City staff asked the commission to extend the Community Redevelopment Agency’s one‑year on‑demand transportation pilot for another year while staff and the CRA test service and pricing adjustments.
The pilot connects riders to the beach and other destinations. Staff said analytics show the program’s per‑passenger cost is higher than expected, prompting at least one commissioner to warn the service should be discontinued if returns do not improve after additional testing. Commissioners discussed three specific mitigation options: modest fare increases to raise revenue, limiting beach trips on low‑use weekdays and pursuing advertising or sponsorship revenue through the CRA to offset costs.
Staff said the CRA runs the project and will provide quarterly usage and revenue reports to the commission. One commissioner urged a joint CRA‑city discussion before the next renewal to evaluate schedule changes and contractual flexibility. No formal vote was recorded during the pre‑meeting; staff recommended the one‑year extension so the city can implement and measure revenue and utilization changes before deciding on long‑term continuation.