REPORT Meeting Date: July 5, 2012 Regional Council

Transcription

1 REPORT Meeting Date: July 5, 2012 Regional Council For Information DATE: May 22,2012 REPORT TITLE: FROM: Dan Labrecque, Commissioner of Public Works OBJECTIVE To provide an update on the Employee Monthly Discount Transit Pass (DTP) Pilot Program for Region of Peel employees. 8 The discounted monthly transit pilot program was launched in October 2010 in collaboration with Brampton Transit and Smart Commute Brampton-Caledon. Since 201 0, the program has been monitored to evaluate effectiveness in encouraging more employees to use public transit. 8 The pilot program has been successful and will be extended for another 18 months with improvements to increase staff participation. The final six months of the extended pilot period will be used to assess and determine whether the program will be offered on a. permanent basis or to close the program if participation results are not promising. Improvements to the DTP program include expanding eligibility, working with Smart Commute Mississauga and Mississauga Transit to include the MiWay monthly discount transit pass as part of the Region's program, and to identify opportunities to integrate the monthly transit pass with the PRESTO fare system. Sufficient funding for the extension of this pilot project has been budgeted and approved under the Public Works Employee Trip Reduction Program. The pilot program has shown a relative revenue increase of 23 percent for Brampton The monthly sales reports demonstrate a continuous upward trend in sales over the assessment period from October to September The City of Mississauga also extended their Discount Transit Program in October 201 I to

2 p d May 22, 2012 DISCUSSION I. Background In 2009, the City of Brampton and the City of Mississauga authorized staff to work with Smart Commute Brampton-Caledon and Smart Commute Mississauga respectively, on a pilot Discount Transit Pass program (DTP) where employees are eligible to receive a 50 percent discount for the purchase of a monthly transit pass. On June 24, 2010, an information report was presented to Regional Council to provide an overview of the Region's participation in an 18-month Employee Monthly Discount Transit Pass Pilot Program. In order to be consistent with other municipalities that offer a 50 percent employee monthly transit pass discount (York Region, City of Mississauga, City of Brampton, etc.), the Region also offered a 35 percent monthly transit pass subsidy to fulltime (union, permanent and full-time contract over 13 months) Regional employees. With this subsidy and a 15 percent discount on monthly passes from Brampton Transit, Regional employees pay half price for a monthly transit pass. The terms and conditions of the current program were determined before staff relocation to 7120 Hurontario Street. Based on estimated travel demand and the terms of the discount being offered by Brampton Transit and Mississauga Transit, the Region worked with Smart Commute Brampton-Caledon (SCBC) on this pilot DTP where only Brampton Transit discounted monthly pass are offered to Region of Peel employees. The pilot program provides the Region of Peel an opportunity to demonstrate the Region's commitment and leadership in supporting public transit, reducing air pollution, managing congestion, and promoting sustainable modes of transportation. 2. Current Status Launched in October 2010, this pilot is administered by Smart Commute Brampton-Caledon and Brampton Transit. This program is offered to full-time and long-term contract employees (over 13 months). Upon registration, participants must commit to purchasing the transit pass for at least four consecutive months. Participating staff also qualify for Canada Transit Tax Credit for public transit. When the program began in 2010, the full cost of a monthly pass through Brampton Transit was $1 02. The price is $1 I 0 per month. Between October and September 201 1, the pilot DTP has been evaluated based on data collected from an employee registration survey, monthly sales reports and an employee withdrawal survey. The assessment of the DTP (Appendix I) highlights the following key findings: a a a a A total of 507 monthly passes were sold with a total of 72 registrants 32 percent of participating staff shifted behavior from driving alone to taking transit to work 86 percent of registrants converted from using other fare media to monthly pass users, demonstrating a regular transit usage pattern 94 percent of registered staff indicated financial savings as the main reason for participating in the DTP pilot program

3 S\EJ May 22, The total number of passes sold increased over time, and continued to grow into the winter months Even though Brampton Transit provides a 15 percent discount ($15.30) on monthly passes, the DTP pilot program still generates a 23 percent relative revenue increase from the passes sold to staff 0 Main reasons for staff to withdraw from the program included changes in travel pattern, wormhome relocation, and an inability to commit and complete the required minimum four-month commitment period 0 Staff who withdrew from the program were generally satisfied with the program and would recommend the program to other staff Starting on September 6, 201 1, Brampton Transit extended their ZUM transit service along Hurontario Street between Sandalwood Parkway and the Mississauga City Centre Terminal. This transit improvement is beneficial to staff at 7120 Hurontario Street, which increased the monthly sales of discount transit passes The level of participation and cost of supporting the DTP is considerably lower than what was originally projected. In consultation with Smart Commute Brampton-Caledon, staff has identified the following key barriers to the expansion of the current pilot program: Current Condition Eligibility: Offer to full-time staff only Service: Brampton Transit is the sole participating transit agency for Peel's DTP Staff and office relocation in Inability to integrate with PRESTO card system Barriers and Opportunities The program restricts the participation of short-term contract, seasonal, and part-time staff. The DTP program does not integrate with MiWay (Mississauga Transit). Only staff who live and commute in the City of Brampton are able to participate and benefit using the Brampton Transit discounted monthly pass. In 201 1, more than 1,200 Regional staff were relocated between Regional offices. This has had significant impact on staff travel patterns and behaviour as well as commitment in the purchase of a monthly transit pass for a minimum period of four consecutive months. Also, the free underground parking available through Morguard for 10 Peel Centre Drive staff makes driving more convenient than participating in the DTP. The current program does not allow the discounted transit pass to be integrated with the PRESTO card system for fare purchase. In addition, under current traffic conditions and levels of transit service, using public transit in many instances can still take longer than driving to work. With the introduction of, and expansion of the ZUM services, we have seen some increase in the purchase of discount transit passes. The City of Mississauga has also extended their Discount Transit Program in October to undergo further monitoring and refinement. The City of Brampton is currently reviewing the extension of their Discount Transit Program.

4 ~lh) -Bz-4- May 22,2012 With one-third of the DTP participants shifting their travel behaviour from single-occupant drivers to transit, and achieving a 23 percent relative revenue increase for Brampton Transit compared with historic staff transit use, the pilot DTP has achieved initial success. Based on these results from the Region, Smart Commute Brampton-Caledon and Brampton Transit also plan to expand the DIP to other Smart Commute employer members. 3. Next Steps The Region recognizes the benefits and success of the pilot DTP. Based on the barriers identified in this report, staff will refine the DTP program and further monitor the program's progress. Therefore, the expanded pilot DTP will be extended for another 18 months. The extended pilot will begin by September 2012 and will be evaluated after 12 months of implementation. The evaluation will determine whether the DTP program should be closed or become a permanent program available to Regional employees. To address the identified barriers, the following refinements to the program are being made: Expand staff eligibility to full-time contract staff (over six months), regular and contract part-time staff who work at least 21 hours per week, and students who work for the Region for over six months. e Work closely with Smart Commute Mississauga and Mississauga Transit to include the MiWay monthly discount pass to the Region's existing program. This will better serve Regional employees who work at Mississauga work sites and increase transit ridership in Peel Region. 0 Continue to work with Brampton Transit to administer the program and identify potential solutions to integrate the transit pass with the PRESTO card system for fare purchase. FINANCIAL IMPLICATIONS With the improved DTP, it is estimated that the extended pilot program can attract staff who have part-time status, as well as those who are located at Mississauga work sites. It is estimated that, with these program changes, the DTP program participation rate will more than double. The budget for the extended pilot is estimated to be $80,000. Sufficient funding has been allocated in the Employee Trip Reduction component of the Public Works budget.

5 pd- Bt-5- May 22, 2012 CONCLUSION The Region of Peel's Employee Monthly Discount Transit Pass (DTP) Pilot Program has been initiated by Brampton Transit and Smart Commute Brampton-Caledon. The expanded pilot DTP is designed to further improve employee participation, reduce single-occupant vehicle trips, decrease demand for employee parking and further encourage a shift in employee travel behaviour. The participation of the Region of Peel as an employer in this DTP program demonstrates the Region's commitment to supporting public transit, managing congestion, reducing air pollution, the well-being of Regional staff, and making Peel's communities more sustainable., Approved for Submission: D. Szwarc, Chief Administrative Officer For further information regarding this report, please contact Andria Oliveira, TDM Analyst at extension or via at andria. oliveira@peelregion. ca Authored By: Andria Oliveira.&., c. Legislative Services JWe;

6 May 22,2012 APPENDIX I REGION OF PEEL DISCOUNT TRANSIT PASS PILOT ASSESSMENT ANALYSIS This analysis provides a summary of the evaluation of the Employee Monthly Discount Transit Pass (DTP) pilot program. This repoft provides a background to the project, an overview of the existing key program terms, and a summary of data collected in the first year of the program, from October 2010 to September The data used in this analysis is retrieved from registration surveys (Schedule I) which participants are required to fill out to enroll in the program, the monthly sales reports, and the withdrawal survey (Schedule 2) which participants are required to fill if they discontinue their participation in the program. I. Background On June 24, 2010, Regional Council approved the Region of Peel's participation in an 18-month Employee Monthly Discount Transit Pass (DTP) pilot. Administered by Smart Commute Brampton-Caledon (SCBC), the pilot is developed with the following key goals and objectives: Provide financial savings and affordable mobility to staff = Improve employee productivity and recruitmentlretention Provide an affordable transit alternative to single-occupant vehicles Contribute to a reduction of greenhouse gases and air pollution Reduce travel stress, congestion and parking demand Engage employer and enhance corporate image Promote public transit and increase ridership As stated in the proposal, the pilot is to be evaluated after the first 12 months to measure the success and operation of the program. The assessment is conducted based on registration,. sales, and withdrawal data collected between October and September Program Terms In agreement with Brampton Transit, the DTP program is currently administered according to the key terms outlined below: Monthly transit passes are supplied by Brampton Transit SCBC distributes passes to the Region of Peel and administers program for an 18 month pilot Participants must commit to purchasing a pass for a minimum of four consecutive months upon registration = Participants must wait four months to re-join after withdrawing from the program Only full-time staff (union, permanent and full-time contract over 13 months) are eligible to participate in the program Participants need to abide to pre-determined Brampton Transit monthly sales periods = Participants qualify for Canada Federal Transit Tax credit for public transit

7 May 22, Findings Registration Data To register for the DTP program, participants are required to complete a commuter information survey. The survey (Schedule I) collects information on previous commute mode, frequency of transit usage, fare media currently used, and reasons for joining the DTP program. Within the first 12 months, a total of 72 registrants participated in the DTP program and purchased at least one monthly transit pass. A total of 507 Brampton Transit monthly passes were sold. Information collected for these 72 registrants has been carefully examined for this analysis. i) One third (32 percent) of participants were previously driving alone to work as their primary mode of commute Mode of Commute Prior to Joining DTP Program Take Transit 58% As expected, existing transit users would be the early adapters of the program where staff can take full advantage of the employee discount. Surprisingly, a significant portion of the registrants (32 percent) were previously driving to work alone. This proportion is increasing over time.

8 May 22, ii) A majority of registrants (86 percent) previously using different fare media are now monthly users What Fare Media Do You Ususally Use? 1 10 or 5 Tickets Cash Weekly Pass Monthly Pass N/A I Prior to the DTP program, only 14 percent of the registrants were existing monthly pass users. The DTP program has a positive impact in influencing infrequent and less regular users to take transit on a more.regular basis. For example, the DTP plays a role in increasing transit use from three days a week to five days a week. Most registrants (46 percent) were using 10 or five tickets to travel on Brampton Transit, and 19 percent and 17 percent of registrants used cash and weekly passes, respectively.

9 May 22, iii) Registrants joined the DTP Program due to financial savings Why Do You Participate in DTP Program? Environmental New home1 work concern /Skipped location -, 1% I % Save time/ 1 % / Save money 94% An overwhelming majority of registrants (94 percent) joined the DTP program because of the financial savings offered by the program. This reinforces and meets a key objective of the program which is to provide financial savings and affordable mobility to staff. New home and work location motivated three percent of new registrants, while none of the staff selected "improve health as a reason for.taking public transit to wo.rk.

10 May 22, Sales Data This information is gathered from monthly Brampton Transit sales reports. It provides information on current transit usage, program take-up and financial impact. iv) The number of passes sold each month continues to increase DTP Transit Pass Sales by Month / sl Sales within Analysis Period Sales beyond Analysis Period Between October 2010 and September 201 1, a total of 507 monthly transit passes were sold. This averaged to approximately 42 passes sold every month. The DTP transit pass sales reflect an increase in new registrants, as well as the ability to maintain support from existing purchasers. As shown in sales beyond the analysis period, the sale records continued to grow into the winter months (October to February 2012).

11 May 22,201 2 EMPLOYEE MONTHLY TRANSIT-DISCOUNT PASS PILOT PROGRAM v) DTP program has increased Brampton Transit's relative revenue from Regional staff by 23 percent The annualized analysis indicates that the DTP program has increased Brampton Transit's relative revenue from Regional employees by 23 percent, which is equivalent to $8,700 gain in value. Withdrawal Data When a participant is withdrawn from the pilot, they are asked to fill out a "Withdrawal" form (Schedule 2) to ensure they understand the withdrawal policy and to provide feedback to the program administrator for monitoring. vi) Participants withdrawn from the DTP pilot are satisfied with the program Up to September 201 1, 24 (of the 72 registrants) had withdrawn from the program. Reasons for withdrawal included: Change in travel pattern due to work and/or home relocation Shift in travel needs due to change in life Unable to commit and complete the minimum requirement of a four month commitment Ending employment at Region of Peel Joined a carpool team Despite ending the program, most withdrawn participants would recommend the program to friends or co-workers. Withdrawn participants have also made the following recommendations to improve the DTP: Remove four month commitment policy. Make discount also available for MiWay (Mississauga Transit) Extend purchase period (i.e. longer cut-off date) More locations to purchase tickets Integrate pass with PRESTO fare system

12 May 22, (IN Commuter Information Schedule I - DTP Program Registration Survey,.1"1L ) Over the course of the last 12 months, have you ever used public transit to commute to work? i.r yes No,,,--.?! 43 What is the distance of your commute to work {one way]? " 00-~krn n21-akm n41-60km n161+l ;m ~ N O ~ S U " /"" <, 6.) When you travel on Brampton Transit what fare media do you usuolfy use? " q Monihly pass Weekiy pan 10 or 5 Tickets CZ] Cash LTI] PRESTO Card I '% 8.,I Before]oining this program hod you heard oi Smart Commute Peel?

13 May 22, Schedule 2 - DTP Program Withdrawal Survey To authorize termination in the Regionof Peel's Discount Transit Pass Program, please read the following statement and Initial the following box if you agree. I understand that by endlng my participation, I cannot rejoin the program for a period of four months. I must submit thb form in its entirety by the 151h day of the month prior to the month of cancellation. here I understand that If submitted afler the 15th day, my form will be processed the following month. I understand that passes are non-refundable. PROGRAM FEEDBACK '' Why did you originally join the Regionof Peel's Discount Transit Pass Program? -.. ".--".., If you could improve one thing for the Discount Transit Pass Program, what would It be?