The URL can be used to link to this page

Home My WebLink About07/02/2002, C11 - RESOLUTION AUTHORIZING THE CITY OF SAN LUIS OBISPO'S PARTICIPATION IN TRY TRANSIT MONTH IN SEPTEMBE council Ma °02- 02 j agcnaa QEpoat 'cii' C I T Y OF S AN L U IS O B I S P O FROM: Mike McCluskey,Director of Public Works Prepared By: Austin O'Dell,Transit Manager SUBJECT: RESOLUTION AUTHORIZING THE CITY OF SAN LUIS OBISPO'S PARTICIPATION IN TRY TRANSIT MONTH IN SEPTEMBER 2002 CAO RECOMMENDATION As recommended by the Mass Transportation Committee (MTC), approve a resolution authorizing San Luis Obispo Transit's participation in Try Transit Month in September 2002. DISCUSSION Background San Luis Obispo Regional Rideshare was awarded the sum of fifty thousand dollars ($50,000) in grant funds from the San Luis Obispo Air Pollution Control District (APCD) for a subsidized transit pass program for all county transit systems. After discussing promotional programs with the transit operators in the county Regional Rideshare proposed a program that provides countywide free transit for the month of September 2002. Attachment 2 outlines the proposed project. Staff concurs with the program and recommends that the City participate in the program. Table 1 illustrates the projected fare Table 1 revenue for the month of September Projected for the various transit operators in the Operator Fare Rev Reimbursement Difference county. Based on Table 1, Regional SLO $22,500 $18,000 ($4,500) Rideshare's philosophy is to CCAT $27,400 $20,000 ($7,400) reimburse the smaller transit SCAT $5,000 $5,000 $0.00 PRCAT $5,000 $5,000 $0.00 operators (Paso Robles Transit, South Atascadero $2,000 $2,000 $0.00 Coast Area Transit, and Atascadero ---.._..-........._.....---------------------....._............ Transit) one hundred percent of their respective farebox revenue for the month of September 2002. The remaining balance of thirty eight thousand dollars ($38,000)will be distributed to San Luis Obispo Transit and Central Coast Area Transit based on the ridership from September 2001. The City's projected fare revenue is $22,500 and the proposed reimbursement from Regional Rideshare to implement the Try Transit Month Program is $18,000. The difference between the projected fare revenue and reimbursement represents a net loss to the City to participate in the program. C11-1 Council Agenda Report—Try Transit Month Program 2002 Page 2 What is the objective of this program? By providing a non-fare period, the primary objective of Try Transit Month is to increase public awareness of our local transit system and to encourage new ridership. Regional Rideshare will coordinate this program and has budgeted twenty thousand dollars ($20,000) for marketing. Regional Rideshare will promote the Try Transit Month through both broadcast and printed media. Participating agencies maybe asked to promote the program through their own marketing contracts to reach local target groups. Regional Rideshare is currently developing the final details and the marketing plan of the program. These efforts are being coordinated with each of the providers with San Luis Obispo Transit being a primary stakeholder. Try Transit Month will allow new riders to acquaint themselves with San Luis Obispo Transit at no fare during the thirty day period, and hopefully, feel more comfortable using public transit. CONCURRENCES The Try Transit Month program was presented to the Mass Transportation Committee (MTC) at its meeting of March 13, 2002. The MTC was asked to consider the following points and develop a recommendation for City Council considerations 1. The required farebox ratio is 20%.. 2. Should the City absorb the loss in fare revenue for one month? 3. Will the loss in fare revenue jeopardize the required farebox ratio to receive STA funds? 4. The benefit of this program to existing and new San Luis Obispo Transit riders and specifically for the first time rider who may become a continued user of the San Luis Obispo Transit system. After discussion, the Mass Transportation Committee agreed that the $4,500 in potentially reduced farebox is acceptable and recommended that the Council approve participation in the program. FISCAL IMPACTS Participation in the Try Transit Month Program will cause a small loss (approximately $4,500) to the firebox revenues that have been estimated for the month of September. Even though this amount is slight when compared to the current cost of the transit contract, the City is required to maintain a twenty percent (20%) farebox recovery ratio to meet State regulations. It is unknown at this time if this small amount would impact our future farebox recovery ratio. However, staff will monitor this issue before, during and after the program to determine its effect. The program will hopefully lead to additional riders and associated farebox revenues in the months after September. There will be no fiscal impact to the general fund for participating in Try Transit Month in September 2002. The City's participation will be funded from the transit fund,which is comprised C11-2 { Council Agenda Report—Try Transit Month Program 2002 Page 3 of Federal Transit Administration Section 5307 and the Transportation Development Act. ALTERNATIVES Alternative 1. The Council may determine that the loss in farebox revenue is unacceptable and that the City participate in the Try Transit Month Program only if San Luis Obispo Transit is reimbursed for one hundred percent (100%) of lost farebox revenue. Because San Luis Obispo Transit is required to abide by a stricter farebox revenue ratio than other operators in the County, it can be reasonably argued that San Luis Obispo Transit should be reimbursed one hundred percent (100%) of the farebox revenue for September 2002. However, it is likely that a 100% reimbursement to the City will still require financial commitment to the project, because a request for additional reimbursement for farebox will reduce Rideshare's proposed marketing budget. This would require the City to contribute additional money to augment marketing at the local level to focus on our target audience. Therefore, there is no assurance that this option would result in a net savings to the City. Alternative 2. The Council may determine that the loss in farebox revenue is unacceptable and that the San Luis Obispo Transit should not participate in the Try Transit Program. In this alternative, the City will be: (1) the only agency in the county not participating in the program and(2) the only transit agency charging a fare during the month of September. ATTACHMENTS 1. Resolution 2. Try Transit Information from Regional Rideshare t 1:\Council Agenda Reports\2002 agenda reports\CAR Regarding Try Transit Month.doc C11-3 l ATTACHMENT 1 RESOLUTION NO._(2002 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE CITY OF SAN LUIS OBISPO TRANSIT'S PARTICIPATION IN THE SAN LUIS OBISPO COUNTY REGIONAL RIDESHARE TRY TRANSIT MONTH IN SEPTEMBER 2002.. WHEREAS, the San Luis Obispo County Regional Rideshare has received fifty thousand dollars($50,000) from the San Luis Obispo County Air Pollution District to fund a countywide non-fare transit subsidy for thirty days during fiscal year 2003; WHEREAS, the countywide non-fare transit subsidy program is called Try Transit Month; WHEREAS, San Luis Obispo County Regional Rideshare will serve as the program manager and is responsible for the promotion and marketing of Try Transit Month; WHEREAS, September 2002 will be Try Transit Month; WHEREAS, the City projected farebox for the month of September is twenty-two thousand five hundred dollars ($22,500) and the projected reimbursement to the City for lost revenue is eighteen thousand dollars ($18,000); NOW,THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo,who operates SLO Transit, to participate in Try Transit Month as described by San Luis. Obispo County Regional Rideshare and be reimbursed a percentage of loss farebox revenue. C11-4 ATTACHMENT i Upon motion of , seconded by , and the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 20021. Mayor Allen Settle ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: jiG. jnty�A=tomey C11--5 ATTACHMENT 2 sass San Luis Obtzyo RegionalRideshare ®® 1150 Osos Street,Suite 206•San Luis Obispo•CA•93401 •Phone: (805)541-2277 Fax: (805)781-1291 •Email: rideshare@rideshare.org-Website: www.rideshare.org Memorandum—May 2, 2002 To: Austin O'Dell, SLO Transit Fr: John Donovan, Rideshare Re: Try Transit information • Rideshare received a $50,000 grant from the APCD to provide free countywide transit service for the month of September. • All transit providers in SLO County have agreed to participate in the program. • Goal is to increase overall bus ridership. • The grant monies will be used to reimburse participating transit providers their average monthly fare revenue for the month of September. • CCAT and SLO Transit will take a short-term revenue loss in return for a long-term ridership increases. • Estimated breakdown of fare reimbursement based on previous numbers provided by transit agencies: o Atascadero Transit -$2,000 o SCAT- $5,000 o Paso Robles Transit $5,000 o SLO Transit - $18,000 o CCAT -$20,000 • Rideshare has budgeted $20,000 for marketing Try Transit. • Rideshare will solicit participating transit agencies to contribute additional marketing monies to assist with marketing and promotions of Try Transit either through cash, trade or in-kind assistance. • Marketing efforts will be integrated with the release of the bilingual countywide Transportation Resource Pocket Guide, scheduled for release in August, and Rideshare Week, the first week in October.. • Ridership numbers will be collected for the 3 months preceding Try Transit (June, July, August), Try Transit month (September) and the 3 months following Try Transit (October, November, December). C11��