CITY COUNCIL: Policy Direction Regarding Operation of an MST Trolley within the City Limits

Meeting Date: September 9, 2008
Prepared by: Rich Guillen

City Council
Agenda Item Summary

Name: Receive a report on the operation of an MST Trolley within the City limits and
provide policy direction.

Description: Monterey-Salinas Transit (MST) is offering to operate a trolley service with a route that would remain solely within the City limits. By confining the service within the City, it will improve both tourist and business employee parking and enhance tourism for all City-only businesses through greater exposure.

Overall Cost:
City Funds: $80,079 (not included in the Annual Budget)
Grant Funds: $0
Staff Recommendation: Receive the staff report and provide policy direction.
Important Considerations: The Carmel Chamber of Commerce offered the following as
the main reasons for operating a trolley: 1) enhance the visitor experience, 2)
alleviate parking issues, and 3) provide alternative, environmentally-friendly
transportation.
Decision Record: The City Council rejected the proposal twice before: 1) on May 2,
2006, a motion by former Council Member Erik Bethel to enter into an agreement
with MST to operate a trolley in and about Carmel-by-the-Sea died for lack of a
second, and 2) on June 5, 2007, Council voted 3-2 to reject the operation of an
MST trolley in and about Carmel-by-the-Sea, which would have been funded by
the Carmel Chamber of Commerce and the Crossroads Shopping Village.
Reviewed:
Rich Guillen, City Administrator Date
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CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
TO: MAYOR McCLOUD AND COUNCIL MEMBERS
FROM: RICH GUILLEN, CITY ADMINISTRATOR
DATE: SEPTEMBER 9, 2008
SUBJECT: RECEIVE A REPORT ON THE OPERATION OF A MST
TROLLEY WITHIN THE CITY LIMITS AND PROVIDE POLICY
DIRECTION
RECOMMENDED MOTION
Provide policy direction.
BACKGROUND
The City Council over the past few years has discussed the operation of a Monterey-
Salinas Transit (MST) trolley in and about the City limits. The scenarios previously
discussed have been as follows:
1. The initial concept was to have a trolley route that would serve the Crossroads
Shopping Village and the City’s business area. Alternative route considerations
included having the trolley 1) serve the Monterey Conference Center and the City
business area, and 2) serve the Inn at Spanish Bay, Pebble Beach Lodge, and the
City business area. The preferred alternative recommended by staff in April 2006
was for the trolley to serve Pebble Beach and the City business area. The Pebble
Beach Company agreed to support the trolley, but did not want to financially
contribute to its operation. The reason was that they were already financially
supporting a shuttle service to Carmel for their visitors. The proposed trolley
service at that time was to operate eight to 10 hours a day, seven days a week. The
cost for this “trial period” service level was estimated at $22,800.
Outcome: The Carmel Chamber supported the concept, but was more
interested in having the service operate between the Crossroads Shopping
Village and the Carmel business area. MST staff felt that the service
between the Monterey Conference Center and Carmel would require two
trolleys, thus increasing costs and create operational deficiencies. The City
Council chose not to fund the trolley service to Pebble Beach.
2. The Carmel Chamber of Commerce requested that the City agree to operate the
trolley between the Crossroads Shopping Village and the City’s business area on a
trial basis. To make the trial period affordable, MST proposed a fee of $2,500 per
month, which was the cost to offset the monthly projected fares. MST would
absorb the operation of the trolley. The trial period was planned for July and
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August 2007 and was to be free to the general public. The Chamber and the
Crossroads Shopping Village were to equally divide the cost of the fare. In
addition, the Carmel Innkeepers Association was to contribute $500 to offset costs
associated with printing maps/schedules.
Outcome: The Carmel Chamber was a strong supporter of implementing
the trolley service “trial period.” Even though the trial period required no
City financial support or operational approval, MST staff requested that the
Chamber ask for the City Council’s support of the trolley service. The
Chamber’s reasons for operating the trolley service were 1) enhance the
visitors’ experience, 2) alleviate parking issues in the Carmel business area,
3) improve the environment by using public transportation, and 4) the
operational cost proposed by MST was at an affordable rate. The City
Council after thorough deliberation voted to not support the trial trolley
service (3-2 vote in opposition).
What’s being proposed at this time is a trolley service that operates completely inside the
City limits at no cost to the general public. Council Member Karen Sharp along with
City staff met with MST staff to review the feasibility of developing a “City only” trolley
service. MST is willing to implement a City trolley service and, has developed a
proposed route and annual operating costs.
STAFF REVIEW
The general concept of the “City only” trolley service is to provide an alternative to
parking for the public and employee as well as provide a pleasant experience for the
visitor. MST staff’s proposed route embraces this concept by mostly using existing MST
bus stops. The proposed route is planned to take no more than ½ hour to complete. The
attached route map shows the existing MST bus route and the proposed trolley route.
Another consideration of planning the route was to determine the optimal hours of
operation. One proposal is to operate the trolley for 9 hours per day and 7 days per week.
The hours of operation being proposed are from 10:00 a.m. to 7:00 p.m. These hours of
operation are likely to best suit both the business community residents as well as the
visitor.
Consideration was given to operating for a “trial period”, but given that we are nearing
the end of the summer and that a trial period during the upcoming holiday season could
be inconclusive, staff is recommending that the proposed trolley service be planned for
next summer 2009 and at the height of the tourist season. The period of operation would
commence on Memorial Day weekend and end on Labor Day weekend.
FISCAL IMPACT
MST staff submitted an estimated cost for the “City only” trolley service as follows:
May 23 through June 30, 2009
39 days x 9 hours/day x $73.53/hour = $25,809
July 1 through September 7, 2009 (rate increase due to contract negotiations)
67 days x 9 hours/day x $90.00/hour = $54,270 (estimated)
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Total cost = $80,079
The hourly rate increase commencing on July 1, 2009 is the result of a new contract with
the trolley operator. If the negotiated hourly rate is less than the estimated $90/hour, this
will lower the cost of trolley operation. The hourly rate covers the cost for a driver, fuel
and the maintenance of the trolley.
If the City Council decides to implement the trolley service for the upcoming 2009
summer season, the Triennial Budget will need to be amended as follows:
Fiscal Year 2008/2009…………………$25,809 increase to expenditures
Fiscal Year 2009/2010…………………$54,270 increase to expenditures
To fund the trolley as proposed above would require either eliminating a current program
or drawing from one of the City’s reserve accounts. The City Council may want to direct
staff to ask the Carmel Chamber of Commerce and Carmel Innkeepers’ Association to
partially finance the trolley service. MST staff has the ability to add an audio guide as
part of the trolley service. One suggestion is to include a name of a business on the audio
guide which is created with a GPS locater and as the trolley passes the business, make an
announcement specific to that business. A business could pay a fee for this service. The
fee could be used to offset some of the cost to operate the trolley service.
SUMMARY
It’s not completely known whether the trolley will be an attractive service for the general
public or employees in our City. The trolley service in Monterey has worked
successfully and can very easily work well in Carmel-by-the-Sea. However until a “trial
run” occurs, the discussion to operate a trolley service will be anecdotal and ongoing.
What separates the above proposal from the others previously discussed is that this
concept is expected to increase the amount of time tourists stay in our City, which is an
important factor of economic revitalization, as well as improve the availability of visitor
parking in the business area by providing transportation from “free” city parking areas for
residents and business employees at reasonable hours.
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Monterey-Salinas Transit owns six trolleys, but not all in use. Each is 29 feet long and
holds 28 seated passengers with room for another 19 standing passengers. They fully
meet ADA requirements. For some time, the Chamber has been interested in getting
trolleys and City staff has been involved in some meetings about this as well. The
Chamber membership has supported this through surveys and focus groups, but until
now, the cost has been prohibitive.
MST staff recently approached the Chamber and proposed that a trolley could be put on
the current bus route through Carmel for a trial period of July and August, 2009. There is
now a small bus on the route which goes from Brinton’s/ Crossroads into downtown
Carmel to the front of Grasing’s and then goes back. The bus runs every half hour,
seven days a week, from approximately 7:00 am to 8:00 pm. There are bus stops
approximately every two blocks, including stops close to the beach and at the Carmel
Mission.
The cost would be $2,500 a month. This cost would offset the fares that they would get,
so the trolleys could be free. Trolleys experts have suggested that the only way the
general public will take transit vehicles is if it is free.
The Board of Directors of the Carmel Chamber of Commerce has committed to pay half
($2,500) and the Crossroads Shopping Village has agreed to pay the other half. The
Carmel Innkeepers Association also will contribute $500 to help offset the additional cost
of printing maps/schedules.
Why trolleys?
1) The trolleys will enhance the visitor experience.
• The trolleys look better than buses and attract people to ride them.
• Visitors in Carmel-by-the-Sea consistently ask how to get to the
beach and the Mission and would like to ride public transportation.
2) The trolleys could help alleviate downtown parking issues as people could
park at the Crossroads and ride the trolley into town. This would be especially
helpful during busy weeks such as during the Concours in August.
3) We have an excellent public transportation system here and getting people
out of their cars into public transportation benefits the environment.
4) The price is finally down to an affordable rate and this is an opportunity to try
initiating trolleys.
It is important to note that this is only a two-month test. If significant ridership is not
demonstrated during the test period or the community decides that this is not a beneficial
program, there is no requirement to continue past the trial period.