City Council
Report
City Council Meeting: May 13, 2025
Agenda Item: 4.G
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To: Mayor and City Council
From: Anuj Gupta, Director of Transportation, Department of Transportation, Transit Planning & Performance
Subject: Adoption of Big Blue Bus Fare Policy
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15273 of the California Environmental Quality Act (CEQA);
2. Adopt the proposed Big Blue Bus fare changes to be implemented in two phases beginning in August 2025; and
3. Receive and file the results of the Title VI Fare Equity Analysis.
Summary
A reliable and safe bus system in Santa Monica and on the Westside is critical to economic opportunity and growth for residents, workers, and visitors. To ensure the fiscal resiliency of Big Blue Bus, the Department of Transportation (DOT) is proposing fare changes that would address shortfalls in transit revenue as Big Blue Bus faces declining per boarding fare revenue, rising operational costs, and uncertainty surrounding future federal funding. Without transitioning to a more financially sustainable fare revenue model, DOT risks delays in the implementation of the Brighter Blue Five Year Service Plan and/or reductions in service and rider experience improvements such as the Transit Safety Officer program.
The proposal calls for increases to all existing fares and passes, as well as the elimination of two underutilized passes, the Annual Pass and the 30-Day Youth Pass.
While the proposed fare changes are increases relative to existing fares, when adjusted 2 of 14
for inflation, almost all fares would be less costly than those charged by Big Blue Bus a decade ago. The changes would be implemented in two phases to reduce financial burdens to riders. The first phase would be implemented on August 10, 2025, while the second phase would go into effect in the summer of 2027. A summary of the proposed fare changes is included as Attachment D.
Background
Currently, Big Blue Bus offers Single Rides, 1-Day Passes, 7-Day Passes, 10 Rides Passes, 30-Day Passes, and an Annual Pass for sale, while other regional, discounted, and free fare passes are also available to eligible riders. All Single Rides and Big Blue Bus Passes are sold at a Regular rate; all but the 7-Day and Annual Passes are sold at a discounted Senior/Disabled/Medicare (S/D/M) rate; and only the 30-Day pass is sold at a discounted Youth rate.
The following table shows the share of fare transactions by fare category (Ride or Pass type):
Fare Category Percent
Single Ride 46.9%
1-Day Pass 0.2%
7-Day Pass 0.3%
10-Ride 2.0%
30-Day 2.0%
Youth 30-Day 0.1%
Annual 0.1%
Interagency Transfers 6.2%
BBB to BBB Transfers 5.1%
U-Pass (i.e., UCLA) 12.4%
GoPass (i.e., K-12 & SMC) 14.5%
Access 4.2%
LIFE 3.4%
EZ-Pass 2.1%
E-Pass 0.5%
Total 100%
All Big Blue Bus Single Rides and Passes are available on TAP and Mobile Ticket.
Single Rides can also be paid using cash on board. The following table shows the share of fare transactions by fare media (TAP, Cash or Mobile Ticket):
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Fare Media Percent
TAP 76.6%
Cash 19.6%
Mobile Ticketing 3.8%
Total 100%
While minor fare changes were made in 2017 and 2022, with the change in 2017 being a fare reduction, the last comprehensive changes to the Big Blue Bus fare schedule were approved by the City Council in October 2015.
The 2015 fare change increased the cost of a Single Ride Regular by 25 percent, from $1.00 to $1.25, and increased most other fare products by a comparable percentage, while the fare changes in 2017 lowered the Single Ride Regular contactless (TAP or mobile) fare from $1.25 to $1.10 to incentivize contactless payment (i.e., TAP and mobile tickets) over cash. An Annual Pass was also introduced in 2017.
The most recent fare changes in 2022 marked the conclusion of the year-long Big Blue Bus Contactless Fares Pilot during which only contactless methods of payment were accepted. The pilot was done to minimize interaction time at boarding and eliminate the exchange of physical payment forms (i.e., cash) between operators and riders to reduce the transmission of COVID-19. Additionally, the pilot served to assess such a policy’s impact on enhancing operational efficiency by decreasing dwell times at stops since cash transactions take longer than contactless payments. In addition to reinstating the option for cash payments on-board, other policy adjustments during the 2022 fare changes included introducing free Big Blue Bus to Big Blue Bus transfers and a new 10 Rides Pass, eliminating paper passes, and increasing the age limit for complimentary Big Blue Bus rides from four to five years old.
The past decade has presented numerous challenges for transit providers nationwide, which have, amongst other things, levied significant financial pressures on transit agencies including Big Blue Bus. The region’s upcoming mega-events, such as the 2026 World Cup and the 2028 Olympic and Paralympic Games underscore the need for 4 of 14
a robust and resilient transit system to serve the transportation needs of the community and visitors.
Discussion
Several factors necessitate the proposed fare changes:
• The current average fare per boarding has decreased by 20 percent to 70 cents from the pre-pandemic average of 87 cents. Adjusting for inflation exacerbates this trend, which is the result of a combination of factors such as the free Big Blue Bus to Big Blue Bus transfers implemented in 2022, the introduction of the free K-12 student GoPass Program in 2021, the expansion of fare-free programs at UCLA since 2020, and increased instances of fare evasion. • The operating cost per vehicle revenue hour is 21 percent higher now at $182 (as of FY2023-24) compared to less than $150 pre-pandemic. Labor costs make up the majority (71 percent) of operating costs, especially as efforts to offer the competitive wages needed to recruit and retain Motor Coach Operators have placed pressure on operating costs since the pandemic. While raising fares alone will not fully relieve these cost pressures, doing so will support DOT’s effort to continue offering competitive wages to Motor Coach Operators, thereby ensuring staffing levels needed to deliver the service enhancements planned in the years to come while addressing the reality of expenditures outpacing revenues. • The new federal administration’s policies have created uncertainty as to the future of federal funding to transit agencies. The “fiscal cliff” for transit agencies nationwide continues to be of serious concern in addition to rising inflation, which has led to increased costs on transit agencies.
The proposed fare changes would help mitigate the challenges of declining revenue per boarding, rising operational costs, and uncertainty surrounding future federal funding.
Big Blue Bus has maintained its current fare structure for many years; however, the obligation to operate a reliable and safe transit system necessitates this fare increase. 5 of 14
Beyond service enhancements proposed in the Brighter Blue service plan, safety initiatives partly supported by this effort include the Transit Safety Officer Program.
Launched in March 2024, this successful program places unarmed Transit Safety Officers throughout the system to ensure rider compliance with the code of conduct, leading to a comfortable, safe, and welcoming environment for everyone onboard.
Proposed Fare Changes
The goal of the fare changes is to raise fare revenue by modestly increasing the cost of single rides and passes while maintaining the free Big Blue Bus to Big Blue Bus transfers and the availability of popular pass products. Below are the proposed changes to be implemented over a two-year period:
Table 1 Proposed Big Blue Bus Fare Changes
Ride or Pass Current
Phase I
August 10, 2025
Phase II
Summer 2027
Regular
Single Ride (Tap & Mobile)
^ $1.10 $1.25 $1.50
Single Ride (Cash) $1.25 $1.50 $1.75
1-Day Pass $4 $4.50 $5
7-Day Pass $14 $16 $18
10 Ride Pass^ $9 $10 $12
30-Day Pass $50 $55 $60
Annual Pass $500 Eliminate
Senior / Disabled / Medicare (S/D/M)
Single Ride (Tap & Mobile)
^ $0.50 $0.60 $0.65
Single Ride (Cash) $0.50 $0.75 $0.75
1-Day Pass $1.50 $1.75 $2
10 Rides Pass^ $4.50 $5 $6
30-Day Pass $24 $27 $30
Youth
30-Day Pass $19 Eliminate
^Includes one free Big Blue Bus to Big Blue Bus transfer within two hours.
1. Increase Cost of Single Rides, 1-Day, 7-Day, 10 Rides, and 30-Day Passes The proposed cost increase to these fare products will result in an average fare per boarding of approximately 85 cents, which is comparable to pre-pandemic figures. These fares are still relatively inexpensive and in line with the other transit providers in the region as can be seen in Tables 2 and 3, and, when 6 of 14
adjusted for inflation, the proposed fares are comparable to or cheaper than Big Blue Bus fares during the 2010s.
2. Elimination of the Annual Pass
The Annual Pass, introduced in 2017, is proposed for elimination due to its extremely rare sales and usage. For a variety of reasons, and as the data shows, this pass has become irrelevant over time. In FY23-24, annual passes accounted for 7,156 rides, or less than 0.1 percent of all Big Blue Bus rides. Only five annual passes were sold during FY2023-24, and the low sales continue through this fiscal year.
3. Eliminate Youth 30-Day Pass
The Youth 30-Day Pass has experienced rare usage in recent years. The pass has also been made largely irrelevant with the introduction of the regional GoPass Program in 2021, which provides free transit usage for K-12 students at participating schools throughout the Big Blue Bus service area and is accepted as a valid fare product on Big Blue Bus. All schools in the Santa Monica-Malibu and Los Angeles Unified School Districts participate in GoPass, as do most public charter schools and many independent schools. In FY23-24, 30-Day Youth Pass ridership consisted of 4,986 trips, or less than 0.1 percent of total Big Blue Bus ridership. Only 142 passes were sold last fiscal year (or averaging about 12 monthly) and this has dwindled further with approximately 6 passes sold monthly through the first half of this fiscal year.
Big Blue Bus will maintain the following policies:
Free Big Blue Bus to Big Blue Bus Transfers
Although a factor in reducing the average fare per boarding in recent years, the proposed fare changes maintain the popular free Big Blue Bus to Big Blue Bus transfers. Free transfers were implemented in 2022 to spur ridership growth, which was realized with ridership increasing each subsequent year. The proportion of single ride transfers rose from 7 percent to 12 percent, indicating ridership gain and a significant benefit to those riders that take advantage of the free transfer policy.
Incentive for use of Contactless Fares
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The fare policy of differentiating between cash and contactless Single Ride fares, with cash fares being slightly more costly, is recommended in order to continue encouraging riders to pursue contactless forms of payment. This incentive will also be extended to those eligible for S/D/M Single Rides. Slightly fewer than 20 percent of Big Blue Bus riders pay with cash, one of the lowest levels in the county and a regional success story in the effort to move riders away from cash payments onboard transit.
Equitable and Affordable Fares
While the proposed fare changes represent increases, the most price-sensitive ridership groups, namely low-income individuals and students, will still be able to ride free on Big Blue Bus with a qualifying pass. Big Blue Bus will continue to participate in the countywide LIFE (Low Income Fare is Easy) Program, which gives low-income riders 20 free rides every month or discounts on passes. In addition, Big Blue Bus will continue participating in the GoPass Program, which allows unlimited free rides for K-12 and community college students at participating schools. Notably, both SMC and UCLA offer their own pass programs that allow their students unlimited free rides on Big Blue Bus.
Finally, the proposed fare changes have no impact on Big Blue Bus’s agreement with Access Services, which allows their members (individuals with disabilities) to ride Big Blue Bus for free.
DOT will continue to promote reduced and free fare pass options and expand outreach efforts to include monthly workshops for older adults, those with disabilities, and lowincome individuals. These workshops will function as a “one stop shop” for the community to learn about Big Blue Bus’s services and reduced fare options such as the Mobility on Demand Everyday (MODE) and Low-Income Fare Is Easy (LIFE) programs.
Attendees will also receive one-on-one support to complete the application process.
Meeting riders where they are eliminates barriers for seniors, people with disabilities, and lower income individuals making public transportation more accessible.
Fare Capping
While developing these fare changes, DOT explored the potential to incorporate a “fare capping” system for Big Blue Bus. Fare capping would eliminate time-bound passes (i.e., 1-Day, 7-Day, 30-Day), allowing riders to pay as they ride until they hit a specific “fare cap.” For example, Big Blue Bus riders paying with a TAP card would pay for rides 8 of 14
until they paid the amount equivalent to a 1-Day or 7-Day pass. Any subsequent rides within the 1-Day or 7-Day period for TAP card users would be free, ensuring riders pay the lowest fare possible. Metro implemented fare capping on their system in 2023.
Fare capping on Big Blue Bus is not included in the currently recommended fare changes. Metro, as administrator of the TAP system, is working with partners to develop a single regional fare capping structure, rather than have each participating TAP transit system—like Big Blue Bus— with their own specific fare capping program. Citing technical and business rules complexity, Metro has tabled its regional fare capping efforts for the time being to focus on TAP Plus, which includes the launch of an “open payment” system for the region as discussed in the next section.
Open Payments (TAP Plus)
Metro is currently focused on rolling out “open payments” as part of the TAP Plus project on its system and on the other TAP-participating transit systems in the region including Big Blue Bus. An open payment system would allow riders to pay for rides on board using contactless-enabled credit and debit cards as well as mobile payment methods such as Apple Pay and Google Pay. Open payments offer another convenient contactless alternative for riders, reducing barriers to paying for (and by extension accessing) transit. Open payments could launch as soon as 2026. DOT is considering pricing the fare for open payments at the contactless rate, but will need to analyze further before making a final fare recommendation for open payments.
DOT staff are in regular communication with counterparts at Metro on both initiatives— fare capping and open payments—and are prepared to implement them as soon as it becomes feasible to do so.
Comparison of Proposed Fares to Peer Agency Fares
The tables below illustrate the proposed first phase of fare changes compared to fares currently charged by different agencies in the region, state, and country, with a focus on what peer agencies in LA County are charging. Fares shown for the other agencies are current as of the writing of this report, with potential fare changes by the other agencies not taken into consideration. Phase I of the proposed fare changes are used for comparison due to the possibility of the fares for peer agencies below changing between now and 2027, which is when Phase II of the fare increases are proposed. As 9 of 14
such, the shorter-term fare increases were seen as a more appropriate and relevant comparison.
Even after the proposed changes, Big Blue Bus fares will remain comparable to or lower than the fares of the other agencies in most cases. Fares on Big Blue Bus will be most comparable to those of Long Beach Transit (LBT), an appropriate comparison given the operational similarities between the two agencies. However, it is worth noting that Big Blue Bus offers one (1) free intra-agency transfer within 2 hours, while LBT does not.
Table 2 Regular Fare Comparison
Agency
Single
Ride
Regular
Day
Pass
Regular
Weekly
Pass
Regular
Monthly
Pass
Regular
Big Blue Bus – Proposed Fares
Phase I
$1.25 TAP/
$1.50
Cash
$4.50 $16 $55
Culver City Bus $1.00 - - -
Long Beach Transit $1.25 $4 $18^ $65
LA Metro $1.75 $5* $18* -
Foothill Transit (San Gabriel Valley) $1.75 $6 - $60
Muni (San Francisco) $2.75 $5.50 - $85
MTS Bus (San Diego) $2.50 $6* - $72
New York MTA $2.90 - $34* $132*
^ 5 Day Pass
*Fare Capped
Table 3 Senior/Disabled/Medicare Comparison
Transit System
Single Ride
S/D/M
Daily
S/D/M
Weekly
S/D/M
Monthly
S/D/M
Big Blue Bus – Proposed Fares
Phase I
$0.60 TAP/
$0.75 Cash
$1.75 - $27
Culver City Bus $0.35 - - -
Long Beach Transit $0.60 $2.50 $9^ $24
LA Metro $0.75 $2.50* $5* -
Foothill Transit (San Gabriel Valley) $0.75 $3 - $30
Muni (San Francisco) $1.35 - - $43
MTS (San Diego) $1.25 $3* - $23
New York MTA $1.45 - $17* $66*
^ 5 Day Pass
*Fare Capped
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Public Hearings & Community Input
DOT held two public hearings in the first week of April to receive community and stakeholder feedback. Information in English and Spanish on the public hearings was disseminated on buses (flyers and digital screens), by email, text blasts, on the Big Blue Bus website, via Big Blue Bus and the City of Santa Monica’s social media channels, in a blog post published on the City of Santa Monica’s website, and a notice in the Santa Monica Daily Press.
The virtual public hearing was held on April 2, with about a dozen attendees, while the in-person public hearing was held the following day with approximately half a dozen attendees. Attendees who registered for the virtual public hearing were given the opportunity to submit a question while completing the registration, with questions addressed live by DOT staff during the hearing. Attendees at both hearings were given the chance to provide public comments on the proposed fare changes. Generally, comments expressed an understanding of the proposed fare changes given the present economic situation and inflation over the past several years. Most attendees who commented used the forum as an opportunity to ask questions or voice concerns around other elements of Big Blue Bus not directly related to the fare changes.
An online survey in English and Spanish soliciting feedback regarding the proposed fare changes and the general fare practices at Big Blue Bus was available between March 19 and April 10. A total of 1,234 respondents took the survey.
The following is a summary of responses to some of the survey questions:
• The vast majority of respondents (83 percent) ranked current fares on Big Blue Bus as either fair or affordable.
• Regarding the proposed fare changes, 47 percent of respondents ranked the proposed fare changes as either fair or affordable, while 49 percent ranked them as either somewhat or very expensive (the remaining responded unsure about how they felt).
• When asked about their preference between adopting the fare changes to maintain service levels and support planned service enhancements versus maintaining current fares but risk delaying service enhancements and/or service 11 of 14
cuts, respondents preferred at a rate of 2 to 1 (56 percent vs 27 percent) to implement the fare changes. The remaining 17 percent responded “unsure.” Other data points of note from the survey were that 92 percent of respondents say they are supportive or very supportive of free Big Blue Bus to Big Blue Bus transfers. The popularity of the policy was a factor in not proposing any changes to these transfers.
Within the open-ended survey comments, respondents were more sensitive to raising S/D/M fares relative to Regular fares, even if they were not in the S/D/M category themselves. The detailed survey results are included as Attachment H.
Title VI Fare Equity Analysis
As required by federal law, DOT conducted a Title VI fare equity analysis of the proposed fare changes to determine whether the proposed changes result in either a disparate impact on minorities and/or a disparate income on low-income households.
The fare equity analysis found that the proposed fare changes, which include increases in the costs of rides and passes, do not exceed Big Blue Bus’s disparate impact or disproportionate burden thresholds as defined by Big Blue Bus policy. As such, no 12 of 14
additional analysis or mitigation efforts are required to implement the proposed fare changes. The full analysis is included as Attachment I.
Ridership Impacts
Using an industry standard elasticity of demand model, the full implementation of the fare policy changes are expected to increase fare revenue by up to 13 percent by FY2027-28. The model considers the impacts of the fare policy changes on ridership demand. The model forecasts a reduction of ridership by about 7 percent. The model only considers fare policy changes on ridership, holding all other factors that influence ridership constant. Actual change in ridership in the next few years will likely differ due to the other factors (beyond fares) that influence ridership including service levels and quality, the economy, demographics, and the existence of alternative transportation options to Big Blue Bus.
Communication Plan
Pending City Council approval, DOT will notify riders of the forthcoming fare changes (with Phase I to be implemented on August 10, 2025) by taking the following actions:
• Working with external partners and other departments within the City to ensure awareness of the fare policy changes
• Updating the Big Blue Bus website
• Updating the Little Blue Book, which is a guide containing current maps, schedules, and other Big Blue Bus information
• Updating pricing decals on bus fleet
• Disseminating information via social media
• Sending an email update to all mailing list subscribers Alternatives Considered
No fare increase
This scenario risks not being able to fully implement Brighter Blue service enhancements—including major improvements to service frequency on key routes, and expansion of early morning, late night, and weekend service across many routes—given 13 of 14
the additional resources required to roll out the planned improvements. This scenario may even necessitate service cuts. Wages offered to Motor Coach Operators and other front-line employees could become stagnant and risk becoming uncompetitive, which would also impact service levels by hampering recruitment and retention efforts in an already challenging labor market.
Elimination of Free Transfers
Complimentary transfers within the Big Blue Bus system, implemented in 2022, were considered for elimination given the impact on the average fare revenue per boarding that this policy exacerbates. However, there was a desire to avoid financially burdening riders who rely on transfers to reach their destination, especially with the high (and growing) rate of riders who benefit from this policy, which today is about 5 percent of all rides but 12 percent of all Single Rides. Additionally, this change alone would not have resulted in the generation of fare revenue expected from the proposed policy.
Environmental Review
The change in fares for the Big Blue Bus system is categorically exempt from CEQA pursuant to Section 15273, which states that CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by public agencies which the public agency finds are for the purpose of meeting operating expenses.
Past Council Actions
Meeting Date Description
10/27/15 (attachment
A)
Big Blue Bus Fare Restructure
10/10/17 (attachment
B)
Big Blue Bus Fare Restructure
04/12/22 (attachment
C)
Approval of Proposed Fare Changes to the Big Blue Bus
Fare Policy
Financial Impacts and Budget Actions
Staff seek authority to implement the proposed fare changes. The projected revenue will be budgeted in the Big Blue Bus passenger revenue account. 14 of 14
Fiscal
Year
Account
Description
Account Number Fare Change
Projected
Revenue
FY26/27 Passenger Revenue 60600002.409830 $390,000
FY27/28 Passenger Revenue 60600002.409830 $780,000
Using an industry standard elasticity of demand model, the full implementation of the fare policy changes are expected to increase fare revenue by up to 13 percent by FY2027-28, or by about $780,000 annually. The average fare per rider is expected to increase from 70 cents in FY2023-24 to 85 cents by FY2027-28.
Prepared By: Abdallah Daboussi, Strategic Transit Planner Approved Forwarded to Council
Attachments:
A. Attachment A - 10/27/15 Staff Report (Web Link)
B. Attachment B - 10/10/17 Staff Report (Web Link)
C. Attachment C - 04/12/22 Staff Report (Web Link)
D. Attachment D_BBB Proposed Fare Changes 2025-2027
E. Attachment E_Public Hearing Presentation
F. Attachment F_Public Hearing Comments
G. Attachment G_Public Hearing Notice Materials
H. Attachment H_Survey Results and Comments
I. Attachment I_Title VI Analysis
J. PowerPoint Presentation