Camarillo City Council
AGENDA REPORT
Date: June 26, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Dave Klotzle, Public Works Director
Subject: Ventura County Transportation Commission – Free Fare Reimbursement Agreement
BACKGROUND
On September 14, 2022, City Council approved the Reimbursement Agreement for Transit Providers for the City to participate in the Ventura County Transportation Commission (VCTC) Free Fare Programs, a project funded with California’s Low Carbon Transit Operations Program (LCTOP) funds allocated to VCTC as a part of the state’s cap-and-trade program. The LCTOP provides funds to public transportation agencies for investments in capital projects and services that reduce greenhouse gas emissions and improve mobility. The VCTC programs include free transit trips for enrolled college and university students, a Youth Ride Free program for passengers 18 years and younger and a Fare Free Day program. VCTC uses the LCTOP funds to reimburse the City for the value of the free trip fares. Funds for these programs were anticipated to run through FY 2022/23 and 2023/24.
The VCTC College Ride Pilot Program provides free transit trips to enrolled college and university students at California State University Channel Islands, the Ventura County Community College District, California Lutheran University, University of California Santa Barbara, and Santa Barbara City College. The goal of the program is to increase transit ridership among this growing, but financially impacted demographic. The City received reimbursement revenues of approximately $1,800 in FY 2022/23 and $5,100 year-to-date (YTD) for FY 2023/24 for this program.
The Youth Ride Free program is intended to introduce public transit to younger people in the community and encourages them to become lifelong public transit users. Increased transit ridership means less congestion on streets and highways and helps to reduce greenhouse gas emissions. By offering free fares for youths, transit operators in Ventura County also provide some economic relief to families who are struggling with high gas prices and other rising costs due to inflation. The Youth Ride Free program is also funded
VCTC Free Fare Reimbursement Agreement
June 26, 2024
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by LCTOP. The City received reimbursement revenues of approximately $630 in FY 2022/23 and $4,040 YTD for FY 2023/24 for this program.
DISCUSSION
The VCTC Free Fare Programs have been successful in increasing college and youth ridership throughout the County. For example, specific to Camarillo, staff anticipated receiving $500 in fares for the College Ride program and $1,000 in the Youth Ride Free program but year-to-date the City has received approximately $5,100 for the College Ride program and (an increase of 920%) and approximately $3,600 for the Youth Ride Free program (a 260% increase). Overall, Camarillo’s transit ridership is approximately 10% higher this fiscal year compared to the previous year after a couple of years of relative ridership stagnation. As another example, Gold Coast Transit is reporting that the Youth Ride Free program has been a driving factor of ridership recovery, with over 30% of its ridership coming from passengers using the program.
However, due to the higher popularity of the programs, the LCTOP funds are becoming depleted sooner than expected. For example, VCTC’s FY 2023/24 budget originally anticipated $1,080,000 in reimbursements for the Youth Ride Free program but is now projecting an expenditure of $2 million. VCTC has determined that in order to sustain the free fare programs, the current reimbursement rate of 100% must be reduced to 75%.
The reduction in the reimbursement rate will guarantee the program to run through September 2, 2024 while VCTC also works on securing additional LCTOP funding to continue the program through the remainder of FY 2024/25. Therefore, VCTC has prepared a new Reimbursement Agreement for Transit Providers which reduces the fare reimbursement ratio from 100% of a respective transit agency’s fare to 75% of the fare’s value, retroactive to April 1, 2024. For an agency to continue to receive any free fare reimbursement, the Agreement must be signed; otherwise, a transit agency has the option of not signing the Reimbursement Agreement and instead resume charging standard fares.
Actual revenues received by the City YTD for the College Ride and Youth Free Fare programs have exceeded the FY 2023/24 budgeted revenues by $4,600 and $2,600 respectively. Under the proposed new agreement, the potential loss of revenues for both programs from April 2024 – June 2024 is approximately $736.50; however, as noted, the City’s current YTD revenue receipts has exceeded initial budget projections. Therefore, staff recommends that the City sign the new Reimbursement Agreement.
FISCAL IMPACT
The Reimbursement Agreement will generate approximately $6,400 in revenue to the Transit Fund, College EZ Ride account 810-0000-348.58-22 for FY 2023/24 and approximately $4,500 in revenues generated for Youth Free Fares account 810-0000- 348.58-26.
CEQA DETERMINATIONS
VCTC Free Fare Reimbursement Agreement
June 26, 2024
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Staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines that the Free Fare Reimbursement Agreement is not subject to CEQA review because it can be seen with certainty that there is no possibility that the Agreement may have a significant effect on the environment. The activity is a continuation of services and is designed to increase transit ridership which means less congestion on streets and highways and helps to reduce greenhouse gas emissions.
RECOMMENDATION
1. Find the Free Fare Reimbursement Agreement is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines; and
2. Authorize the City Manager to execute CC Agreement No. 2024-140 Reimbursement Agreement for Transit Providers; and
3. Authorize the City Manager to approve any future amendments to the Reimbursement Agreement.
ATTACHMENTS
1. CC Agreement No. 2024-140
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None