paper farecard elimination - wmata farecard elimination is the culmination of a ... metro's...
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Finance & Administration Committee
Action Item III-A
June 11, 2015
Paper Farecard Elimination
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Washington Metropolitan Area Transit Authority
Board Action/Information Summary
TITLE:
Paper Farecard Elimination
PRESENTATION SUMMARY:
Metro is on track to eliminate paper farecards in the Metrorail system by early 2016. Toadvance this improvement, the Board must consider and approve a Title VI equity analysis (showing no disparate impact or disproportionate burden on minority and low income riders) and the associated public involvement staff report. Staff also seeks Board authorization to take any further actions necessary to eliminate paper farecards on Metrorail.
PURPOSE:
Approve the Title VI equity analysis and public outreach staff report associated with the elimination of paper farecards, and authorize staff to take further actions necessary to eliminate paper farecards on Metrorail.
DESCRIPTION:
Key Highlights:
Metro is on track to eliminate paper farecards on Metrorail early in 2016. This willbe the culmination of a series of actions taken by the Board since 2009 toincentivize SmarTrip® use and to shift fare products and passes over toSmarTrip®, in line with the Board's fare policy principle adopted in 2010 to"encourage the use of cost-effective [fare] media."Based on staff analysis, the elimination of paper farecards on Metrorail will notresult in a disparate impact on minority populations or a disproportionate burden on low-income populations.During the public outreach efforts, Metro heard from social service providers whocurrently purchase paper farecards and distribute them to clients. Metro staff are prepared to assist these providers in transitioning to SmarTrip®, either through the use of Compact Point of Sale (CPOS) devices or through SmartBenefits.
Background and History:
Metro’s Board-adopted fare policy principles from 2010 include a mandate to “encourage the use of cost-effective [fare] media.” Relative to the contactless SmarTrip® card, the 1970s-era technology used by the paper-magnetic farecard is more difficult and time-consuming to maintain, and Metro has taken steps over time to encourage the use of SmarTrip® over paper farecards. Staff has evaluated potential
Action Information MEAD Number:201577
Resolution:Yes No
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impacts to minority and low income customers in conjunction with each step in the process.
The proposed action seeks to take the final step of eliminating paper-magnetic farecards, moving all Metrorail customers to the SmarTrip® card, and setting the stage for the next generation electronic payment program. As of October 2014, more than90% of rail customers use SmarTrip® and will not be affected by this action.
Paper farecard elimination is the culmination of a process that started in 2009:
In 2008, paper usage on Metrorail ranged between 30 and 40 percent on an average day. Beginning in January 2009, paper transfers were no longer accepted for bus-to-rail and bus-to-bus transfers, meaning that customers could no longer receive a transfer discount unless they used SmarTrip®. To mitigate impacts to cash-paying customers, Metro distributed 50,000 free SmarTrip® cards to social service agencies throughout the Compact region. By 2010, paper farecard use had dropped to 20 to 30 percent of rail ridership.In 2010, Metro’s Board of Directors approved a $0.25 surcharge for each Metrorail trip using a magnetic paper farecard as part of the FY2011 budget. Following that action, paper farecard usage again dropped, and by 2012, there were approximately 93,000 weekday trips (13 percent of total ridership) that used a paper farecard to pay a distanced-based fare. In July 2012, the Board raised the surcharge from $0.25 to $1.00 per trip.In Fall 2012, SmarTrip® card dispensers were introduced at Metrorail stations. These dispensers allowed the purchase of SmarTrip® cards with a pre-loadedvalue.In Oct 2013, the price of SmarTrip® cards was reduced from $5.00 to $2.00.In May 2014, as part of the adoption of the FY2015 Capital Budget, the Board approved the use of funds from the SmarTrip® reserve to support the retrofit of Metro's Fare Vending Machines to dispense SmarTrip® cards instead of paper farecards. This retrofit will be underway in the Fall of 2015.In May 2015, as part of the adoption of the FY2016 Operating Budget, the Board directed staff to transition the Transit Link Card (TLC) pass -- one of the last remaining paper farecard pass products -- over to SmarTrip®, in cooperation with Metro's regional partner agencies.
Discussion:
On an average weekday, 37,400 riders use paper farecards to make a distanced-based trip. Currently, these riders pay an additional $1.00 surcharge on their fare for every trip they make using a paper farecard. The elimination of paper farecards will impact riders in two ways. First, all passengers who currently use a paper farecard may be required to purchase a SmarTrip® card for a one-time fee of $2.00 to ride Metrorail. Second,passengers who currently use a paper farecard to pay a distanced-based fare will see a reduction in fare of $1.00 per trip. In other words, paper farecard riders who switch to SmarTrip® will save money after their first Metrorail round-trip. They will also enjoy free transfers on Metrobus and discounted transfer from Metrobus-to-Metrorail.
Based on the most recent survey data, low income riders constitute 14.5 percent of total riders using the paper farecard. With a difference of 3.2 percent from the overall system
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average of 11.3 percent low income riders on Metrorail, there is no disproportionate burden from the elimination of paper farecards. Minority riders use paper farecards at a rate lower than the system average, at 36.3 percent compared to the 43.2 percent system average. Therefore, removing this fare media will not have a greater adverse impact on minority customers, and so there is no disparate impact.
The Public Participation Input results highlighted concerns raised by social service providers that currently rely on paper farecards to provide Metrorail trips for their clients. There are two viable alternatives that can meet providers' needs and save them money in some cases:
1. Compact Point of Sales (CPOS) devices: These are the desktop units used by WMATA's sales offices and retailers like CVS and Giant to add value and passes to SmarTrip® cards. Social service providers with higher sales volumes could be set up with CPOS devices. WMATA would simply bill the provider for the fare value added to each client's SmarTrip® card.
2. SmartBenefits: Social service providers with lower sales volumes could be set up in the SmartBenefits program to allow them to add fare value to each client's card.
To the extent that clients re-use their SmarTrip® cards, providers will save the $2.00 per roundtrip paper farecard surcharge using either method above. Providers that must issue a new SmarTrip® card to each client will break even on each Metrorail round trip,since the $2.00 card cost is offset by avoiding the paper farecard surcharge.
FUNDING IMPACT:
TIMELINE:
No funding impact from this action to accept the Title VI equity analysis and Public Involvement staff report.
Project Manager: Jim BongiornoProject
Department/Office: CFO/TRES
Previous Actions
May 2014: Board approved the retrofit of the existing 'blue' fare vending machines to dispense SmarTrip cards® instead of paper farecards.Jul 2014 - Jul 2015: Vendor development of retrofitsolution.
Anticipated actions afterpresentation
Jun 2015: Begin marketing campaign and coordination with social service agenciesAug/Sep 2015: Lab testing and live pilot of retrofitted ticket vendors at three stationsOct 2015: Start full deployment of retrofit kits -- paper farecard sales end station-by-stationJan 2016: Complete retrofit, all paper farecard sales endMar 2016: Only SmarTrip® cards will be accepted at the faregates
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RECOMMENDATION:
Approve Title VI equity analysis and Public Involvement staff report and authorize staff to take further actions necessary to eliminate paper farecards on Metrorail.
Jun 2016: Trade-in of paper farecards ends
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Paper Farecard Elimination
Finance & Administration CommitteeJune 11, 2015
Washington Metropolitan Area Transit Authority
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Purpose
Approve Title VI equity analysis and Public Involvement staff report in preparation for elimination of paper farecards on Metrorail
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Moving Toward 100% SmarTrip®
7-Day Bus Pass Moved
to SmarTrip®
Paper Bus TransfersEliminated
Paper Farecard
SurchargeInstituted
Introduction of SmarTrip®
Card Dispensers
SmarTrip®
Cost Reduced from $5 to $2
Retrofit of Fare Vending
Machines Approved
TLC Pass Moved to
SmarTrip®
2009 2010 2012 2013 2014 20152010
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Title VI Equity Analysis of Paper Farecard Elimination
• No impact on >90% of riders already using SmarTrip®
• No Disparate Impact on minority riders or Disproportionate Burden on low-income riders
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Input Received During Public Participation
• Social service providers rely on paper farecards to provide trips for clients
• Two solutions to meet provider needs and potentially save them money:• Compact Point of Sale (CPOS) devices• SmartBenefits
• If clients re-use SmarTrip® cards, providers will save the $2.00 per roundtrip paper surcharge
• Providers that must issue a new SmarTrip® card to each client will break even
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Next Steps
DATE ACTION
Jun 2015 Begin marketing campaign and coordination with social service agencies
Aug/Sep 2015 Lab testing and live pilot of retrofitted ticket vendingmachines at three stations
Oct 2015 Start full deployment of retrofit kits – paper farecard sales end station-by-station as completed
Jan 2016 Retrofit completed, all paper farecard sales end
Mar 2016 Only SmarTrip® cards accepted at Metrorail faregates
Jun 2016 Trade-in of paper farecards ends
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Recommendation
Approve Title VI equity analysis and Public Involvement staff report and authorize staff to take further actions necessary to eliminate paper farecards on Metrorail
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ATTACHMENT A
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APPENDIX A: Elimination of Paper Farecards Demographic Information
Paper Farecard Users who Self-identified as Latino/Hispanic Based on 2012 Metrorail Passenger Survey Data
Number %
Non Hispanic 26,313 Hispanic 1,709 6.10% Total 28,022 Of the 1,709 identified Number % Tourists 329 19%
Arlington County 83 5% City of Alexandria 50 3% City of Falls Church 6 0% District of Columbia 424 25% Fairfax City 15 1% Fairfax County 194 11% Montgomery County 362 21% Prince George's County 116 7% Other in MD or VA 131 8%
Jurisdiction of Residence of Paper Farecard Users Based on 2012 Metrorail Passenger Survey Data
Number %
Tourists 7,941 28%
Arlington County 1,846 6% City of Alexandria 953 3% City of Falls Church 143 0% District of Columbia 7,020 24% City of Fairfax 98 0% Fairfax County 1,936 7% Montgomery County 3,781 13% Prince George's County 2,281 8% Other in MD or VA 2,833 10%
Top 10 Stations – Number of Paper Farecards Low Income Users Based on 2012 Metrorail Passenger Survey Data
Top 10 Stations - % of Paper Use by Low Income Customers Based on 2012 Metrorail Passenger Survey Data, Weekday Trips
Gallery Place-Chinatown Minnesota Avenue Woodley Park-Zoo Deanwood Columbia Heights Anacostia Union Station Capitol Heights Silver Spring Benning Road Dupont Circle Georgia Avenue-Petworth Anacostia Columbia Heights Ronald Reagan Washington National Airport Rhode Island Ave-Brentwood
Pentagon Pentagon Metro Center Fort Totten
Top 10 Stations - % of Paper Use Overall Based on July 2014 Sales Data
Top 10 Stations - % of Paper Use Overall Based on October 2014 Sales Data
Union Station* Union Station* Ronald Reagan Washington National Airport
Ronald Reagan Washington National Airport
Vienna* Metro Center* Smithsonian* Foggy Bottom Metro Center Dupont Circle Foggy Bottom Pentagon City Pentagon City Gallery Place-Chinatown Dupont Circle Crystal City* Gallery Place-Chinatown Wiehle-Reston East Shady Grove Vienna *Top 3 stations on the weekends
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APPENDIX B: Bulk Paper Farecards for Social Service Agencies
Organization name and sales numbers are based on the Office of Treasury bulk sales database.
TOTAL PURCHASES TOTAL SALES1 ARLINGTON CO DEPT OF HUMAN SER 201 $2,005 Completed2 ARLINGTON CO GOVT EMPLOYMT CTR 1,250 $37,000 Completed3 ARLINGTON COUNTY GOV'T 20 $600 Not completed4 CATHOLIC CHARITIES (LT KENNEDY 578 $5,780 Completed5 CHILDREN HOSPITAL 960 $8,900 Not completed6 CHILDRENS HOSPITAL 210 $1,841 Not completed7 CHILDRENS NATL MEDICAL CENTER 450 $1,850 Enrolled in Smart Benefits8 CITY OF ALEX - DEPT HUMAN SVCS 262 $4,240 Completed9 CITY OF ALEXANDRIA (1) 596 $5,960 Completed
10 CITY OF ALEXANDRIA (2) 258 $3,290 Completed11 CITY OF ALEXANDRIA (3) 167 $835 Not completed12 DC CHILDREN'S ADVOCACY CENTER 900 $1,800 Completed13 FAIRFAX CO. DEPT OF FAMILY SER 90 $900 Completed14 GEORGE WASHINGTON UNIVERISTY 1,524 $16,570 Completed15 GREEN DOOR 80 $500 Completed16 HOWARD UNIV - CIDMAR CLINIC 179 $2,139 Completed17 HOWARD UNIVERSITY 204 $2,275 Completed18 HOWARD UNIVERSITY HOSPITAL 440 $2,200 Ordered tokens not paper19 LACLINICA DEL PUEBLO,INC 301 $1,194 Completed20 MEDSTAR WASH. HOSPTIAL CENTER 18 $408 Not completed21 PG COUNTY HEALTH DEPARTMENT 333 $6,660 Not completed22 PG COUNTY HEALTH DEPT-NO. REGI 164 $4,898 Not completed23 PRINCE GEORGE'S CO HEALTH DEPT 728 $14,555 Completed24 STATE OF MD-DEP OF JUVEN. SVC 1,100 $5,500 Not completed25 US PROBATION OFFICE FOR THE DC 227 $2,267 Completed26 VA DEPT OF CORRECTIONS-29 PROB 230 $920 Not completed27 VETERANS AFFAIRS MED. CENTER 6,700 $34,000 Completed28 WHITMAN-WALKER HEALTH CLINIC 3,341 $19,662 Not completed
TOTAL 21,511 $188,748
OTHER ORGANIZATONS1 Alexandria Criminal Justice Services Completed2 Arlington Mill High School Completed3 Coalition for the Homeless Completed
4 Office of the State Superintendent of Educaton/Division of Student Transportation Completed
5 So Others Might Eat Completed
PAPER FARECARD ACTIVITY LAST YEARID ORGANIZATION NAME SURVEY RESULT
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ATTACHMENT B
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