Smar t-fare plan may be costly, group says

Rather than saving money, Edmonton’s plan to buy smart transit-fare equipment could boost costs by millions of dollars, a city advisory group says.

The Edmonton Transit System Advisory Board warns that benefits expected from the proposal, which council approved in October 2012, rest mainly on assumptions that it will reduce fare evasion by $25.8 million in 10 years.

“It is not clear how these benefits will be realized, since physical barriers to prevent non-paying passengers are not included,” board member Amy Mannix wrote in a November letter to Edmonton Transit released this week.

“Note that the implementation of Vancouver’s smart fare system has led to early issues of fare evasion even with the use of expensive barriers … indicating that increased revenues should not be taken for granted.”

Although Edmonton Transit calculated the new technology would save $12.5 million over a decade, there could actually be a $13.3-million cost increase, Mannix wrote.

In addition, the $30-million total budget for the system seems “modest” and doesn’t include a contingency for unforeseen expenses, she wrote.

Edmonton is working with other municipalities in the region to create an electronic fare system that would eliminate tickets, transfers and passes, and reduce the need for cash payments.

Instead, riders would tap or swipe a card at a scanner when entering a bus or LRT station, paying charges each month like they do for any other purchases. This would give important information on where and when people are travelling.

Lorna Stewart, Edmonton Transit’s director of DATS and technology projects, said Friday they hope to start installing the equipment in 2015. That timetable could be delayed if council accepts the board’s recommendation to revise the project’s business case, she said.

She stands by the figures provided by city officials. “We believe, because of the literature in the industry and talking to other transit agencies, that is a conservative estimate of savings.”

While they’re working with a consultant to update the budget, it should still be around $30 million, depending on the type of system used, Stewart said. Although the city is putting in $7 million, officials are still waiting to apply for $23 million from the provincial GreenTrip program, she said.