Employer-Sponsored Transit

1. Employer-Sponsored Transit A TDM Strategy for Encouraging Transit Ridership CUTA 2009 Conference and Trans-Expo November 7-11, 2009

2. Outline • Background: TDM and Smart Commute • TDM Benefits for Transit • Employer-sponsored Transit • Mississauga Discount Transit Pilot Project • Lessons Learned and Expected Results Glenn Gumulka Executive Director Smart Commute Mississauga Catherine Habel Senior Program Advisor, TDM Metrolinx

3. Background:Transportation Demand Management (TDM)and Smart Commute

4. Definition of TDM • The use of policies, programs, services and products to influence whether, why, when, whereand how people travel. Smart Commute works with various stakeholders to relieve traffic congestion, improve air quality and health, and reduce emissions that cause climate change.

5. TDM Goals • Save time, money and the environment by: • reducing traffic congestion • improving the movement of people, goods and services • increasing productivity • reducing greenhouse gas emissions • improving air quality

6. TDM Strategies • mode shift • auto to non-auto, SOV to HOV • trip elimination • telework • trip reduction • trip chaining • peak spreading • flexible work hours

7. What is Smart Commute? • Greater Toronto and Hamilton Area (GTHA) TDM program • Workplace-based commuter options program to encourage: • transit use • walking and cycling • carpooling and vanpooling • telework & alternative work hours • Partners – government, business community, NGOs, transit agencies, universities

8. A network of ten Local Smart Commutes (TMAs) • Regional development and coordination by Metrolinx • Local implementation by TMAs

9. Incorporated nonprofit organization Funded by: The City of Mississauga The Region of Peel Matching funding from Metrolinx Corporate memberships Partnerships with: Mississauga Cycling Advisory Committee Mississauga Environmental Advisory Committee TRCA Partners in Project Green Mississauga Arts Council About Smart Commute Mississauga

10. TDM Supports for Transit

11. TDM Supports for Transit • Employer and Commuter Research Data • Workplace site assessments and commuter surveys • Commute Counselling • route planning • Incentives and Supportive Measures • Transit Pass Subsidies • Emergency Ride Home • Trip-End Improvements: • improved walking connections to transit stop • schedule and route information • on site transit ticket sale • Flex Time • other incentives and special promotions • Marketing and Outreach

12. Employer-sponsored Transit

13. Employer-sponsored VS. Volume Incentive (bulk) Discounts • Volume incentive purchase (VIP) or bulk discount: • transit agency provides discounted passes to employers • employer sells discounted transit passes back to employees • employer commits to purchasing/selling a minimum number of passes per month in order to receive the discount

14. Employer-sponsored VS. Volume Incentive (bulk) Discounts • Employer subsidy: • employer pays for all or part of employee transit pass • usually administered through payroll deduction • employer can choose to provide a subsidy in addition to or instead of a transit-agency-provided bulk discount • Success factors: • good transit service • paid parking or parking shortage • strong employer endorsement

15. GTHA Precedents • Municipalities in the GTHA have led the way, offering sponsored transit passes to their employees • TTC Volume Incentive Purchase (VIP) program • York Region RideSaver pilot project • City of Brampton Employee Annual Pass Program • Hamilton – HSR Employee Commuter Pass

16. Mississauga Discount Transit Pilot Project City of Mississauga provides matching transit discounts to Smart Commute Member employers who discount monthly passes for their employees Maximum of 15% when an employer discounts by 25% 18 month pilot program Evaluate after 12 months based on: Mode shift and fare switching (survey) Stop counts - tbd Pass sales Employer and employee satisfaction surveys 6 months to develop & implement evaluation recommendations Smart Commute Mississauga exclusive selling agent Market the program to corporate members Collect an Agent fee to cover program management (1.5%) All participants automatically registered in Emergency Ride Home program

17. Why Discount Transit Passes? Only 9% of employees in the city regularly use public transit as their primary commute mode Our surveys (over 5,000 employees) suggest: 14% are definitely willing to try public transit 19% are probably willing to try public transit Potential demand 52,000 business to distribute passes 425,000 employees What would encourage commuters to try transit? 35% lower fares 25% tickets for sale at my place of employment 33% a ride home in case of an emergency

18. Why Discount Transit Passes? Mississauga Transit Ridership Growth Strategy Target to increase ridership by 25% over five years Fare incentives including transit fare discounts are a key objective of the Ridership Growth Strategy City of Mississauga Strategic Plan Goal of doubling transit modal split in the next 40 years Proven strategy for growing ridership TTC V.I.P. (10% - 12% discounts) 220,000 passes sold in 2005 Winnipeg (EcoPass) – City provides 10% match on discounts of 30% or more 45% increase in ridership among participating employers with a similar program Net monthly transit revenue increase of 30%

19. Discounting Schedule

20. Operational Details SC-Miss has an agreement with the City of Mississauga Legal agreements with participating organizations and SC-Miss Agree to participate for 12 consecutive months Employees agree to participate for 12 consecutive months Cancellation results in 6 month participation ban Organizations register with SC-Miss Individual participants register online using TransitZone.ca Admin access for SC-Miss, transit agency and employer admin

21. Transit Zone • www.transitzone.ca • web-based administration tool developed by Metrolinx • interim site being tested through Mississauga pilot project • will become part of the suite of SC TDM Online Services • Transit Zone is designed to work in other SC jurisdictions with similar programs

23. Marketing Campaign Two waves 3 weeks in June 3 weeks in September Elements Bus tail ads In-bus advertising Transit terminal poster In-transit brochures Banner stands Brochures Outdoor signs

24. Results to Date Two employers participating City of Mississauga McCormick Rankin / Ecoplans In negotiations with several other employers

25. Lessons Learned and Expected Results

26. Challenges Requiring employers to invest is a significant barrier for many employers “It’s the employees responsibility” May contradict fair and equitable policies Managing the program through payroll deductions is a barrier for many employers Difficult to get payroll to buy-in May not have the capability Smart Commute membership as a condition of participation is a barrier for many employers especially smaller employers. Restricting access to employers from within the City of Mississauga limits participation 12 month commitment for employers and employees is a barrier to participation

27. Expected Results • Individual: significant commute savings • Employer: increase access, employee retention, save on parking • Smart Commute: engage employers, incite commuters, generate revenue from agent fees • Transit: increase ridership and loyalty, generate revenue, support infrastructure and service improvements, marketing

28. Thank You glenn@smartcommute.ca (905) 896-5941 catherine.habel@metrolinx.com (416) 874-5934