Fares & Fare Collection

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TTC Meeting Preview — December 2010 (Updated)

Updated Dec. 11, 2010 at 2:20 pm: The section on the site remediation report for the proposed Ashbridges Bay carhouse has been updated to reflect a June 2010 report on a possible alternative site near Broadview and Eastern.

Original article from Dec. 10, 2010:

The new Toronto Transit Commission dominated by political supporters of Mayor Ford will hold its first substantive meeting on December 15, 2010.  Among items of interest on the agenda are:

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TTC 2011 Budget Preview — Part I: Operating

At its recent meeting, the TTC considered a staff report on the 2011 budget including Operating (the so-called conventional system’s day-to-day costs and revenues), Wheel-Trans and Capital (major repairs and expansion).  The material in this report is only an overview of the full budgets to be presented at the Commission in January 2011.  Many details remain to be seen, not the least of which will be the TTC’s reaction to the prevailing political mood after the October 25 election.

In this article, I will deal only with the Operating Budget, and will turn to the others in future posts. Continue reading →

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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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