Fares & Fare Collection

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Smart Card Wars (Part II) (Corrected)

Correction added July 24 at 10:45pm:

Mark Dowling, in a comment later in this thread, has pointed out that a TTC report last November cited a provincial requirement for participation in Presto as a condition for funding through various programs.  (See 4th paragraph on page 7)

This report must be read in the context of the amended recommendations approved by the Commission as reported in the Minutes:

Chair Giambrone moved that recommendation no. 1 contained in the report, be amended as follows:

“It is recommended that the commission:

1. Conditionally approve the adoption of the Presto Fare Collection System subject to satisfactory resolution of the issues outlined in attachment a, subject to:

* TTC and City staff discussions with representatives of the Federal Government, Provincial Government, Metrolinx and the City of Toronto to develop operating and financial agreements necessary to resolve the issues outlined in attachment a;

* TTC staff reporting back to the commission for approval of the operating and financial agreements that have been developed;

* TTC staff developing detailed business requirements for adopting the Presto System at the TTC to the satisfaction of the commission;

* TTC staff undertaking the engineering and design work necessary for future subway infrastructure modifications to provide power and communications to support smartcards”.

The motion by Chair Giambrone carried.

Chair Giambrone moved that the final bullet in attachment ‘a’, be amended as follows:

* “TTC and the City must not be bound to fare payment exclusivity that would preclude implementation of advances in fare payment approaches and technologies, such as and including open payments, mobile phone media, etc”.

The motion by Chair Giambrone carried.

Commissioner Milczyn moved that attachment ‘a’ be amended to include the following:

* “TTC and the City expect the presto system to be designed to support open architecture;

* TTC and the city remain cognizant of our own fare policies and the system must be designed with flexibility to allow for different fare policies”.

The motion by Commissioner Milczyn carried.

Chair Giambrone moved that the commission approve the report, as amended.

The motion by chair Giambrone carried.

Therefore, when I originally reported that the link between Presto and programs other than Transit City had never been brought to the Commission, I erred.  The main article below has been updated accordingly.

In turn, this begs the question of why this issue was not raised when the Commission approved a study of a separate system from Presto, and the degree to which the conditions for acceptance of Presto, as set out in the November 2009 motion, have or have not been met.

I have also corrected the expiry date of the current Presto contract to 2016.  The original date cited, 2011, appeared in another report that I was using as reference material.

The original post from July 23, with amendments, follows below.

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Smart Card Wars

With the election upon us, some candidates have decided that transit Smart Cards are an issue they can use to say “I’m the best candidate” by hitching their star to Ontario’s Presto card program.

The Star reports that the TTC will proceed with a tender for an Open Payment system later this year with the intent of a 2011 rollout.  Mayoral hopeful Rocco Rossi has his own scheme called “Presto Plus”.  Can the TTC actually commit to a new system with the current regime still in office?  Rossi’s campaign confirms that he would cancel the TTC’s scheme if he were to become mayor.

Metrolinx would love to see the TTC sign on to Presto, but many questions remain about just what Presto can do for a truly integrated transit system.

Smart Cards are yet another example of the way that transit technology wars in the GTA get in the way of solving fundamental transit problems.  The technology choice becomes more important than the service it provides.  Here are a few questions anyone with “the answer” should consider.

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Metrolinx Board Wrapup for May 2010

The Metrolinx Board met on Wednesday, May 19 for an unusually long public session.  Rather than post separate articles, herewith a compendium report.  The major topics are:

  • The Board Speaks!
  • The Managing Director Reports
  • We Have A Vision, We Just Don’t Know What It Is Yet
  • Achieving 5 in 10, or Transit City Rescheduled
  • GO Rail Service Expansion Benefits Cases
  • A Question of Advocacy

The Board Speaks!

Probably the most astounding thing about this meeting, the first anniversary of the “new” Metrolinx, is that the Board members finally found their voices.  I was beginning to wonder if they were ever going to show some indication of earning their keep and actually asking hard questions of staff in public.  We’re not quite there yet, but at least the discussion gave an indication that the Board is thinking about its role.

As regular readers will know, I believe that organizations such as Metrolinx should be publicly accountable through an electoral process and through direct access to one’s representatives.  Boards that answer to nobody but the government which appointed them, and entertain no criticism from the public, can leave much to be desired.

To be fair to Metrolinx, even when it had a political board, much of the “public participation” was managed to achieve concensus with, more or less, what Metrolinx planned to do anyhow.  That other well-known transit board, the TTC, is elected, but has succumbed to the disease of being cheerleaders for the organization right-or-wrong.

Metrolinx has not had to actually do much (as opposed to GO Transit which was simply merged into its new “parent”), and we have yet to see how the Board and the Government will react if Metrolinx badly fouls up any of its projects.

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Metropass Turns 30

Saturday, May 1, 2010 brings the 30th birthday of the Metropass.

Back in the dark ages when creative cheating on one’s transfer produced roughly the same effect as a ride-at-will pass, TTC management said a pass would simply not work in Toronto.  Over the years, they have trotted that story out for a lot of things, sadly, and the record is wearing out.  (It would have been a record, probably a wind-up grammaphone knowing the TTC back in those days.)

Then a strange thing happened.  Hamilton, little often-ignored Hamilton down at the end of the lake, got a monthly pass.  If it could work there, why not in Toronto?

Metropasses now account for over half of the rides taken by adult customers on the TTC.  With some luck we may see a shift to some form of smart card (that’s an article in its own right) and a much more flexible fare system on the TTC sometime this decade.

On Saturday, go have a coffee and a small pastry of your choice with a little candle, and sing Happy Birthday to your Metropass!

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Electronic Fare Collection: Lessons From New York

The TTC will present an information session on Open Payment systems:

Thursday, April 15, 2010
6:30 to 9:30 pm
Committee Room 1, Toronto City Hall

Here is the meeting description:

Open payment is an exciting breakthrough in fare collection. Instead of using a traditional farecard, it allows transit riders to use their credit or debit cards – even cell phones – at the turnstile or farebox. A prepaid card will also be available for children and others who choose not to use their personal cards.

By using the same technology as every bank, business and retailer, transit operators can be assured that their fare systems will have the highest level of security and will never be obsolete. Visitors from across Canada and around the world will be able to tap and go without having to figure out how to buy a fare.

The TTC is a full participant in the Presto farecard project and continues to work with the provincial agency to identify funding to bring farecards to Toronto. By proceeding with open payment in parallel with Presto’s traditional farecard the TTC is leading a revolution on how riders experience public transit.

Come to an information session on open payments led by Paul Korczak, former Chair of the Transportation Council of the Smart Card Alliance, a current member of the Near Field Communications Academy, and is actively involved in peer reviews and public forums on transit fare payments around the world.

With all the discussion of Smart Cards, this will bring a much-needed update on the evolution of payment technology to Toronto.

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Service Changes Effective May 9, 2010

Construction diversions on several routes will begin or continue in May.

504 King and 508 Lake Shore: 

King cars will continue turning back at Roncesvalles and Queen, but will reach there via Shaw and Queen Streets.  Watermain construction which last year caused Roncesvalles to be torn up last year moves to King between Ronces and Jameson.

The 504 shuttle bus will be rerouted and extended to run between Shaw and Dundas West Station bothways via Roncesvalles looping via Strachan, Douro and Shaw.

No date has been set yet for resumption of streetcar service on Roncesvalles, but this is expected to be in the late fall.  The diversion via Queen and Shaw is expected to last to the end of August 2010.

502 Downtowner and 503 Kingston Road Tripper

The reconstruction of Bingham Loop, deferred from 2009, will occur this summer.  Buses will replace streetcars over both routes until mid-August.

Replacement bus services will loop via Victoria Park, Meadow and Blantyre to Kingston Road.  The peak service on both routes will be improved from 7’30” to 6’00”, but offpeak service on the 502 will remain at 20′.

22 Coxwell and 70 O’Connor

Reconstruction of the bus loop at Coxwell station requires the removal of all bus service.  Routes 22 and 70 will interline, and all of the “O’Connor” service will run through to Queen or to Victoria Park depending on the time of day.

Existing interlines between the O’Connor, Gerrard and McCowan routes will be discontinued during this period.

72 Pape

Construction at Pape Station requires that the Pape bus be rerouted to loop at Donlands Station.  Passengers transferring to this route from the subway at Pape will do so using on street stops.  This diversion will last until the end of 2010.

The seasonal extension to Cherry Beach will operate during the evenings Monday to Friday, and all day on weekends and holidays.  This will run until Labour Day.

512 St. Clair

The mixed streetcar and bus operation on St. Clair is expected to last until the latter part of June 2010 at which point the TTC hopes to restore streetcar service to Gunn’s Loop.

509 Harbourfront and 510 Spadina

The seasonal fare collection scheme on Queen’s Quay will be in effect until Labour Day.  No fares will be collected eastbound on Queen’s Quay between Bathurst and Union Station on weekends after 3 pm, and there will be collectors stationed in the tunnel linking the Union Station Loop to the subway.

One PCC car will operate on the Harbourfront route on Sundays until September 5, 2010 between 1130 and 1930.  This will run as an extra, and will be subject to availability of both a car and an operator.

Seasonal Route Extensions

  • 72 Pape to Cherry Beach (see above)
  • 28 Davisville to the Brick Works
  • 29 Dufferin to Ontario Place (service south of Dufferin Loop will be split between the 29B Ontario Place and 29D Princes Gate branches)
  • 86 Scarborough to the Zoo
  • 85 Sheppard East to the Zoo
  • 510 Spadina King short turn extended to Queen’s Quay on weekends
  • 165 Weston Road North to Wonderland

Other Route Changes

  • 25 Don Mills service north of Steeles removed (York Region request)
  • 29 Dufferin trial service in Exhibition Place rerouted to operate via Manitoba Drive, Canada Drive, Princes’ Blvd., Nunavut Rd., and Nova Scotia Ave to Manitoba Drive.
  • 224 Victoria Park North service extended to Elgin Mills (York Region request)
  • 96B Wilson route changed via Claireville Drive
  • 96C Wilson service removed from Thistledown Blvd. early mornings and late evenings

Service Level Changes

Many route have new schedules starting on May 9 primarily for seasonal changes in demand.  The details are in a spreadsheet linked below.

2010.05 Service Changes

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Found Millions

Toronto’s media are abuzz with news and criticism of the City’s discovery that the 2009 operating budget surplus was $100-million higher than previously expected.

This all began with a media advisory Tuesday night that there would be an important announcement the following morning.  Don’t be left out in the dark.  Get there early with your cameras for the best position!  The next twelve hours brought rampant speculation about Mayor Miller resigning to take a job elsewhere, about a reversal of his decision not to stand for a third term, or just about anything else the pundits could spin to fill air time, print columns or websites.

The announcement was an anti-climax after the buildup.  Commentary switched to “why didn’t you know sooner” and variations on how the Miller crew had been misleading the public about the severity of Toronto’s financial position.  Lost in all of this chest-beating was the fact that this surplus is a windfall, a one-time benefit of circumstances coming out better in 2009 than expected.  Many of the savings that produced the surplus have already been factored into the 2010 budget, and we cannot expect a repeat performance — a $350-million surplus overall — in future years.

That’s where the TTC comes in.  For 2010, the City will provide all of its operating subsidy, roughly $440-million, and not a penny will come from Queen’s Park.  The total operating budget is about $1.4-billion, and if it rises as projected by 5% or so in 2011 (through a combination of wage and service increases), this will add $70-million.  Oddly enough, this is almost exactly the amount of the proposed tax stabilization reserve that would carry forward into 2011.

Mayor Miller claims that we could see a 2011 with no fare increase, a 3% property tax jump and a balanced budget.  The kicker is that he assumes he will be able to conclude an agreement with Queen’s Park for the resumption of shared operating subsidies in 2011.  The response was predictable given that this is an “ask” of about $250-million for 2011 before the province has even published its budget for 2010.  I was rather surprised that Miller spoke as if this were a done deal when, if we are to believe Queen’s Park, it is at best still under discussion, and the question of a partial or complete TTC takeover by Metrolinx is still bouncing around the rumour mill.

Regardless of whether the province steps in with operating subsidies, my position on this situation is quite clear.

First, we should not prejudge the use of surplus money from 2009 in the 2011 budget.  Over and over politicians and advocates who support transit speak of the importance of good transit service.  Fare freezes make good pre-election sound bites, but they don’t address the issue of providing better transit service.

Second, this is one-time money, not an ongoing revenue source.  If we use $70-million to freeze fares in 2011, that amount will have to be found anew in 2012 in addition to another $70-million to handle that year’s cost increases.  That’s a prime recipe for big jumps in fares and cutbacks in service, especially if the City is governed by a less transit-supportive Council and Queen’s Park hasn’t stepped in to help out with TTC costs.

Yes, there may be ways to increase the effectiveness of transit spending.  I don’t want to get into a big debate here about everything from wage controls to outsourcing or breaking up the TTC.  These are, to an extent, red herrings in the long term because they will at best achieve a temporary drop in cost pressures.  Eventually, costs will reach a new plateau from which they will grow and we will be back to the same debates about fares, subsidies and service levels. 

We should have these debates, if only to satisfy ourselves of the validity (or not) of alternative ways to provide transit in Toronto, but the long term issue of rising transit costs will not go away, particularly if we expect large-scale increase in transit use throughout the GTA.  The underlying policy issue, however, is what we expect our transit network to accomplish, and what the failure to improve transit’s market share means for the future of the region.

Meanwhile, Toronto must concentrate on maintaining and improving the attractiveness of transit, and anything that artificially hides the ongoing increase in costs simply threatens transit in future years when the increases must be faced.  The 2009 surplus should be seen for what it is, a one-time benefit to a city that tightened its belt and came through the year in better shape than expected.  Toronto should not prejudge transit policies for 2011 and beyond based on a one year windfall and an as-yet unseen provincial funding agreement.

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GO Transit To Raise and Standardize Fares (Updated)

Updated February 22 at 4:00 pm

As expected, the Metrolinx Board approved the proposed increase in GO Transit fares at its recent meeting.  The contrast with the debates about TTC budgets and fares was quite striking.  The greatest potential for discord came with the presentation of an anti-increase petition.

The bottom line for this increase is “to ensure fiscal responsibility and meet the needs of a growing market of commuters” (presentation to the Board, page 2).  That’s shorthand for keeping the subsidy requirement under control, paying for the operations we have now and giving us some headroom to do more.

GO customers are, after all, from a very different market than the TTC.  Their median family income is $100k, they live well outside the core, and auto travel is already an established part of their lifestyle.  85% are fully employed, 9% are students and 1% are seniors.  They are travelling on GO overwhelmingly by choice and good service, in all aspects, matters.

40% of GO riders use monthly passes and another 40% use 10-trip tickets.  This is not unlike the TTC where the monthly pass accounts for over half of the adult trips, and a large majority of those remaining use token fares.

The purpose of the fare increase was to raise revenue by $14.6m in fiscal 2010.  Provincial subsidy will also jump for 2010 from $52.6m to $72.1m, but over half of this changes adjusts for one-time revenue in 2009/10 that allowed for a lower subsidy in that year.  GO’s total operating budget is $386.7m, and they expect to carry 56m rides.

By comparison, the TTC’s fare increase is project to raise somewhere between $36m and $50m depending on which figures you believe.  In 2010, the City will carry the entire $430m TTC subsidy while Queen’s Park spends its way through this budget cycle propping up Ontario’s economy.  The TTC’s proposed total operating budget is $1.37b, and they expect to carry 462m rides.

GO’s workforce, including contract staff, is 1,938.  The TTC’s proposed “conventional system” workforce for 2010 (as discussed in another thread), excluding contractors, is 10,491.  This number omits Wheel Trans, Capital Projects and Toronto Coach Terminal.

The TTC’s budget is only 3.5 times GO’s, but there are far more staff (5.4:1) and riders (8.2:1).  The subsidy per rider on GO is $1.29.  On the TTC it is about $0.93.

Earlier, I mentioned the potential for discord at the Metrolinx meeting.  The protocols for these meetings accept the public’s presence only grudgingly, unlike meetings for municipal agencies such as the TTC where in camera discussions are allowed on only a handful of grounds.  There are no deputations at Metrolinx, unlike the City of Toronto where a long history of public involvement would be impossible to silence.

The Directors, with few exceptions, ask no questions in the public session, and everything has clearly been worked out beforehand.  They’re just one big happy family.

Alas, thanks to an email slip-up, Metrolinx’ attitude slipped into view.  An internal email from Rob Prichard, Metrolinx CEO, was cc:ed to the petion’s originator in error.  From this, the clear intent was to give the petition as little exposure at the meeting as possible and assume that the Board would ignore it.  They did.

The original article from February 12 follows the break.

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How To Raise Fares 11% and Make Almost Nothing At All

At the recent TTC meeting, the Operating Budget for 2010 was up for review, not that there were many questions in the public session.  All of the heavy lifting took place, no doubt, in private session and in other discussions leading up to the final version.  (The information in the linked report does not exactly match the material presented at the meeting, and that presentation is not available online.)

I will review the budget and the sources of increased costs for 2010 in a separate article, but the fare increase deserves special mention.  TTC staff have a bad habit of stating almost everything relative to something else, and this makes reference to a zero base tricky.  Money shuffles around rather like a game of Three Card Monte, and only if you’re very good, can you find the lucky card. Continue reading →