Fares & Fare Collection

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What’s a Fair Share?

The question of a “fair” allocation of TTC revenues between the farebox and subsidies comes up quite regularly, often at budget time, but now also in the election campaign.  Some argue that the riders don’t pay enough, while others argue that they pay too much.  Rarely does anyone look at the detailed figures.

The TTC publishes a statement, as part of the Chief General Manager’s more-or-less monthly report, showing a breakdown of revenues and costs.  The report linked here takes us to the end of May 2010.  (There are separate accounts for Wheel-Trans which is not part of this discussion.)

There are three sets of figures:  data for the current 5-week period (this interval is used to avoid variations due to lengths of months), year-to-date data, and full-year data.  These are further subdivided by actual and budget values.

On the income side, the total 2010 revenue is projected at $957.515-million against expenses of $1,412.034-million.  However, within the revenue, only $905.200m comes from the farebox, while $52.315m comes from other sources.  Charters and services operated under contract for transit systems in the 905 are on at least a break-even basis.  Although the expense of running them appears as part of the system’s total, this expense is completely offset by revenue (projected at $17.675m for 2010).

On the expense side, the total cost for subsidy purposes is reduced by two deferred items:  post-retirement expenses and accident claims.  These do not require cash outlays in the current year because they not be paid until future years.  This gets us to a net cost for operations of $1,368.684m and a projected shortfall of $411.169m.

The City has actually budgeted for a shortfall of $429.805m, but the TTC’s ridership and fare revenue held up better than expected in 2010, and the City’s full subsidy provision will not be required.  Any leftovers remain under the City’s control for year-end budgetary adjustments.

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Smart Card Wars (Part IV, Updated)

The Star reports that the Ontario NDP has asked the Provincial Auditor to review the contract with Accenture for the development of the Presto smart card system.  An explanation of the background for this request is on the NDP’s website, and it goes into details of past contracts between Ontario and Accenture.

John Lorinc reports in the Globe that a system to be developed for Vancouver will use similar technology to that proposed by the TTC for its own smart card system, and come in at a fraction of the expected price for Presto.

Updated: Royson James weighs in on smart cards in the Star, and John Lorinc has an article on spacing.

In the case of the NDP request, the scope should look more widely than just Accenture which provides system development and operation.  However, some of the capital and ongoing staffing costs for the Presto project are carried in other budgets.  Any review needs to look at the whole picture, not just one contract.

Comparisons with Vancouver will be intriguing, but it will likewise be necessary to ensure an apples-to-apples comparison.  For example, the new system is to be implemented as part of a conversion of the Skytrain rapid transit stations from their current barrier-free design to use turnstiles.  This is intended to reduce fare evasion.  One big cost in Toronto is  for providing existing turnstiles with power and network links to handle Presto.  It is entirely possible that some components of the Toronto smart card budget will be covered by Vancouver’s turnstile retrofit budget.  (Similar burying of costs in multiple accounts occurs quite commonly in TTC budgets, notably for subway station renovations.)

Presto needs to be held to account for what it has produced and the expected cost of system expansion.  The fog of “commercial confidentiality” used, for example, to prevent revelation of the cost of a new city’s rollout (Ottawa) means that we have no way predict long term spending requirements, or to compare these with projects in other cities.

Ontario has just, thankfully, ended its relationship with SNC Lavalin for the Air Rail Link to Pearson Airport, and with this change we should have greater transparency and accountability for the project.

The same openness must apply to Presto.  If it is a demonstrably good and competitive system, then show us.

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Smart Card Wars (Part III) (Update 1)

Update 1:  July 28, 2010 at 4:00 pm: Comments and clarifications by Ernie Wallace at Presto have been added to this article.

On July 26, I visited the folks at Presto and talked with Ernie Wallace, Executive Project Director, about the system and its plans.  Subsequently, I did some digging of my own, primarily on the Ontario government website.  The information below is organized to keep topics and the logical flow intact rather than to represent the sequence of the conversation.

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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