BUDGET 2003 – RECOMMENDED SOLUTIONS – ENHANCED CUSTOMER SERVICES AND ADDITIONAL REVENUE SOURCES FOR TRANSIT
Report to/Rapport au:
Transportation and Transit Committee/
Comité de transport & des services de transport en commun
and Council/et au Conseil
December 2, 2002/le 2 décembre 2002
Submitted by/Soumis par: R.T. Leclair, General Manager/Directrice générale,
Transportation, Utilities and Public Works/Transport, services et travaux publics
Contact/Personne-ressource: G. Diamond, Director/Directeur,
Transit Services/Service du transport en commun
842-3636 ext. 2271, gordon.diamond@transpo.ottawa.on.ca
| Ref N°: ACS2002-TUP-TRN-0013 |
SUBJECT: BUDGET 2003 – RECOMMENDED SOLUTIONS – ENHANCED CUSTOMER SERVICES AND ADDITIONAL REVENUE SOURCES FOR TRANSIT
OBJET: BUDGET 2003 – SOLUTIONS RECOMMANDÉES – AMÉLIORATION DES SERVICES À LA CLIENTÈLE ET NOUVELLES SOURCES DE REVENUS POUR LE TRANSPORT EN COMMUN
REPORT RECOMMENDATION(S)
That the Transportation and Transit Committee recommend to Council:
1. The implementation of a ‘Gold Pass Permit’ program at Eagleson, Baseline, Fallowfield, Greenboro and Orléans Park and Ride lots, which allows users the option of parking in a reserved area close to the transit platform for a fee of $35/month; and,
2. That staff be directed to introduce other revenue sources on transit facilities, including Park and Ride, to include services such as the installation of ATMs, vending machines, mobile vendors and the introduction of a Convention Pass.
RECOMMANDATION(S) DU RAPPORT
Que le Comité des transports et des services de transport en commun recommande au Conseil :
1. la mise en œuvre, aux parcs-o-bus Eagleson, Baseline, Fallowfield, Greenboro et Orléans, d’un programme de ‘permis Or’ offrant aux usagers la possibilité de garer leur véhicule dans un endroit réservé près de la plate-forme de transport en commun, moyennant un tarif mensuel de 35 $ ;
2. de donner instruction au personnel de trouver de nouvelles sources de revenus pour les installations de transport en commun, dont les parcs-o-bus, ce qui pourrait comprendre des guichets automatiques, des distributrices, des vendeurs itinérants et des laissez-passer à l’intention des participants à des congrès.
BACKGROUND
This report covers two areas that were proposed to generate additional revenues in the 2003 draft Operating Budget. These are Park and Ride charges, from which $200,000 in new revenues was identified, and opportunities to provide additional customer amenities at Transitway stations, such as ATMs, vending machines and other conveniences. It was estimated that $150,000 in new revenue could be generated.
Since providing the initial ideas and estimates, staff has developed a firm recommendation for Park and Rides that would result in estimated revenues of $95,000 - $180,000 in 2003. This proposal and its rationale are provided in this report. Staff is continuing to investigate other revenue options and a brief description of progress to date is also provided.
DISCUSSION
Park and Ride
Current Status
Park and Ride facilities were first introduced in the East End at Place d’Orléans in 1986 followed by the lot at Baseline Station in 1987. Both these lots have since been expanded and the Place d’Orléans lot was relocated in 1990 when the Transitway Station opened. Park and Ride lots were provided at Greenboro in 1994, Eagleson Road in 1995 and at Fallowfield Road in 2000. Fallowfield has been expanded in each of the past two years to keep up with demand. In 2002, new lots were introduced at Trim Road and at eight sites as part of the rural service initiative. Currently there are over 4,000 available spaces with 2,950 of them at the sought-after, prime locations of Eagleson, Fallowfield, Baseline, Greenboro and Orléans (Exhibit 1). With the exception of Fallowfield, all prime-location lots are at capacity.
Although the original objective of the Park and Ride program was to provide access to transit for people outside the UTA, it became evident that many people from the urban area also found the lots attractive. A survey carried out in November 2002 showed that, although percentages varied by Park and Ride lot, approximately 54% of users are from inside the UTA.
The transit service at all five prime location lots is extremely good. The lots have high frequency Transitway service supplemented by other direct-to-downtown routes in the peak periods. If customers choose to buy an express bus pass ($74.50), they can catch a bus every one or two minutes from these lots. If they decide to buy a less expensive regular pass ($60.50), service on Transitway Routes is every ten minutes or better. The rural Park and Ride lots as well as the Trim Road lot do not have this high level of transit service and have much lower levels of usage.
The Park and Ride lots cost approximately $300,000, annually, to operate. These costs cover general maintenance, snow removal, security and surveillance. The capital costs are in the range of $8,000 to $10,000 per space. Operating and capital costs are covered from the Urban Transit Area transit levy.
Currently, all lots are free with the exception of Baseline where a monthly charge is in effect. The main purpose of this charge is to discourage the use of the lot by Algonquin students. Bus pass users may buy a monthly parking permit, which guarantees a parking space in the lot provided arrival is before 11:00 a.m. Permits cost $9.50 for people who live inside the UTA and $15 for rural residents. Annual revenues are in the order of $24,000.
Survey
As part of an ongoing monitoring program, a survey of users at the Eagleson, Fallowfield, Baseline, Greenboro and Orléans Park and Ride lots was carried out on Thursday, November 14. A major objective of the survey was to determine whether there have been any shifts in lot usage due to the introduction of rural service in September 2002. Two new questions were added to the survey to determine the views of users to charging for parking. Although the survey was just conducted and final results are still being tabulated, preliminary results of the two ‘pay for parking’ questions are available (Exhibit 2).
The first new question asked respondents whether they would be willing to pay $35 per month to have access to a reserved parking area adjacent to the transit station platform. Nine percent of all customers indicated they would be likely to take up this option, while 74% said they would not. The remaining customers were not sure how they would react. Orléans and Eagleson patrons showed the highest approval rating for the program with 11% agreeing with it, while Fallowfield had the lowest rating, which is understandable as the lot has not yet reached capacity.
The survey also asked whether customers thought it would be reasonable if a monthly permit system were introduced for the entire Park and Ride lot at a price of $15 per month. Twenty-three percent of respondents agreed with the idea while 65% disagreed. Baseline had the highest rating at 43%, followed by Greenboro at 33%. Fallowfield had the lowest rating at 9%.
Options Considered
Transit Services and Parking Operations and Enforcement staff have reviewed the options. Several approaches to charging for parking were examined. These ranged from installing ‘pay and display’ ticket dispensing machines and charging a daily rate, charging for a percentage of the parking spaces at each lot, to charging everyone a flat monthly rate.
A review of the programs at several other transit properties across Canada showed that no city is charging for all parking spaces (Exhibit 3). The general pattern is that any charge for parking is limited to a fairly small subset of all spaces, although some cities have implemented pay parking at individual parking lots. Calgary has just introduced a paid reserved area ($50 per month) at one lot as a pilot project. GO Transit offers reserved individual spaces in about 5% of their 30,000 spaces for $60 a month. There is some charging of daily rates but this is not widespread.
Of the five prime-location lots, all but Fallowfield are operating at capacity and it is anticipated that Fallowfield will be at capacity within the next year. Some customers have expressed concern that they do not know whether there will be an available space to park until they arrive at the lot. A pricing policy that carries with it a guarantee of a parking space may be attractive to many users, particularly those customers in the rural areas who do not have access to bus service or a rural Park and Ride lot in their immediate vicinity. The introduction of a pay for parking policy could shift some price-sensitive customers to use a bus in their neighborhood instead of driving to the lot and incurring the added parking expense. However, an across the board pay for parking policy would likely result in ridership loss and in some customers taking their cars all the way downtown, rather than using transit.
Pay and Display
Installing pay and display machines at all lots and charging everyone a daily parking fee of $1.00 was considered but is not recommended because of the inconvenience it would impose on Park and Ride lot users, particularly those who use the lot regularly. With pay and display machines, customers would have to park their vehicles, go to a machine, deposit $1.00 and get a receipt, return to their vehicle and place the receipt on their dashboard as proof of payment. This daily routine would be a major inconvenience to customers who simply want to quickly proceed to their bus after parking their car. The inconvenience, coupled with the increased cost, would most likely result in a loss in ridership. In addition, customers arriving each day just when the lot is filling up would not know beforehand whether they would get a spot or not. Were it possible to operate the lots at capacity in this way, net revenues of up to $400,000 per year could be achieved. There would also be setup costs of close to $200,000.
Monthly Fee for All Users
A plan to charge everyone a monthly fee of $15.00 was developed but is not recommended. Under this plan, lot attendants would be stationed at all lots from 6:30 a.m. to 2:30 p.m. each day and would be available to sell permits, answer customer inquiries and provide enhanced security. This option is not recommended because of its potential impact on ridership. From the survey, 65% of Park and Ride users did not think it would be reasonable to charge $15 per month for a permit. It is inevitable that some people who currently use the lot would be deterred by the charge and would decide to use their car for their complete trip. The net increase in revenue from this option would be in the order of $200,000 if the lots were full.
Reserved Parking Area
A reserved space program, which would be entirely optional for customers, similar to those in Calgary and GO Transit, was developed. The survey results showed that 9% of current Park and Ride users would be interested in this type of program at a price of $35 per month. To generate revenue, provide customers with a new and convenient option and avoid ridership loss, staff is recommending that a ‘Gold Pass’ permit system be introduced at the five main Park and Ride lots. A full description of the program follows.
Gold Pass Permits
The Gold Pass permit system would be targeted at customers who use Park and Ride facilities every month. Twenty percent of the parking spaces at each lot closest to the transit station platforms would be identified as a Gold Pass area and reserved for customers who purchase a Gold Pass at $35 per month. The remaining 80% of parking spaces would be free. Customers with a Pass would be guaranteed a parking spot regardless of the time they arrive at the lot. Sales of the passes would be handled through OC Transpo’s five Sales and Public Information offices. Customers would be able to ‘sign up’ for a monthly pass and make arrangements to pay the $35 fee each month. The most convenient method of payment for both customers and OC Transpo would be pre-authorized payment from the customer’s bank account or to provide a series of post-dated cheques for a year. Customers enrolled in the Gold Pass program would be mailed a new pass each month. These would have to be clearly displayed in their car for random validation checks. Unauthorized cars in the Gold Pass area would be ticketed.
The main advantage of the Gold Pass program for customers is that it guarantees a parking spot within the reserved area immediately adjacent to the passenger platforms. Only those customers who make the choice to do so, need pay. Free parking would still be available in the rest of the lot, so there would be no negative impact on transit ridership. The only downside to the program is the associated administrative and marketing costs and the risk that the target revenues may not be achieved if the take-up on the offer is low. However, experience with GO Transit has been positive. The designated Gold Pass area would be matched to demand to avoid wasting parking spaces.
The recent Park and Ride survey showed that at least 9% of all those using the lot would be willing to pay $35 for a space in the reserved area. In time, the take-up of the offer could eventually reach 20% of the 2,950 parking spaces at the Eagleson, Baseline, Fallowfield, Greenboro and Orléans lots. It is estimated that between 300-600 spaces would be sold for 10 of 12 months and would generate, after expenses, between $90,000 and $180,000 per year. The program could be operational by February 2003 and would produce net revenues in the range of $85,000 to $170,000 in 2003.
The Existing Permit System at Baseline Park and Ride
The Baseline Park and Ride lot presents a unique problem due to its proximity to Algonguin College. Monthly parking rates to park at Algonguin are very high so many students chose to park at Baseline to avoid these charges. Currently, Baseline is the only lot where parking charges are applied. Charges are set so that residents within the Urban Transit Area pay $9.50 a month while those living outside the Urban Transit Area pay $15.00 a month. However, in reality, the permits are sold at the Baseline Quickie Store, where no distinction is made between people living inside and outside the UTA, and all permits are sold for $9.50. It is recommended that the general charge at Baseline be set at $15 for all spaces except for those covered by the $35 Gold Pass program. It is estimated that about $10,000 in additional revenue each year will be realized with this increase to $15.00.
Other Customer Service Enhancements and Revenue Sources
Staff has identified a number of initiatives with potential for implementation in 2003 that focus on achieving results through increased use of the Transitway Stations. All of the opportunities under consideration would provide enhanced amenities for customers. Each initiative is briefly described below:
Automated Teller Machines
There has been a recent movement to ‘locational convenience’ in the Automated Teller Machines industry. It is now commonplace to see ATMs situated wherever consumers have a need to get money. Discussions have been held with some of the suppliers of ATM services and there appears to be a strong business case for them to invest in locating ATMs at major Transitway stations.
From research done to date, it is estimated between $100,000 and $140,000 could be generated in 2003 through an agreement with an ATM supplier to install 10 machines at key Transitway stations. Staff is now preparing a Request for Proposal and it is hoped to have the first ATMs installed by March.
Vending Machines at Select Locations
Staff has had discussions with a supplier who is interested in installing vending machines at a number of Transitway stations. Currently, there are kiosks at a number of stations and the introduction of vending machines would complement this program. Although this is in the early stages of development, it is estimated that the introduction of vending machines could produce between $10,000 and $30,000 in revenue in 2003, or $30,000 annually.
Mobile Food Carts
Currently, there are five Gateway, and two Quickie kiosks at Transitway stations. There may be an opportunity to introduce mobile food wagons at stations not now served with a kiosk. These kiosks could be operational during the morning and afternoon high volume commuting periods and would offer customers food, beverages, newspapers and flowers etc. It is estimated this could generate from $15,000 to $50,000 in annual revenue, and $15,000 in 2003.
Introduction of a Convention Pass
OC Transpo introduced a special convention pass this past summer. This pilot project generated incremental revenue of $18,000 from 4,250 convention visitors who were in the City for the World Youth Conference. Staff will be building on this pilot project and will aggressively market the convention pass program to organizations that are holding both small and large conventions in Ottawa. Staff estimates that revenues from $25,000 to $50,000 could be realized through the program in 2003 and $50,000 per year in future years.
In total, annual revenues from implementing these initiatives range between $150,000 and $235,000 in 2003.
CONSULTATION
A survey, carried out in November 2002 at the five prime location Park and Ride lots, included questions to assist in gauging passenger reaction to possible Park and Ride charges.
FINANCIAL IMPLICATIONS
The 2003 Draft Operating Budget tabled with City Council includes two Recommended Solutions that pertain to the detail provided in this report:
2003 Impact
Implement fee for parking at selected park & ride lots: ($200,000)
Introduce concessions on the Transitway ($150,000)
($350,000)
The above estimates were based on the best information available at the time of budget tabling. The detailed analysis provided in this report proposes additional 2003 estimated net revenue summarized as follows:
2003 2003
Conservative Aggressive
Implement fee for parking at selected park & ride lots: ($90,000) ($180,000)
Increase existing fee at Baseline to $15 ($10,000) ($10,000)
Other Revenue Sources
Automated Teller Machines ($100,000) ($140,000)
Vending Machines ($10,000) ($30,000)
Mobile Food Carts ($15,000) ($15,000)
Convention Pass ($25,000) ($50,000)
($250,000) ($425,000)
Subject to Committee and Council approval, the 2003 net budget of the Transit Services Branch will be adjusted as presented in the Recommended Solutions included in the 2003 Draft Operating Estimates.
ATTACHMENTS
Exhibit 1 – Park and Ride Lots – Capacities and Usage
Exhibit 2 – Park and Ride Survey – November 2002
Exhibit 3 – Park and Ride Lots in Other Canadian Transit Properties
DISPOSITION
On approval, staff will implement the Gold Pass Park and Ride Program as quickly as possible. It is hoped that this could be in place as early as February 2003. Staff will also continue to work with prospective partners on other customers service enhancements and revenue generation opportunities, and will provide a progress report to Transportation and Transit Committee in the spring of 2003.
EXHIBIT 1
Park & Ride Lots – Capacities and Usage
| Capacity (Fall 2002) | Average Usage (October 2002) | Residence Location | |
Inside UTA | Outside UTA | |||
PRIME LOCATIONS | ||||
Eagleson Greenboro Orléans Baseline (1) Fallowfield | 805 630 515 275 725 | 900 670 515 250 540 | 43% 61% 49% 93% 83% | 57% 39% 51% 7% 17% |
Total | 2950 | 2875 | 54% | 46% |
RURAL LOCATIONS | Capacity (Fall 2002) | Average Usage (October 2002) |
Trim Road (2) Vars Carlsbad Springs Navan Arena Notre-Dame-Des-Champs South Gloucester Centre Manotick Richmond Shopping Centre Carp Carpool Lot | 160 200 300 70 80 28 62 200 115 | 17 40 3 20 3 3 8 25 15 |
Total | 1215 | 134 |
(1) Baseline operates on a pay per unit basis and all permits to the capacity of the lot for the month were sold out.
(2) Although inside the Urban Transit Area, it is considered rural in nature due to the limited transit service to the lot
EXHIBIT 2
Park & Ride Survey – November 2002
Willing to pay $35.00 per month to have access to a reserved parking area?
Lot | Yes | No | Don't Know | No Response | Total | ||||
Baseline | |||||||||
Eagleson | 27 | 10.9% | 164 | 66.4% | 52 | 21.1% | 4 | 1.6% | 247 |
Fallowfield | 2 | 2.5% | 77 | 95.1% | 0 | 0% | 2 | 2.4% | 81 |
Greenboro | 13 | 8.4% | 115 | 74.7% | 24 | 15.6% | 2 | 1.3% | 154 |
Place d'Orléans | 13 | 11.2% | 86 | 74.1% | 15 | 12.9% | 2 | 1.8% | 116 |
Total | 57 | 9.1% | 467 | 74.4% | 94 | 15.0% | 10 | 1.5% | 628 |
Reasonable to charge $15 per month for all spaces in the lot?
Lot | Yes | No | Don't Know | No Response | Total | ||||
Baseline | |||||||||
Eagleson | 43 | 17.7% | 174 | 71.6% | 25 | 10.3% | 1 | 0.4% | 243 |
Fallowfield | 7 | 8.6% | 66 | 81.5% | 5 | 6.2% | 3 | 3.7% | 81 |
Greenboro | 50 | 32.5% | 80 | 51.9% | 21 | 13.6% | 3 | 2.0% | 154 |
Place d'Orléans | 29 | 25.0% | 73 | 62.9% | 11 | 9.5% | 3 | 2.6% | 116 |
Total | 142 | 22.8% | 408 | 65.4% | 64 | 10.3% | 10 | 1.5% | 624 |
EXHIBIT 3
Park and Ride Lots in other Canadian Transit Properties
Location | Description and Pricing Scheme |
Toronto (TTC) | There are 26 locations providing about 12,900 spaces. Use of lots is free for Metropass holders. On average, the lots are operating at 97% of capacity. There are plans for the expansion of the park and ride system within the next 5 to 10 years. The cost for cash-paying customers is from $2 to $6 per day depending on lot location. In terms of operations, there is no parking attendant at the lots. Seventeen of the lots are equipped with gates at the entrance. This has caused problems when the lot reaches capacity, as the users pay at the gate to enter, and then realize that there is no spot available. There is no signage available to show whether the lot is full. In the other nine lots, pay and display machines are installed. There are also complaints about customers parking illegally in some lots. The Municipal Parking Authority is responsible for ticketing violators. |
Vancouver | There are 24 locations providing approximately 5,500 spaces. Seventeen lots are free while 7 have pay parking. Six lots serving West Coast Express charge $1/day or $15/month. The Scott Rd Station lot charges $50 per month for up to 1532 of the total 2411 spaces that are paved. The other spaces cost $1/day or $15/month. The lot is heavily used due to its location near a subway station. In return for paying a fee, security patrol has been provided for the lot users. There are sporadic incidences of customers parking illegally in this and few other lots. The Municipal Parking Authority is responsible for ticketing violators. There is no significant capacity problem at other lots. All the lots operate on a first-come first-served basis. If any lot is full, extra demand spills over to adjacent streets and/or nearby shopping centers (if any). Lots located in remote areas are under capacity. |
Calgary | There are 27 locations providing approximately 11,000 spaces. All lots are free except for a recently launched pilot project at the Fish Creek/Lacombe Station lot involving 225 spaces (see below). Generally, there are capacity problems at LRT stations, which account for about 80% of total spaces at park and ride lots. The remaining 20% are bus-only lots and are not fully utilized. There is 1-2 hour parking restriction at adjacent streets. There are incidences of users parking illegally on circulation areas and other unmarked spaces. However, the City does not take a pro-active role in ticketing the violators and mainly responds to complaints from citizens by sending ticketing officers to the site. The City also receives complaints about lack of capacity at LRT stations. To alleviate the problem, there are plans to expand parking capacity by 1,900 spaces over the next 3 years through expansion of the South, North West, and North East LRT park and ride lots. In September 2002, a pilot project at the Fish Creek/Lacombe Station lot to charge for parking was initiated. Twenty percent of spaces, or about 225 spots, immediately adjacent to the station platform, make up a reserved parking area restricted to customers who are willing to pay $50 per month. There is no charge for the remaining 800 spaces. The pilot is new (3 months old) and so far 85 customers have signed up for the program. Early indications are that the customers who have agreed to pay for parking like it as it guarantees them a space each day. |
Edmonton | There are 7 locations providing approximately 5,000 spaces. All lots are provided free of charge except during special events, where a $2 charge is applied. Two of the lots located near the LRT are at full capacity. The capacity at one of the lots was recently significantly increased that eliminated the overflow parking problem. The other lot is located near a low-density residential area. When the lot is full, extra demand spills over to adjacent streets in that area where there is no restriction on on-street parking. There have been occasional incidences of customers parking illegally in the lots. The Edmonton Transit has the responsibility for ticketing violators. The capacity problem is less severe at other lots, however if they get full, customers have to find a parking place nearby or in the shopping centers. Some shopping centers issue tickets to patrons who use their space as a park and ride lot. |
GO Transit | GO has 29,650 parking spaces across 48 locations. Many of their lots are full and customers park cars illegally within the lot or park in adjacent neighborhoods. Five percent, or 1,475 of the total are reserved spaces and customers pay $60 per month. The spaces, which are very close to the station platform, are individually numbered and assigned to the customer. The rest of the parking spaces are free at this time but GO is considering expanding the number of spaces that have a monthly charge. The reserved space system is fairly simple. Customers must sign up and pay for a year. Methods of payment include post-dated cheques, full payment up front or pre-authorized monthly debits by credit card. Refunds are made upon cancellation but customer can’t re-apply for 6 months. Most lots with reserved parking have waiting lists. Spaces are individually reserved and no card needs to be shown in car when parked. Should a space be illegally occupied, customer parks in ‘kiss and ride’ area and reports the incident. Security check for unauthorized cars in ‘kiss and ride’ and all reported cars parked illegally in reserved spaces. These vehicles are ticketed and may be towed. When customer is not using space, they can have someone else use it. A survey of park and ride customers in 2000 showed the following. If GO was not available, 39% would drive cars all the way to their destination. GO Transit’s perceived cost advantage over driving is marginal. Twenty three percent believe driving is less expensive. Imposed parking fees would be considered a fare increase and would probably have a negative impact on ridership. |