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Home My WebLink About2007-06-26 - AGENDA REPORTS - FREEDOM SENIORS FREE RIDE PGM (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item• CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: June 26, 2007 ONE-YEAR EXTENSION RESULTS OF THE FREEDOM FOR SENIORS FREE RIDE PILOT PROGRAM Administrative Services RECOMMENDED ACTION Continue FREEdom for Seniors pilot program through June 30, 2008. This one-year extension would provide staff with an opportunity to collect additional data on travel patterns and expand marketing efforts to reduce costs for the dial -a -ride system. The goal will continue to be to move able-bodied riders from the costly DAR program to the free fixed -route service. If a four percent (4%) reduction in DAR revenue hours and a correlating decrease in ridership is not achieved during the one-year extension (FY 2007-08), staff will recommend the program be discontinued. BACKGROUND On September 26, 2006, the City Council approved a pilot program called FREEdom for Seniors. The primary goal of the FREEdom for Seniors pilot program was to transition ambulatory seniors from the costly dial -a -ride service to Santa Clarita Transit's fixed -route network. The anticipated results of this effort were increased capacity aboard the dial -a -ride system and a reduction in the number of dial -a -ride revenue hours operated. On January 23, 2007, this pilot program was extended for an additional six months (through June 30, 2007) and expanded to include disabled riders. Initially, the City of Santa Clarita dial -a -ride experienced a 4.1 percent decrease in ridership. However, this trend reversed in 2007 with February, March, and April all posting increases in dial -a -ride ridership compared to the previous year. From October 2006 through April 2007, City of Santa Clarita dial -a -ride experienced a one percent increase in ridership compared to the same period the previous year. The second objective of the pilot program was to reduce the number of revenue hours on the dial -a -ride program. While the program resulted in a 3.1 percent decrease in revenue hours during the first three months, the total revenue hours since the inception (October 2006 through April 2007) increased an average of four percent compared to the same period the previous year. During the first seven months (October 2006 to April 2007) of the FREEdom for Seniors pilot program, ridership among seniors on the fixed -route system increased 273 percent compared to the same period the year before. The FREEdom for Seniors pilot program has provided 61,720 free trips during the first seven months of the program. Based on the number of riders who have historically traveled with a monthly pass, versus those that paid the one-way reduced cash fare, it is estimated the system lost approximately $44,700 in farebox revenue during the first seven months of the pilot program. Due to increased ridership and a corresponding increase in revenue hours aboard the dial -a -ride system, the anticipated cost savings from transferring customers from the dial -a -ride to the fixed -route system have not been realized. Staff, however, is hopeful that with a more aggressive marketing effort, the program can achieve its goals of reducing revenue hours aboard the DAR system and transferring riders to the fixed -route system. If the program does not achieve a four percent reduction in the number of revenue hours operated and a corresponding reduction in ridership aboard the DAR system in the next year, staff will recommend that the program be discontinued at the end of the one-year extension. While the pilot program has not resulted in the desired cost savings, it has increased access to transportation for the senior and disabled community within the Santa Clarita Valley. In addition to attracting new senior and disabled riders to the fixed -route system, the FREEdom for Seniors pilot program continues to encourage existing riders to use the system more frequently for trips that previously may have been made by personal automobile, or in some cases, not made at all. ALTERNATIVE ACTIONS 1. Discontinue pilot program. 2. Make the pilot program permanent. 3. Other action as determined by the City Council. FISCAL IMPACT If the pilot program is extended through June 30, 2008, it is estimated that revenues in account #801-6301 could decrease by approximately $80,000. This loss in revenue may require a transfer from the transit fund balance to offset. ATTACHMENTS Analysis of Freedom for Seniors Pilot Program CITY OF SANTA CLARITA ANALYSIS OF FREEDOM FOR SENIORS PILOT PROGRAM In September of 2006 the City Council approved a pilot program called 1~RE dom for Seniors. The primary goal of the FREEdom for Seniors pilot program was to transition ambulatory seniors from the costly paratransit service to Santa Clarita `T'ransit's fixed -route network. The anticipated results of this effort were an increase in capacity aboard the dial®a®ride system for non-ambulatory residents and a possible cost savings to the City. In January 2007, this pilot program was extended for an additional six months (through June 30, 2007) and expanded to include disabled riders. During the first seven months (October 2006 to April 2007) of the. FREEdorn for Seniors pilot program, ridership among seniors on the City of Santa. Clarita Transit fixed -route system increased 273 percent compared to the same period the year before. 92,000 Senior Ridership Aboard Fixed -Route System 02008 U2006 10,000 8,000 6,000 4,000 2,000 x,964 8,032 7,908 8,341 9,905 9.646 octoaer November December January February March April The routes with the highest senior ridership continue to be Route 5 and 6, given their proximity to the Senior Center, However, Routes 1 and 2 have also seen a dramatic increase in the number of senior riders. Senior ridership increased over 274 percent compared to the same period for the previous year, Page 1 4",500 Senior Ridership by Route 4,000 :. -8 Route' -2 *'-- Route 3-7 Route 4 Route 5-6 8 3.500 3,000 2,500 2,000 1,500 1,000 500 Oct Nov Dee Jan Feb Mar ,fpr Initially, the City of Santa Clarita dial -a -ride program experienced a decrease in ridership. During the first four months of the program ridership aboard the dial -a -ride service decreased 4.11 percent, However this trend reversed in 2007 with February, March and April all pasting increases in ridership compared to the previous year. From October 2006 through April 2007 City- of Santa Clarita dial -a -ride experienced a one percent (1%) increase in ridership compared to the same period the previous year. 3,000 DAR Monthly Ridership 2,664 2,496 2,544 2,451 2,500 2,453......_. 2,469 2.470 oil 0 2,353 2,259 2,293 2,000 1,500 1,000 500 Page 2 ER FY 05-06 IE FY 06-07 1 EMM October November December I .-2,183 January February March April The second objective of the FREEdom for Seniors pilot program was to help control the operating cost of the dialmamride prograrn. wring the first three months of the pilot program, dial -a -ride experienced a 3.1 percent decrease in the number of revenue hours compared to the carne period the previous year. However, this treed began to reverse in January 2007 and continued to increase slightly each of the subsequent months. As a result, revenue hours increased an average of 4.3 percent compared to the same period the previous year. 3,000 DAR Revenue Hours November December January February March April In January 2007, City Council expanded the 1~REEdorn for Seniors pilot program to include riders with certified disabilities, As with seniors, the fixed -route system experienced a dramatic increase in the number of disabled riders using the service. In the first three months of the expanded pilot program, the number of passengers with disabilities using the fixed -route service increased 51 percent. The 1 REEdom for Seniors program has provided 61,720 free trips during the first seven months of the pilot program. Fused on the number of riders who have historically traveled with a monthly pass verses those that paid the one-way reduced cash fare, it is estimated the system lost approximately $44,700 in farebox revenue during the first seven months of the pilot program. Due to increased ridership and a corresponding increase in revenue hours aboard the dial -a -ride system, the anticipated cost savings from transferring customers from the dial -a -ride to the fixed -route system has not been realized. Page While the pilot program has not resulted in the desired cost savings, it has increased access to transportation for the senior and disabled community within the Santa Clarita Valley, In addition to attracting new senior and disabled riders to the fixed -route system, the FREEdom for Seniors pilot program continues to encourage existing riders to use the system more frequently for trips that previous may have been made by personal automobile or in some cases, not made at all. Recommendation Continue FREEdom for Seniors pilot program through June 30, 2008. This one year extension would provide staff with an opportunity to collect additional data oil travel patterns and expand efforts to reduce costs for the dial -a -ride system. If the pilot program were extended through June 30, 2008, it is estimated that the City Z: W 'd forgo approximately $80,000 in revenues aboard the fixed -route system. M The projected decrease in revenue could also have a negative effect on future regional transit fund allocations. Since one component of the funding formula is fare revenue, any decrease could have a negative effect depending ora the performance of other included operators. The funding levels are determined by the LA County Metro on an annual basis and the full impact will not be known until future funding levels are determined. S ARANS[WREEDOM, FOR SENIORS1SEMORFREFDOM ANALYSIS-JUNF(V DOC"- Page OC Page 4