UNIVERSAL STUDENT TRANSIT PASS

Report to/Rapport au :

Transit Committee

Comité des services de transport en commun

October 6 2008 / le 6 octobre 2008

Submitted by/Soumis par: Nancy Schepers, Deputy City Manager/Directrice municipale adjointe,

Planning, Transit and the Environment/Urbanisme, Transport en commun et Environnement

Contact Person/Personne ressource : Alain Mercier, Director/Directeur

Transit Services/Services du transport en commun

613-842-3636 x2271, Alain.Mercier@ottawa.ca

REPORT RECOMMENDATION

That the Transit Committee receive this report for information.

RECOMMANDATION DU RAPPORT

Que le Comité du transport en commun prenne connaissance du présent rapport.

BACKGROUND

Throughout Canada there has been growing interest among post secondary students in a universal transit pass program (U-Pass).  A U-Pass requires all members of a student group, such as full-time undergraduates, to pay a common student transit fee that gives them unlimited access to transit for the semester or school year.  The fee is included in the student activity fees and will be lower than the cost of buying a student pass each month or using tickets and cash.  This is due to the cost of transit being spread across the entire student body.  U-Pass programs typically involve mandatory participation by virtually all students with little opportunity for students to opt out of the program.

U-Pass programs are set to be revenue neutral.  The price of the U-Pass should be pegged to recover all current transit fare revenue that the student body generates and cover the costs of administering the program.  Some transit providers that have U-Pass programs include the cost of additional service to handle the expected growth in transit use.

Over several years, local universities and colleges have expressed an interest in a U-Pass program.  Staff has worked with the school administrations and students associations/unions at Carleton University, University of Ottawa, Algonquin College and La Cité Collégiale to determine the feasibility of a U-Pass program for each school.  This feasibility primarily rests on the price to be charged for the U-pass.  This report describes the current status of the U-Pass program at University of Ottawa and generally discusses the U-Pass.

DISCUSSION

In February 2003 staff met with each local post-secondary institution to research the possibility of initiating a U-Pass program.  Prior to this contact, staff met with the Société de Transport de l’Outaouais (STO) and formed an alliance so that any U-Pass would be a joint OC Transpo/STO pass and would provide seamless travel to students who need to use both transit systems.

The price of the U-Pass is dependent on the current transit revenue levels generated by students now using transit at each post-secondary institution.  The higher the transit modal share, the higher the revenues and the higher the U-Pass price will have to be to achieve revenue neutrality.  In order to determine these revenue levels, a survey was conducted at each post-secondary institution.

The primary purpose of the survey was to gather data on the frequency of transit use of students, for both school and non-school related trips, and identify how they paid for these trips.  This information was collected for a good weather week (i.e. September/October) and a bad weather week (i.e. January/February).  This information was then extrapolated to represent the entire student body revenue base over the eight-month school year and then finally the U-Pass price per month was calculated for each school.  As well as asking about transit travel patterns, the survey sought information that would assist each school in administering their own Transportation Demand Management (TDM) plan.  For example, if the respondent identified that they drove to school then they were asked if they carpooled.  Those who drove were also asked where they parked and how much they paid for parking.  Surveys were conducted at Carleton University and the University of Ottawa in October 2003, at Algonquin College in February 2004 and at La Cité Collégiale in October 2004.  The survey data and results were shared with the administration at each school and the student leadership.

The results of the 2003 survey that occurred at University of Ottawa showed that 58 per cent of students used transit as their primary mode to travel to/from campus, and 81 percent of students used transit at least once in seven days for any purpose (see Document 1).  The revenue neutral price of the U-pass that was discussed in 2003 at University of Ottawa was $42.25 per month or $169 per semester.  After learning the results of the surveys, school administration and student leadership declined pursuing the implementation of a U-Pass.

In the fall of 2005, the University of Ottawa conducted a transportation demand management survey and attained information regarding transit use and fare payment.  Survey results showed that 53 per cent of students used transit as their primary mode to travel to/from campus.  Results for identical survey questions found in the 2003 and 2005 surveys were similar, and help validate both studies.

In 2007, the Student Federation at the University of Ottawa expressed an interest in having a referendum on the U-Pass.  The referendum question was: “Do you agree to contribute a maximum of $125 per full-time student per semester (fall and winter) for a Universal Bus Pass, with such a contribution coming into effect as of the time that the pass is available at this price for students?” OC Transpo responded to this proposal on December 19, 2007 (see Document 2), and generally did not support the price being proposed.  The monthly equivalent price being proposed was $31.25 per full time student per month, and the revenue neutral price in September 2008 (calculated based upon survey results) was $49.50 per month per full-time student, or $198 per semester.  Municipal Council has directed staff to prepare a 2009 budget with fares increasing by 7.5 per cent, therefore it is expected that the U-Pass price would increase accordingly.

In January 2006, the Student Semester Pass was introduced in order to respond to interest from student leaders to see student fares discounted, and as a response to the failure of the U-Pass initiative.  The Semester Pass is revenue neutral because students typically do not use transit as frequently during December or April as they do other months, and as a result has been discounted by 10 per cent.  In September 2008, the Regular Semester Pass price was $232.25.  The Semester Pass is purchased voluntarily, as opposed to the requirement that the U-Pass program is mandatory for all students enrolled, so that the cost of the U-Pass is shared equally among all students.  In January 2007, there were over 7,100 semester passes sold, and the program has grown by over 110 per cent since it was first introduced in January 2006.

OC Transpo is committed to providing a high level of transit service to students, and supports the U-pass concept.  However, at the price suggested by the Student Federation at the University of Ottawa, the U-Pass cannot currently be implemented.

CONSULTATION

For several years staff have had numerous discussions and meetings regarding the U-Pass with Student leaders and school administration.

FINANCIAL IMPLICATIONS

The difference between the revenue neutral U-Pass price and the price proposed by the Student Federation at the University of Ottawa is significant.  In 2008, the difference on a monthly basis is (49.5-31.25) $18.25.  Extrapolating this figure to the entire enrolled full-time student population and expanding it for eight months provides a funding gap of $4.224 million ($18.25 x 8 months x 28,929 full time students in 2007/08).  It is important to consider that if this level of subsidy was offered to students at University of Ottawa, then it is expected that other colleges and universities would be interested in a similar subsidy, and if this occurred then it is expected that the funding shortfall would exceed $10 million.  For this program to be implemented, the students must be willing to pay more, or Council must increase the subsidy to achieve a non revenue-neutral price and allocate resources accordingly during the budget process.

SUPPORTING DOCUMENTATION

Document 1 –   Transit Use Among College and University Students in Ottawa

Document 2 –   Letter dated Dec. 19, 2007 to the Students Federation of the University of Ottawa

TRANSIT USE AMONG COLLEGE AND UNIVERSITY STUDENTS

IN OTTAWA                                                                                                            DOCUMENT 1

LETTER DATED DEC. 19, 2007 TO THE STUDENTS FEDERATION

OF THE UNIVERSITY OF OTTAWA                                                                   DOCUMENT 2

File:   G13-01 FAR6

December 19, 2007

Ms. Pam Hrick, President

Students Federation of the University of Ottawa

85 University Private, Room 07

Ottawa, ON    K1N 8Z4

Dear Ms. Hrick

I am writing to express concern over the referendum question on the pricing of a Upass that the Student Federation plans to present to the general student body.  My understanding is that the question will take the form of:

Do you agree to contribute a maximum of $125 per full-time student per semester (fall and winter) for a Universal Bus Pass, with such a contribution coming into effect as of the time that the pass is available at this price for students?

Transit Service staff have met the Student Federation many times over the past five years to discuss the price of the Upass.  The position of Transit Services on the price of the pass has been consistent.  The price for a mandatory Upass must produce sufficient revenue to offset the revenue now being paid by students.

In 2003, a comprehensive survey of student travel and fare payment habits was carried out in order to obtain data to determine the price of the Upass that would achieve revenue neutrality.  At that time, based on 2003 fares, the price of the Upass would have to have been priced at $42.25 per month or $169 per semester.  This price was recently revised to reflect the introduction of a Upass for the school year that begins September 2008.  The new price is in the order of $49.50 per month or $198 per semester.  The updated price takes into account student fare increases from 2003 to 2008, the removal from the price of $2.00 per month that was included in 2003 to cover extra costs to provide increased service and a price reduction in recognition that the Student Federation was willing to pay the entire amount of collected revenue at the beginning of the school year.

Transit Services has never supported a Upass price of $125 per semester as it would generate a significant revenue shortfall.  By posing the referendum question with the $125 price, students will be misled to believe that a price in this range is possible when, in fact, it is not.  A more realistic approach towards making a Upass a reality is for both sides to continue working together and to present the students with a Upass pass endorsed by both the Student Federation and Transit Services. 

I am hoping that, in response to this letter, you will either withdraw the referendum question or change the price to something closer to what Transit Services can support.

If you have any questions or require additional information, please feel free to contact me.

Yours truly

Joel Koffman

Program Manager, Scheduling and Analysis

Transit Service Planning and Development

cc:   Alain Mercier, Director, Transit Services

        Victor Simon, Vice President of Resources, University of Ottawa

        Dean Haldenby, Vice President of Finance, Students Federation of the University of Ottawa

        Danny Albert, Transportation Demand Management Coordinator, University of Ottawa

        Jonathon Rausseo, Sustainable Development Coordinator, University of Ottawa

        William Rychliwsky, Operational Systems Planner, Scheduling and Analysis

        Patrick Curran, Program Manager, Business Development and Partnerships

JK:kat

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