OLA#: 016-03H

LEGISLATIVE ANALYST REPORT

TO: Honorable Members of the Board of Supervisors

FROM: Office of the Legislative Analyst

DATE: June 6, 2003

SUBJECT:Employee Suggestion #271, 452, 453, 454, 455: MUNI Transfers and Fare Evasion

EMPLOYEE SUGGESTION

San Francisco's MUNI bus and light rail system may be losing money due to problems with fare collection and transfer issuance. The employee suggests that MUNI drivers 1) be made more accountable for collecting fares, 2) be more careful about issuing transfers, and 3) more carefully check for expired transfers and Fast Passes. The employee suggests that this could be done through stricter supervision and through monetary incentive.

EXECUTIVE SUMMARY

MUNI has already taken a number of steps to minimize transfer and free rider problems. MUNI does not have statistically verifiable data on the extent of the problem, but management believes that the majority of back door boardings are not fare evaders. MUNI officials may wish to explore ways to better track fare evasion in order to assess the actual costs and benefits of different approaches. To avoid the cost of increased boarding times on buses, MUNI should seek to improve already existing programs that will not slow vehicle progress. Past programs appear to have had some success in deterring back door boarding and possibly fare evasion. MUNI may wish to publicize programs and fines related to fare evasion. In addition, MUNI should publicize the TransLink system when it is launched in the near future. This system will reduce the number of driver-passenger cash transactions and provide commuters with incentive to take part in the new system.

ANALYSIS & RECOMMENDATIONS

It is very difficult to quantify the number of commuters boarding MUNI buses and trains without payment. It is clear, however, that MUNI is vulnerable to free riders, particularly on light rail vehicles (LRVs) upon which back door boarding is permitted, allowing commuters to board without showing a monthly Fast Pass or a valid transfer. In addition, there have been complaints that MUNI drivers on both trains and buses have been issuing transfers for longer than the 90 minute limit, have been careless about checking for expired transfers and Fast Passes, and have failed to enforce back door boarding regulations on buses.

MUNI officials have responded to the transfer and free rider problems with a series of campaigns earlier this calendar year. A public campaign to heighten awareness about bus transfers included posters on buses and trains and in MUNI stations stressing the importance of getting a ride transfer and abiding by the 90-minute limit. MUNI drivers were also asked to be more careful in handing out only 90-minute transfers and in checking transfers for expiration. MUNI officials report that there has been a greater effort among drivers to improve transfer interactions since this campaign began. In another campaign, MUNI administrative staff rode along on buses, discouraged passengers from entering through the back door, and checked passengers for proof of payment. MUNI reported that very few passengers were found to be without some proof of payment. It is, however, difficult to determine both the extent of the problem and the effectiveness of these campaigns. MUNI may wish to seek better ways to track or estimate fare evasion in order to get a better understanding of the problem and the need for and effectiveness of alternative solutions.

"Dwell time," or the time that buses and trains in service are idle, is very costly. Tightening payment verification systems (perhaps by eliminating back door boarding) may lead to extended dwell time. MUNI believes that any solution to fare evasion problems that increases dwell time will cost more than any benefits gained. Therefore, any new solutions to fare evasion must not slow buses and trains that are in service.

Another attempt to address the free rider problem was the launch in 2000 of the proof of payment (P.O.P.) program. MUNI has $1.7 million budgeted for 21 P.O.P. officers who are responsible for checking commuters for Fast Passes and transfers. Commuters who are found to be evading fares can be issued a citation of $76 for a first offense, $150 for a second offense, and $211 for a third offense. MUNI only recovers a portion of the revenue collected from citations ($25 for a $76 citation). The remainder goes to the Superior Court, which handles the revenue recovery, hearing process, and convictions. Only 40-45% of citation recipients are ultimately convicted and judges can lower or even eliminate the fine value. Though P.O.P. officers issued 3331 citations in FY2002 only $43,463 was recovered by MUNI.¹

However, after the introduction of the P.O.P. program MUNI saw a significant jump in revenue from train and ticket vending machines for their light rail vehicles. These revenues increased by about $1 million between FY2000 and FY2001. Though it is difficult to determine a correlation between the P.O.P. program and the increase in revenue, it appears that the program does deter fare evasion to some extent. MUNI may wish to do a formal evaluation or cost-benefit analysis of the program. The initial jump in revenue may indicate that publicity around the launch of the P.O.P. program added to its ability to deter fare evasion. MUNI may wish to publicize the program again.

In 18 months, MUNI will introduce a new fare payment system that may further reduce the number of free riders and the need for transfers. The TransLink system will allow commuters to purchase monthly passes, individual rides, and dollar amounts that are stored on cards. Payment is deducted from TransLink cards when they are passed over a scanner. MUNI intends to equip all buses and light rail vehicles with these scanners on both the front and back doors. In addition, P.O.P. officers will have the technology to verify if TransLink passes have been used. MUNI officials believe that both frequent commuters who purchase monthly passes and infrequent commuters who currently pay cash will use the TransLink system. This would reduce cash handling on buses and in stations and could minimize the opportunity for fraud and theft. It will also reduce the number of transfers that are issued by drivers. MUNI should publicize the new program and provide incentives for commuters to switch to the TransLink system.

¹ FY2003 projected: 4,930 citations issued, $62,883 recovered by MUNI