REPORT TO THE CITY COUNCIL September 28, 2017 FROM: BRUCE A. RUDD, Interim Director/Assistant City Manager Department of Transportation BY: GREGORY A. BARFIELD, Assistant Director Department of Transportation SUBJECT ..Title ***RESOLUTION - 538th amendment to the Master Fee Schedule (MFS) Resolution No. 80-420 to add a reduced bus fare rate and include language allowing the Transportation Director, contingent upon the approval of the City Manager, to reduce fares for pilot programs not to exceed one year in duration (Citywide) (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends Council adopt the 538th Amendment to the MFS Resolution No. 80-420 to add a reduced fare rate and include language allowing for the Department of Transportation Director, subject to approval of the City Manager, to reduce fares for pilot programs not to exceed one year in duration. EXECUTIVE SUMMARY The Department is seeking to increase ridership after a dramatic 46% loss of ridership over the last seven years. In order to mitigate any further decline in ridership the Department is seeking authorization to allow the Director of Transportation the ability to implement different fare options in order to develop different fare options that could be implemented in order to incentive the use of public transportation. One such option includes, but limited to, implementing a pilot program that would reduce cash fares from $1.25 to $1.00 after 7:00 p.m. Monday through Friday, and all day on weekends and holidays. BACKGROUND From 2011 to present, the Department has experienced a reduction of 46 percent of its ridership. In order to address the decline in ridership the Department has recently implemented a number of service improvements, such as increasing frequencies on key corridors such as Blackstone, Ventura, Cedar, and Shaw from 30 minutes to 15 minutes during the day. These improvements have resulted in positive growth in ridership along these corridors. Additionally, the Department has taken on a social media marketing campaign to highlight the changes; however, it believes that a $.25 reduction in the cash fare from $1.25 to $1.00 would be an incentive to attract individuals to use FAX. The success of these efforts will be measured by increased ridership under the authority being sought today and would begin on October 2, 2017. A subsequent reduction in cash fares for all hours of service is also anticipated during the months of November and December. ENVIRONMENTAL FINDING By the definition provided in the California Environmental Quality Act Guidelines Section 15378, this pilot program does not qualify as a "project." LOCAL PREFERENCE Local preference does not apply to this pilot program. FISCAL IMPACT The potential loss of revenues is being offset by a combination of FY17 operational savings and an increase in State operating funds. By temporarily reducing fares, the goal of this amendment is to provide the Director, with the authorization of the City Manager, to implement different incentives that can be used to address the continuing decline in ridership and a comparable loss in farebox revenues. Attachments: Resolution Amending MFS Resolution No. 80-420