TITLE
Recommendation to authorize City Manager to execute all necessary documents with the Long Beach Public Transportation Company for a twelve (12) month period for the Belmont Shore Employee Rider Pass Program in the amount not to exceed $180,000, and authorize City Manager to execute any necessary amendments, including term extensions at the sole discretion of the City Manager. (District 3)
DISCUSSION
The Belmont Shore Business Association (BSBA) and the Belmont Shore Parking and Business Improvement Area Advisory Commission (BSPBIAAC) have been exploring ways to mitigate parking challenges for residents, as well as for customers shopping in Belmont Shore. A recently established trial program, the Belmont Shore Employee Rider Pass Program (Program), makes use of the existing Long Beach Transit (LBT) bus services for employees of Belmont Shore businesses. This bus pass allows unlimited rides on all LBT bus routes seven days per week for employees of Belmont Shore businesses who take advantage of the Program.
In accordance with City Council approval on February 21, 2012, Long Beach Transit launched a three-month trial Program for the period of May 25, 2012 through September 3, 2012, offering a rate of $0.50 per ride, which was reduced from their average 30-day pass rate of $0.86 per ride. LBT anticipated ridership of 500 employees per month, but the cost to the BSBA/BSPBIAAC was capped at $15,000 per month. At full fare, a ridership of 500 employees would translate to approximately $25,800 per month.
As a result of the initial success of the Program, on July 24, 2012, the City Council approved a six-month extension of the trial Program through February 28, 2013 in order to gather more data for considering a long-term extension of the Program. At the November 15, 2012 BSPBIAAC meeting, the Commission unanimously approved extending the Program based on most current data, and they requested that the City Council approve a long-term extension of the agreement with LBT to provide bus services for Belmont Shore employees.
For the period of February 28, 2013 through February 28, 2014, LBT is proposing a rate of $0.55 per ride with a payment cap of $15,000 per month to reimburse LBT for passenger fares. For this proposed 12-month period, total expense to support this Program would not exceed $180,000.
This matter was reviewed by Deputy City Attorney Linda Trang on November 20, 2012 and by Budget Management Officer Victoria Bell on December 5, 2012.
TIMING CONSIDERATIONS
City Council action is requested December 18, 2012 in order to allow the Program to continue uninterrupted for twelve (12) months.
FISCAL IMPACT
Actual cost of the Program during the first five months averaged approximately $5,400 per month. As the Program gains in popularity, it is hoped that more employees will take advantage of the bus passes, thereby opening up more parking spaces. In anticipation of potential greater usage, the Long Beach Transit has agreed to cap the monthly cost at $15,000, regardless of whether or not ridership exceeds that amount. Based on the monthly cap of $15,000, funding for the twelve months of the Belmont Shore Employee Rider Pass Program is not to exceed $180,000, and is appropriated in the Belmont Shore Parking Meter Fund (SR 136) in the Department of Public Works (PW). There is no fiscal impact to the General Fund and no local job impact associated with the recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER