When the TTC introduces the Presto fare card on all its subways and surface vehicles, it expects 90 per cent of its 1.5 million daily riders will subscribe to the electronic system.

Instead of searching for tokens and change, riders will be able to tap onto any TTC subway or bus and any bus system in the region. TTC riders will also be able to access their debit or credit card accounts with Presto because the TTC will be getting the next generation of the system that is designed to handle open payments.

It’s not clear, however, when the existing TTC fare system will be retired and what, if any money, the TTC will save on its collection operations.

A report before city councillors on the TTC board this week, says Metrolinx and the TTC are close to finalizing a Presto implementation deal but dates and some costs are not specified.

One thing is clear: The system will no longer need its 350 subway fare collectors to dispense tokens and Metropasses. It’s been suggested those workers would be redeployed as front-line customer service agents.

But TTC chair Karen Stintz doesn’t believe all 350 would be needed. Nor does she think collectors are right for the front lines.

“They’re not the same skill set,” she said, adding that collectors have been the source of some customer complaints behind a recent spate of negative publicity.

“That’s the first face the customer sees entering the system and it’s not always the most customer focused,” said Stintz, who is vowing that Presto will cost the TTC less than the 7 per cent or $70 million it currently pays for fare collection.

After years of hesitation, the TTC finally agreed in June to climb aboard the Presto system as long as its capital costs were confined to the $47 million it budgeted, the city’s share of the $140 million joint federal, provincial and city funding allocation. Earlier estimates suggested the installation could cost twice as much.

The 10-year agreement is being structured so that Metrolinx owns and operates the fare system, charging the TTC a percentage of revenues to recover the capital costs. The existing fare system and Presto will overlap for a while, potentially costing the TTC more than it annually pays for fare administration, said Bob Hughes, chief project manager, TTC/GTA Farecard Project.

“Ultimately, the cost of collection associated with Presto would be about 5.25 per cent (of TTC fare revenue),” said Metrolinx president Bruce McCuaig. “They also have to think about how they collect cash. Maybe there’s some additional costs associated with how they collect cash.”

He said Metrolinx is aiming for a “substantial deployment” of Presto by 2015 for the Pan Am Games.

The TTC expects the old fare system to be phased out within six to nine months of a full Presto rollout.

“In other jurisdictions where properties have not eliminated their existing fare media, the uptake hasn’t been as good,” said Bob Hughes. A key complication in adapting Presto for the TTC is Toronto’s unique transfer system. Because it takes time and direction of trip into account, the system has to be able to recognize that someone who takes a bus at one end of the city, then transfers to a subway and then boards another bus, is making one continuous trip.

The TTC would require 1,000 fare readers in the subway and another 3,000 on the surface. In addition, it would need about 400 self-serve vending machines to load cards in the subway, said Hughes. But all the TTC fare structures, including the Metropass, seniors and other fares would be incorporated.

Fare increase to be decided in December

It didn’t make it past Mayor Rob Ford at the start of the year. But TTC chair Karen Stintz isn’t ready to rule out a 10-cent transit fare hike next month.

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That’s when the Toronto Transit Commission is expected to look at its operating budget and determine whether a fare hike is the only way to close a gap in its operating budget.

“I suspect we will still have a gap next month when we have to make a decision on the matter,” said Stintz.

“At this point a fare increase cannot be ruled out.”

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