HomeMy WebLinkAbout1992-01-14 - AGENDA REPORTS - TRANSIT REVENUE SHORTFALL (2)I
NEW BUSINESS
DATE:
SUBJECT:
January 14
TRANSIT
AGENDA REPORT
City Manager Approval
Item to be presented by:
DEPARTMENT: Public Works
BACKGROUND
in E. Medina
A FUNDING
The Los Angeles County Transportation Commission has notified City staff that transit revenues from
Prop A and Transportation Demand Act ('IDA) funds will be approximately 20% less than anticipated
for fiscal year 1991-92 because of the impacts of the economic downturn. The impact equates to
approximately $270,000 for Prop A funding and $540,000+ for TDA funding. Prop A funds can only
be used for transit purposes, while TDA funds this year are budgeted for roadway purposes. This
report addresses the approaches to the transit system only.
The Public Works Department has analyzed the impact of the revenue reduction and has outlined a
number of actions to offset the reduction with least negative impact on the riding public.
The following are actions proposed by staff:
PROPOSED ACTION
Eliminate the first hour of local system
operation (new starting time 5:45)
2. Delay the two Century City commuter
buses start-up until April 6, 1992.
3. Increase commuter fares by 12.5% ($75.00
per month to $85.00 per month or $2.00 per ride to
$2.25 per ride. Non Santa Clarita residents
from $132.00 to $145.00 per month.) City
subsidy for a month is $29,500.)
TOTAL:
Savings/Revenue
$ 49,000
46,300
15,000
$109,300
Age�s�a Item: :.
Revenue Shortfall
January 14, 1992
Page 2
Services Not Impacted
1. Local service fare to remain unchanged at $.50 (Monthly passes to remain at $18.00 per month.)
(City subsidy for remaining 6 months is approximately $753,000.)
2. Local service fares for students, elderly and handicapped to remain at $.20 per ride. Monthly
passes at $4.00 per month.
3. Fares for Senior Citizen Dial -a -Ride to remain at $.50 per ride ($212,000 subsidy for remaining 6
months). General Public Dial -a -Ride to remain at $1.00 per ride (subsidy for remaining 6 months
$72,000).
4. Commuter bus service to operate eight buses to keep pace with increase in ridership to downtown
Los Angeles (subsidy for remaining six months $46,300).
5. Establish a new line in Canyon Country area and a special bus for Canyon High School students
to be in operation February 3, 1992. (Approximately City subsidy $69,000. for 5 months of
operation).
6. Initiating local bus system connection to San Fernando Valley April 6, 1992 (City subsidy
approximately $57,000 for three months of operation).
The elimination of the first hour of operation for the local system will impact approximately 10 to 15
riders per day of the 1,700 daily ridership. The increase to $85.00 for the monthly cost for the
commuter service, it is felt, is still substantially belowthemotorist's vehicle operation/parking cost per
month which can range from $200 to $400 per month. The commuter bus with its many amenities will
probably attract many additional riders beyond what it already has. It will probably be necessary to
initiate a subscription ridership system so that riders are assured of the ability to ride a bus and not be
left at a pick up point without a ride.
It should be noted, although not recommended at this time, that the commuter system is 70% self
financing. - An increase to $3.00 per ride or $112.00 per month would make the system totally
self-sustaining for operational costs.
FINANCIAL IMPACT'
The above proposals will generate or save approximately $109,300, the remaining $160,700 of the
shortfall will be provided from transit reserve funding. Approximately $83,700 will remain in the
City's transit reserve. Whereas staff feels this reserve is less than desirable, it is the intent to not
reduce our level of service or not fulfill our commitments. Operating costs will be monitored very
closely during the next few months and any indication in change in the economic projections and
impact on service will be brought to the City Council with further recommendations.
Revenue Shortfall
January 14, 1992
Page 3
I: • du► • •
Approve the above staff recommendations and adopt the attached commuter bus fare structure for
implementation effective February 1, 1992.
Commuter Bus Fare Structure
JEM:gmm
REVSHORT
mmuter Bus F
Effective February 1, 1992
EXISTING
NEW (PROPOSED)
One Way (cash resident)
$2.00
$2.25
One Way (cash -non-resident)
3.50
3.75
One Way Reduced (cash -resident -elderly or disabled)
.85
1.00
One Way Reduced (cash -non -resident -elderly or disabled)
1.50
1.70
20 -Ride Punch Ticket (resident)
40.00
45.00
20 -Ride Punch Ticket (non-resident)
70.00
75.00
Monthly Pass (resident)
75.00
85.00,
Monthly Pass (non-resident)
132.00
145.00
Reduced Fare (resident -elderly or disabled)
24.00
27.00
Reduced Fare (non -resident -elderly or disabled)
42.00
46.00