A key effort to modernize Toronto’s transit system has suffered another setback, with the TTC now saying it doesn’t expect to complete the conversion to the Presto fare card system until the end of 2019, at least two years later than previously scheduled.

According to a new timeline in the latest monthly report from acting CEO Rick Leary, the agency will stop accepting older fare options such as tickets and tokens in favour of the Presto card at the end of next year.

In 2015, the TTC promised it would phase out tickets and tokens midway through 2017. The deadline was later pushed back to 2018.

Councillor and TTC board member John Campbell called the latest delay “very disappointing.”

Presto machines have been installed on all buses and streetcars, as well as throughout the subway system, meaning riders who opt to use the fare card have little problem doing so.

But until the TTC eliminates older forms of payment, the transit agency effectively has to pay the costs associated with operating two fare collection systems at once, which Campbell called “totally inefficient.”

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“There is a financial burden on the TTC to continue to produce tickets, to continue to produce and take tokens,” said Campbell (Ward 4, Etobicoke Centre).

He laid the blame for the delay squarely at the feet of Presto, which is owned and operated by Metrolinx, the provincial transit agency for the Greater Toronto and Hamilton Area.

“It’s not the fault of the TTC. We’re pretty much dependent on Presto to make this happen,” he said.

Asked what has caused the implementation date to slip again, Metrolinx spokesperson Anne Marie Aikins said Presto “is one of the most complex fare card projects currently underway globally.”

“We do appreciate that it has been taking longer than people have hoped, but ensuring that we are offering the best possible customer experience requires extra time and care as needs evolve over the course of the project,” she said.

Aikins said reliability problems with Presto devices have been rectified and are “not contributing to any delays in the rollout.” Instead, much of the outstanding work is related to enabling certain functions on the fare card system.

One important milestone, which is now not expected to be reached until June 2019, is making available disposable Presto single-ride cards, which will be sold through automatic vending machines. They’re designed to cater to occasional users of the transit system, and are seen as key to enabling the TTC to remove fare collectors from stations.

Aikins said Metrolinx has also been “working to accommodate new requests,” including the two-hour time-based transfer the TTC plans to introduce in August, and discounts for riders transferring between GO Transit and the TTC, which the provincial government implemented in January.

TTC spokesperson Brad Ross could not immediately say how much it will cost the TTC to switch over to Presto two years later than expected.

The agency’s expenses of operating two fare systems at once include a 5.25 per cent fee on fare card transactions that the agency pays to Presto. The TTC had expected to spend $25.6 million on the fees this year, but that was based on full implementation by the end of 2018.

A detailed report on the fare card schedule and associated costs is expected to be released on Friday, and will be debated at Tuesday’s board meeting.

According to the CEO’s report, the TTC will stop selling conventional Metropasses by the end of 2018 and stop selling tickets and tokens by August 2019. It will continue to accept tickets and tokens for several months after that. By the end of next year, Presto should be the primary way most people pay for their ride, but cash will still be accepted.

Monthly passes, the equivalent of Metropasses, have been available on Presto since last June.

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The TTC agreed to adopt Presto in 2011 under pressure from Queen’s Park, which made Toronto’s share of gas tax proceeds contingent on the agency implementing the province’s preferred fare card.

Since its rollout on the TTC began, different parts of the fare card system have experienced significant reliability problems. Card readers on buses and streetcars initially failed at high rates, self-serve reload machines were glitchy, and the motors in hundreds of fare gates at subway stations are being replaced.

The cost to Metrolinx of installing the fare card system on Toronto’s transit agency has also exceeded initial estimates, jumping from a 2012 projection of $255 million to at least $385 million. Aikins could not provide an updated cost of the program Wednesday.

Separately, the TTC has budgeted $50 million to install Presto fare gates on the subway system, although that number could also rise.

According to the latest figures, in April, 12.4 million trips were taken on the TTC using a Presto card, or about one-quarter of all journeys.

The fare card system is also used by 10 other transit agencies in Ontario, including GO Transit. There are more than three million activated Presto cards in the province.

Presto card timeline

June 2011: TTC agrees to adopt Presto.

November 2014: Presto readers installed on new streetcars.

June 2015: TTC promises to have Presto fully implemented by 2017.

December 2016: Presto readers installed on all buses, streetcars, and at least one entrance of every subway station.

February 2017: TTC board commissions report on how much fare revenue it has lost due to malfunctioning Presto readers.

June 2017: Metrolinx reveals province’s cost of installing Presto on the TTC has risen by $130 million, to $385 million.

March 2018: TTC suspends installation of subway fare gates over mechanical and software problems.

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