City Council
Report
City Council Meeting: April 12, 2022
Agenda Item: 8.A
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To: Mayor and City Council
From: Edward F King, Director, Department of Transportation, Transit Planning & Performance
Subject: Approval of Proposed Changes to the Big Blue Bus Fare Policy Recommended Action
Staff recommends that the City Council approve the proposed changes to the fare policy for Big Blue Bus, Department of Transportation.
Summary
Big Blue Bus (BBB) is recommending changes to its fare policy, including adjustments to the mix of fare products offered, the prices of fare products, and the fare media accepted on BBB buses (cash, mobile tickets, TAP passes, etc.) as well as associated policy changes to support equitable and convenient fare access. The goals of the proposed changes are to:
• Promote equitable and inclusive public transportation to our community through lower fares to our customers and increase BBB ridership; • Align fare products with customer preferences;
• Simplify fare structure;
• Maintain customer safety; and
• Improve route on-time performance.
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Over the past year, BBB has piloted some of the proposed fare changes, initiated and studied a contactless fare program, and sought customer and community feedback on the program through public outreach, a public hearing, and community surveys. The proposed recommendations have been analyzed regarding their impacts on low income and minority communities, following the guidance established under the Counciladopted Service Design Performance and Evaluation Guidelines approved in October 2018. The new fare policy also reinstates the acceptance of cash fares on board BBB buses.
Background
Prior to the Covid-19 pandemic, BBB customers paid their fares using one of four fare media: cash (coins, bills, and tokens), paper passes, TAP cards, or mobile tickets. Cash and paper passes have long been staples of the BBB fare choices. TAP (LA Metro’s regional contactless RFID technology fare card) was adopted by BBB in 2015, and mobile ticketing was added in 2017. TAP was introduced to enable BBB customers to use a single regional fare card across multiple systems, and later allowed our customers to gain the benefits of regional fare discounts only available on TAP. With the adoption of TAP, BBB could also dispense with paper interagency transfers, thereby lowering waste and trash, and introduce the option of purchasing BBB passes online.
Mobile ticketing was added to keep pace with broader consumer preferences for convenient fare payment that could be purchased from one’s smartphone and used immediately.
Due to the Covid-19 pandemic, BBB shut down bus fare collection completely on March 20, 2020, and invited all customers to board and exit through the rear door of the bus for a period of roughly eleven months. This was done to protect motor coach operators from infection and eliminate the need to touch “high touch” surfaces like the farebox to protect customers. During this period of suspended fare collection, staff examined more sustainable ways to protect motor coach operators and customers from the risks of close contact with infected persons and of contacting high touch surfaces. 3 of 17
When fare collection resumed in February 2021, BBB implemented changes to the fare collection process, some intended to be permanent, and some on a pilot basis. Motor coach operators were now separated from customers by tempered glass and metal barriers to minimize extended close contact. In addition, a contactless fare pilot was implemented to eliminate the need for customers to touch the farebox (a high touch surface), and to speed up the fare payment process. The pilot included no longer accepting paper passes and cash payment on board and using only contactless products to pay fares when boarding. This moved all cash transactions off the bus to other locations.
Contactless fare payment brought multiple benefits to both customers and BBB. It is significantly faster than cash and paper pass fare payment and the reduction of time spent at the farebox reduced Covid-19 exposure time for motor coach operators and customers. Paying fares with contactless media also had the adjunct benefit of speeding up boarding, which reduced time spent at each bus stop and provided customers with faster overall travel time. Accepting only contactless fares introduced many of our cash paying customers to the TAP system, and TAP fare payment currently constitutes 85% of all fare payments on BBB buses. This introduction to TAP has increased customer access to regionally funded discounts based on income, age, disability, and school enrollment status. Lastly, contactless fare payment provided economic efficiencies that could be reinvested into the system for the benefit of customers. Other elements of the contactless fare pilot included initiatives designed to enable customers to adjust to contactless fares and various ways to measure the impacts of the pilot. A full list of those initiatives is included as an attachment.
Discussion
The contactless fare pilot provided extensive data for analysis and approximately 94% of customers adapted to the contactless fare system. While, at the beginning of the pilot, more than 12 percent of customers were unable to pay their fare, by the third month of the pilot, that percentage had declined to 6 percent, where it remains currently.
This is comparable with pre-pilot trends, with approximately 6 to 7 percent of customers refusing to pay any fare or paying only a fraction of the fare. 4 of 17
The original fare proposal for public hearing and public input that was developed by staff in February 2022 generated strong responses from the public. More than 700 people filled out an online survey or attended a public hearing on the proposals. Some proposals were well received, and others generated a strong negative response. The final recommendation of staff for permanent changes to the fare proposal considers public input on the proposals and is substantially different from what was presented at the public hearing and on the survey. In short, staff listened to the public, and removed many unpopular proposals from the final recommendation.
The fare policy recommended by staff seeks to retain some benefits provided by contactless fares and to share those benefits with customers by lowering prices of some fares. The recommendation also seeks to continue the development of robust fare distribution systems to ensure contactless fares are convenient, practical, and accessible to all customers. Finally, the recommended fare policy allows customers to pay their fare with cash upon boarding.
Public Response to Proposed Fare Policy Recommendations The following tables note each fare proposal originally presented to the public in February 2022, the public response to the proposal, and the final staff recommendation.
Proposals recommended for implementation are listed first, then proposals not recommended for implementation. A general discussion of the recommendations follows the tables:
Recommended
Original Fare Proposal
Public
Response
Reason(s) for
Recommendation
Percent of boardings
during Pilot
Provide a free BBB to BBB
transfer within 2 hours on
contactless single ride &
multi-ride passes (like
Metro policy)
Favorable Favorable public response,
rewards users of our most
popular fare options,
impacts the 62% of
customers who report
transfer activity on some
trips.
23.0%
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Recommended
Original Fare Proposal
Public
Response
Reason(s) for
Recommendation
Percent of boardings
during Pilot
Replace the $14 Regular
13-Ride Pass ($1.07 per
ride) with a 10-Ride Pass
at $9 ($.90 per ride)
Favorable Favorable public response,
popular fare product with
vulnerable populations,
lower price encourages
use of contactless fares.
2.3%
Replace $6 Senior,
Disabled, & Medicare 13-
Ride Pass ($.46 per ride)
with a 10-Ride Pass at
$4.50 ($.45 per ride)
Favorable Favorable public response,
popular fare product with
vulnerable populations,
lowered price encourages
use of contactless fares.
<1%
Make permanent the
current temporary price of
Youth 30-Day Unlimited
Pass at $19
Favorable Favorable public response,
makes current condition
permanent.
1.4%
Raise the age for children
to ride free, from 4 years
old and under to 5 years
old and under
Favorable Favorable public response,
closes gap between small
child free ride, & K-12 ride
free through Metro GoPass
program.
<1%
Accept Metro Regular 1-
Day Pass on BBB
Favorable Favorable public response,
solves confusion among
tourists who purchase
Metro Day passes at Santa
Monica E-Line stations, but
which are not currently
accepted on BBB.
Not applicable
Accept Metro Senior,
Disabled, & Medicare 1-
Day Pass on BBB
Favorable Favorable public response,
solves confusion among
tourists who purchase
Metro day passes at Santa
Monica E-Line stations, but
which are not currently
accepted on BBB.
Not applicable
No longer accept paper
passes on board, moving
all pass sales to
contactless fares
Favorable Favorable public response,
reduces waste, increases
travel speed & efficiency,
lowers costs of fare
collection.
0%
(14.3% pre-COVID,
before pilot)
No longer accept BBB
tokens on board
Favorable Favorable public response,
council previously
approved ending of token
sales.
0%
(<1% pre-COVID,
before pilot)
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Recommended
Original Fare Proposal
Public
Response
Reason(s) for
Recommendation
Percent of boardings
during Pilot
Continue to allow
customers with no fare or
partial fare to ride anyway
Favorable Favorable public response,
continues long-standing
policy of not refusing
service based on not
having proper fare.
5.0%
Make BBB contactless fare
passes available at more
locations. Recommend
paying 3.75% commission
(same as Metro) to TAP
retailers who carry BBB
passes.
Favorable Favorable public response,
assists with challenge of
getting more local retailers
to carry BBB passes.
Currently no commission
on BBB pass sales.
Not applicable
Make more pass vending
machines available at more
locations.
Recommendation to
pursue solutions that allow
customers to enjoy
contactless fare
advantages (machines or
technologies)
Favorable Favorable public response.
Metro machines do not sell
BBB passes. BBB to
explore technologies &
systems to make
contactless fares more
convenient, i.e., fare
capping, open payment, &
others.
Not applicable
Create a program to
identify & address the
transit fare needs of
vulnerable populations
Favorable Favorable public response,
37% of BBB customers are
unbanked or without smart
phone. Contactless fare
collection offers access to
county-sponsored reduced
fares. Program seeks to
close the reduced fare
access gap.
Not Applicable
Not Recommended
Original Fare Proposal Public
Response
Reason(s) for Not
Recommending
Percent of Boardings
during Pilot
No longer accept cash on
board BBB
Un-favorable Approximately 2/3 of
customers recommend
cash acceptance on
board. Recommend
continued cash collection
for single fare regular,
senior, disabled &
Medicare rides.
0%
(32.8% pre-COVID,
before pilot)
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Not Recommended
Original Fare Proposal Public
Response
Reason(s) for Not
Recommending
Percent of Boardings
during Pilot
Reduce single ride regular
contactless fare from $1.10
to $1.00
Favorable Retention of the expense
of cash collection on
board makes some fare
reductions financially
infeasible currently.
However, the proposed
free BBB to BBB transfer
will reduce costs by as
much as 50% for those
who transfer.
47.1%
Discontinue selling
Regular 1-Day Pass
Mixed
response
Some customers
earnestly requested
retention of this pass.
<1%
Discontinue selling Senior,
Disabled, & Medicare 1-
Day Pass
Un-favorable Unfavorable public
response. Recommend
retaining pass.
<1%
Discontinue selling 7-Day
Pass
Mixed
response
Some customers
earnestly requested
retention of this pass.
1.1%
Discontinue selling Annual
Pass
Mixed
response
Some customers
earnestly requested
retention of this pass.
<1%
Reduce price of Regular
30-Day Unlimited Pass
from $50 to $30
Favorable Retention of the expense
of cash collection on
board makes some fare
reductions financially
infeasible currently.
5.7%
Reduce price of Senior,
Disabled, & Medicare 30-
Day Unlimited Pass from
$24 to $20
Favorable Retention of the expense
of cash collection on
board makes some fare
reductions financially
infeasible currently.
2.1%
Final Recommended Fare Proposal after Public Engagement Process The final recommended fare proposal has three distinct elements.
1. Changes to fare products, including resuming accepting cash payments
2. Reducing the types of fare media accepted on board
3. Increasing convenient access to contactless fares, especially amongst unbanked customers and those without smart phones
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These three elements are designed to make bus riding safer, more attractive, and ultimately easier to use. Factors affecting each are interrelated, and the elements work together to produce a better outcome for customers.
Changes to Fare Products
While BBB has restored service to 81% of pre-pandemic levels, only 46% of prepandemic ridership has returned. As staff looks toward a fare policy specifically designed to attract ridership, it has been well documented in the transit industry that lower fares attract more customers.
The proposed changes to fare products include structural changes to passes, as well as recommendations to accept two new Metro-issued passes. The new fare policy also provides for the acceptance of cash fares on board BBB buses. The proposed fare policy recommends the following changes to passes accepted on board BBB:
• Free BBB to BBB transfer – Currently, customers must pay for each ride on BBB, even if they need to take two buses to complete a single trip. This proposed free transfer would provide a free ride on a second BBB if it is within two hours of boarding the first bus, and if the fare is paid using contactless technology. This brings BBB fare policy into alignment with Metro fare policy, which also provides free same-agency transfer using contactless fares. Free transfers cut costs by as much as 50% for those who must take two buses each way and are proposed for single ride and multi-ride pass purchases.
• 10-Ride Regular Pass – This pass will replace the current 13-Ride Regular pass. The price per ride is being reduced 16% from $1.07 per ride ($14 divided by 13 rides) to $.90 per ride ($9 divided by 10 rides). The ride count on the pass is being changed from 13 rides to 10 rides to simplify the mathematical equation for customers attempting to determine if this pass is the best option for their needs. These passes are particularly useful for customers who regularly use BBB, but not often enough to make a 30-Day Pass an economical choice for their needs. Each ride will include the free BBB to BBB transfer within two hours. 9 of 17
• 10-Ride Senior, Disabled & Medicare (SDM) Pass – This pass will replace the current 13-Ride Senior, Disabled & Medicare Pass in the same fashion as the 13-Ride Regular Pass. The price per ride is being reduced from $.46 per ride ($6 divided by 13) to $.45 per ride ($4.50 divided by 10 rides). This pass will include the free BBB to BBB transfer within two hours on all 10 rides. • 30-Day Youth Pass – Over the last few months, use of this pass has generally been overtaken by distribution of GoPass, Metro’s free pass program for students introduced in October 2021. GoPass has been adopted by Los Angeles Unified Schools, Santa Monica Malibu Unified School District, and many other public and private institutions serving K-12 populations. However, for students at schools that have not adopted GoPass, the 30-Day Youth Pass remains a good option. The proposed pricing of $19 makes permanent a discount fare put in place several years ago.
• Free Rides for children five and under – This change in policy increases the age at which children must begin to pay a fare from their fifth birthday to their sixth birthday. This aligns with recent changes at other Los Angeles County transit providers as they seek to develop a seamless transition from riding free as young children to riding free on GoPass when they enter kindergarten. The prior age cutoff created a brief period of required fare payment for certain prekindergarten age children, which caused confusion. • Metro 1-Day Pass – This Metro fare is recommended for acceptance on BBB.
Tourists are inclined to purchase 1-Day passes for convenience. However, with Metro offering only Metro 1-Day Pass and no BBB passes at all train stations on the E-Line, there has been considerable confusion among tourists and other infrequent BBB users as to why this pass does not work on BBB, even when purchased at a train station in Santa Monica. Metro’s plan to eliminate their Metro 1-Day pass in the future and replace it with a regional 1-Day pass will resolve this 10 of 17
dilemma. In the meantime, this proposal recommends acceptance of the Metro 1- Day pass on BBB as an intermediary solution until such time as the regional 1- Day pass is introduced. Metro is supportive of this proposed change. • Metro 1-Day Senior, Disabled & Medicare (SDM) Pass – BBB recommends acceptance of the SDM version of the 1–Day Metro pass for the same reasons noted in the above section.
A note on “Refused to Pay” - BBB has had a long-standing policy of allowing customers who do not pay a fare or who pay a partial fare to ride regardless of fare payment. A variety of circumstances can result in non-payment of fare including lack of money, lack of exact or near exact change (only having big bills), damaged or lost fare cards, confusion, language barrier, cognitive disability, or phone battery not charged (mobile ticketing). This proposed fare policy does not recommend changes to that policy. However, during the contactless fare pilot, bilingual signage stating the policy was added to all buses to ensure the existing policy was widely understood by customers. As noted above, this did not result in a measurable change in the number of customers who paid no or partial fare.
Following is the proposed fare table of BBB fare products under this recommendation:
Proposed Fare Table
Ride/Pass Type Regular Senior/ Disabled/
Medicare (SDM)
Youth
Single Ride cash $1.25 $0.50
Single Ride contactless* $1.10 $.50
1-Day $4 $1.50
7-Day $14
10-Ride* $9 $4.50
30-Day $50 $24 $19
Annual $500
* Single Ride and 10-Ride passes include a free BBB to BBB transfer within 2 hours - Children 5 and under ride free.
- Courtesy rides offered to customers who don’t have appropriate fare.
BBB will continue to participate in regional fare programs and accept regional passes.
The recommendation allows for two additional Metro passes (1-Day and SDM 1-Day passes) to be accepted as fare on BBB. However, the recommendation does remove 11 of 17
the Blue to Business pass, which has been replaced by the regional Employer Pass Program (E-Pass).
Currently, all passes below except the Metro 1-Day Regular and Senior/Disabled pass are accepted on board BBB. This proposal recommends that the complete list of regional passes accepted on BBB include:
• Metro 1-Day Pass, Regular and Senior/Disabled
• EZ Pass, Regular and Senior/Disabled
• Interagency Transfers, Regular and Senior/Disabled
• Low-Income Fare is Easy (LIFE) Program
• Access Services Free Fare Program
• Santa Monica College Any Line, Any Time
• Universal College Student Transit Pass (U-Pass)
• UCLA Copay Pass
• GoPass (Fareless System Initiative for participating K-12 and community colleges)
• Employer Pass Program (E-Pass)
Reducing the types of fare media accepted on board
The original fare proposal presented at the public hearing and through the public survey contained a provision to eliminate all cash acceptance on board. Eliminating cash acceptance on board is not recommended for implementation at this time. A transition to contactless fares would benefit many customers through access to reduced fares not available with cash fares and overall reduction in travel time on the bus impacting all customers. Accepting only contactless fares would also benefit both the operational efficiency and cost efficiency of the transit agency. However, for a contactless fare system to be effective and convenient, it must cater to the most vulnerable customers, 12 of 17
including those who depend solely on cash, are unbanked, and/or don’t have a smart phone. While BBB has made great strides in increasing access to contactless fares and while smart phone usage has risen precipitously, there is more work to be done before most unbanked customers can conveniently access BBB pass sales or TAP stored value loading venues.
This proposal does recommend the elimination of the sale and acceptance of paper passes. Paper passes create a paper and magnetic stripe waste stream, slow down boarding when compared with contactless passes, and are operationally less efficient and more expensive to use than contactless passes. Lastly, paper passes require customers to touch the farebox, increasing the possibility of exposure to pathogens on a high touch surface. The public response to the elimination of this type of fare media was favorable and, as such, elimination of paper passes is recommended under this proposal. Likewise, tokens will no longer be accepted.
All BBB passes will continue to be available on TAP and mobile ticketing.
Increasing Access to Contactless Fares
As noted above, 94 percent of BBB customers were successfully able to utilize the contactless fare options. However, closing the gap of the remaining six percent is a vital piece of BBB’s commitment to providing reliable safe transit for all. Through insights gleaned from contactless fare pilot and analysis of fare product usage, public hearing feedback, public surveys, and a Title VI fare equity analysis, staff recommends additional policy changes to ensure the advantages of contactless fares and access to contactless fares are made fully available to all customers:
• Maintain an accurate searchable map of TAP sales locations for unbanked people to use to load passes and stored value.
• Expand access to TAP reload locations, especially for unbanked customers or those without the ability to reload their TAP card online. • Develop an in-house program to identify and address the fare needs of 13 of 17
vulnerable populations (such as seniors, people experiencing homelessness, veterans, etc.) and dedicate resources to ensuring those populations’ fare needs are met.
• Pay 3.75% commissions to retailers selling BBB passes on TAP cards to incentivize retailers to offer BBB products for sale, thereby expanding access to contactless fares.
• Promote reduced fare options in BBB communications and at the BBB store, and accept applications where permitted for regional reduced fare options (such as reduced fare TAP cards for seniors/people with disabilities). • Be a leader in LA County in participating in regional fare programs, assisting Metro in working to ensure new programs are successful such as “best fare” or fare capping options, and offering more regional fare product choices. • Replace the current one-ride ticket sold to social service agencies with a new one ride ticket that better meets their needs (no expiration date) and is priced the same as the single ride.
• Add Wi-Fi on all new buses and configure it to ensure adequate bandwidth for customers who use mobile ticketing. Currently 15% of the bus fleet has Wi-Fi. • Continue to explore additional contactless fare technologies, policies, and options, especially those that address questions of equity and inclusion.
By implementing these policies, staff seeks to achieve increased awareness and utilization of regional reduced fare programs, as TAP is the only means of accessing these programs. In a recent customer survey, 86 percent of seniors, 70 percent of persons with disabilities, and 27 percent of low-income customers were aware of the reduced fare programs available to them. Staff’s goal is to raise awareness amongst these cohorts to 90 percent. During the contactless pilot, 85 percent of customers paid their fare on board with TAP. Prior to the pilot, 36% of customers paid their fare on board with TAP. This introduction to TAP was a significant achievement in that it has opened a pathway towards greater utilization of regional reduced fares. 14 of 17
Summary of Contactless Pilot
The contactless fare pilot was initiated to test whether such a payment system could make riding BBB safer and faster. Eliminating the need for customers to touch the farebox (a high touch surface) and speeding up the fare payment process (minimizing exposure) potentially reduced transmission of Covid-19 and possibly saved lives, but that is impossible to determine. The pilot did confirm that a contactless fare system could make riding BBB faster. Staff found that currently, about 15,000 service hours annually are added to the schedules to accommodate the extra time it takes to pay by cash or paper pass on board. In a fully contactless payment system, these service hours would be reallocated in the form of higher service frequency (i.e., reallocation could add 56 more bus trips daily).
Other accomplishments and lessons learned from the pilot included the significant adoption of contactless payment options like TAP and mobile tickets. The impact of this is that many more people now have access to reduced fare programs. Another lesson learned is that gaps currently exist in the fare distribution network for customers who need to reload their TAP cards in person. Transitioning to a fully contactless payment system is a worthy long-term goal but it requires a more thorough fare distribution network and communication structure. To get there, staff may need to explore alternative fare collection technology. Staff have begun looking at the gaps and what can be done with a strong focus on equity, efficiency, and finding a balance that works for both BBB passengers and the operation. Staff will return to Council in 2023 with an update on these efforts.
Ridership & Fare Revenue Impacts
In order to grow ridership, it has been well documented in the transit industry that lower fares attract more customers. More specifically, according to industry research, it has been documented that for every 1% decrease in fares, ridership is estimated to increase between 0.25% and 0.4%.
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The projected impacts of the recommended fare policy are an increase of 150,000 customers annually directly attributable to the new fare policy, and a projected reduction of fare revenue of $431,000 below what would have been expected from the previously approved fare structure.
Public Surveys, Public Hearing, and Comments
BBB conducted significant public outreach on both the contactless fare pilot and the proposed fare structure, engaging members of the public through surveys, outreach events, a public hearing, and acceptance of feedback through the 311 system. A total of 9,179 public interactions and responses were recorded as part of this project. See attached Survey documents from March 2021, October 2021, and January/February 2022, and Public Hearing presentation and comments received from February 2022.
Findings of Title VI Fare Equity Analysis
The following is the results of the analysis performed regarding the Title VI civil rights implications of the proposed changes on low income and minority populations. • Since most of the proposed changes involved lowering fares, the effect on lowincome populations was beneficial rather than resulting in a disproportionate burden. No proposed changes exceeded the threshold for negative disproportionate burden on low-income populations.
• Regarding impact on minority populations, elimination of the 13-Ride pass in its entirety would have constituted a negative disparate impact on minority populations. However, the replacement of the 13-Ride Pass with a new 10-Ride Pass at a lower price per ride mitigates the negative impact of the pass elimination. With this mitigation in place, there were no proposed changes that caused a disparate negative impact on minority populations.
Past Council Actions
Meeting Date Description
10/10/2017
(Attachment A)
BBB Fare Restructure
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10/27/2015
(Attachment B)
BBB Fare Restructure
Financial Impacts and Budget Actions
The proposed changes to fares will reduce customer generated revenue (60600002.409830) by approximately $431,000 in FY 2022-23. The change driving this reduction in revenue is offering free BBB to BBB transfers within two hours for contactless fare users. The other proposed changes (e.g. changing the 13-Ride pass to a 10-Ride pass; updating the policy to provide rides for free to children five and under; and accepting Metro 1-Day passes) are less impactful. The reduction in revenue will be offset by one-time federal funding received from the Coronavirus Response and Relief Supplemental Appropriations Act (CRSSAA). Beyond FY 2022-23, as ridership increases, the impact of the fare change will decrease. The operating subsidies the department receives through Metro is projected to increase as the funding allocation is partly reliant on ridership. The anticipated increase in subsidies is projected to offset any ongoing impacts.
The benefit of this proposal is lower fares for customers, elimination of expense and operational procedures involved with paper pass distribution and collection, increased availability of contactless fares, and the corollary increased access to regional reduced fare programs.
Prepared By: Timothy McCormick, Transit Planning and Performance Manager Approved Forwarded to Council
Attachments:
A. October 10, 2017 Staff Report - Big Blue Bus Fare Restructure (Web Link) 17 of 17
B. October 27, 2015 Staff Report - BBB Fare Restructure (Web Link) C. June 24, 2021 Information Item - Contactless Fares Pilot D. 1st On-Board Survey Contactless Fares Pilot - April 2021 E. 2nd On-Board Survey Contactless Fares Pilot - October 2021 F. Title VI Fare Equity Analysis - December 2021
G. Proposed Fare Structure Public Hearing Presentation - February 2022 H. Survey responses to Proposed Fare Structure - February 2022 I. List of Contactless Fare Pilot Initiatives - FY2021-22 J. Written Comments