $300 $400
One Modesty
Panel N/A N/A $250 $350
Package
Discount N/A N/A $925 $1,500
Bus Advertising Rates
C urrent After
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Resolution No. _____ (2017 Series) Page 3
R ______
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Carrie Gallagher
City Clerk
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City of San Luis Obispo Transit – SLO Transit
Service Reduction
&
Fare Increase Policy
I. Purpose
49 USC Chapter 53, Section 5307(d)(1)(I) provides that urban grant recipient shall have:
“a locally developed process to solicit and consider
public comment before raising a fare or carrying out a
major reduction of transportation.”
The City of San Luis Obispo’s fixed-route SLO Transit system is a recipient of Federal
Transit funding and therefore must establish an acceptable public meeting procedure with
respect to fare increase and major service reductions as required by Federal law.
II. Definitions
a. Major Service Reduction:
i. An indefinite reduction of more than 15 percent of daily revenue miles or hours;
or
ii. A number of indefinite service reductions in any given fiscal year that add up to
more than 15 percent of daily revenue miles or hours.
b. Fare Increase:
i. Any increase to a fare price per unit of service.
c. Emergency Service Change:
i. Service change that is to be in effect for fewer than thirty (30) days; and
ii. Service change does not meet the criteria of Section II.A.
Examples of emergency service changes include, but are not limited to; those
due to power failure, severe weather, major construction, reconstruction, and
improvement projects.
III. Procedure
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a. If a Major Service Reduction or Fare Increase is determined to be necessary by SLO
Transit staff, a recommendation and supporting materials will be submitted to the City
of San Luis Obispo City Council (Council) for consideration.
b. If the Council determines that a Major Service Reduction or Fare Increase may be
necessary based on staff’s recommendation and supporting documentation, staff will
schedule and advertise a no less than two public meetings to be conducted in accordance
with City’s most recently adopted Public Engagement Manual. One said meeting will be
held during typical work day hours (before 5 p.m.) and the other after work day hours
(after 5 p.m.). At a minimum, public notices for public meetings will be posted at or
electronically sent to the following locations, in both English and Spanish:
i. City Hall (990 Palm St.)
ii. Transit Center
iii. On board fixed-route vehicles
iv. County/City Public Library
v. Local Access TV Channel 21
vi. SLO Transit website with email link for comments
vii. City of San Luis Obispo website with email link for comments
viii. Social Media (e.g. Facebook)
ix. Paid and legal notices in local print periodicals
x. Press Releases to local media outlets
c. A public meeting on the Major Service Reduction or Fare Increase will be held
in a convenient, accessible and diverse location.
i. The location selected will be along bus routes whenever possible;
ii. The public meeting will be held under the supervision of SLO Transit
Manager;
iii. The public comments will be recorded and filed; and
iv. The public meeting may be held at a regular Mass Transit Advisory Committee
meeting.
v. Spanish speaking assistance availability
d. After the public meeting is closed, staff will give a recommendation for consideration by
the Council
e. If Council adopts a plan for a Major Service Reduction or Fare Increase, the SLO
Transit Manager shall be authorized and directed to implement the action according to
the approved transit schedule. The schedule shall provide a minimum of 45 (calendar)
days public notice of the service or fare changes prior to their implementation.
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IV. Exemptions
The following criteria establish certain instances which are exempt from the
requirement to solicit public comment:
a. Standard seasonal variations;
b. Special Events (e.g. marathon, triathlon, etc.)
c. Changes imposed and under the control of private organizations (e.g. CalPoly)
d. An Emergency Service Change;
e. Experimental service changes for a period of 180 days or less, unless the changes
extend beyond 180 days and meet the criteria of a Major Service Reduction as defined
in Section II.A;
f. Any fare, ticket or pass rate changes that do not result in increased fares per unit
of service;
g. Increases in service; or
h. Decreases in fares.
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Staff rechecked with FTA and
the only requirement is for a half
off fare on the base fare and
does not apply to any other pass
types.
"Instead of increasing the Senior/Disabled Monthly pass by $2
starting this year and for the next four years, until meeting the $22
rate, could we only raise it only $1.50 this year and then two
dollars the following years?"
Staff supports this change to
final recommendations to City
Council
"Does transit have to offer a half off discount for the
Senior/Disabled on other pass types besides the base fare?"
slotransit.org
Public Comment - 2017 Fare Change Analysis
Comment Staff Response
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Minutes - DRAFT
MASS TRANSPORTATION COMMITTEE
Wednesday, February 8, 2017
Special Meeting of the Mass Transportation Committee
CALL TO ORDER
A Special Meeting of the Mass Transportation Committee was called to order on Wednesday,
February 8, 2017 at 2:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis
Obispo, California, by Chair Thyne.
ROLL CALL
Present: Committee Members Elizabeth Thyne (Chair - Senior), John Osumi (Vice Chair –
Business), Cheryl Andrus (Cal Poly), Denise Martinez (Disabled), James Thompson
(Technical), Justin Frentzel (Student), David Figueroa (Alternate)
Absent: Diego-Christopher Lopez (Alternate)
Staff: Transit Manager Gamaliel Anguiano, Transit Assistant Megan Cutler, Recording
Secretary Lareina Gamboa
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
None.
ANNOUNCEMENTS
None.
MINUTES
None.
ACTION ITEMS
1. Fare Changes
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DRAFT Minutes – Mass Transportation Committee Meeting of February 8, 2017 Page 2
Draft fare changes were presented to the committee at a previous meeting for discussion
and recommendations, as well as presented to the public for comments. The Short Range
Transit Plan (SRTP) recommends the following:
1.) Longer academic schedules
2.) Longer summer schedules
3.) Longer weekend schedules
4.) Core to core frequency
The City currently operates with 10 vehicles during peak operation hours. SRTP
improvements will allow the City to operate with 8 vehicles during peak operation hours.
Transit Manager Anguiano responds to a comment regarding the elimination of day passes
by informing the committee that the elimination of day passes would be a huge jump for a
regular rider to make, going from just $3 to $37, so it is not a staff recommendation to
eliminate any of the day passes.
Committee Member Justice proposes raising the K-12 student pass so as not to put the fare
increase burden on the senior/disabled pass. Transit Manager Anguiano states the
senior/disabled pass increase is being caught up to the rest of the fares. The cost of the
senior/disabled pass has not been raised in over seven years. Committee member Osumi
states the K-12 student fare base was set to allow parents a more affordable alternative to
the school bus. Committee Member Frentzel shares his concern that an increase may
discourage young riders from becoming lifelong riders.
Committee Member Justice shares her concern about the senior/disabled pass and proposes
the increase be reduced to $1.50 per year instead of $2.00 increments. Committee Member
Osumi raises the point that it is easier to present a larger fare initially and increase this fare
with a smaller incremental fare increase, rather than start with a smaller fare and increase
this fare with a more significant fare increase.
Committee Member Justice proposes the elimination of certain day passes, making SLO
Transit more comparable to other transit systems. Transit Manager Anguiano states this is
not a staff recommendation. Since the pass type is determined by the farebox encoding the
bar coding strip on the back, eliminating day pass types would not save money. Day passes,
such as the 3-day and 7-day passes, were introduced for the purposes of encouraging
visitors from conventions or special events to ride public transit during their stay in San
Luis Obispo. Committee Member Andrus acknowledges the hassle of having to reload a
pass more often.
Advertising in buses will continue to generate revenue. Non-profit agencies may pay a
small charge based on the ad. There will be no fees for City sponsored and special events
ads.
All fare changes are proposed to go into effect on June 19, 2017.
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DRAFT Minutes – Mass Transportation Committee Meeting of February 8, 2017 Page 3
ACTION: MOTION BY COMMITTEE MEMBER FRENTZEL, SECOND BY COMMITTEE
MEMBER JUSTICE, CARRIED 8-0, to support staff recommendation of moving the base fare to
$1.50, with the exception that the senior pass only be changed to $1.50 for the first year, then
reevaluated each year following to decide whether an increase is necessary or if it can remain the
same each year after. The student pass will remain at $25.00 and the 31 -day pass will increase
$1.00 per year for the next four years.
2. Title VI Plan
Committee Member Justice brings to attention the following details:
Page 8, the senior age states 62 years old. 62 years old is based on the MTC bylaws
and the advisory body process. The senior advisory body representative needs to be at
least 62 years old. However, for transit purposes, such as the senior fare, the minimum
age is 65 years old.
Replace “amongst these volunteer members” with “volunteer members consist of”
Page 14, replace “write me at this address” with “the address shown below”
Committee Member Frentzel notes:
Page 8, replace “there is currently (1) Hispanic member” to “there are currently (3)
non-white members”
ACTION: MOTION BY COMMITTEE MEMBER ANDRUS, SECOND BY COMMITTEE
MEMBER FRENTZEL, CARRIED 8-0, to approve the amendments above.
DISCUSSION ITEMS
3. MTC Bylaw Revision
a. MTC Bylaw revisions is to be placed on the next agenda for discussion after the
committee familiarizes themselves with the bylaws in order to make suggestions.
4. Major City Goals Update
a. Major City Goals were accepted by the City for multimodal transportation, as
well as housing, and the Climate Action Plan. When Council begins shaping its
budget, multimodal will receive some funding, and will be tied to the Climate
Action Plan.
5. Transit Manager’s Report
a. The double decker bus is back in route with limited usage.
The new buses are in possession and are being fine tuned. On March 9, 2017 there
will be a public unveiling of the new buses at 4:30 p.m. in Mission Plaza. These
buses will be on display during Farmers’ Market until 9:00 p.m.
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DRAFT Minutes – Mass Transportation Committee Meeting of February 8, 2017 Page 4
Middle school ridership is increasing; however, overall ridership is still down.
The double decker being out of service for a significant amount of time had a
direct impact on ridership.
The Amgen bike race and the SLO Marathon are approaching. Route detours are
being finalized. Transit Manager Anguiano will keep the committee updates.
ADJOURNMENT
ACTION: MOTION BY COMMITTEE MEMBER JUSTICE, SECOND BY COMMITTEE
MEMBER FIGUEROA, CARRIED 8-0 to adjourn the meeting at 3:47 p.m. until the Regular
Meeting of the Mass Transportation Committee, March 8, 2017 at 2:30 p.m.
Respectfully submitted,
Lareina Gamboa
Recording Secretary
Megan Cutler
Transit Assistant
APPROVED BY THE MASS TRANSPORTATION COMMITTEE: XX/XX/2017
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SLO Transit Fares &
Advertisement Rates
Adjustments
April 41h, 2017
Presented By Gamaliel Anguiano, Transit Manager
L- ,
r
SLO Transit Overview:
■ Serve SLO City Limits and Ca/Poly '
a 90% is within % mile of a Transit Stop
r4 99% is within a % mile of a Transit Stop
■ Drive over 412,000 miles annually
■ Provide over 34, 000 Revenue Hours annually
I
■ Operate 363 Days a Year 1
Transport over 1.1 Million Riders
n Record ridership set in FY 15/16 with �' y
1.2 Million Riders.r
4/5/2017
1
Sources of Transit Funds:
i
Luca �,
1. Federal (40%)
2. State (40Yo)
3. Local Fares (20/)
(a) In the case of an operator which is serving an
urbanized area, and which was eligible for (TDA) funds
under this article ..., the operator shall be eligible for
such funds in any fiscal year, ..., if it maintains, for the
fiscal year, a ratio of fare revenues to operating cost, as
defined by subdivision (a) of Section 99247, at least
equal to one-fifth [20%]...
Issues Affecting Transit Funding:
1. Federal cuts to Dept. Of Transportation
2. Reductions in State assistance
3. Increase in "Off the Top" allocation to RTA
4. Annual contractor escalation costs; roughly 3%
annually
5. Implementation of Short Range Transit Plan (June
2017); expansion of 4,000 Revenue Hours
6. There has been no across the board fare increase
in over seven years; last done in 2009/10
4/5/2017
K
Cost Projections:
5 Year Projection
16/17
New 0 eratianal Cysts $3,851,522
2
$3,915,604
3R/J Cl
$4,013,887
—
$4,M,213
x$_4,223 220
New 20% FareBox Amount $770,304
$783,121
$802,777
$820,043
$844,644
C urrent Farebox w/o Change 5710,251
5724,456
$738,945
$753,724
$768,799
Difference -$613,053
-$581665
-$63,832
-$66,319
-$75,845
Funding Gap:
$58,000
to
75,000
Fare Change Process:
4/5/2017
Recommended Fare Changes.-
PASS
hanges:
PASS TYPE
CURRENT
MTC
STAFF
Senior/Disabled Discount
$0.60
$0.75
$0.75
Cash Fare
$1.25
$1.50
$1.50
1 Day Pass
$3.00
$3.25
$3.25
3 Day Pass
$6.00
$7.00
$7.00
5 Day Pass
$10.00
$12.00
$12.00
7 Day Pass
$14.00
$15.00
$15.00
Senior/bisabled 31 Day
$12.50
$22.00*
$20.00*
Student 31 Day Pass
$25.00
$25.00
$25.00
Regular 31 Day Pass
$37.00
$41.00
$40.00
15 R ide S en/D is P ass
$9.00
$11.25
$11.25
6 Ride Reg Pass
$20.00
24.00
524.00
J une 18
2017
E ffective
*Annual incremental changes; $1.50 the firstyear and $2 after
Recommended Ad Rate Changes:
*No fee for advertising City S ervices, Events and S pons ored Events.
Estimated
Revenues
Generated:
$55,000
to
$75,000
ISO
Estimated
Revenues
Generated:
$8,000
to
$16,000
4/5/2017
4
Current
After
15 F ixed-R oute Vehicles
Non -Profit F or P rofit
Non -Profit Far P refit
Rates Rates
Rates
Rates
(2) 11 x 17 car cards per bus
$0 $350
$250
$400
(2) 11 x 28 car cards per bus
$0 $450
$350
$500
(26) 5x2 % Hand Holds
$0 $150
$75
$150
(3) Video InfotainmentSystem
N/A N/A
$300
$400
(1) Modesty Panel
N/A N/A
$250
5354
Package Discount
N/A N/A
$925
$1,500
TreHey (2) 11x17 ear cards for 3 Months
i N/A N/A
N/A
254
*No fee for advertising City S ervices, Events and S pons ored Events.
Estimated
Revenues
Generated:
$55,000
to
$75,000
ISO
Estimated
Revenues
Generated:
$8,000
to
$16,000
4/5/2017
4
G1� Y .0
Q •
0
0
dL • Cury of San Wit.,' Omspo
Recommendations to Council
As recommended by the Mass Transportation
Committee (MTC):
1. Adopt a Resolution approving the new transit fare and
interior bus advertisement rates; and
* 2. Set June 18th 2017 as the date for the new fares to be
implemented.
* As recommended by Staff:
■ 1. Adopt the recommendation of the MTC for the
Regular 31 -Day Monthly pass with a revision to limit the
increase to $40 instead of $41.
R 2. Adopt the recommendation of the MTC for the Senior
31 -Ray Monthly pass with a revision to limit the increase
to $20 to be half the Regular 31 -Day Monthly Pass.
4/5/2017
5