REPORT TITLE: EMPLOYEE MONTHLY DISCOUNT TRANSIT PASS PILOT PROGRAM
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1 'Region ci Peel WoJtktM.q lojt qott REPORT Meeting Date: February 27, 2014 Regional Council For Information DATE: 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. REPORT HIGHLIGHTS The discounted monthly transit pass pilot program was launched in September 2010 in collaboration with Brampton Transit and Smart Commute Brampton-Caledon. Since 2010, the program has been monitored to evaluate effectiveness in encouraging more employees to use public transit. In July 2012, a Council report was prepared to provide a status update and inform Council on the second phase of the DTP pilot program. Under the second phase, improvements to the DTP program included expanding eligibility, and integrating the monthly transit pass with the PRESTO fare integration system. Phase 2 of the pilot program was deemed successful and it will be extended to a third phase for another 18 months with additional improvements to increase staff participation and to monitor activity. The final six months of the extended pilot period will be used to assess and determine whether the program will be a permanent program or to shut down the program if participation results are not promising. The DTP has proven to have positive impacts on Transit Ridership while reducing the impacts of employees driving to work and associated parking requirements. During the next phase of the pilot, staff will continue to work with Mississauga Transit - MiWay to encourage them to be part of the Region's DTP program. DISCUSSION 1. 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. This is in keeping with other transit discount programs of 50 per cent to staff at other Greater Toronto and Hamilton Area (GTHA) municipalities such as Mississauga, Brampton, Markham, Richmond Hill, Hamilton, Toronto and York Region. V /04
2 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. The Region offered a 35 percent monthly transit pass subsidy to full-time (union, permanent and full-time contract over 13 months) Regional employees and a 15 percent discount from Brampton Transit. Regional employees pay half price for a monthly transit pass. On July 5, 2012, a second information report was presented to Council to provide an update on staff participation in the DTP pilot program, and to note recommendations staff would work toward during the pilot extension period, in order to increase staff participation rates. The three recommendations in the 2012 report included expanding program eligibility to include part-time staff who work a minimum 21 hours per week, working with the City of Mississauga - MiWay to include their monthly pass as part of our DTP program, and work with Brampton Transit and Metrolinx to integrate the Monthly Discount Transit Pass Program as part the PRESTO fare system. To date, the pilot has continued to grow in participation which highlights the leadership the Region has taken in reducing employee single occupant vehicle trips and fostering a shift in travel choice to more sustainable modes of transportation. Regional Staff are still in discussion with City of Mississauga staff to finalize the Mississauga Transit - MiWay DTP arrangement. Therefore, it is proposed to extend the pilot for another 18 months as the final phase of the pilot so that the Mississauga Transit - MiWay DTP can be incorporated as part of the Peel employee DTP program and a more comprehensive assessment as outlined under the Next Steps section can be conducted to evaluate the success of the pilot program. 2. Current Status Launched in September 2010, this pilot is administered jointly by Smart Commute Peel, Smart Commute Brampton-Caledon and Brampton Transit. Subsequent to the July 2012 Council report, staff were able to accomplish two of the three recommended improvements. This program is now offered to full-time, contract employees (over 6 months), regular and contract staff who work at least 21 hours a week, and students who work for the Region for at least 6 months. Upon registration, participants must commit to purchasing the transit pass for at least four consecutive months. Regional staff will pay a taxable benefit on 35% of the discount price paid by the Region of Peel. Human Resources-Payroll calculates the amount and includes it on their T4 document. 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 $102, increasing gradually to its present price of $115 in In addition, starting in January 2014, the monthly discount transit pass feature has been included in the PRESTO system and a separate discount transit paper pass will no longer be required. Between September 2010 and September 2013, 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: V
3 A total of 1,938 monthly passes were sold to 189 registrants over the course of the three year pilot. Thirty-four percent of participating staff shifted behavior from driving alone to taking transit to work; 66 percent used the monthly pass vs. being occasional transit users. The total number of passes sold increased over time, and continued to grow as recommendations from 2012 report were implemented. Eighty three percent of registered staff indicated financial savings as the main reason for participating in the DTP pilot program. Main reasons for staff to withdraw from the program included changes in travel pattern, work/home relocation, and an inability to commit and complete the required minimum four-month commitment period. Staff who withdrew from the program were generally satisfied with the program and would recommend the program to other staff. The Region's Discount Transit Pass Program is the first of its kind to integrate with the PRESTO fare integration system. Metrolinx values Peel's leadership and is looking forward to using the data gathered by the Region to launch this program at a larger scale. In consultation with staff, the most pressing barrier to the expanded success of the Discount Transit Pilot Program is that Brampton Transit is the only service provider participating. The DTP program does not integrate with Mississauga Transit - MiWay. Only staff who live and commute in the City of Brampton are able to participate and benefit from using the Brampton Transit discounted monthly pass. Regional and City of Mississauga staff continue to work together to finalize the arrangement in developing a monthly transit discount pass program similar to that of Brampton Transit. There is a plan to offer the Mississauga Transit - MiWay DTP program to Peel staff later in 2014; and staff anticipate that this would significantly increase participation in the DTP program. The City of Mississauga offers a Discount Transit Program to its staff with 102 City of Mississauga employees participating. The City of Brampton is currently reviewing its Discount Transit Program and will provide a report to Brampton Council later in With one-third of the DTP participants shifting their travel behaviour from single-occupant drivers to transit, and achieving a 47 percent relative revenue increase for Brampton Transit compared with historic staff transit use, the pilot DTP has achieved continued success. Based on these results from the Region, Smart Commute Brampton-Caledon and Brampton Transit have used the Region's program as a template to offer other employers, and the program has been welcomed by 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 pilot DTP will be extended for another 18 months. The extended pilot will begin in April 2014 and will be evaluated after 12 months of implementation. The evaluation will determine whether the DTP program should end or become a permanent program available to Regional employees. To further increase staff participation and improve Peel's modal share, the following refinements to the program are being made: Continue to work closely with Mississauga Transit to include the MiWay monthly discount pass to the Region's existing program. This will better serve Regional V /04
4 ~-~\ -4- employees who work at Mississauga work sites and increase transit ridership in Peel Region. Monitor the integration of PRESTO fare system and evaluate how this benefits the program. There are seasonal fluctuations in the number of program participants. For the period of this final pilot period, staff will survey participants with a view to estimating the number of staff perkir.g spaces that this program can help to reduce. FINANCIAL IMPLICATIONS With the improved DTP, it is estimated that the extended pilot program can attract more staff to participate, as well as those who are located at Mississauga work sites. It is estimated that, with the enhancements made to program, the DTP program participation rate will increase considerably. Sufficient funding has been allocated in the Employee Trip Reduction component of the Public Works budget to accommodate the DTP program. CONCLUSION The Region of Peel's DTP Pilot Program has been expanded 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, caring for the well-being of Regional staff, and making Peel's communities more sustainable. The Region's participation in the DTP Program is another example of the Region leading in the field of Transportation Demand Management and Sustainable Transportation, and provides an opportunity for agencies such as Metrolinx, PRESTO, Brampton Transit and Smart Commute Brampton-Caledon, employers and other municipalities to follow suit. Q JJt Dan Labrecque Commissioner of Public Works Approved for Submission: D. Szwarc, Chief Administrative Officer /"J For further information regarding this report, please contact. Judy Yack, TDM Analyst at {j2-j'xtension 4553 or via at judy.yack@peelregion.ca ~ Authored By: Judy Yack, TOM Analyst d(,_ c. Legislative Services : nager, Financial Support Unit (FSU) ~02
5 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 report provides a background to the project, an overview of the existing key program terms, changes based on recommendations in the Council Report dated May 22, 2012, and a summary of data collected in the program since inception in Fall The data used in this analysis is retrieved from registration surveys (Schedule 1) which participants were required to fill out to enroll in the program, the monthly sales reports, and the withdrawal survey (Schedule 2) which participants were required to fill if they discontinue their participation in the program. 1. Background On June 24, 201 0, 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 was developed with the following key goals and objectives: Provide financial savings and affordable mobility to staff Improve employee productivity and recruitment/retention 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 2010 report, the pilot was to be evaluated after the first 12 months to measure the success and operation of the program. In an information progress report to Council dated May 22, 2012, the pilot was assessed and it also indicated that the pilot would be extended for another 18 months followed with an evaluation. The May 2012 report suggested improving the DTP pilot to include expanding the flexibility of program eligibility, working with Mississauga's MiWay Transit to expand the program to include Mississauga monthly passes, as well as to integrate the Discount Transit Pass with the PRESTO fare integration system. Staff were able to complete two out of the three recommendations listed above, which include expanding eligibility criteria by including part-time staff who work a minimum 21 hours per week, and integrating the program with PRESTO. This assessment includes the entire Discount Transit Pass pilot to date, from September 2010 to September The data is retrieved from registration, sales and withdrawal data collected over the course of the pilot. 2. 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 Smart Commute Peel who also administers program; Participants must commit to purchasing a pass for a minimum of four consecutive months upon registration; Participants must consecutively purchase the discount pass as per the program requirements; Participants must wait four months to re-join after withdrawing from the program; V /04
6 APPENDIX I ~'3\-t.D - 2- Participants are required to be any of the following in order to eligible; full-time staff, fulltime 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; Participants need to abide to pre-determined Brampton Transit monthly sales periods; Participants qualify for Canada Federal Transit Tax credit for public transit. 3. Findings Registration Data To register for the DTP program, participants are required to complete a commuter information survey. The survey (Schedule 1) collects information on previous commute mode, frequency of transit usage, fare media currently used, and reasons for joining the DTP program. Within the first 36 months (October 2010 to October 2013), a total of 189 registrants participated in the DTP program that purchased at least one monthly transit pass. A total of 1,938 Brampton Transit monthly passes were sold over this period. Information collected for these 189 registrants has been carefully examined for this analysis. i) One third (34 percent) of participants were previously driving alone to work as their primary mode of commute Mode of Commute Prior to Joining DTP Program (All) Walk/ Bicycle 4% Get Dropped Off Carpool 4% 7% Transit 51% Drive Alone 34% As expected, existing transit users would easily adapt to the program, where staff can take full advantage of the employee discount. More importantly, a significant portion of the registrants (34 percent) were previously driving to work alone. This proportion has increased over time.
7 APPENDIX I ~-"6\-~ - 3- ii) Registrants joined the DTP Program due to financial savings Why do you Participate in DTP Program? (All) New home/work location Skipped Question 2% Environment concern 6% Save time 2% Save money 83% A majority of registrants (83 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. Sales Data This information is gathered from monthly DTP Transit monthly sales reports. It provides information on current transit usage, program take-up and financial impact. iii) The number of passes sold each month continues to relatively increase DTP Transit Pass Sales by Month Sales within Analysis Period!] Sales beyond Analysis Period
8 APPENDIX I Between October 2010 and September 2013, a total of 1,938 monthly transit passes were sold. The DTP transit pass sales reflect an increase in new registrants, as well as the ability to maintain support from existing purchasers. It is noted in this analysis that participation rates were particularly low in June and July 2012 due to the Region of Peel's labour dispute. Subsequent to expanding eligibility to staff in September 2012, the participation rate was increased by approximately 44 per cent. It is important to highlight that the sales records continued to grow after the analysis period (October and November 2013). Sales decreased in December 2013 and January 2014 due to program constraints in accommodating the PRESTO fare integration changes in a short timeframe. Staff anticipate that sales in February 2014 and beyond will increase steadily, as PRESTO is fully integrated. iv) DTP program has increased Brampton Transit's relative revenue from Regional staff by 47 percent over the total assessment period (October 2010 September 2013) I Total Assessment Period Revenue Analysis - Brampton Transit (October September 2013} Total Number of Monthly Transit Passes Sold 1,938 Revenue from DTP $179, Revenue without DTP $121, Net Revenue $57, Revenue increase by percentage 47.25% The annualized analysis indicates that the DTP program has increased Brampton Transit's relative revenue from Regional employees by 47 percent, which is equivalent to a $57,650 gain in value. Withdrawal Data When a participant is w1tndrawn 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. v) Participants withdrawn from the DTP pilot are satisfied with the program Up to September 2013, 90 (of the 189 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 Ending employment at Region of Peel Unable to commit and complete the minimum requirement of a four month commitment 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: Make discount also available for MiWay (Mississauga Transit) and GO Transit Extend purchase period (i.e. longer cut-off date)
9 APPENDIX I More locations to purchase passes Integrate pass with PRESTO fare system Allow participants to rejoin the program prior to the current four month waiting period Schedule 1 - DTP Program Registration Survey Commuter Information J. How do you normally commute to wort~ D Drive Alone D TranSit D BICycle 0 Walr. 0 Carpool DGet dropped oh 2. Over the course of the last 12 months. have you ever used public transit lo commute to worl<? Ores 0No 3 How often do 'fou use publ!c frnns1t to commute to work~ 0 Every dav 0 M0sf days 0 Occasionally 0 Very rarely 0 Never 4 What IS the distance of your comm Jte to work fone way)'? Oo-20!ml km I<.m 061+1:m ONotsure S. In the past!2 months, when using transit to commut'=' f,:l won., which trans1t system(s) have you used (chec~ d1 thai acl'f:tl~ 0 TTC Olltampfon Transit 0 Ool:v1Ye Transit 0 Mlsstssaugo Tronsot 0 GO Transtt 0 VII/ A fyrt) 0 Hamilton TranSit ~. When you!ravel on Brompton Transit what lore medic do you usually use~ 0 Monthly pass D Weekly pass D 10 or 5lickets D Cash D PRESTO O::ord 7 Why did yol dec1de. fo pmfictpote. in the discounted transit pass program~ D Sove money D StJve time D Environment c..:>ncem D New home/wort.. tocaiion D Improve health 8. Before joining this program had you heard of Smart Commute Peel~ Oves ONo f. How1mportant an ~sue do you lh1nl< 1Tansportat1on is in the Greater Toronto and Hamiffc.n Area? 0 The most imp<xfant 0 One of the m:>st 0 An Issue. but not an 1mportant ooe D Not reoll'y an 1ssue
10 APPENDIX I Schedule 2 - DTP Program Withdrawal Survey CANCELLATION AUTHORIZATION To authorize termination 1n -the R~;:gionof Peel's Discount Transit Pass Program, please read the following statement and initial the followmg box if you agree. D lniflainere 1 understand that by ending my participation, I cannot tejoin the program for a period of four months. 1 must submit th1s form m 1ts entirety by the 15th!jay of the month pncv to the month of canceliation. I understand that If submitted after the 15th day, my form Will be processed the following month. l understand that passes are non-refundable PROGRAM FEEDBACK r.: ,.._ ,,.,,_,, Why did you ongjnijiiy JOin the Re>qionot Peel's Discount Trl]nsit Pass Proqram~;~ 2. Why are you ending part1cipat1on 1n the Regionof Peel's Discount Transit Pass Program? 3 woul-:l you wcommend th1s program to a friend or colleague>:> Oves D No 4. If you could improve one thing for the Discount Transit Pass Program, wh-:~t would 1t be?
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