Riders, funding at stake for local buses

Two new private bus companies might soon find themselves competing for more than just eager riders.

More than $225 million in sales tax revenue will be available to Orange County transit systems if Measure M is renewed by voters this November. The money could be allocated to ventures like Newport Beach’s Hopper and the soon-to-be-launched OC Cruiser. But as the law is written, only one transit company in Newport Beach can receive the taxpayer funding, paving the way for competition between the two.

While the OC Cruiser has been gaining widespread attention for its plans to move residents and tourists around popular Newport destinations, Hopper owner Kaylen Morrison said her small transit system deserves a shot at the money since it’s been in operation for almost a year.

“I think that would only be fair,” Morrison said.

In April, Morrison and her father, Mitch Morrison, a Newport Beach businessman, worked on the OC Cruiser with owners Sabrina Dagostino, a local attorney, and Dave Muller of the Nautical Museum for a brief period of time. Dagostino and Muller terminated their relationship with the Morrisons on May 5.

Since then, the Morrisons have refocused on the Hopper, which usually operates after-hours, delivering revelers from one nightspot to another. Morrison said Measure M funding would allow her to expand the Hopper’s operations and route schedule. Although the Hopper generally operates at night, it has permits to run all day.

The Hopper faces a strong challenge from the OC Cruiser, a fleet of buses converted to look like classic Woodies that will move tourists and residents from the Balboa Peninsula to Fashion Island and Corona del Mar during the daytime.

The plan is gaining political momentum at City Hall and throughout the city’s tourism community. Officials with Orange County Transportation Authority have expressed interest in funding the OC Cruiser, and Newport Councilman Keith Curry, the city’s liaison to the transportation agency, said he likes the project.

“I’m a strong advocate for local community-based transit, and I support” the OC Cruiser, he said, later adding, “OC Cruiser is a worthy applicant in my mind, but we need to have Measure M renewed before that money is allocated.”

And that could be a big obstacle. First enacted by the voters in 1990 as a half-cent sales tax to raise $4.1 billion for transportation projects, Measure M will need a two-thirds vote to be renewed.

“That’s never happened countywide,” said Jeanne Spinner-Lamar of the transportation authority. The new Measure M is different, she said, because it’s a renewal as opposed to a new tax, but it could take several attempts at the ballot box before the renewal is approved by voters.

As soon as the measure is passed, Spinner-Lamar said her agency could borrow money against the measure and immediately give cash to the OC Cruiser or the Hopper.

“People need transit services that serve local needs,” she said.

The OC Cruiser is having a kickoff this weekend, offering free service from Friday to Sunday. Its operational permits will go before the Newport Beach City Council on June 13, and if approved, the OC Cruiser can begin operating the next day.

Dagostino said her group has worked to develop political ties with city leaders and the hospitality industry and deserves the funding.

“If we receive Measure M money, we would be able to double if not triple our routes,” she said.

Hopper owner Morrison said her company has already proven it can make money through its adaptive transit schedule, and several city officials said it could be difficult for a broader transit system like the OC Cruiser to operate without subsidies.

“In the 30 years that I’ve worked in the city, I’ve seen a number of trolley systems proposed. The one that enjoyed the longest amount of time seemed to get a little bit of subsidies from the council,” Revenue Manager Glen Everroad said, adding that most transit system are high-cost operations, especially with the current price of gasoline.

“You can’t make money on fares alone and keep the business going,” he said.

For her part, Dagostino was optimistic about the OC Cruiser’s chances.

“It’s a risk, but fortunately we’ve received an incredible response,” she said. “We’re very confident in what we see.”dpt.02-cruiser-1-BPhotoInfoGD1RIRL320060602izn03fnc(LA)The soon-to-be-launched OC Cruiser, above, and the Hopper may find themselves in a ridership battle ? for Measure M funds and to ferry people around Newport.