02-01-1994 - Metrolink Incentive ProgramTO
FROM
SUBJECT:
•
City Council and City Manager
Human Services Department
METROLINK INCENTIVE PROGRAM
• City of West Covina
Memorandum
AGENDA
ITEM NO. H-1
DATE 2-1-94
SUMMARY: The Human Services Commission is recommending a Metrolink
Incentive Program to promote and encourage the residents
of West Covina to use the Metrolink Service.
BACKGROUND
In response to resident requests for incentives to use the
Metrolink, the Human Services Department has designed an incentive
program to encourage West Covina residents to use the Metrolink
service.
The proposed program is called the "Transportation Resident
Incentive Program" (TRIP). The proposed program would reduce the
Metrolink monthly pass by $25.00 from $112 to $87 to any West
Covina resident.
The program is similar to the "Senior Citizens Bus Pass Buydown"
program that has been in effect since 1984 and reduces the price of
a $10.00 monthly RTD and Foothill Senior Transit pass to $6.00.
This bus pass buydown program has a .current annual budget of
$32,000.
The monthly Metrolink passes will be sold at the Eastland Center
Transit Store operated by Foothill Transit at a $25 discount. The
City, would be billed monthly by Foothill Transit for the number of
monthly passes sold to West Covina residents. The Human Services
Commission reviewed the proposal and heard testimony from four
citizens. The Commission also reviewed 20 letters received from
interested citizens enco*aging support for the proposal. Three
persons spoke at the Commission meeting in favor of the proposal
and one person spoke against the proposal. The person who spoke
gainst the program 'noted a "subsidy" of this type is not
appropriate, and if granted, should be extended to all Foothill and
RTD bus riders as well. He noted that those that already ride
Metrolink do not need a subsidy and that some Metrolink riders
already receive incentives from their employers, in some cases
these incentives are cash incentives to reduce the cost of riding
Metrolink.
Those who spoke in favor of the proposal noted the importance of
doing whatever is needed to encourage people to ride Metrolink
whether they are a new,or existing rider. The cost of the monthly
pass is expensive and the proposed incentive ($25) could be the
reason why someone may try it.
The availability of Prop A and Prop C funds for this type of
program does not require a General Fund expense. It is an easy
program to start and the program's budget can be capped depending
on the City's Prop A and C fund availability.
ANALYSIS
1. The amount of funds needed to implement TRIP can be limited to
a certain number of monthly passes. The Human Services
Commission and staff propose that.a maximum of 50 passes per
month be reduced by $25. (Annual budget of $15,000)
2. A budget of $7,500 for the remaining months of this fiscal
year would be sufficient to fund the program, and prepare
promotion materials.
It would also enable staff to monitor and assess the level of
demand for the incentive.
3. Although restriction can be placed as 'to income or whether
your employer is providing a subsidy, the administration
requirements would go well beyond the intent of the program,
which is to encourage as much ridership of Metrolink as we
can.
4.. The suggestion to provide a subsidy to all monthly bus passes
purchased by West Covina residents, in addition to the subsidy
for elderly and persons with disabilities is well beyond our
available funds. Our best estimate is that a subsidy of $4
would cost the City $100,000 per year.
5. The response from citizens in support for this proposal is
.encouraging and seems to indicate that the demand exists.
FUNDING
Prop A and C funds are available to fund this proposal of a $25
incentive at the level of 50 passes maximum per month for an the
entire year ($15,000 to $17,000). At this time, the budget needed
to implement and advertise TRIP until June 30, 1994 is $7,500.
RECOMMENDATION
It is recommended that the City Council:
a.. Approve the Transportation Resident Incentive Program (TRIP)
to start, in February, 1994, and approve an allocation of
$7,500 from the unobligated Prop A fund balance;
b. Authorize the Human Services Director to file a project
description with the Metropolitan Transportation Authority for
this project.
Gus ' Salazar
Human Services Director
Metrosub.cc/GS:ic