Transit Fare Evasion (Councillor Rosenberger)

Recommendation:
That this report be received for information.

Report Summary

  • This report provides a response to an Administrative Inquiry from Councillor Rosenberger regarding what action Edmonton Transit has undertaken in the last two years to reduce the amount of transit fare evasion.

Previous Council/Committee Action

  • At the November 10, 1998 City Council meeting, Councillor Rosenberger made the following inquiry:

“What action has been undertaken in the last two years to reduce the amount of transit fare evasion.”

Report

  • The LRT honour system requires users to produce proof of payment on demand when riding the system or in designated “proof of payment” areas, unless otherwise exempted (e.g. Centre Free LRT, Special Events). Transit Security Officers conduct daily checks for proof of payment, issuing tickets where evasion is determined to be deliberate, the safety of staff and customers is not jeopardized, and an “emergent need” has not been demonstrated. Approximately 3% (about 8 persons per service hour) of persons checked do not have a valid proof of payment. They are subject to removal from the system and a fine under the Transit Bylaw #8353 of $110.00.
  • Approximately 9 million persons rode the LRT in 1997. Increased enforcement on the system may generate some additional revenue; however many of these persons would simply not ride the system and regular riders who have been tardy in buying a new pass would likely be more diligent. In these cases the revenues would not change significantly. This was the experience reported in Calgary in 1993 where a large drop (7.4% to 1.5%) in their estimated fare evasion following fare enforcement blitzes and a fine increase to $150.00 resulted in only “a slight increase in revenue.”
  • Approximately 55 million persons boarded ETS buses in 1997. On the Bus system the collection of the proper fare is a primary responsibility of the Operator. Bylaw #8353 also applies to the bus system.
  • Surveys conducted in 1996 and 1997 of people boarding the buses found that about 1.73% (about 0.6 persons per service hour) did not have a valid transfer or pass, were suspected of not having paid a full cash fare, or did not have a ticket or cash. These persons possessed expired transfers (.33%), claimed to be late in purchasing, or forgotten, or lost their pass (.77%), made a partial payment (.47%) or claimed to have no money (.15%).
  • Patrons are generally given the opportunity to pay; however under guidelines outlined in Bus Operator’s Information Manual, Operators may refuse rides. For the same reasons noted above however, potential additional fare revenue from this group through increased enforcement would be reduced by persons simply not riding, or adjusting their pass buying practise.
  • In 1996, Edmonton Transit established a Fare Enforcement Task Force to review policies and guidelines, and make recommendations to improve the fare collection and enforcement process. The task force membership included Operators from all garages, representation from the Amalgamated Transit Union Local 569, and support staff from Bus Operations, LRT Operations, DATS, and Security. Their report reinforced the safety of the Operator, Staff, and Customers as a first priority in fare enforcement, defined “emergent need”, and made several short and long term recommendations towards improved fare collection (Attachment 1). Many of the recommendations have been acted on or are under consideration.
  • Edmonton Transit’s Horizon 2000 plan approved by City Council in July, 1996 contained several of these recommendations including electronic fare boxes, adjusting policies and procedures, increasing fines, simplifying the fare structure, and reviewing the design of the fare media (Attachment 2). Electronic fare boxes are included in the 5 year CPP. Based on input received from the Fare Enforcement Task Force the “Bus Operator’s Information Manual” was revised and distributed in June of 1997 addressing policies and procedures (Attachment 3). In July 1998 City Council approved an increase to the fare evasion fines under Edmonton Transit Bylaw #8353 from $35.00 to $110.00. Unrestricted student passes have been eliminated simplifying the fare structure and media have been redesigned to facilitate identification of valid passes and transfers, and reduce the possibility of duplication.

Background Information Attached

  1. Fare Enforcement Task Force Report
  2. Policy Excerpt from “Horizon 2000”, page 23

(Page 1 of 2)

Attachment 1

Fare Enforcement Task Force Report

EXECUTIVE SUMMARY

On Tuesday, April 16, 1996 Edmonton Transit established a Fare Enforcement Task Force. The objectives of this Task Force were to establish a fundamental service philosophy on which to base a fare enforcement policy and then to define the policy and the operational guidelines to assist in its enforcement.

The Task Force worked under the assumption the collection of fares is not only an important job responsibility of the Transit Operator but also a vital component of the business of Edmonton Transit. The collection of fares generates a significant portion of Edmonton Transit’s budget. As a result it is important to be as effective as possible in this endeavor to ensure Edmonton Transit operates efficiently and cost effectively. The philosophy of fare collection adopted by Edmonton Transit however goes beyond the simple collection of money. In what manner and under what circumstances Edmonton Transit chooses to pursue the collection of fares defines to a large extent the social contract Edmonton Transit has with the citizens of Edmonton. This philosophy also helps to define the relationship between Edmonton Transit and its employees by defining the relative worth of their personal safety.

Driven by these considerations the Fare Enforcement Task Force has developed the following fare enforcement philosophy and a policy in support of these statements.

The safety of the Operator, Transit Security Officer, Inspector, and Customer is fundamentally more important to Edmonton Transit than the collection of fares.

Edmonton Transit is committed to fare enforcement to ensure its mission of providing transportation services to the citizens of Edmonton is achieved in an efficient, equitable and consistent manner. Therefore: Edmonton Transit will provide transportation services to its customer if proper fare is provided or “emergent need” is demonstrated.

Based on this philosophy, the Fare Enforcement Task Force is unanimous in its belief Edmonton Transit would benefit from a diligent, pro-active approach to fare collection.

INTRODUCTION

In recent years, the economic reality facing Edmonton Transit was that maximum efficiency had to be realized from every dollar received. This reality forced each area within Transit to scrutinize their own operations to maximize the cost effectiveness of each process. One process producing income which was thought to be less than efficient was the collection of fares. Statements were made postulating a fare evasion rate at Edmonton Transit somewhere between 1% and 10%. Given the large amount of fare revenue received by Edmonton Transit in one year, these figures, particularly if found to be in the 10% range, potentially represented a significant untapped source of funds.

The necessity to determine the fare evasion rate at Edmonton Transit lead to the realization that a consistent policy driving the collection of fares was required. In the past, directions were written to Operators indicating the necessity to collect fares. However, the fundamental basis on which Edmonton Transit collected these fares was never clearly defined for the Operator on the front line. This ambiguity lead to varying standards of enforcement within the corporation. The spectrum ran from ‘No Pay No Ride” to ‘Ride free because I can’t force you to pay anyway!’ The Operator’s confusion regarding how and when he could enforce the collection of fares lead to a certain apathy within the Operator ranks. Over time, Operators who were diligent in collecting fares thought themselves to be in the minority. In fact, the Customer Concern process worked against those Operators who enforced fares. This occurred by allowing customers who had been apprehended in fare evasion to lodge concerns for “rudeness” on the part of the Operator. The Operator soon learned his best course of action when dealing with fares was to avoid conflict at all cost and allow the patron to ride.

In the last year a change to the Customer Concerns process has addressed many of the concerns the Operators had in relation to complaints lodged resulting from their efforts to collect fares. Having resolved the customer concern problems, the next step in the process of assisting the Operator in this important function of collecting fares, is to develop a workable Edmonton Transit philosophy regarding fare collection. This will ensure the Operator is confident in the course of action he takes on the bus and also of management support of his actions. This philosophy will also allow Edmonton Transit to know that whatever fare evasion rate exists, the rate is a function of its own fundamental principles of conducting business rather than a result of apathy and ignorance on the part of the Operator.

On April 16, 1996, Edmonton Transit established a Fare Enforcement Task Force. The objective of this group of employees was to define a service philosophy on which to base a fare enforcement policy and then to define the policy and operational guidelines to assist in its enforcement.

FARE ENFORCEMENT POLICY

Philosophy of Fare Enforcement

Edmonton Transit is in the business of providing mass transportation to the citizens of the City of Edmonton. To accomplish this task efficiently fares must be collected from all customers utilizing the system. However, Edmonton Transit plays an important social role in the community. Transit provides service to commuters going to work, school children on their way to class, seniors out shopping and to those who have no other means of getting around. By providing these services Edmonton Transit becomes more that just and ordinary business it becomes a component of the social fabric of the city.

As a result, the collection of fares is not always the most critical factor in determining whether a patron is given access to the services provided by the Transit system. The expectation of the citizens of Edmonton is that Transit is more that a large taxi service. They recognize that a fare is required to ride however they also expect a certain flexibility in this regard. Therefore the philosophy Edmonton Transit adopts in relation to fare collection to a large part determines the social contract the System maintains with the citizens of Edmonton. The philosophy of fare evasion also helps to establish the relationship Transit has with its employees. This is accomplished by defining what is important to the corporation money or people.

Given the previous considerations the following statements represent a philosophy on which to base a fare enforcement policy.

The safety of the Operator, Transit Security Officer, Inspector, and Customer is fundamentally more important to Edmonton Transit than the collection of fares.

Edmonton Transit is committed to fare enforcement to ensure its mission of providing transportation services to the citizens of Edmonton is achieved in an efficient, equitable and consistent manner. Therefore: Edmonton Transit will provide transportation services to its customer if proper fare is provided or “emergent need” is demonstrated.

This philosophy basically states that a patron will have to provide the necessary fare to ride Edmonton Transit unless they can show in some manner a ‘need’. In simplest terms, this ‘need’ will equate to some form physical or emotional requirement on the part of the customer. In order to facilitate consistency in interpretation of this philosophy by Transit personnel, a definition of “emergent need” is required.

Emergent Need Defined

Edmonton Transit considers a customer in the following circumstances to constitute a patron in ‘emergent need’. A customer in these situations would be offered a ride free of charge. Operators, in the execution of this policy, would be required to use good judgement and err on the side of allowing the patron to ride if any threat to the safety of the customer was thought to exist.

A patron is considered to have “Emergent Need” if:

The safety of the patron is threatened by inclement weather, threat of physical violence or threat of injury.

The patron will be left in an isolated location without means of assistance.

The patron is an unsupervised young child or is an aged infirm individual.

The patron is lost or confused.

The patron has obvious physical or mental disabilities.

The patron, through valid circumstances, lacks sufficient funds.

The patron is impaired and wishes to ride instead of driving his car.

Emergent by definition is not habitual. Patrons who repeatedly attempt to ride Edmonton Transit free of charge by invoking ‘emergent need’ are fare evading. Operators who are faced with this situation would be expected to contact Control or an Inspector or notify their division management staff.

Principles of Enforcement

An Operator would be expected to comply with the principles listed below when implementing the fare enforcement policy.

Good judgement and discretion to be used at all times.

The safety of employees and customers is paramount.

Equal, consistent and firm application of fare enforcement guidelines.

Consider and ensure the needs of all customers, both on and off the bus, are met.

In addition to the first principles, Edmonton Transit management and supervisory personnel would be expected to comply with these additional principles.

The fare enforcement policy to be implemented without undermining the authority and credibility of the Operator, Transit Security Officer or Inspector.

The communication of this policy to both internal and external customers.

Adequate authority to enforce fare policies.

Resources to implement fare policies.

Follow-up information process to service the Operator, Transit Security Officer and Inspector.

The Task Force developed the preceding principles after receiving input by all members. The intent of these principles is to help define other factors that the Task Force felt necessary in order for the Fare Enforcement Policy to be effective. Members of the team felt strongly that a commitment to the process by all levels of Edmonton Transit management would be required to ensure the effectiveness of this policy. This commitment would not only be evident in the support of employees in the course of their duties but also in the communication of this policy to the patrons of Edmonton Transit.

RECOMMENDATIONS TO ASSIST FARE ENFORCEMENT

The Edmonton Transit Fare Enforcement Task Force has developed a number of suggestions that it considered would help in the function of collecting fares. These recommendations are divided into ideas to be considered for immediate implementation and those thought to be long term solutions.

Recommendations for Immediate Consideration

Resolve: Edmonton Transit reserves the right to refuse service to individuals who deliberately attempt to defraud the citizens of Edmonton through fare evasion.

Fare Underpayment Slip to be incorporated with the Fare Refund/Lost Article acknowledgement form. (Currently being tested.)

All “Grace” periods for pass use currently in effect to be maintained status quo.

Passes to be printed in bright distinctive colors with the month number included on the pass.

All ‘day’ passes to be validated by an Operator’s punch mark on first use.

Change issue dates for seniors' passes to correspond to budget process. (April?)

Complimentary visitor passes to be dated.

Periodic fare enforcement “blitzes” to be conducted.

Change ‘child fare’ verbiage from “under 16” to “15 and under”.

Post fare information in various highly visible location on the bus, in transit centers, and in bus shelters.

Draft information packages regarding transit services and fares for distribution to schools and special interest groups.

Maintain consistent enforcement of fare policies by enhancing cooperation between bus and LRT by-law enforcement personnel.

A mechanism to be developed to cover the fare box while the Operator is absent from his bus.

Long Term Recommendations

Reduce the number of fare media.

The bus to be declared a “Proof of Payment” area.

For seniors or any subsidized group, the bus pass should consist of a picture I.D. with a validation sticker.

Ticket denomination should be printed on both sides.

Regional commuter tickets should conform to Edmonton Transit standards to allow for validation.

Purchase electronic fare boxes for Edmonton Transit.

Eliminate “Center Free” LRT.

Institute an in-house information-training program to keep employees current regarding operational policies. (Suggest: Rule of the Week program similar to the program currently in place at LRT.)

Proof of age requirement to ride for discounted fare. Inability to provide proof will require full fare payment.

CONCLUSION

The objectives of the Fare Enforcement Task Force were to establish a fundamental service philosophy on which to base a fare enforcement policy; to define an explicit, equitable and viable fare enforcement policy; and finally to develop a set of guidelines in relation to the fare enforcement policy to direct and support Edmonton Transit employees in its implementation.

The Task Force, in making its recommendations, strives to balance the needs of the corporation for an efficient fare collection system while maintaining the flexibility to respond to the social needs of the citizens of Edmonton. By defining a service philosophy and fare enforcement policy, Edmonton Transit is establishing a consistent reference point from which all employees may begin in resolving fare issues.

The recommendations include the introduction of a “Fare Underpayment” slip, which would be a new tool for operators to use in handling fare disputes. Operational tests to date have shown this slip to be a very favourable and effective mechanism in avoiding conflict when collecting fares. This instrument would be an additional method of resolving fare conflict and would be used in concert with time honored measures such as “pay double next ride.” By implementing and legitimizing these methods of dealing with fare issues, the corporation is not capitulating to those individuals who chose to fare evade. Rather, by defining the corporate will regarding fare enforcement and giving front line employees tools to facilitate the policies implementation a more consistent and predictable effort will be put forth when collecting fares.