Comité dues
transport en commun
08 September 2009 / le 08 septembre
2009
Submitted
by/Soumis par : Nancy
Schepers, Deputy City Manager/Directrice municipale adjointe,
Infrastructure Services and Community Sustainability/Services
d’infrastructure et Viabilité des collectivités
Contact Person/Personne ressource : Kimberly Westin-Martin, Program
Manager, Transit Law
Transit
Services/Services du transport en commun
(613) 842-3636 ext. 2659,
kimberly.westin-martin@ottawa.ca
SUBJECT:
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OBJET :
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That Transit
Committee approve:
1. Development of a
comprehensive communications strategy to inform OC Transpo customers on the
fare compliance policies of the City of Ottawa;
2. A review of the
present revenue protection policies, procedures and work instructions, and
report back by Q3, 2010; and
3. Development
of a short-term strategy and a comprehensive long-term transit fare enforcement
action plan in accordance with the guidelines contained in this report.
Que le Comité du transport en commun approuve :
1.
L’élaboration
d’une stratégie de communication globale destinée à informer les clients d’OC
au sujet de la politique de la Ville d’Ottawa en matière de respect de la
tarification;
2. L’examen des politiques, procédures et
instructions actuelles en matière de protection des revenus et la production
d’un rapport d’ici au troisième trimestre de 2010;
3. L’élaboration
d’une stratégie à court terme et d’un plan d’action complet à long terme en
conformité avec les lignes directrices contenues dans le présent rapport.
The issue of fare evasion is common to most transit
systems and is recognized within the industry that a certain level of evasion
is inevitable. Industry rates range
from one per cent to six per cent. As
of January 2007, according to the reporting and monitoring of the Transit Law
Unit, Transit Services falls within the higher end of this range.
The Proof of Payment (POP) system was introduced in 1983 and has
resulted in improved operational efficiency.
Use of an honour fare POP system depends on an effective fare inspection
program and clear communications with the customers on the consequences of
non-compliance. The POP was introduced
with the expectation that a synergetic fare compliance system would provide the
necessary communication and enforcement resources to ensure success, and a
minimum amount of lost revenue.
Customers must be aware that if they do not pay the fare, they may be
subject to a fine. A successful fare
inspection program would not result in a large number of fines; on the
contrary, with a highly visible level of fare inspection the result would be
very few fines, resulting in increased revenue.
In the 2006 Annual Report , the Auditor General released some key
findings (that were not made public due to security issues) from the OC
Transpo/Para Transpo Cash, Ticket and Pass Revenue Processes Audit. One of the recommendations was for Transit
Services to develop a public awareness campaign on the consequences and impact
of fare fraud on the cost of transit.
In addition, Transit Services is providing this report as part of
the City Manager’s commitment to an ongoing review of fare compliance
initiatives.
There are a number of different types of fare evasion techniques used on buses, including entering an articulated bus through the rear door, claiming to have no money for the fare, short changing fare payment, using an inappropriate pass, using expired transfers and tickets, and counterfeiting passes and tickets.
Fare Compliance Strategy and Communications
The objective of the Fare Compliance Strategy is to develop a
comprehensive sustainable plan that will support Transit Services’ short,
medium and long term decisions with respect to fares, fare structures and fare
policies. This strategy must take into
account the expectations and requirements of key Transit Services’
stakeholders; it must be designed to achieve Transit Services’ business
objectives; and, it must be developed in the context of “best practices” of comparable Canadian
transit authorities. The strategy must
also be flexible enough to be adaptable to Transit Services’ evolving
requirements, and must be seen as fair, equitable and simple to understand.
A number of projects and initiatives have been implemented by
Transit Services to reduce the amount of fare evasion. To date, the OC Transpo fare enforcement
strategy has consisted primarily of fare instrument design and control,
enforcement, and advertising.
The message is clear, as outlined by a sign posted that greets
customers as they board - “PAY THE FARE OR PAY THE FINE ($150)”
Communication and Advertising
As per the direction of the Auditor General, Transit Services has
made a commitment to provide an ongoing communication and marketing campaign to
inform transit customers on the requirements of fare payments.
The ongoing strategy encompasses a comprehensive Communications Plan
to address transit fare policy and the consequences of non-compliance, and the
Proof of Payment system.
In terms of advertising and communication, clear signage is posted
on all POP buses to remind passengers that they must pay a fare. A Public Service Announcement is set to be
presented in Fall 2009 to inform customers about fare fraud detection and prevention. As well, signage on buses has been increased
to elevate awareness of transit fare policy and the consequence of
non-compliance.
Smartcard
The design of the fare instrument (tickets, passes, etc.) is
developed with the objective of ensuring that unlawful reproduction of these
items is very difficult, while being clear and easy for the operator to
check. The operator checks fares when
passengers board via the front door however, passengers who board POP buses
using the rear doors are not checked.
Appropriate fare collection systems reduce the likelihood of fare
evasion. Transit Services conducted a
review of present fare media, fare collection technology and fare instrument
control processes. This review included
examining the control benefits from the use of different types of fare media.
With the implementation of Smartcard technology it is expected that
significant reductions will be achieved in fare evasion. Smartcard is consistent with industry best
practices for fare collection systems.
The advent of a smartcard fare system will not preclude the need for
a fare inspection program on POP routes.
However, the smartcard reader will automatically verify the validity of
the card, which will be confirmed to both customer and operator by audible and
visual indicators. This will reduce
fraud rates by creating a self-regulating system for customers and allowing
operators to check the validity of passes and tickets more effectively. In the case where a customer enters the bus
via the rear door, other passengers will be present and know whether the fare
was paid, creating a peer-pressure situation, which will reduce attempts at
fare evasion.
As the availability of technology to counterfeit fare instruments
becomes more widespread, the ability of an electronic system to detect fraudulent
fare instruments will become increasingly important.
Current Bus Pass Policy
It is the expectation of Transit Services that many of the issues
seen lately, such as tickets issued to customers who have not written their
pass number on the pass, will be eliminated by the Smartcard
implementation. The Smartcard
technology will reduce issues of transferability and operator interpretation.
However, until such time Smartcard is implemented, Transit Services must abide
by current legislation through the 2007 Transit City By-law as it pertains to
bus passes and other media fares.
Based on the City’s 2007 Transit Bylaw, the requirement to have
customers write their number on the pass is designed to restrict pass transfer
from one customer to another. As well,
it provides the pass holder with the security of knowing the pass is not
transferable and cannot be used by another person if lost or stolen.
Currently, passes are priced based on single-use and are not
transferable. The Transit Services 2009
Usage and Attitude Survey indicated that if passes were transferable 58 per
cent of pass holders “might” share their passes. Of that 58 per cent, 29 per cent of respondents to the survey
indicated they “would” share their pass, if permitted. However, 67 per cent said they would not
want to pay extra for the opportunity to transfer it. The result of the survey indicates that there would a be
cost-risk associated with allowing transferable passes as there would be lost
revenue.
The purpose of regulating and enforcing the bus pass number policy
is to ensure that the City of Ottawa receives the appropriate amount of revenue
for every pass issued.
Fare Enforcement Strategy
During amalgamation, the Transition Board recommended a number of
efficiencies that would provide the new City of Ottawa with financial
savings. One of the recommendations was
that OC Transpo realize $1.9M in savings through the elimination of 37 FTEs.
In the course of its review, the Transit Project Team identified
several specific areas of operations that lent themselves to restructuring and
FTE reductions. Fare Inspection
Services was identified on the basis of a business, cost/revenue analysis. It was concluded that the Fare Inspection
Service was creating a substantial burden for OC Transpo and was flagged as an
area which required rationalization.
Between September 2001 and June 2005, Transit Services operated
without any specific Fare Enforcement Officers. The elimination of the fare inspection service shifted the
responsbility of verifying POP purchases to the Operators and Transit Law
Enforcement Officers. During this time,
ATU 279 successfully grieved the removal of the Fare Enforcement Officer
positions.
In April 2005, Council approved the addition of 113 FTEs for Transit
Services. Six of those positions were
designated to create new Fare Inspection Officer positions. Part of the process of designating these new
positions was to comply with the results of the ATU grievance, which was to
re-establish the positions if new FTEs were hired.
In October 2006, a new Transit Law Enforcement unit was created to
establish the new Special Constable Program, which was implemented on April 1,
2007. The mandate of Transit Special
Constables is to protect customers, employees and property, preserve the peace,
prevent crime, promote public safety, and help persons in need of
assistance.
The Special Constables have the powers of a Police Officer to
enforce the Criminal Code of Canada, as well as the authority to issue fare
evasion tickets. The Special Constables
also have a valuable partnership with Ottawa Police Services. There is also an important partnership
between the Special Constables, Fare Enforcement Officers and Ottawa Police as
there are times when a fare evasion event can escalate to a more serious
charge.
In April 2007, once the Special Constables were appointed,
concentration was shifted to improving fare compliance processes. As a result, the fare compliance strategy
was presented to the ATU and senior management, and, as a result, six new FTEs
were approved within the 2008 Budget.
At this time, there are 14 Transit Fare Enforcement Officers within
the Transit Law Unit.
The Transit Fare Enforcement section is comprised of two platoons of
seven officers per shift, working two shifts per day. Their hours of operation are from 6:30 a.m. to 10:00 p.m., five
days per week. The officers work in
teams rather than partnerships to “saturate” an area of concern. The officers ride the bus/O-Train system
during their entire shift, with the exception of when they are required to give
evidence in court.
Since June 2008, officers and constables have been checking
approximately 25,000 passengers per month on average (taking into account the
ridership numbers during the strike in December 2008 and January
2009). To initiate the program last
year, in April and May 2008, more than 42,000 passengers were checked for fare
compliance. As well, figures will
fluctuate as Fare Enforcement Officers often execute additional fare compliance
initiatives at special events where there may be a larger number of passengers
or targeted areas of concern, or where it has been identified that there is
opportuntiy for an increase in fare evasion.
The data collected by Transit Services indicates that Fare
Enforcement Officers rely heavily on verbal and written warning, as opposed to
issuing tickets, as a means of enforcing fare compliance. As outlined in the 2008 Annual Performance
Report, received by Council on June 24, 2009, provincial offence notices (tickets)
represented only 1.1 per cent of all transit passengers checked. In terms of warnings, 0.5 per cent received
verbal and 5.6 per cent received written.
Daily intelligence, including information from Special Constables,
customers and Councillors, on fare evasion activity is being utilized to
allocate enforcement resources. The
objective is for officers to increase the number of fare evasion checks on
buses and trains at problem terminals and to establish regular on-bus/on-train
patrols on routes that are identified through risk assessment information. Coverage is being conducted in both uniform
and an undercover capacity.
The Transit Fare Enforcement Officers have By-Law enforcement powers
with respect to the 2007 Transit By-Law (By-law No. 2007-268). The fines associated with fare evasion are
created through section 35 of the Transit By-law and enforced under the Provincial Offences Act. The set fine for fare-related infractions
was substanially increased with the implementation of the Transit By-Law in
2007. The fine was established using
best practices in the Canadian Transit industry to address the issues of
certainty, swiftness and severity. The
fine increased from $100 in 2006 to $150 in 2007. Once a ticket is issued under the Provincial Offences Act, the judical system takes precedent and
manages the legal process.
Enforcement Guidelines
Operators are also an important part of providing fare
compliance. The role of a operator is
to inform not enforce. Operators are
required to inform customers of invalid or expired transfers and request the
correct fare. If there is an issue with
a customer the operator is required to contact a Transit Supervisor, Transit
Special Constable or a Transit Fare Enforcement Officer. The operators receive training on following
policy and procedures for this type of situation.
Transparency and Accountability
To create transparency and accountability, Transit Services has
developed reporting mechanisms that will, in the future, provide information to
management, committee and Council. As
part of the overall framework, the reports will provide:
Timely and routine
reporting of fare evasion rates, risk levels and associated revenue loss.
Timely and routine
reporting of employee assaults, including root cause analysis.
The expectation is that these new reporting mechanisms will allow
staff to gather more information to better determine which programs are working
effectively and which ones may need adjustment.
Currently, statistical reports are being generated monthly from
weekly data provided by Transit Fare Enforcement Officers. The information is being used to determine
fare incident trending and corporate deficiencies. Once the section is operating at full capacity and trending-data
analyzed, the information will be published as part of the Transit Services
Annual Performance Report.
An effective and efficient
fare evasion strategy depends on reliable estimates of fare evasion and
detection levels in order to facilitate intelligence-based deployment of
revenue protection resources.
Transit Services currently tracks fare evasion statistics in terms
of evasion incidents versus passengers checked. The processes and controls are being enhanced in order to provide
continuous monitoring and reporting of fare evasion rates, including estimated
revenue loss caused by fare evasion on both the bus and O-Train networks. As well, statistical reporting methodology
is being reviewed and a process to sample receipts issued (POP transfers)
versus fares paid will be explored.
In 2008, the Transit Law Enforcement unit developed a risk
assessment system in order to measure the fare evasion risk levels on a
continuous basis for the bus and O-Train networks. Daily analysis is being conducted which monitors fare evasion
risk levels on a continuous basis.
In the area of records management, Transit is currently pursuing the
acquisition of a Computer Aided Dispatch and Records Management System (CAD
RMS) for the Transit Law Unit, using the same functionality of the Ottawa
Police Services. This system is a
requirement for the Special Constable Program.
The system will facilitate effective dispatching of resources, the
collection and management of data and will assist in the identification and
tracking of repeat offenders. An
effective tracking system will also help Transit Services to administer and
develop alternate ways of dealing with repeat offenders and the non-payment of fines
by frequent fare evaders.
Finally, Transit Services will continue to review benchmarking and
refine key performance indicators and management reporting processes to ensure
clear lines of accountability for, and to better assess, the efficiency of
revenue protection activities.
Unfortunately, transit providers across Canada deal with fare
compliance in different ways.
Therefore, these are no firm best practices established. Also, varying provincial regulations dictate
transit providers enforce fare compliance in different manners.
Transit providers also use different performance measures to record
and monitor fare compliance. For
example, times of day, types of routes and mechanisms of enforcement may all
vary.
Although, there are no firm best practices, Transit Services has
consulted other transit providers to gather information and identify areas of
improvement. As an example, the City of
Edmonton’s Auditor General released a report on fare evasion in May 2005.
The recommendations presented by the AG included:
· Increasing the number of fare evasion checks on buses.
· Establishing regular on-bus patrols on problem routes.
· Ensuring adequate security staffing to provide resources.
· Developing a risk assessment system to measure fare evasion.
· Developing processes and controls to provide continuous monitoring and reporting on fare evasion.
As indicated in this report, all of these recommendations have
either been implemented by Transit Services, or will be part of the Fare
Compliance Strategy going forward.
Next Steps
Transit Servcies is currently actioning a number of initiatives to
reduce the level of fare evasion. Those
initiatives include, imposing greater restrictions during off-peak hours that
will prevent rear door boarding on articulated buses. By restricting rear door access on these routes during off-peak
hours, the operator will be able to manage fare payment more effectively.
Security of both the customer and the operator is a crictical
component of the fare evasion strategy.
Transit Services anticipates that fare evasion could be reduced, while
enhancing operator and public safety by:
· Enhancing fare collection systems and policies.
· Restructuring the Transit Fare Enforcement unit so that it is able to respond more effectively and efficiently to the fare enforcement needs of the system.
· Optimizing the presence of transit law enforcement personnel on the bus and O-Train systems to ensure adequate security for employees and customers.
Transit Services has consulted with representatives from the transit industry, as well as from staff, including management, Operators, Transit Fare Enforcement Officers and Transit Special Constables.
There are no legal/risk management impediments to the implementation of this report's recommendations.
The one-time costs of developing and implementing a Fare Compliance Strategy will be offset by the permanent reduction in passenger fare fraud revenue losses.
Industry feedback indicates that fare evasion rates
are influenced by enforcement rates.
Increased enforcement has the direct effect of reducing fare
evasion. However, there is a point of
diminishing returns where increased enforcement does not provide a sufficient
return on investment (ROI). Fare
evasion statistics and staffing will be carefully monitored in order to track
the point of diminishing returns and optimize staffing to ensure the best ROI.
A comprehensive Communications Plan is being developed to address
transit fare policy and the consequences of non-compliance, as well as
informing riders of the POP system protocol.
The plan will also see the release of a Public Service Announcement
regarding fare evasion detection and prevention, which will likely be
implemented in the late Fall of 2009.
Effective revenue protection policies reduce the likelihood of fare
evasion. Transit Services proposes to conduct a review of present revenue
protection policies, procedures and work instructions. This will ensure the clear articulation and
assignment of specific revenue protection responsibilities, duties of
operational staff and line management. The
objective will be to ensure that adequate policies and procedures exist in written
format to provide Operators, Transit Supervisors, and Transit Fare Enforcement
Officers with the necessary direction to safely and effectively deal with fare
enforcement.
In summary, this plan will be developed as a comprehensive long-term
transit fare enforcement strategy that supports Transit Services’ decisions
with respect to fares, fare structures and fare policies, while effectively
reducing the incidents of fare evasion within the system. The fare enforcement strategy will take into
account the expectations and requirements of key stakeholders and will be
designed to achieve Transit Services’ business objectives.
In the long-term, Transit Services believes the most important solution to greater fare compliance is the implementation of the Smartcard program. The Smartcard will provide the technology, resources and capabilities to significantly reduce fare evasion while increasing revenues.