Council sends smart-shuttle funding questions to transportation committee after sharp debate

The Los Angeles City Council voted to send a report to the Transportation Committee on continuing the city's smart-shuttle demonstration program, after a heated exchange over ridership, funding and program design.

Councilmember Jim Holden led criticism of the program, saying it has not operated as designed and that city funds were being used to subsidize a for-profit shuttle service that at times is performing routes MTA would otherwise provide. "We gave you $10,000,000 to begin with," Holden said during the debate, and he called the program "not smart at all" and said he planned to vote no on continuing support. Department of Transportation representative Jim Lefton said the program was originally a two-year demonstration, funded through an MTA call-for-projects award and later extended by further MTA money; the department was being asked to report back on availability of additional MTA funding to continue operations past June 30.

Lefton said three of the four shuttle service areas will run out of funding on June 30 and that the Westlake/MacArthur Park area has lower service-hour requirements and therefore can be funded for a fourth year under the current award. He told the council the department is discussing additional MTA funding and would report back on whether matching funds can be secured.

Members pressed DOT on dollars and service design. Councilmembers noted the program's original financing and subsequent awards: an initial $10 million, roughly $2.6 million in more recent MTA funding for the third year, and a city match reported by DOT of about $1.55 million. Councilmembers cited a new funding need in the ballpark of $3 million to continue the program into the next year. Holden and others questioned whether the money would be better used to expand existing senior and disabled transit services.

Councilmember Bernsen defended the program as filling service gaps where MTA routes did not provide adequate connections, and urged further time for the demonstration to show results. Councilmember Padilla and others moved that the item be sent to the Transportation Committee with a directive to report quickly; the motion passed. The clerk recorded the referral: the Transportation Committee was asked to consider the department's report on available funding and to return recommendations to council on March 21 for committee action and to council on March 22.

The motion to refer carried on a recorded vote of 12 ayes. The committee referral does not appropriate funds; it directs staff to assess funding options and report back to committee and council.

Clarifying details from the council record and staff remarks: DOT said MTA provided about $2.6 million for the third-year operation of all four shuttle areas; the city match was described as about $1.55 million; staff said continuing the entire program for another year would require about $3 million (not specified whether that is gross or net of MTA matches). Lefton told the council three of four service areas are slated to lose funding on June 30 but that Westlake/MacArthur Park has sufficient funding to continue because it uses fewer service hours.

The committee referral preserves options: if MTA matching funds are available the service could continue; if not, the committee and council will need to weigh city-only funding or program reduction. The Transportation Committee will evaluate continuing the demonstration, examine ridership and farebox revenue data, and report back to council as directed.

Votes and formal action: the council voted to send the matter to Transportation Committee for a committee report on March 21 and a council return on March 22. The referral passed 12 ayes, 0 no, 0 abstain.

Next steps: DOT will prepare the requested funding availability analysis and ridership/service-hour data for Transportation Committee consideration and a council report-back on the dates directed by the council.