1.
OC Transpo fares - 2012/2013 TARIFS DOC Transpo -
2012/2013 |
COMMISSION RECOMMENDATION AS AMENDED
That Council approve:
1.
The
adoption of the fares outlined in Document 1 of this report, to come into
effect on July 1, 2012;
2.
The
application of Express fares to the current Rural Express routes, as described
in this report;
3.
The
termination of the ECOPASS program, as described in this report; and
4. That
OC Transpo develop a supportive and flexible program with Presto for local
employers who wish to subsidize and or encourage transit use by employees.
RECOMMANDATION MODIFIΙE DE LA COMMISSION
1.
Ladoption des tarifs indiquιs dans le document 1
du prιsent rapport, qui doivent entrer en vigueur le 1er juillet
2012;
2.
Lapplication des tarifs Express aux actuels circuits Rural
Express, comme le prιcise le prιsent rapport;
3.
Lιlimination du programme ECOPASS, comme le prιcise
le prιsent rapport; et
4. QuOC
Transpo ιlaborera une programme de soutien flexible avec Presto pour les
employeurs de la rιgion qui souhaitent subventionner le transport en commun et
encourager leurs employιs ΰ lutiliser.
DOCUMENTATION
1.
Deputy City Managers Report, City Operations, dated 11
April 2012 (ACS2012-COS-TRA-0003).
2.
Extract of draft Transit Commission
Minutes 21, 23 April 2012.
613-842-3636 x2111, John.Manconi@ottawa.ca
SUBJECT:
|
OBJET :
|
TARIFS DOC Transpo 2012/2013 |
That the Transit Commission recommend that Council approve:
1.
The adoption of the fares outlined in
Document 1 of this report, to come into effect on July 1, 2012;
2.
The application of Express fares to the
current Rural Express routes, as described in this report; and,
3.
The termination of the ECOPASS program, as
described in this report.
Que la Commission du transport en
commun recommande au Conseil dapprouver :
1.
Ladoption des
tarifs indiquιs dans le document 1 du prιsent rapport, qui doivent entrer
en vigueur le 1er juillet 2012;
2.
Lapplication des
tarifs Express aux actuels circuits Rural Express, comme le prιcise le
prιsent rapport;
3.
Lιlimination du
programme ECOPASS, comme le prιcise le prιsent rapport.
As part
of the Council approved 2012 Budget, transit fares could rise an overall
average of 2.5 percent, effective July 1, 2012. With this increase, and with anticipated
ridership levels, fare revenue in 2012 is expected to meet the budgeted amount
of $174.25 million.
Also, as
part of the 2012 Budget, Council approved that the U-Pass fare for eligible
undergraduate and graduate university students from Carleton University and
the University of Ottawa be set at $180.00 per semester, for the 2012-13 academic
year. Additionally, the fare for
rural-urban Para Transpo trips would be set at a flat rate of $8.25 per trip.
Council also approved that Annual Passes and Semester Passes would no longer
be available in 2012.
This
report recommends the detailed allocation of fare changes to achieve the
overall 2.5 percent increase. This report also recommends elements of the fare
structure to take advantage of the PRESTO smart card technology, which will be
introduced this year.
The report
uses a number of terms that are associated with the upcoming PRESTO
system. The following list of items and
explanations are to help clarify the contents of this report.
Smart Card the
PRESTO smart card is an electronic fare payment system that provides customers
with the ease and convenience of uploading cash onto the card, to either pay
via e-Purse or monthly pass. When the customer taps on a fare payment
device, the system instantly calculates and deducts the correct fare.
e-Purse - short for Electronic Purse. It is where the
customer stores cash
value that, with a tap of the smart card, can be used to pay a fare, purchase
a day pass, or pay for a companion.
Pay-per-ride one fare purchase
equals one ride - when a customer uses the e-Purse, cash or tickets to
purchase a fare.
Auto-renew the ability of a
customer using a PRESTO card to renew a
monthly pass through automatic debit or credit card payment.
Transferable
Pass a feature of the PRESTO card that allows a person
to share their card with another person when they are not using it; the person
is in the same class; or it is used for e-Purse.
Card
Reader this is a device located on the bus. The customer taps the PRESTO card across the
reader for the fare to be acknowledged and accounted for.
Document 1 of the report lists the recommended fares for 2012-13. These fares will come into effect July 1, 2012. Document 2 of this report is a comparison of the recommended 2012-13 fares with the current 2011-12 fares.
The recommended fares for 2012-13 include:
·
An
overall average 2.5 percent fare increase;
·
Total
fare revenue, as budgeted, of $174.25 million;
·
New
pay-per-ride fare rates for payment via the e-Purse function of the PRESTO
smart card system;
·
New
discounted pay-per-ride fares for seniors;
·
The
application of Express fares on the current Rural Express routes, to reduce
fares for rural customers and to remove operational difficulties;
·
The
end of the current pilot project of free service for seniors on Mondays and
Fridays after noon (the current free service on Wednesdays will continue); and
·
The termination
of the ECOPASS program as we move to implementing
the PRESTO smart card program.
Fare changes for seniors
The recommended fares bring in new discounted pay-per-ride fares for
seniors, set at $2.00 per ride when using the e-Purse feature of the PRESTO
smart card and at $2.50 per ride when paid by cash. Currently, discounted
fares for seniors are only available with the purchase of a monthly pass.
Free service for seniors has been available on summer Wednesdays since
2007, on Wednesdays year-round since 2009, and also on Monday and Friday
afternoons since April 2011. It is recommended that the free service on
Mondays and Fridays be removed, and the value of that discount be transferred
to create the new discounted single-ride fares. This change will also reduce
the variation in fares by day of the week, which has led to confusion between
customers and operators.
The effect of these changes is to widen the availability of discounted
transit service to be more equitably available to seniors at more times of the
week.
Fare changes on Rural Express
routes
Rural Express Routes 221, 231, 232, 245, and 283 primarily serve the
rural villages of Cumberland,
Sarsfield, Navan, Vars, Carlsbad Springs, Manotick, Munster Hamlet, and
Richmond. Fares on these routes are currently higher than Express routes, at
$145 for a monthly pass, $5.20 when paid with tickets, and $5.25 cash. It is
recommended that the fare on these routes be reduced, to be the same as on Express
routes. (Along with this change, Route 245 would be designated as part of
Route 99 and would operate at regular fare.)
This
change is expected to increase ridership on the rural express routes, and the
new ridership will bring in some new fare revenue. There is currently capacity
available to accommodate growth on many Rural Express trips with no added
operating costs. While each individual customer would pay less, the change is
expected to increase ridership, which would bring in new revenue. Any change
in total fare revenue would affect the property taxes collected in Rural
Transit Area A in 2013, and would be included in the 2013 Budget.
Currently,
some customers use Rural Express routes for trips that are entirely within the
Urban Transit Area at Express fares, and it has proven difficult for operators
to ensure that all customers have paid the correct fare for their trips.
Setting the fares at the Express level will eliminate this operational
problem.
Termination of the ECOPASS
program
The introduction of PRESTO will allow former ECOPASS holders to customize their travel experience while providing the convenience and flexibility to purchase as many months of transit service as they need. As a result, it is recommended that the ECOPASS Program be eliminated during the fall of 2012.
Further, OC Transpo is no longer able to sustain annual fares that are deeply discounted below operating costs.
In 2011-12, an ECOPASS subscription costs $990 per year, and with the 2.5
percent increase applied, it would cost $1,014 in 2012-13. By choosing to
purchase 10 monthly passes and 10 days of pay-per-ride e-Purse fares, a
typical current ECOPASS subscriber would pay $1,015 per year in 2012-13.
The cost of an ECOPASS will increase to the cost of an Adult Regular or Express
monthly pass as of July 1, depending on what the customer has chosen. ECOPASS subscribers will have the option to
withdraw from the ECOPASS program by notifying their employer and taking
advantage of paying less for their reduced transit needs during the summer. Although
ECOPASS holders can continue with payroll deductions until the fall, they also
will have the option to transition to PRESTO when they choose. Each employer will be provided with proper
termination notices in accordance with the terms of each employers respective
ECOPASS contract.
Staff will provide notification of the fare change to employers of ECOPASS
subscribers and will work with them to
issue new PRESTO smart cards through the fall of 2012 to provide a seamless transition.
Other fare matters related to
the introduction of PRESTO smart cards
The new PRESTO smart card system allows for customers to either pay per
month for their fares, by purchasing a monthly pass and loading it on the
card, or to pay per ride, by loading a cash value onto the e-Purse feature of
the card. The card readers on buses
will verify the validity of monthly passes or will deduct the appropriate fare
from the e-Purse balance on the card.
With the new PRESTO system, it will be possible, later this summer, for
customers starting their trips at O-Train stations to pay for their ride using
the e-Purse feature. The ticket vending machines will (in future) only be
required for customers paying in cash, and they will be calibrated to accept
the full cash fare rather than the current special O-Train single-ride fare.
This change has no effect on the majority of O-Train customers, as most
customers use a monthly pass, a U-Pass, or pay their fare on a bus route and
transfer to the O-Train.
As it is impractical to install PRESTO card readers on taxis used in Para
Transpo service, Para Transpo customers will continue to use photo
identification cards and paper monthly passes. OC Transpo staff are developing
a new fare system for Para Transpo service that will provide additional
convenience and flexibility to Para customers.
Along with the introduction of the PRESTO system, the defined age groups of customers will be adjusted to be consistent with those of other transit systems using the PRESTO system across the Province. These are: free fare (0 to 5 years); child (6 to 12 years); student (13 to 19 years); adult (20 to 64 years); and, seniors (65+ years). Eligible fulltime university students from Carleton University and University of Ottawa who are 20 years or older will use their U-Pass from September to April, but will need to pay adult fares during the summer.
By the end of the year, with upgrades to the back-office system, OC Transpos PRESTO cards will be interchangeable with nine other transit systems in the Toronto / Hamilton area. This will allow PRESTO card holders the convenience of using their cards while travelling, and will ensure that students and seniors can continue to receive their discounts when they travel.
The use of paper tickets will be closely monitored as customers transition to PRESTO cards. A decision will be made toward the end of the year whether to continue the sale of paper tickets.
RURAL
IMPLICATIONS
The
recommendations in this report would reduce the fares charged on the current
Rural Express routes. While each individual customer would pay less, the
change is expected to increase ridership, which would create new revenue. Any
change in total fare revenue would affect the property taxes collected in
Rural Transit Area A in 2013, and would be reported as part of the 2013
budget.
In
preparing this report, staff have had the advantage of submissions made by
transit customers and City advisory committees. In addition, staff have had
direct discussions with representatives of the Seniors Advisory Committee,
Algonquin College, la Citι collιgiale, and CEPEO (Conseil des ιcoles publiques de l'Est de
l'Ontario).
There are no legal impediments to implementing
the recommendations outlined in this report.
Legal Services will work with staff to implement the necessary changes
required to the Transit Services By-law 2007-268.
Risk management implications are highlighted
throughout this report, including financial information regarding the
implementation of the 2012-13 Fare Table detailed in the Financial
Implications section below.
The fare rates as
proposed in this report achieve an average 2.5% increase, which is consistent
with the fare assumptions established in the 2012 Transit Budget approved by
Council on November 30, 2011. Based on
these rates, and on ridership projections, the fare revenues will meet the
established 2012 Budget of $174.25 million.
Transit will also meet the 2012 budgeted revenue/cost ratio, which is
the share of operating costs to be borne by transit riders, of 53.3%. The Citys fiscal framework has established
a goal of 55% for the Transit revenue/cost ratio. Certain risks, however, if fully
realized may alter the above projection.
With the discontinuance of the ECOPASS program current ECOPASS customers will give consideration to their options.
Generally,
transit riders will benefit from the more economical Monthly Pass
product. In some instances, such as
during a vacation period, a pass holder may elect to use the pay-per-ride
option. This could potentially reduce
the amount of revenue collected from an individual by $10 - $30 in such a
month. These are decisions based on
personal circumstances, which cannot easily be estimated, particularly during
an implementation period.
A new
feature of the PRESTO card is that it is transferable between users within the
same class only; however, cards within a discount category (i.e. seniors or
students) cannot be used by a person not qualifying for a discount. As e-Purse cardholders must pay for each
ride taken, the risk of reduced revenue is limited to monthly pass holders who
could potentially share their card when not on their person.
The PRESTO card also offers improvements in revenue controls as the software will limit the potential for fare evasion, invalid transfers, tickets, and passes, etc. An initial assessment found that these improved controls would largely offset any potential loss from transferability.
The
recommended fare changes for seniors will widen
the availability of discounted transit service to be more equitably available
to seniors at more times of the week. There are no effects from these
recommendations on transit service for customers with disabilities.
There are no IT implications for this fare change.
The recommendations outlined in this report
support Councils priority of offering reliable travel options at the
lowest possible cost and in a financially and operationally sustainable way.
Document
1 Recommended Fares, effective July 1, 2012, immediately follows the report.
Document 2 Comparison with previous year, immediately follows the report.
Upon approval of this report by Transit Commission,
staff will forward the OC Transpo Fares 2012-13 report, including Document 1
and 2, to Council on April 25, 2012.
This timeframe is
required to provide Legal Services appropriate opportunity to incorporate the
necessary changes into the Transit Services By-law 2007-268 before the July 1,
2012, deadline.
OC Transpo staff will advise customers of the fare changes and will take the technical and logistical steps to implement them.
Document 1
Recommended Fares,
effective July 1, 2012
Pay-per-month fares
(passes)
Fare Category |
Service Type |
Amount ($) |
Adult |
Regular |
96.25 |
Adult |
Express |
119.00 |
Student |
Regular |
76.75 |
Student |
Express |
90.25 |
Senior |
All |
39.00 |
Community |
All |
32.00 |
Pay-per-ride fares
Fare Category |
Service Type |
Payment Method |
Amount ($) |
Adult/Student |
Regular |
e-Purse |
2.65 |
Adult/Student/Senior |
Regular |
Ticket |
3.00(1) |
Adult/Student |
Regular |
Cash |
3.30 |
Adult/Student/Senior |
Express |
e-Purse |
4.00 |
Adult/Student/Senior |
Express |
Ticket |
4.50(1) |
Adult/Student/Senior |
Express |
Cash |
4.65 |
Senior |
Regular |
e-Purse |
2.00 |
Senior |
Regular |
Cash |
2.50 |
Child |
All |
e-Purse |
1.50 |
Child |
All |
Ticket |
1.50 |
Child |
All |
Cash |
1.75 |
All |
Para Transpo Rural |
Cash/Ticket |
8.25(2) |
Other charges
|
Amount ($) |
Replacement PRESTO card |
6.00 |
Day Pass |
7.75 |
U-Pass Per semester |
180.00(2) |
Special event service First hour |
310.00 |
Special event service Each additional hour |
155.00 |
Park and ride permit Gold permit |
51.25 |
Park and ride permit Baseline and Jeanne dArc |
22.50 |
Notes:
1.
These
fare types are planned to be phased out during 2012-13
2.
These
fares have already been approved by Council
Document 2
Comparison with
previous year
Pay-per-month fares (passes)
Customer Group |
Service Type |
Recommended 2012-13 Fare |
Comparable 2011-12 Fare |
Change |
Adult |
Regular |
96.25 |
94.00 |
+2.4% |
Adult |
Express |
119.00 |
116.00 |
+2.6% |
Adult |
Rural Express |
|
145.00 |
-17.9%(1) |
Student |
Regular |
76.75 |
75.00 |
+2.3% |
Student |
Express |
90.25 |
88.00 |
+2.6% |
Student |
Rural Express |
|
113.00 |
-20.1%(1) |
Senior |
All |
39.00 |
37.00 |
+5.4% |
Community |
All |
32.00 |
32.00 |
No change |
Pay-per-ride fares
Customer Group |
Service Type |
Payment Method |
Recommended 2012-13 Fare |
Comparable 2011-12 Fare |
Change |
Adult/Student |
Regular |
e-Purse |
2.65 |
2.60 |
+1.9% |
Adult/Student/Senior |
Regular |
Ticket |
3.00 |
2.60 |
+15.4% |
Adult/Student |
Regular |
Cash |
3.30 |
3.25 |
+1.5% |
Adult/Student/Senior |
Express |
e-Purse |
4.00 |
3.90 |
+2.6% |
Adult/Student/Senior |
Express |
Ticket |
4.50 |
3.90 |
+15.4% |
Adult/Student/Senior |
Express |
Cash |
4.65 |
4.25 |
+9.4% |
Adult/Student/Senior |
Rural Express |
e-Purse |
- |
5.20 |
-23.1% (1) |
Adult/Student/Senior |
Rural Express |
Ticket |
- |
5.20 |
-13.5% (1) |
Adult/Student/Senior |
Rural Express |
Cash |
- |
5.25 |
-11.4% (1) |
Senior |
Regular |
e-Purse |
2.00 |
2.60 |
-23.0% |
Senior |
Regular |
Cash |
2.50 |
3.25 |
-23.1% |
Child |
All |
e-Purse |
1.50 |
1.30 |
+15.4% |
Child |
All |
Ticket |
1.50 |
1.30 |
+15.4% |
Child |
All |
Cash |
1.75 |
1.60 |
+9.4% |
Notes
1.
Compares
2011-12 Rural Express fares with recommended 2012-13 Express fares.