November 19, 1998.

To:Strategic Policies and Priorities Committee

From:City Clerk

Re:Swipe Card Technology

Recommendation:

The Budget Committee on November 18, 1998 reports to the Strategic Policies and Priorities Committee and Council having received the communication (October 26, 1998) from the General Secretary, Toronto Transit Commission.

Background:

The Budget Committee on November 18, 1998, had before it the following:

1.communication (October 26, 1998) addressed to the City Clerk from the General Secretary, Toronto Transit Commission;

2.communication (October 14, 1998) addressed to Councillor Tom Jakobek from the Chief General Manager, Toronto Transit Commission; and

3.communication (September 29, 1998) addressed to Mr. David Gunn, General Manager, Toronto Transit Commission from Councillor Tom Jakobek.

City Clerk

Barbara Liddiard/cp

Item No. 8

Attachment

c.Chief Financial Officer and Treasurer

Director of Budgets

Chief Administrative Officer

Chief General Manager, Toronto Transit Commission

General Secretary, Toronto Transit Commission

(Communication dated October 26, 1998 addressed to the

City Clerk from the

General Secretary, Toronto Transit Commission)

At its meeting on Wednesday, October 21, 1998, the Commission considered the attached communications regarding swipe card technology from Councillor T. Jakobek, City of Toronto and D.L. Gunn, Chief General Manager, Toronto Transit Commission.

The Commission received the above communications and requested that they be forwarded to the City Budget Committee for information.

(Communication dated October 14, 1998 addressed to

Councillor Tom Jakobek from the

Chief General Manager, Toronto Transit Commission)

Thank you for your letter of September 29, 1998 dealing with swipe card technology. We are aware of the advances in swipe card technology used by other transit systems in selling fares, particularly the newer systems. These types of systems land themselves very well to fare-by-distance systems where a record of entry and exit and a calculation of the fare are required. The need for such an investment at the TTC is not as critical as in fare-by-distance systems because we use a system of single flat fares and free body transfers of passengers between modes.

Despite what some vendors may say, Swipe Card Technology is expensive. The TTC, for example, has thousands of points of entry to our system (every bus, streetcar, subway turnstile entrance). Each of these would require its own readers, transmitters, etc. Often the savings proposed by vendors of these types of technology are illusory. In addition, once these technologies have been fully installed, the transit becomes captive to one technology supplier who controls the costs of upgrades and modifications, etc.

Regardless of what else happens in this field, the task facing the Commission to make our existing high-tech systems Year 2000 compliant is indeed daunting and it would not be recommended at this time to add the installation of another very complicated technology.

is will, however, table your letter in camera for direction from the Commission, as it raises many labour relations issues.

(Communication dated September 29, 1998 addressed to the

General Secretary, Toronto Transit Commission from

Councillor Tom Jakobek)

With all the discussion recently regarding the need to modernize our City public transportation system, is was wondering whether or not your office has given any consideration to the use of an electronic fare collection system.

Material that is have seen from other jurisdictions suggests that it is highly effective as it relieves staff from current duties such as sales, collection and counting which could all be performed by the private sector. It could also drastically reduce line-ups for single fare purchases and might relieve the need for transfers and metro passes. It also has the potential for reducing the high amount of fraud due to none payment of fares.

If you have not done so already, would you please examine this issue as it relates to manpower, expenditures and possible savings and revenue generation to the TTC and report back to me on your findings.