City Council Meeting: September 11, 2007

Agenda Item: 8-A  

To:                   Mayor and City Council 

From:              Carol Swindell, Director of Finance

Subject:          Recommendation to Appropriate the Big Blue Bus Capital Budget and Operating Enhancements, Approve Interim Positions during Campus Expansion Construction and Increase Passenger Revenue from the Mini Blue Program

 

Recommended Action

This staff report recommends the following changes to the Big Blue Bus FY2007-08 budget:

1.      appropriate $390,800 increase to Salary and Wage budgets,

2.      authorize personnel increases of 7.0 permanent full-time equivalent (FTE) and 6.0 limited-term FTE staff,

3.      appropriate a capital improvement program budget of $16,423,166, and

4.       increase in passenger revenue in the amount of $414,427.

 

Executive Summary

During the Budget Study session on May 22, 2007 and subsequent adoption on June 12, 2007, it was conveyed to Council that staff would come back for recommended budget actions for Big Blue Bus (BBB) FY2007-08 proposed Capital Improvement Program (CIP) budget and operating budget enhancements when the final funding marks were received from the Los Angeles County Metropolitan Transportation Authority (Metro).  The final draft was approved and released on July 26, 2007.

 

The Proposed Capital Improvement Program covers Fiscal Years 2008 to 2010. Although the program spans three years, staff requests only the first year be appropriated for a total of $16.4 million. The appropriation will provide funds for bus replacement, bus components, bus stop amenities, facility upgrades and renovation, yard improvements, service vehicles, transit mall maintenance, and technology and telecommunications equipment, all of which are essential to day-to-day bus operations and infrastructure and equipment replacement and maintenance.

 

Ongoing operating budget enhancements include 6.0 FTE Motor Coach Operator positions for the Mini Blue operations and 1.0 FTE Motor Coach Operator Supervisor position for vacation relief and dispatch operation restructuring.  These positions are required for the new Mini Blue program and the overall bus operations.

 

An additional 6.0 FTE limited-term positions are requested to assist in the off-site operations during the construction of the BBB Maintenance Facility, where 15 to 30 buses will need to operate from a remote facility.  As these positions are created exclusively for the construction of the Campus Expansion project, they will be funded by the capital improvement budget.

 

In FY2007-08, the BBB will receive fare reimbursement payments from Santa Monica College (SMC) in the amount of $414,427 as a result of the transit partnership between the two agencies. On all routes supported through the SMC Partnership, SMC ID cardholders board for free by showing their identification card to the driver. All the services supported by SMC are open to the public paying the appropriate fare.

 

Discussion

In developing its CIP budget for FY2007-08, the BBB used the final funding marks made available by the Los Angeles County Metropolitan Transit Authority (Metro), where federal, state and local subsidies are allocated to fund ongoing and one-time projects. A listing of CIP projects with sources of funding is presented as an attachment to this staff report.

 

The BBB selectively added positions to meet critical needs. Council recently approved BBB service modifications to implement the new Mini Blue Service Plan designed to respond to Council and community requests for environmentally friendly transit alternatives within Santa Monica. The Mini Blue system, consisting of the Crosstown Ride, the Tide Ride, the Pico and Downtown Market Rides, and the Sunset Ride operate at frequent intervals using small transit buses. Staff has identified operational efficiencies which allow the Mini Blue service to be largely absorbed within the budget, except for the 6.0 FTE Motor Coach Operator positions, which will be funded by the fare reimbursement payments from the SMC.

 

The BBB reorganized its communications and on-street operations supervision as part of its Advanced Fleet Management System implementation.  The reorganization necessitated 1.0 additional FTE Motor Coach Supervisor position.  This position will be responsible for monitoring quality control for the on-street service using the new dispatch system with advanced technology communications.  It will also provide vacation relief and additional supervisory support in dispatch to handle absences, bus assignments, regulation adherence and other operator issues requiring supervisory authority.

 

The construction of the BBB Maintenance Facility will begin in September 2007 and is projected to be completed in the first half of 2010.  During this period, daily operations will continue at the bus yard.  However, 15 to 30 buses will be diverted to a remote parking facility to accommodate the construction activities at the bus yard.  The implementation of the remote site operations requires 6.0 FTE limited term positions including 1.0 FTE Mechanic, 2.0 FTE Yardmaster and 3.0 Motor Coach FTE Cleaner positions.  These limited term positions expire June 30, 2010.

 

Budget/Financial Impact

Appropriations are required for the proposed FY2007-08 BBB Capital Improvements Program and the operating enhancements of 6.0 FTE Motor Coach Operator and 1.0 FTE Motor Coach Operator Supervisor positions as listed below:

 

Capital Improvements Program:

Account

 

Project Description

 

Amount

 

C410006

Telecommunication Services

 $       43,340

C410006

Bus Components

     3,686,906

C410107

Yard Improvements

        320,000

C410113

Technology Equipment

     1,287,960

C410114

Bus Stop Amenities

     3,297,000

C410115

Service Vehicles

        330,000

C410458

Transit Mall

        322,500

C410519

Bus Replacement

     5,822,960

C410709

Shop Equipment

          60,000

C410826

Facility Upgrades and Renovations

        500,000

C410749

Transit Center

        677,500

C410099

Farebox

          75,000

 

Total:

 $ 16,423,166

For details see the attachment.

 

Funding for the capital improvement program comes from federal, state and local agencies through the annual funding allocations administered by MTA.  Revenues are recorded when payments are received on reimbursement of actual expenditures. Revenues are budgeted at capital grant accounts in the year the reimbursements are projected to be received.    The capital revenue budget adopted in June for FY2007-08 reflects revenue from reimbursements for capital projects approved in prior years.  No additional budget adjustments are needed.  

 

Operating enhancements:

Division

Description

Amount ($)

Transit Services

 

6.0 FTE Motor Coach Operator positions

307,100

Transit Services

1.0 FTE Motor Coach Supervisor position

83,700

 

The 6.0 FTE Motor Coach Operator positions ($307,100) can be fully funded by the Mini Blue revenue increases ($414,427), while the 1.0 FTE Motor Coach Supervisor position ($83,700) will be funded by the MTA funding allocations. 

 

The 6.0 FTE limited term positions ($443,400) for the remote site operations will be funded by the Campus Expansion CIP (account C410104.589100), which has sufficient funds in FY2007-08 to cover these positions.  Future appropriations will be evaluated in the annual CIP budget process and included in the Proposed Budget for Council’s review and adoption.

 

Passenger Revenue account (41642.402000) will be increased by the receipt of $414,427 from the SMC for the Mini Blue program.

           

 

Prepared by:

Janet Shelton, Budget Manager

 

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Carol Swindell

Director of Finance

 

P. Lamont Ewell

City Manager