Agenda – Standing Policy Committee on Infrastructure Renewal and Public Works –

June 25, 2019

REPORTS

Item No. 5 Implications of Providing Fare-Free Travel on Winnipeg Transit

Buses for Children Under the Age of 12

WINNIPEG PUBLIC SERVICE RECOMMENDATION:

That this report be accepted as information.

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Agenda – Standing Policy Committee on Infrastructure Renewal and Public Works –
June 25, 2019

DECISION MAKING HISTORY:

STANDING COMMITTEE RECOMMENDATION:

On May 2, 2019, the Standing Policy Committee on Infrastructure Renewal and Public Works
granted an extension of time of up to 60 days for the Winnipeg Public Service to report back on
the matter.

On January 8, 2019, the Standing Policy Committee on Infrastructure Renewal and Public Works
directed the Winnipeg Pubic Service to report back within 120 days with options for reducing
Winnipeg Transit fares to zero dollars for children up to 11 years old, including options for a
pilot project or full implementation.

COMMUNITY COMMITTEE RECOMMENDATION:

On November 19, 2018, the Riel Community Committee passed the following motion:

WHEREAS Winnipeg Transit is currently free to use for kids under the age of 6, however, the
law in Manitoba states that no child may be left alone unsupervised until they are at least 12
years old;

AND WHEREAS this means that if a single parent or a parent responsible for childcare while
their partner is away at work, wanted to use public transit, they would be required to pay an
additional fare for their child between the ages of 6-11;

AND WHEREAS there are parents who are interested in taking transit who own a car, don’t use
transit in part because of the cost of paying multiple fares for their kids; whereas others who
don’t own a vehicle, often find it more affordable to take a cab, as they are only paying one fare
for multiple passengers in a cab;

AND WHEREAS the City of Toronto introduced a similar policy three years ago, resulting in a
2017 report that stated child ridership had doubled in Toronto following this; now the City of
Edmonton is also looking at doing the same;

AND WHEREAS there are only a very limited number of children aged 6-11 who currently take
transit in Winnipeg, resulting in minimal impact on the City/Transit revenues;

THEREFORE BE IT RESOLVED that the Standing Policy Committee on Infrastructure

Renewal and Public Works direct the Winnipeg Public Service to provide a report on the cost
and implementation of reducing Winnipeg Transit fare for children up to 11 years old to $0, and
that the matter be referred for consideration as part of the 2019 Budget Process.

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 ADMINISTRATIVE REPORT

Title: Implications of Providing Fare-Free Travel on Winnipeg Transit Buses for

Children Under the Age of 12

Critical Path: Standing Policy Committee on Infrastructure Renewal and Public Works

AUTHORIZATION

Author Department Head CFO CAO

M. Ruta,
B. Radstrom G. Ewankiw N/A
Interim CAO

EXECUTIVE SUMMARY

Winnipeg Transit’s existing fare structure provides fare-free transit for children aged 5 and
under. Children and youths aged 6-16 as well as high school students who are aged 17-21
receive a 30% discount on the full transit fare.

Other cities in Canada have recently begun offering fare-free transit for all children under the
age 13. Toronto began offering fare-free travel for children on the TTC in March 2015, and on
GO Transit (commuter rail and buses) in March 2019. Edmonton and some of the surrounding
municipalities have offered fare-free transit service since June 2018. The experience and
approach in both municipalities has been quite different.

In Edmonton, the loss of fare revenue arising from riders in the 6-12 age category no longer
paying a fare was estimated at approximately $2 million annually. In a report to Edmonton’s City
Council on March 14, 2018, the Edmonton Transit System estimated that, in addition to the $2
million in annual fare losses, an increase of up to $880,000 in annual operating costs and the
purchase of up to 17 additional buses may be required.

In Toronto, the costs have arisen from both the loss of fare income from children who previously
paid a fare, as well as from a significant increase in ridership amongst children. After the first full
year of the program, ridership amongst children in Toronto had increased from 22 million to 28
million. The cost of the program in 2016 was estimated at $8 million.

It is expected that Winnipeg would not see such a significant increase in ridership as was
predicted in Edmonton or observed in Toronto, so the expected cost of providing fare-free travel
on Winnipeg Transit buses would be approximately $200,000 in increased annual operating
costs, with the requirement to purchase up to two additional buses at a cost of approximately
$1.384 million. Additional costs arising from the loss of fare income currently paid by children
aged 6-11 is estimated to be approximately $834,000.

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The cost of such a program may be able to be minimized by requiring all children under the age
of 12 wishing to travel for free to obtain and register a peggo card.

Options exist to administer this as an independent fare program, or to merge it with the low-
income transit pass that is currently being investigated.

RECOMMENDATIONS

That this report be accepted as information.

REASON FOR THE REPORT

On January 8, 2019, the Standing Policy Committee on Infrastructure Renewal and Public
Works directed the Winnipeg Pubic Service to report back within 120 days with options for
reducing Winnipeg Transit fares to zero dollars for children up to 11 years old, including options
for a pilot project or full implementation. An extension of 60 days was provided at the May, 2,
2019 meeting.

IMPLICATIONS OF THE RECOMMENDATIONS

There are no implications associated with the recommendations as this report is to be received
as information.

HISTORY/DISCUSSION

Current Fares and Policies

In Manitoba, children under the age of 12 are not allowed to be left alone unsupervised. As
such, a parent needing to run errands must bring any children under the age of 12 with them if
no other supervision is available. This can present a financial burden to some parents using
transit, especially those with a low income, as any children accompanying them on a bus must
also pay a fare. In order to help alleviate this burden, fare-free travel on Winnipeg Transit buses
could be offered to children under the age of 12.

Currently in Winnipeg, transit travel is free for children 5 and under. For those ages 6-16 (as
well as high school students aged 17-21), a 30% discount is given off the full transit fare, as
follows:

Reduced Post-
Full Senior
Fare Type (Youth) Secondary
Fare Fare
Fare Fare
Cash 2.95 2.45 2.45 2.95
e-cash (replaces tickets) 2.60 1.82 1.30 2.60

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 24 hour e-pass 9.65 6.75 4.85 N/A
3 day e-pass 19.50 13.65 9.75 N/A
5 day e-pass 23.40 16.40 11.70 N/A
7 day e-pass 26.00 18.20 13.00 N/A
14 day e-pass 48.10 33.65 24.05 N/A
21 day e-pass 71.50 50.05 35.75 N/A
28 day e-pass 92.30 64.60 46.15 73.85
Monthly e-pass 100.10 70.10 50.05 80.10
Semester e-pass* n/a n/a n/a 272.25
Annual e-pass** 1,107.60 775.32 553.80 886.20

Examples from Other Jurisdictions in Canada

Edmonton began offering fare-free transit service to children under the age of 13 in June 2018.
Although the initial estimated cost was reported in the media as “only a few hundred thousand
dollars”, an updated estimate of the loss of fare revenue arising from riders in the 6-12 age
category no longer paying a fare was set at $2 million annually. In a report to Edmonton’s City
Council on March 14, 2018, the Edmonton Transit System estimated that, in addition to the $2
million in annual fare losses, an increase of up to $880,000 in annual operating costs and the
purchase of up to 17 additional buses may be required.

Similarly, in Toronto, costs have arisen from both the loss of fare income from children who
previously paid a fare, as well as from a significant increase in ridership amongst children. After
the first full year of the program, ridership amongst children in Toronto had increased from 22
million to 28 million. The cost of the program in 2016 was by the TTC (Toronto Transit
Commission) estimated at $8 million.

Toronto also requires children riding for free to obtain and register a Presto card. This helps to
ensure that children riding for free properly qualify for the program, and allows the TTC to
determine the program uptake. Toronto does not require that children 13 and under be
accompanied by a fare-paying passenger.

Challenges & Costs

One of the most significant challenges in determining an accurate cost estimate is determining
the number of children in the 6 to 11 age range who currently use transit. Winnipeg Transit’s
current fare policy requires all children aged 6-16 to pay a fare, as well as youth aged 17-21
who attend high school. The fact that all children and youth who fall into these two categories
pay the same fare make it impossible to determine the number that fall into a particular narrower
age range.

In 2018, $8.34 million of fare products were sold to children and youth, but there is no definitive
way to determine what proportion of these fare products were used by children aged 6-11. A
reasonable estimate would be that approximately 10% of this fare revenue would no longer be
collected, resulting in a loss of fare income of $834,000.

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It is expected that Winnipeg would not see such a significant increase in ridership as was
predicted in Edmonton or observed in Toronto, so the expected cost of providing fare-free travel
on Winnipeg Transit buses would be approximately $200,000 in increased annual operating
costs, with the requirement to purchase up to two additional buses at a cost of approximately
$1.384 million.

One of the key challenges with offering free transit for children under the age of 12 is
determining who is eligible at the time of use. Bus operators would have a difficult time
determining the age of a child if no additional identification was required. Some controls would
need to be in place to ensure the program was not abused.

Additionally, it is very important to collect statistics on the uptake of the program to obtain not
just ridership numbers and allow for information to properly cost out the program, but to also
facilitate more detailed analyses (e.g. which routes are most impacted, to be able to respond to
service and over-crowding issues).

As such, should this program be implemented, it is recommended that children under 12 be

required to obtain and register a peggo card in order to travel for free on Winnipeg Transit
buses. This would allow Winnipeg Transit to make the determination of a child’s eligibility ahead
of time, reducing the burden on bus operators. The use of a peggo card by children would also
allow Winnipeg Transit to determine how many children are using the program. The possibility
would also exist to restrict the program only to children who reside in the city of Winnipeg, as
the parent wishing to purchase and register the peggo card for their child would need to also
provide proof of residency within the boundaries of the City of Winnipeg.

A secondary form of ID for the child would also be required so that only the child for whom the
fare-free peggo card was issued is actually using the card. Depending on the circumstance, this
could either be a school-issued ID card, or an ID card issued by Winnipeg Transit similar to the
existing GO Cards used by high school students.

In the past, Winnipeg Transit worked closely with school divisions and school photo providers to
allow schools to issue school ID with the appropriate GO Card identifier in any given year. This
would need to be expanded to include all school ID cards issued as part of school photo
programs, not just for high school students.

Options for Implementation

There are two options for requiring parents or guardians of children under 12 to register and
prove eligibility for free transit travel:

Option 1 – Administer as an Independent Program

If Winnipeg Transit were to administer this as a separate program from any other existing or
proposed fare programs, it would require children to accompany a parent/guardian to a
Winnipeg Transit service centre with documentation identifying their age. Winnipeg Transit
would issue and register a fare-free peggo card with an expiry date of the child’s 12th birthday,

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as well as secondary ID if the child does not have appropriate school ID showing their photo,
name, and age.

The costs associated with Option no. 1 are those presented earlier in this report, i.e. $200,000
in increased annual operating costs with the requirement to purchase up to two additional buses
at a cost of approximately $1.384 million, as well as lost fare income of approximately $834,000.

Should this option be implemented, it would require a lead-time of approximately 12 months to

roll out.

Option 2 – Administer as Part of a Potential Low-Income Fare Program

Work is currently being done by Winnipeg Transit on the development of a proposal for a low-
income fare program. The idea behind a low-income fare program is that discounts on transit
fares would be targeted at transit riders who most need the discount. Methods for applying to a
program, and determining eligibility, are a significant part of the work currently being
undertaken.

One potential option is to merge this program with the potential low-income bus pass, and issue
fare-free peggo cards to children in families that qualify for low-income bus passes. While this
would not allow universal fare-free travel for children under 12, it would minimize the
administrative burden of the program while allowing the families who need fare-free travel for
children under 12 the most (i.e. low-income families) to receive the benefit.

Although there is currently no way to determine the existing number of children ages 6-11 from
low-income families who currently use transit, it is expected that the number is low. Therefore,
unlike with Option no. 1, it is not anticipated that any additional service would be required
beyond what has already been assumed for the low-income program. The financial impact
would result from the loss of existing fare income and related program administration costs. If
this option is approved, these costs would be included in the report to be brought forward by the
Department regarding the low-income transit program later this year.

Should a program such as this be implemented, it would be rolled out concurrently with the low-
income bus pass.

Option 3 – Administration-Free

The possibility exists to simply establish a policy where children under 12 travel for free on
Winnipeg Transit buses, with no peggo card or other ID required. Although it could be
implemented quickly, Winnipeg Transit does not recommend this option for several reasons:

 The task of determining whether a child qualifies would be left solely to the discretion of
bus operators, creating significant potential for conflict. Although this currently takes
place for children 5 and under, the potential for conflict would increase substantially with
older children.

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  There would be no way to track the ridership of children under the age of 12. Although
this is currently true for children 5 and under, expanding the number of riders who
cannot be accounted for in ridership statistics could create significant problems with
Winnipeg Transit’s reporting of ridership statistics.

Additional Policy Considerations

One significant consideration is that the City of Winnipeg would need to establish a policy
regarding the use of fare-free transit travel by school groups. Large groups boarding at one
place at one time place a significant strain on available capacity, and without specific policies in
place, this program could be used by schools for field trips on a regular, frequent basis. School
field trips could effectively “crowd out” regular passengers by completely filling
regularlyscheduled buses. There would be no way for Winnipeg Transit to plan in advance for
this as schools could technically take students under 12 on buses at any time without any prior
warning.

Should this program be implemented, it is recommended that a policy be developed stating that
fare-free transit travel for children under 12 is intended only for citizens and families going about
their daily business, and not for school and community groups on field trips.

Transportation for school activities, including field trips, falls under Provincial jurisdiction, and is
ultimately the responsibility of the school divisions. Permitting school groups to take advantage
of fare-free transit travel for children under 12 would represent a downloading of a Provincial
responsibility onto the City of Winnipeg.

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 FINANCIAL IMPACT

Financial Impact Statement Date: June 11, 2019

Project Name:

Implications of Providing Fare-Free on Winnipeg Transit Buses

for Children Under the Age of 12
COMMENTS:

As this report is for information only, the recommendation has no immediate financial impact.

However, if the program proceeds, the net budget impact will depend on which option is ultimately
adopted.

original signed by:

Laurie Fisher, CPA, CA
Manager of Finance & Administration

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CONSULTATION

This Report has been prepared in consultation with:

n/a

OURWINNIPEG POLICY ALIGNMENT

01-01b Key Directions for Connecting and Expanding Our Sustainable Transportation and
Infrastructure Network.

SUBMITTED BY

Department: Transit
Division: Service Development
Prepared by: Bjorn Radstrom, Manager of Service Development
Date: June 11, 2019

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