GO Transit’s 15-Cent Solution

Sean Marshall wrote in with the following comment in another thread. I’m putting it in its own post so that replies can be kept in the appropriate area.

… at GO Transit, they’re planning to increase fares again by the flat $0.15 rate. Of course, this is a disproportionate fare increase for those who make shorter trips (say within the 416 or from, for example, Georgetown to Brampton) yet almost insignificant for someone coming in from Barrie. And GO also has to fix the problems with its fare structure, where, for example, a bus trip from Square One to York U is the same price as from Bramalea to York U, about half the distance.

Anyway, my sense is that GO will always take the easiest route (requiring the least thought) to fix a “problem”. Service crowded? Tack on more cars. Issues with parking? Build more spaces. Crowding at platforms? Remove the escalators. Raise fare revenue? Make it a flat fare increase so we don’t have to work out what the new fares should really be.

This is not the first time GO has done this, and I can’t help worrying just a bit in anticipation of a smart card system that can do everything but make passengers’ breakfast, lunch and dinner, but might wind up supporting a fare structure more appropriate for conductors and ticket agents. Will GO continue to penalize short-haul riders with disproportionate fare increases?

A Visit to the City Archives

Now and then, I spend my time browsing through the photograph collections at the City Archives, and this activity can be rather addictive.  The main page includes a link to a search page where you can start your travels.  Note that the indexing is spotty, and if you find items in a series that you really like, it is often worthwhile drilling down into the linked pages for the specific collections and looking for a “browse” link that will bring up the entire content.  I can’t put links to such pages here as they are built on the fly.

After looking at photos of my old neighbourhood in North Toronto, I stumbled on paintings of the Yonge Subway by the artist, Sigmund Serafin, whose paintings of Bloor and University subway stations are posted at Transit Toronto.  I have recently learned more about Serafin’s history, and that post will be updated in the new year.

I will leave the joy of finding intriguing bits and pieces to you, but there are a number of items I thought worthwhile to whet your appetite. Continue reading

Before We All Say “Presto!”

Over at spacing.ca, there’s a post about the difference between Montreal and Toronto transfers, and comments arguing whether Toronto is hopelessly archaic, merely quaint, or actually a system that encourages friendly contact with the operators.

In the midst of this, I thought it would be worth looking back at older forms of transfers in Toronto, and this post links to two of them.

Toronto Railway Company September 1892

Souvenir Toronto Transit Commission 1953

The TRC transfers (shown slightly larger than actual size) are printed on very flimsy paper, and were intended to be given out by a conductor.  Note that the corner fold/cut indicates the direction of travel, and there is provision for the conductor to write in the time after which the holder had ten minutes to make their connection.  Obviously, these were intended to be issued as someone left the car.  This format didn’t last long.  (Note also the evolution of the printing of the date with the larger numerals for September 14.)

The souvenir transfers are from the display of the first two subway cars at the CNE in 1953.  I have shown both the back (left) and front (right) here.  The two that I have are printed on different coloured stock, but I don’t know if a wider selection was used.  At the top, you can see the area reserved for a station and time imprint from a machine.  Passengers picked up a blank transfer (yes, there were new ones printed for each date) and they manually validated it .

These transfers include one howler of an error:  one station is missing from the map!  This missing station almost had a different name from the one by which we know it today.  Rosedale is called “Crescent” on many early maps of the Yonge line.

How Ottawa Just Raised Your Metropass by 50 Cents

While you are all out spending your hard-won cut in the GST, one little note:

The after-tax cost of the Metropass just went up from $84.50 to $85.00.  Why, you ask?

The tax credit for passes is tied to the tax rate on the lowest income tier, and this will go back to 15% from 15.5% according to today’s announcement.  This means that the rebate per $100 Metropass just went down by 50 cents, or $6 over the course of the year.

Also, of course, this has always been a non-refundable credit, and so those who have no taxable income pay full value for a pass while people like me get the subsidy.

It’s no secret to regulars here that I don’t believe in tax-based incentives and prefer that funding go directly to agencies that deliver service.  If the tax rebates for all of the roughly 250,000 Metropasses sold each month came to the TTC as a subsidy, they would receive about $45-million annually from Ottawa.  This would contribute to better service for everyone, whether they used a pass or not.

Say “Presto!” and All Your Cares Will Vanish

Lately, with one announcement after another out of Queen’s Park (or is it Liberal Headquarters), I’m having a hard time deciding just what Rob MacIsaac’s job at the GTTA really is.

The push is on to make announcements now, to have photo ops now, to show caring Liberals fixing transit, environmental and traffic problems now!

Alas, the real world is not that simple.

The latest event was the unveiling of the Presto Smart Card out in Mississauga.  I am not going to duplicate a lot of good comments made by several writers on the thread at spacing wire, but the core of this debate lies the following issues:

  • The cost to implement Presto on the TTC is very large and has grown from $150- to $250-million in the past few years.  A detailed report was prepared by consultants for the TTC covering many of the issues.  The projected cost for the TTC implementation was actually cheaper, relatively speaking, than similar projects on other large transit systems.
  • The alleged reason for Presto is to allow seamless movement between many transit systems.  However, there are much more basic impediments to such movement notably the service quality (or lack of it) at boundaries, and the existence of multiple separate fares in each system.  Any fare integration that reduces costs to riders will require higher fares overall or improved operating subsidies.

The implementation to date between Missisauga, GO and TTC at selected locations is miniscule and has a tiny fraction of the technical requirements of a GTA-wide scheme.  A great photo op, but not nirvana.

Absolutely essential to any farecard implementation will be a unified fare structure.  Should we charge by distance?  Should we charge by time of day?  Should we treat one fare as a limited time pass eliminating the concept of a transfer per se?  Presto can make any of these possible, but we need to know what we want to accomplish and the potential effect on future and present riders.

The TTC has no pressing need to replace its fare collection system and is moving increasingly, for frequent users, to flat-price passes rather than charging for each trip.  Should we invest a fortune in a system to track details of passenger movements and calculate fares if a pass system (electronic or otherwise) will handle the majority of the transactions?

Some cities have used Smart Cards to replicate and expand byzantine fare structures already in place.  If anything, the GTTA is all about simplification and flattening of our fare structure.  Presto can help with this, but the important policy choices must come first.

This project has been around for quite some time as a technology looking for a problem and using the sham argument that fare collection technology is the answer to interregional transit.  This is total nonsense.  Better service, better fare structures and better subsidies (all of which are inextricably linked) come first.  How you collect the fare is a distant second.

After all, we already have the GTA pass, and that didn’t require any technology at all.  What it’s missing is the network and the service levels to make it widely attractive.

Queen’s Park may have scored a hit with MoveOntario, but Presto will do little to improve transit in the GTTA for years to come.

The Fiscal Realities of Ridership Growth

During the TTC board meeting on June 13, two of the fiscal conservatives on the Commission ran aground on the cost of running a successful transit system.

As I reported earlier, the TTC has an embarrassment of additional riding and will begin increasing service in September and through the fall to bring crowding within the Commission’s service standards.  More service, of course, costs more money and it is very unlikely that this will be made up from added revenues.  We are, after all, trying to give all current riders better service rather than forcing them to ride on the roof, and we are trying to attract new riders to the system within the constraints of the fleet size and available operating staff.

With Metropasses now a highly attractive fare medium, more people are buying them and more rides are taken on each pass.  This dilutes the revenue per ride as ticket, token and cash fare riders migrate to the cheaper, fixed-price pass.  Riding is going up, but revenue is not. 

Commissioners Michael Thompson and Peter Milczyn wondered openly about changing the fare structure to recover some of the additional cost including schemes such as zone fares or charging for transfers.  They should talk to their constituents in Scarborough and Etobicoke respectively.

Suburban riders take longer trips to get to work, and a transfer between routes is almost inevitable for most of them.  Downtown riders might organize themselves to stay within one route, either the subway or a streetcar line.  Charging for transfers or imposing a zone system penalizes those for whom the transit system is already less attactive — the long distance traveller — and is likely to disproportionately affect those who can least afford it.

My rationale for that statement is that long, tedious trips including transfers are likely to have a larger proportion of “captive” riders who cannot afford to trade up to an automobile as an alternative even though it would be very attractive in comfort and travel time. 

Do these Commissioners/Councillors really understand the impact of their proposals?

During the same debate, Commissioner Thompson spoke of a “crisis” facing the TTC, and indeed he planned to launch a “strategic planning” process for the system.  Yes, we need a strategic plan, but the real “crisis” is that everyone hopes that somehow the problem of transit funding will solve itself for both the capital and operating budgets.

There is no magic here.  If you want better transit, then you must spend more money.  This may come from fares or taxes or transfers from other governments, but it must come from somewhere. 

Anyone who talks about charging for transfers or imposing a zone fare system, but  never breathes the words “fare increase” is not being honest with the TTC’s riders.  The irony here is that the amount of money needed to operate better service is between $6- and $7-million on an annual basis.  This is less than one percent of the total operating budget and could be funded by a miniscule fare increase.

Any change to bring in zones or charge for transfers would be complex to implement, and unless the base fare were lowered substantially, would bring in far more revenue than is needed for the service improvements.

In another context, Toronto Council seems willing to increase the subsidy to passengers by about $13-million to operate the York University subway extension.  Why do we happily go forward with such schemes but nickel-and-dime plans for better bus and streetcar service?  The real reason, no doubt, is that York U won’t see its first passenger until at least two further terms of Council while better bus and streetcar service is something for today, for this year’s budget.

Support future spending for a dubious subway project and you are a visionary investing in the future of our city.

Support better transit for riders today and you are a wasting precious taxpayer dollars on riders who should be paying more for their service.

I look forward to seeing Commissioners Thompson and Milczyn with coffee-pot fareboxes on buses in Scarborough and streetcars in Long Branch defending the public purse from marauding, oversubsidized riders.  It will be a great photo op for their re-election literature.

A TTC Business Case for Smart Cards?

The TTC has published a lengthy report on the subject of Smart Cards.  I am not going to attempt to precis the material here, but the “bottom line” is that, yes, Smart Cards will work, but are we willing to pay the price for what they will give us?

The conclusion observes:

The business case demonstrates that a smartcard system will have definite benefits for customers (convenience), decision-makers (flexibility in policy and pricing), and employees (safety and security). The analysis estimates that the cost for a TTC owned and operated smartcard system is between $250M to $260M in capital, and $11M to $12M in additional operating expenses annually. The business case analysis further shows that while the current TTC fare system does have limitations, it is simple to understand and operate, and is relatively cost efficient and reliable. From a state-of-good repair perspective, the current fare system does not need to be replaced.

There is an interesting table in Appendix H showing the capital cost of various new Smart Card systems on large transit properties expressed per weekday boarding.  The cost cited for Toronto is cheap compared with Boston, Chicago or New York.  Whether this indicates we will do things better and at less cost, or that there is more headroom for overruns, only time will tell.  The time to implement a system on the TTC is projected at six years.

There are without question benefits that would come with Smart Cards.  However, we must decide whether they are worth the investment.  Recent comments at the TTC minimize costs with a shrug “it’s only about $40-million a year”.

As I have said so often, remember this the next time the TTC says that they cannot afford more bus service, or Council balks at the rising cost of transit subsidies.

Amazing, isn’t it, how we have money for the toys, but not for the things we really need.

The Mysterious GTA Pass [Updated]

[This piece has been updated to correct information about the tax deductibility of weekly passes.  Some comments in this thread will reflect the original version of the post that didn’t include take this into account in price comparisons.] 

Cynthia Cheng wrote to me recently:

I know plenty of people who don’t even realize that GTA passes exist and are paying two or more fares to get to and from work, school, etc. I am sure that if enough people know about it, then perhaps we’ll have monthly passes rather than weekly and perhaps more outlets would sell them. Do you know why this is?

A while ago, I had written about the demise of the GO/TTC Twin Pass thanks to GO-Transit’s refusal to pay its share of the $10-subsidy built into the pass.

There is, however, a GTA Pass that costs $43/week.  The only place it seems to be advertised in Toronto is on a pulldown on the TTC website for the various types of fares and passes.  It is not on the TTC fare card, nor is it on the VIVA farecard.

I had lots of time to contemplate this today while I languished in Don Mills Station waiting 22 minutes for the nominally 15-minute headway on the 190 Rocket to STC.  In vain did I search for any mention of the GTA pass on TTC or VIVA displays.

According to the web page, I can even buy one of these mystery passes at Don Mills Station.  The only problem is, I cannot do this in the bus loop, but at the collector’s booth which is somewhere else, I am sure, but not on the path I take from the Sheppard Subway train to the buses.  [In one of the comments below, directions to this booth were provided.]  I could also do this at STC station where the bus/RT interchange actually passes through the same space as the collector’s booth.

But would I want to buy this pass?  What does it offer me?  If I am a 10-trip-a-week person, my TTC fares at ticket rate would cost $21, compared with $30 for a TTC weekly pass.  That pass is tax deductible only if I buy 4 a month, and there is no bulk buy discount because, obviously, if I wanted that I would be in the Metropass Discount Program.

Meanwhile, over in Mississauga, I could pay $22 for 10 tickets or $23 for a weekly pass.  This means that a GTA pass equals the combined cost of 10 trips at ticket rate on the TTC and Mississauga Transit, and I can get a combined pass for the TTC and other GTA systems for only $13 more than a TTC-only weekly pass.

If we were pricing things the same way for monthly passes, the equivalent cost would be $143 assuming no discount for bulk purchase, but eligible for a tax refund of roughly $21 for a net cost of $122.

As things stand, I can pay $172 for four weeks’ worth of GTA passes, or buy a monthly pass for both systems.  The after-tax cost of the weekly passes is $146.20.  This is cheaper than buying monthly passes for the TTC and Mississauga Transit separately, about $166 net of the tax rebate, or $159 if I buy TTC passes on the discount program.

The situation is comparable for other GTA systems combined with the TTC.

This is a good example of how fare structures can be bastardized depending on what one is trying to achieve, not to mention the marketing issue that this is an almost unknown type of fare.  Given the discount, I’m not surprised they hide it!

Integrating fare systems where there are existing deep discounts for certain types of usage will be a real challenge.  Once we eliminate the artificial barrier between the 416 and 905, what should the fare be?  What should passes cost?

Passes, Smart Cards, Fare Zones and the GTTA

I received the following note from Miroslav Glavic:

I am reading Metropass Triumphs! and I have a question or two, and a few more…

I personally think there should be ONE transit agency for the GTAH (up to Barrie, then east to Oshawa and west to Hamilton).

Smart cards are nice, I love my metropass, when I want to go to SQ1 (I live in Scarborough), I have to get out my metropass (which I love and have been getting for years now), then get out the change and pay.  One card would be nice, I go to Seneca College, Seneca@York campus, I can use my ONE CARD (ID card) in all of their campuses, take out book in all the campuses libraries and so forth.  Something like that for the GTAH would be nice.

Now to the non-universal fares…

Let’s say we go to the Toronto Zoo and after a day of visiting the animals (my favourite is the Gorillas, what’s yours?), I go to Fairview Mall, you go to the airport, we both put [in] $2.75.  Do you think it’s fair that it is the same fare?

In London, I went from Heathrow station to Charing Cross (via Picadilly Circus station), I went through most of their fare areas).

What if you went from Don Mills Station to Victoria Park Avenue/Sheppard?  Do you think it is fair to pay $2.75 to go 5 stops? (or 1 direct stop with the 190).  You can go from Don Mills Station to anywhere in the city for $2.75.

What if the TTC had fare zones? (yes it would get people a while to get adjusted), by the way London has a monthly pass as well.

Let’s go back to the example about the Zoo, what if to Fairview Mall it was $3.00 then to the airport was $6.00?.

The way it works in London is that you put the ticket/card (like a smaller metropass, made out of paper/cardboard material), and out it comes from the other side, imagine like the reader for metropasses, then when you get out from your end station you do the same, I guess it will deny you exit or something like that.  I am sure there is a way to implement this to use on buses and streetcars.

The TTC would have get a lot more money which it needs.

I am using cash fares for my examples, but there would still be one price for metropasses.

Steve:  I don’t go to the Zoo, but have dropped in on the Royal Winter Fair where my favourites are the swine.

The use of cash fares skews the argument badly.  One huge advantage of the Metropass is that people don’t pay individually for each trip they take.  Saying that it’s unfair that a ride two stops on the subway costs the same as a ride to the airport misses the point that with a pass, the fare is not charged for either trip, but for transit usage in general.  One big reason I posted Metropass Triumphs! is that we now have more than half of TTC rides taken by people who don’t have to think about reaching into their pocket for change or resenting the cost of individual trips.

Turning to Zone Fares, Toronto had them until 1972 when they were eliminated by the suburban members of Metro Council.  Their argument was that suburban taxes paid to support the TTC, and suburban riders should pay the same amount as their city counterparts.  Any attempt to re-introduce zones, at least within the 416, would meet with strong opposition and would, I feel, be counterproductive.  With a flat fare Metropass, we make the system appealing wherever one is travelling, and it is simple to administer.  Zones just complicate things and undo some of the benefits of the flat fare. 

The claim that the TTC would get much more revenue means that, one way or another, someone pays more for their trip.  On a zone basis, long trips are penalized, and yet it is these very trips that are the most difficult to attract to transit.  How would the good folks of Vaughan or the students at York U feel if we told them that their brand new subway was going to be in Zone 2 or 3, and that it would cost extra to come downtown?  “We spend billions to build this thing and now you want us to pay an extra fare?”

I am already on record as opposing zone fares even if we extend the fare structure to the entire GTA.  Yes, that will cost money, but it will save us a fortune on expensive fare collection technology and on endless squabbling about where the fare boundaries should be.  The option of a premium fare for GO Transit still remains because it is a fundamentally different class of service, but at least the same pass would be valid on local systems at both ends of the trip.

The current estimate of implementation costs for the TTC is in the range of $140-million, with an ongoing maintenance and support cost of $10-million or more for a the GTA Smart Card system.  Do we really need to spend this much money to replace a system that works today?

What, exactly, is the supposed benefit of a Smart Card?  If the purpose is to allow us to divvy up fare revenue among GTA agencies, isn’t that a bureaucratic exercise, a matter of turf protection, rather than of providing good transit service?  I am not advocating elimination of local transit operators, but must ask if there were already one big transit system, would concerns about revenue sharing and division even exist as a justification for Smart Cards?

Metropass Triumphs!

An important statistic came out quietly at the TTC meeting this week:

This year, for the first time, more than half of all adult rides will be taken using the Metropass.  Tickets, tokens and cash share the remainder.

Metropass usage is up almost 25% over 2006 thanks to its new transferability and tax deductibility.  The pass now has broad appeal to regular transit users rather than only for the heavy users who make numerous personal trips in additional to regular work trips via TTC.

Advocates for a new unified “smart” farecard should take note:  the Metropass is hugely popular as an “all you can eat” way of purchasing transit services.  Any new fare structure that eliminates this option, or attempts to rebalance the pass pricing upward, will meet stiff opposition. 

Moreover, elaborate fare schemes requiring detailed tracking of passengers and some form of fare-by-distance calculation are doomed on at least two counts.  First, they will incur substantial additional cost to track rides and reconcile fares.  Second, if the resultant charges don’t lie in the realm of current pass pricing, they will destroy the very incentive to transit use the Metropass represents — no marginal cost for any trip and no need to plan trips to minimize transfer or stopover charges.

The one downside to Metropass growth is that the average fare per trip is falling.  This is not surprising, but the rate of shift to passes means that total revenue is at best level if not slightly down despite continued growth in demand.  This will lead eventually to an important debate about how we “sell” transit service.

The historic model of one fare for each trip is meaningless, now, for a majority of rides.  Transit will be a bulk service purchased the same way people pay for many utilities, paying for its availability, not for the amount consumed.  Service and budget planning will also be affected, and we should return to the era when decisions about service quantity were based on demand, not on running as little as possible to get by.