1 Report to/Rapport au : Transit Commission Commission du transport en commun April 17, 2013 17 avril 2013 Submitted by/Soumis par: Steve

Kanellakos, Deputy City Manager, City Operations Directeur municipal adjoint, Opérations municipales Contact Person / Personne ressource: John Manconi, General Manager, Transit Services / Directeur général, Services du transport en commun 613-842-3636 x2111, John.Manconi@ottawa.ca CITY WIDE / À L'ÉCHELLE DE LA VILLE SUBJECT: OBJET : PRESTO SMART CARD SYSTEM SYSTÈME DE CARTE À PUCE PRESTO Ref N°: ACS2013-COS-TRA-0009

REPORT RECOMMENDATION That the Transit Commission accept the assessment that the 7 technical criteria ‘success factors’ have been met and approve the deployment of the PRESTO Smart Card as outlined in this report. RECOMMANDATION DU RAPPORT Que la Commission du transport en commun accepte les résultats de l’évaluation, à savoir que les sept critères techniques pour mesurer le succès ont été respectés, et approuve le déploiement de la Carte à puce PRESTO, tel qu’énoncé dans le présent rapport. EXECUTIVE SUMMARY At its meeting of November 21, 2012, the Transit Commission approved a motion outlining the seven technical system criteria “success factors” to be used to verify that all of the functional issues associated with the PRESTO Smart Card system have been resolved. The motion also included a plan to distribute up to 10,000 additional PRESTO cards in January 2013 to test the “loading” of the system so that the efficacy of the system could be monitored and evaluated through February and March with the results to be presented to the Transit Commission in April 2013 with a recommendation on the feasibility to move to full system rollout.

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2 The seven technical criteria “success factors” to measure the success of PRESTO have all been met as summarized below: Customer convenience features: Uptime of the website meets or exceeds PRESTO standards. Customer convenience features are functional and available. Pass Products available: Pass products are available and fully functional for sale and use from the Website and Station Point of Sale with bus and station card readers performing at a high degree of reliability. STO interoperability: Both PRESTO customers using e-purse or OC Transpo period passes and STO customers using e-purse or STO period passes are able to have their transfer or period passes confirmed as valid fares. Robust Back Office: Financial reconciliation of Station Point of Sale, Web sales, and card readers. 100% of: agent sales transactions; period passes purchased remotely; and epurse transactions – correctly reconciled against system data. Fare inspection functionality: With the latest maintenance release, the HCR is now operational. Payment card industry (PCI) compliance: Attestation of Compliance Certificate was received on March 31, 2013 Ongoing support to respond to customer needs: Timely and accurate attention provided to customers contacting PRESTO. Distribution of PRESTO cards has also surpassed planned targets with the distribution of in excess of 13,000 cards. This significant distribution allowed for a robust data gathering and testing process that assisted with the assessment of the technical criteria, cited above, and also yielded valuable feedback from customers and support staff that will help inform and improve the comprehensive rollout plan. Key Learning’s from the System Readiness Testing and Next-On readiness test are set out below: Customer Experience: Customers are eager to obtain a card and most adopt it easily with small numbers requiring additional and in some cases intensive support. Customer Relations and Sales and Information: OC Transpo customers are very clear about their expectations and are prepared to share this with many different channels in seeking answers or resolutions. 2

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Distribution: A staged and measured release, with clear delineated processes backed up by knowledgeable and trained staff will allow for rapid release of cards with a limited number of channels being required. The distribution through the website is by far the most popular and convenient for all concerned. Marketing and Information: Customers are engaged and ready to adopt the system and providing simple and targeted materials enables continued success. Communications: The ability to provide timely and accurate internal and external communications requires significant resources and is hampered when delayed. Training: Staff throughout the organization require training and education on the PRESTO system and successful training is accomplished through in-person opportunities over written or virtual. Monitoring and Reporting: The collection and analysis of metrics is labour intensive however produces significant benefits for future decision-making. Based on the results of the technical system criteria along with the results of the system functionality on the seven success factors for the program, the Transit Services Department recommends that the Transit Commission approve the full implementation of PRESTO in the City of Ottawa including approval of the phased deployment plan to achieve full system rollout as outlined in the report. All Transit Commission motions and directions relating to the program and or its deferral have been incorporated into the proposed roll out plan. The following provides a summary of these motions in chronological order: June 13, 2012: Deferall of ECOPASS program cancellation and the pay per ride elements of the 2012 fare table until the City announces a date for the formal implementation of the PRESTO card system; Amendments to the Transit By-law be implemented on a date to be established by the General Manager of Transit Services with the concurrence of the Chair of the Transit Commission; Authorize the General Manager, Transit Services, to place amending by-laws directly on Council’s agenda for enactment when required to effect the required 3

4 administrative changes related to the implementation of the PRESTO Smart card, including repealing fare instruments that are no longer required; and, June 20, 2012 The extension of the ECOPASS program agreements for one year and that the ECOPASS fare remain at the 2011-2012 level plus a general fare increase of 2.5%. PRESTO is a large and complex change for customers and OC Transpo staff. The PRESTO system will change our business from the way people purchase their ride, to how they board and what information we will have to analyze and improve service. The scope of these changes will allow OC Transpo to prepare for the arrival of the Confederation Line in five years and assist in transforming public’s adoption of technology that will be leveraged for improved service, greater access and customized use. Simply stated – OC Transpo users will join large urban transit systems in harnessing technology to make the transit experience even more enjoyable and convenient. Subject to approval by the Transit Commission, the objectives of the next phase of PRESTO implementation are: a) To successfully get PRESTO cards into the hands of transit users in an effective and efficient manner that is convenient for our customers and results in their use; and, b) To support customers by providing education and information they need to make their experience with the PRESTO card a positive one. Contingent upon the approval of Transit Commission to proceed with full PRESTO implementation, the PRESTO Distribution Plan will be a staged and measured distribution based on target customer groups. The distribution methods will be a combination of in-person, online and PRESTO Call Centre orders. The next and final stage of introducing PRESTO to OC Transpo riders will bring a new and easier way for most customers to use the system. The introduction of the smart card is not the transformation; it is leveraging all of the potential of the smart card that will transform OC Transpo and public transit in Ottawa. SOMMAIRE À sa réunion du 21 novembre 2012, la Commission du transport en commun a approuvé une motion décrivant les sept critères techniques pour mesurer le succès de PRESTO qui devaient être utilisés pour vérifier que tous les problèmes fonctionnels associés au système de carte à puce Presto ont été résolus. La motion prévoyait également un plan pour la distribution de 10 000 cartes Presto supplémentaires en 4

5 janvier 2013, afin de lancer un essai de « chargement » du système et de surveiller et d’évaluer son efficacité en février et mars. Les résultats devaient être présentés à la Commission du transport en commun en avril 2013 et une recommandation devait être formulée relativement à la faisabilité du déploiement complet du système. Les sept critères techniques pour mesurer le succès de Presto ont été respectés et sont énumérés ci-dessous : Fonctions pratiques pour le client: Le bon fonctionnement du site Web satisfait ou excède les normes de PRESTO. Les fonctions pratiques réservées au client sont fonctionnelles et disponibles. Disponibilité des laissez-passer: Les laissez-passer sont disponibles et entièrement fonctionnels, ils peuvent être achetés directement dans le site Web ou dans les points de vente des stations; les lecteurs de carte des stations sont très fiables. Interfonctionnement avec STO: Les clients de PRESTO qui utilisent le portefeuille électronique ou les laissezpasser d’OC Transpo et les clients de la STO qui utilisent le porte-monnaie électronique ou les laissez-passer de la STO sont en mesure de confirmer leur correspondance ou leur laissez-passer à titre de passage valide. Services administratifs robustes: Rapprochement financier des ventes au point de vente des stations, des ventes Web et des lecteurs de carte. Totalité des : Transactions de vente traitées par un agent; des laissez-passer périodiques achetés à distance et des transactions effectuées au moyen du portefeuille électronique – les données ont été correctement rapprochées par rapport aux données du système. Fonction d’inspection des tarifs: Avec la dernière version du logiciel, les lecteurs de cartes portatifs sont maintenant considérés comme opérationnels. Conformité aux normes «Payment card industry (PCI)»: L’attestation du certificat de conformité a été reçue le 31 mars 2013 Soutien continuel pour répondre aux besoins du client: Une réponse précise et opportune est donnée aux clients qui contactent PRESTO. La distribution des cartes Presto a également excédé les objectifs prévus; au total plus de 13 000 cartes ont été distribuées. L’importante distribution a permis de recueillir des données robustes et de mettre en œuvre un processus d’évaluation des critères techniques susmentionnés. En même temps, elle a permis d’obtenir de précieux commentaires des clients et du personnel de soutien qui serviront à informer et à améliorer le plan de déploiement complet. 5

6 Les principales leçons tirées des tests de préparation du système et de l’évaluation du programme J’embarque avec PRESTO sont énumérées ci-dessous :

Expérience client : Les clients sont anxieux d’obtenir une carte et la plupart l’adoptent facilement; un petit nombre exigent un soutien supplémentaire, et dans certains cas un soutien soutenu. Relations avec les clients et les Services des ventes et de l’information : Les clients d’OC Transpo ont clairement énoncé leurs attentes et sont prêts à en parler sur différents canaux pour trouver des réponses et des solutions; cette façon de faire a des répercussions directes sur la capacité interne. Distribution : Une distribution graduelle et mesurée, effectuée selon une procédure claire et bien définie, appuyée par un personnel formé et qualifié, assurera la distribution rapide des cartes par l’intermédiaire d’un nombre limité de canaux. La distribution par l’intermédiaire du site Web est de loin le moyen le plus populaire et le plus commode pour toutes les parties visées. Marketing et information : Les clients sont prêts à participer et à adopter le système; la documentation simple et ciblée assure le succès continuel. Communications : La capacité à assurer des communications internes et externes exactes et en temps opportun exige des ressources importantes; tout retard a d’importantes conséquences. Formation : Il faut former et informer l’ensemble du personnel de l’organisation au sujet du système PRESTO. La formation est effectuée en personne, par écrit et par voie électronique. Surveillance et rapport : La collecte et l’analyse des mesures sont exigeantes en personnel, mais procurent cependant d’importants avantages pour la prise de décisions futures. Selon les résultats de l’analyse des critères techniques et de la fonctionnalité du système pour mesurer les sept facteurs de succès du programme, les Services de transport en commun recommandent que la Commission du transport en commun approuve la mise en œuvre complète de PRESTO dans la ville d‘Ottawa y compris l’approbation du plan de déploiement graduel afin de procéder au déploiement complet du système comme il est décrit dans le rapport.

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7 Toutes les motions et directives de la Commission du transport en commun relatives au programme ou au report du programme ont été intégrées à la proposition du plan de déploiement. Voici le résumé de ces motions en ordre chronologique :

Le 13 juin 2012 : Le report de l’annulation du programme ECOPASS et des éléments concernant le passage individuel de la grille tarifaire de 2012 jusqu’à ce que la Ville annonce la date de la mise en œuvre officielle du système de carte PRESTO; Mise en œuvre des modifications au Règlement sur le transport en commun à une date qui sera établie par le directeur général des Services de transport en commun avec l’agrément de la présidente de la Commission du transport en commun; Autoriser le directeur général des Services de transport en commun à inscrire directement les modifications au règlement à l’ordre du jour du Conseil pour promulgation au besoin afin de mettre en œuvre les changements administratifs nécessaires liés à la mise en œuvre de la carte à puce PRESTO, y compris l’abrogation des instruments tarifaires qui ne sont plus nécessaires; Le 20 juin 2012: La prolongation des ententes du programme ECOPASS pour un an et recommandation pour que le tarif ECOPASS demeure au niveau de 2011-2012, plus une majoration tarifaire de 2,5 %. PRESTO est un important changement complexe pour les clients et le personnel d’OC Transpo. Le système PRESTO va changer complètement notre façon de faire, en commençant par le mode de paiement du passage, la manière de monter à bord et l’information que nous aurons en mains pour analyser et améliorer le service. L’étendue de ces changements permettra à OC Transpo de se préparer à l’arrivée de la Ligne de la Confédération dans cinq ans et d’encourager l’adoption de la technologie par le public qui permettra d’améliorer le service et l’accès et de personnaliser l’utilisation. Autrement dit, les utilisateurs d’OC Transpo se joignent à d’autres grands réseaux de transport en commun afin d’adopter une technologie qui rend l’expérience du transport en commun plus facile et plus agréable. Sous réserve de l’approbation par la Commission du transport en commun, les objectifs de la prochaine étape de la mise en œuvre de PRESTO sont : a) de distribuer les cartes PRESTO directement aux usagers du transport en commun de manière efficace et pratique pour les usagers et qui les incite à l’utiliser; 7

8 b) d’appuyer les clients en leur fournissant la formation et l’information dont ils ont besoin pour que leur expérience avec la carte PRESTO soit positive. Sous réserve de l’approbation de la Commission du transport en commun d’aller de l’avant avec la mise en œuvre de PRESTO, le plan de distribution de la carte PRESTO se fera par étape et graduellement et ciblera des groupes de clients. Divers modes de distribution sont utilisés soit en personne, en ligne et par commande au Centre d’appels de PRESTO. La dernière étape du déploiement de PRESTO auprès des usagers d’OC Transpo permettra d’offrir à la plupart des clients un nouveau moyen plus facile d’utiliser le système. L’introduction de la carte à puce n’est pas une transformation; il s’agit plutôt d’exploiter le potentiel de la carte à puce qui transformera OC Transpo et le transport en commun à Ottawa. BACKGROUND At its 21 November 2012 meeting, the Transit Commission approved the following Motion OTC 31/1: Whereas in the Metrolinx update to the Transit Commission today, November 21, 2012, Commissioners were advised that there would be a delay in the projected February 1st, 2013 launch of the PRESTO Smart Card system in Ottawa; and, Whereas Metrolinx, having identified core functional issues, has asked for an additional three months delay in the launch date; and, Whereas the Transit Commission has been assured by Metrolinx that the core functional issues have been resolved and that the delay in the launch will allow Metrolinx and OC Transpo to roll out the test the “loading” of the system with up to 10,000 customers using the product in January 2013; Whereas OC Transpo and Metrolinx have agreed upon the following specific seven technical criteria “success factors” to measure the success of PRESTO, being: 1. Customer convenience features, such as auto load, auto renew and web access, telephone; 2. Pass Products available (including monthly passes for different categories and e-purse); 3. STO interoperability (seamless); 4. Robust back office (instant updates); 5. Fare inspection functionality; 6. Payment card industry (PCI) compliance; and

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9 7. Ongoing bilingual support to respond to customer needs (call centre to support the product demand); The same motion directed the following: Whereas the results of the technical system criteria along with the results of the system functionality on the seven success factors will be presented to the Transit Commission in April 2013, along with details regarding recommendations on the feasibility to move to full system roll out; and Whereas until this decision has been taken, no funds will flow to Metrolinx; and Whereas in recognition of the extended timeline for deployment and the role OC Transpo is playing in being the first user of PRESTO Next Generation, Metrolinx will be reducing the municipal contribution towards the remaining capital costs by $3 Million (effectively $1M a month for the delay); and Whereas in the event system acceptance is not achieved by June 1, 2013, either party reserves the option to consider other directions for the program at that time, including the option to discontinue the deployment of the PRESTO program in Ottawa. Metrolinx would make the City of Ottawa whole on its capital investment in the fare system, unless system acceptance is not achieved for reasons beyond Metrolinx’s control. The motion also outlined a plan as follows: 1. Early January 2013: OC Transpo communications begin around the expansion of the program up to 10,000 additional users 2. Mid-January 2013: Initiate distribution of up to 10,000 cards and put into full production through the end of January 3. Mid-January to April 2013: Continue to monitor, conduct analysis and confirm positive results to inform broader public distribution 4. April 2013: Results will be presented to the Transit Commission to receive approval for continued deployment. At this time OC Transpo program implementation would be presented to outline the phased deployment plan to achieve full system rollout. This report provides a summary of the status of the Program elements, learnings from the Next-On PRESTO distribution, the results of the system readiness testing and recommends a staged and measured distribution based on target customer groups. 9

10 The distribution will be a combination of online and PRESTO Call Centre orders. The report also outlines the data analytics next steps and the use of smart cards for the Confederation Line.

DISCUSSION Summary: Transit Information Technology A close assessment of functionality has been performed during January and February 2013 to qualify the overall PRESTO system. From a technical point of view the system is functioning well albeit with some minor issues that are typical of a large scale system. There is no functionality that would stop the general launch. At this point, there are no indicators that the PRESTO fare payment system has defects that will impede proper interaction between the user card and the readers. The remaining known issues are well in the realm of being manageable and are certainly comparable to what would be experienced with similar large system deployments. Station Point of Sale (SPOS) – The Cash register The SPOS devices are used by OC Transpo to load products (passes, e-Purse, and concessions) on the PRESTO card. The SPOS is also the cash register for the sale of all the OC Transpo products. The SPOS technical and functional issues identified previously have been fixed and the units are operating according to the business requirements. At this point no known issues remain. Handheld Card Reader (HCR) The Handheld Card Readers are used for fare enforcement to validate that a customer has a valid product on their PRESTO card and that the card has been tapped on a card reader. With the latest maintenance release, the HCR is now operational.

Bus Fare Transaction Processor (BFTP) and Station Fare Transaction Processor (SFTP) – The card readers The bus and station card readers are performing at a high degree of reliability and are no longer a cause of concern. All testing performed by our tappers in late January following the last maintenance release has proven to be successful. This has been echoed by the very few reports of defects by the general public as well as by our operators. The few defects reported are inside of the statistical defect expected for a fleet of over 1,800 devices. In addition, during the coldest day of the winter in January 2013, no additional defects were reported than any other day. PRESTO Technical and Financial Information and Data Sharing

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11 PRESTO offers a vast amount of information from different sources, some easier to access and work with than others. One of the most accessible and useful sources of data is issued daily for financial/usage data and generates the necessary reports for OC Transpo. The other source that is issued regularly is the Central Support System (CSS) that provides detailed transaction reports, events and statuses of all the deployed devices. The CSS data source has proven to be one of the most reliable sources of information providing us with a state of the overall system as well as the source of information to detect potential problems. The third source of information, Service Provider Web (SPWEB), is one of the major sources for general reporting. In addition to financial reports, it provides OC Transpo with card querying capabilities to help track customer service issues, track fare inspection reports and traffic usage, to name a few. SPWEB varies in performance based on the type of reports and the period of time. The performance of this system is being monitored as the volume of data increases. The long-term solution is the PRESTO Service Provider Business Intelligence, which will provide the Service Provider with a faster and more powerful reporting tool. Although SPWEB does not perform to the required level, the other sources of data compensate to provide staff with the information that is required until such time that the Business Intelligence (BI) is tested and operational. Early demonstration of the BI in development has shown great potential. Security With the inherent architecture of the smart card, the high degree of encryption and ciphering keys, no data security issues have been seen or reported. Communication Our communication system is based on use of the cellular network which is unique to PRESTO and in the smart card world. This presented challenges at the beginning of the project. Today, however, the use of the cellular network is a major benefit because it enables the system to connect in real-time to the bus fleet and provides information on the status of each device (reader) and delivers information updates. The system is performing reliably. Finance The Transit Finance Service Unit is responsible for ensuring the accuracy and completeness of fare revenues processed through the PRESTO system. There are two different product types: E-Purse (pay per ride) and monthly passes. Each involves a different set of transactions that takes place between the City and Metrolinx. The PRESTO system also recognizes whether the card has been issued for an adult or if it is a discount concession card (i.e. senior, student, child, etc.). E-Purse (pay per ride) funds loaded onto a PRESTO card are held by Metrolinx until the card holder taps their card on a bus to pay for the ride. The appropriate fare is then deducted from the rider’s remaining PRESTO card balance and the funds are then 11

12 transferred from Metrolinx to the City of Ottawa in addition to applicable transaction fees. Period pass purchases that are made directly at the City of Ottawa’s Sales Centres locations are deposited directly into the City’s bank account. Period pass sales made remotely are transferred from Metrolinx to the City within 2 business days. These remote period pass sales include web-based sales, and automatic monthly renewals. Transactions through the City’s Sales Centres are processed using PRESTO’s point of sales (SPOS) system which was installed at all locations in June, 2012. Since the initial installation, sales centres have also completed manually prepared daily cashier reports that Finance then reconciled to PRESTO sales reports and bank transactions to ensure the system was working properly. Where issues were identified staff worked with PRESTO and Accenture to arrive at acceptable solutions. Over the past year updated financial processes, including those regarding daily sales and bank reconciliations, have been established and all Sales and Finance staff working with the system have been trained regarding these. Finance has also worked with Transit to review and ensure adequate internal controls related to the PRESTO system are in place. The City has gained assurance as to PRESTO’s own financial processes and controls as a result of a favourable audit opinion resulting from a Third Party Assurance Audit which was conducted by PricewaterhouseCoopers for the 2012 calendar year. This is a specific audit engagement that follows the Canadian Institute of Chartered Accountant established standards. The auditors found that there were no material issues as to the design or effectiveness of controls for the PRESTO system. PricewaterhouseCoopers has also been commissioned to conduct a pre and post implementation review on the Release 2.0 system, which is the system that Ottawa has implemented. The City has received the Attestation of Compliance Certificate from Metrolinx which demonstrates that Metrolinx is Payment Card Industry Data Security Standard (PCI DSS) compliant. Finance can now fairly state that PRESTO transactions are transferred between the City and Metrolinx in an accurate and timely manner and that the system properly calculates fare revenues. Card Usage and Performance: Metrics: Cards in Use • • Monthly Passes e-Purse January/February 6,825 2,992 4,586 Up to March 12 8,226 3,632 6,055 Up to March 30 8,527 3,724 6,461 12

13 • Cards registered 7,226 >110,000 > 98% No Issues 7,902 >375,000 >99% 7,828 >546,000 >99%

Numbers of transactions Successful tap ratio STO interoperability

Implementing A Smart Card Program – How It Impacts OC Transpo The next and final stage of introducing PRESTO to OC Transpo riders will bring a new and easier way for most customers to use the system. The introduction of the smart card is not the transformation; it is leveraging all of the potential of the smart card that will transform OC Transpo and public transit in Ottawa. The PRESTO system will change our business from the equipping of a new bus upon delivery, to the way people purchase their ride, to how they board and to what information we will have to analyze and improve service. Customer sales and service will change as we work in a joint relationship with PRESTO to ensure customers have the best service response to any possible issue they may have. People will have different options to purchase and access PRESTO services and sales staff will be available to assist those who require additional support in purchasing and using their PRESTO cards. The scope of these changes will allow OC Transpo to prepare for the arrival of the Confederation Line in five years and will assist in transforming the transit riding public’s adoption of technology that will be leveraged for improved service, greater access and customized use. Simply stated – OC Transpo users will join large urban transit systems in harnessing technology to make the ride even more enjoyable and easy. PRESTO is a large and complex transformation for OC Transpo staff and its customers. Its sheer size with interfacing technologies managed by different service providers, business processes and large numbers of affected stakeholder groups made it essential to apply a proven change management methodology throughout the whole transformation. Therefore, change management was integrated at the beginning of the Smart Bus project in 2010 and progressed through the phases of implementing the upgraded technology system onboard the buses including the Next Stop Announcement System, Intelligent Vehicle Network (IVN) and PRESTO systems.

PRESTO DISTRIBUTION / PRESTO NEXT-ON / LEARNINGS On 21November 2012, the Transit Commission approved a plan to undertake a system readiness test. This test, called PRESTO Next-On, began in January 2013 with the distribution of up to 10,000 cards. The system readiness test was designed to measure the following seven success factors: 1. Customer convenience features; 13

14 2. 3. 4. 5. 6. 7. Pass products available (monthly pass products and e-Purse); STO interoperability; Robust back office; Fare inspection functionality; Payment card industry (PCI) compliance; and, Ongoing bilingual support to respond to customer needs.

The test was successful in testing the technology and customer service delivery systems. The test also exceeded plans and expectations by distributing in excess of 13,000 cards and gathering enough data and experience to prepare a comprehensive distribution plan for any future rolls out on an accepted system. It should be noted that a certified Change Management expert is dedicated to the project to make sure the impacts on staff are addressed in a structured and proactive way. A collaborative partnership with many groups – Leadership, Training, Marketing, Community Outreach, project team members, and the stakeholder ambassadors responsible for change in their areas has been integral to the success of the project. Together, they formed a comprehensive Change and Communications Plan and delivered numerous materials that reflected common messages both internal and external. The Change Plan deliverables were integrated with the PRESTO Next-On readiness test. What follows are the key points and learnings from the Next-On readiness test. Customer Experience - Key Learning: Customers are eager to obtain a card and most adopt it easily with small numbers requiring additional and in some cases intensive support. Staff believe that Ottawa transit users are excited and ready to embrace the PRESTO card. This excitement and interest was demonstrated on day one when all 10,000 PRESTO cards were quickly distributed to eager customers. This required an immediate change to the planned 15 day distribution period as the goal was fully achieved on the first day. Over 13,000 PRESTO cards were distributed and more than 7,000 of these cards were actively in use during the months of January and February. If the previously distributed cards from the Family and Friends distribution and the June 2012 distribution are factored in, the result is that there are currently 15,466 cards distributed, of which 8,226 are in use. This distribution and the customer response provided staff with valuable insight into the PRESTO customer experience and preferences. Staff have now identified areas and issues that require additional support and education to ensure that customers have the best possible experience when they obtain and then begin to use their PRESTO cards. 14

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A significant number of these issues can be mitigated through improved communication and education materials for our customers. Customer issues were raised and triaged by customer service staff from Transit Services and PRESTO as well as technical, operations, finance and transit law representatives. Transit Operational Control Centre Reports provided by Transit Operations staff were reviewed throughout Next-On to provide a gauge of the issues occurring directly on buses and reported through bus operators. Appendix 1 reveals the most frequent customer issues that were raised during the NextOn distribution and the solutions and mitigating measures developed and put in place. Customer Relations and Sales and Information - Key Learning: OC Transpo customers are very clear about their expectations and are prepared to share this with many different channels in seeking answers or resolutions and this has a direct impact on internal capacity. The PRESTO and OC Transpo customer relations system represents an important component of the PRESTO experience for OC Transpo customers. The model provides multiple channels for customer assistance with the primary channels being the PRESTO Call Centre and prestocard.ca. OC Transpo Customer Relations manages this relationship and has established regular contact and work processes with the PRESTO Call Centre to ensure that service levels are met and that problems are resolved to the satisfaction of all parties – with the primary focus on the customer. Through these channels, customers are able to choose to manage their PRESTO account independently or with the assistance of a PRESTO customer relations representative. Managing their PRESTO account includes activities such as purchasing monthly passes or e-Purse (to pay with cash), hot listing a lost or stolen card or accessing a Transit Usage Report for tax purposes. In preparation for Next-On, all OC Transpo Customer Relations staff received new and refresher training on PRESTO and related OC Transpo customer and business processes. Customers looked to the traditional and familiar OC Transpo channels for support, and the Customer Relations and Call Centre staff were able to support and educate PRESTO customers in almost all circumstances. It became clear that to ensure effective customer response, training and ongoing information sharing with staff is essential.

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16 In advance of Next-On, customers predominantly contacted the OC Transpo Call Centre for information regarding the distribution and availability of PRESTO cards. During the initial days of distribution, the OC Transpo Call Centre received approximately 500 calls. Call volumes to the OC Transpo Call Centres diminished significantly as customers migrated to PRESTO Call Centre for support. As the distribution period concluded, customers began to migrate to the PRESTO Call Centre for all PRESTO related issues, while the OC Transpo Call Centre experienced significantly lower call volumes. The lower call volumes however did not affect the length of time required to ensure the customer was properly served and any questions answers or problems resolved. During Next-On distribution, Sales and Information staff supported the distribution, loaded pass and e-purse products on cards, set discount concessions and provided customer education. In addition to supporting the Next-On distribution, Sales and Information staff continued to sell paper legacy products (monthly passes and tickets). The current service level agreement with PRESTO includes a monthly average of customer service levels. The service level agreements (SLA) require 80% of calls be answered within 30 seconds (monthly average), 95% of calls be answered within 120 seconds and a call abandonment rate of below 5%. For the month of January, the PRESTO Call Centre achieved the SLA, answering 86% of calls within 30 seconds and 96% of calls within 120 seconds and experienced a call abandonment rate of 2%. For February, the PRESTO Call Centre was able to achieve the SLA, answering 80% of calls within 30 seconds and a call abandonment rate of 2%. However, they were not able to achieve the SLA of responding to 95% of calls within 120 seconds, achieving a level of 94%. As well, the PRESTO Call Centre was able to handle the volume of French calls (less than 5% of total calls answered) that were received. OC Transpo and PRESTO Customer Relations staff monitored Twitter and engaged in more than 100 conversations about the Next-On distribution and general PRESTO usage questions. The reaction from customers to this approach was positive both in relation to the PRESTO card itself and the speed of response to inquiries via social media. When business decisions and process changes are made, the speed at which this information is shared with our customer service staff and the PRESTO Customer Service staff will have a direct impact on the quality of support provided to our customers. In the roll-out of PRESTO, appropriate time and resources will be allotted to the preparation of communication to staff and appropriate support of business changes or business processes to all customer service staff. Distribution - Key Learning:

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17 A staged and measured release, with clear delineated processes backed up by knowledgeable and trained staff will allow for the rapid release of cards with a limited number of channels being required. The distribution through the website is by far the most popular and convenient for all concerned. The objective of the PRESTO Next-On service readiness test was to distribute up to 10,000 PRESTO cards to customers from January 18 to February 1, 2013. The target groups for Next-On card distribution included active transit users, suburban commuters, college students, seniors and community pass holders. For each group, specific strategies were developed to test all aspects of distribution and to provide customers with convenient access to the PRESTO cards. Customers were allowed to obtain up to four cards per person as long as they designated who the additional cards were for and signed the appropriate form. Distribution channels included a combined in-person distribution at Transitway stations and Sales and Information Centres and through the PRESTO Call Centre and web site. Approximately 100 OC Transpo staff participated in the distribution, including OC Transpo / PRESTO Project staff and Training staff who acted as “experts” to answer customer questions. Transitway distribution was targeted at frequent transit users where they regularly take transit. Three Transitway locations were selected (Hurdman, Baseline and Fallowfield) to test different rider groups and geographic locations to test the convenience and resulting card usage among the identified groups. A total of 4,300 cards were distributed at the three Transitway locations on three different days. Staff modified the distribution methodology during the course of the distribution to ensure a positive customer experience. Staff used Twitter successfully to keep customers apprised of the availability of PRESTO cards. The Sales and Information Centre distribution engaged transit riders at existing and familiar transit locations. Unlike Transitway station distribution, the Sales and Information Centres provided customers the opportunity to load products (passes or epurse) on their PRESTO cards and/or to set discount concessions. This allowed customers who loaded a PRESTO card to use it immediately. By end of day, approximately 5,322 PRESTO cards were distributed with approximately 450 February monthly passes and 920 e-Purse purchases loaded to cards at the four Sales and Information Centres. The distribution of PRESTO cards through the PRESTO Call Centre and prestocard.ca proved to be one of the preferred distribution channels for customers with approximately 3,700 PRESTO cards ordered on January 18, 2013. It is important to note that when ordering a card online, a customer must load a minimum of $10 in product. The distribution target for the website was 5,000 cards. This target was not achieved because once all orders were received and processed a number of orders could not be 17

18 completed due to incomplete or inaccurate information (i.e. wrong address, incomplete, false or missing information). The experience of customers ordering from prestocard.ca was positive, with only a small number of minor issues experienced as outlined below. During the initial hours of online distribution on January 18, the significant volume of orders experienced on prestocard.ca resulted in slower processing times than normal for some customers. This was short in duration with performance stabilizing shortly after as order volumes normalized. Select customers also experienced issues with prestocard.ca due to the browser version they used to order a card. For example, the obsolete Internet Explorer version 6 was a problem. A software issue that prevented the loading of period passes was identified and resolved within one hour with only a small number of customers affected. Approximately 230 customers mistakenly ordered a GTHA (Toronto) PRESTO card, which is not currently compatible with the Ottawa PRESTO system. OC Transpo and PRESTO worked collaboratively to contact these residents and exchange their card for a functioning Ottawa PRESTO card. This initiative resulted in these customers being sent an Ottawa card pro-actively within 10 days. This process also confirmed that there were four customers who in fact were intending to order and purchase a Toronto (GTHA) card. Prestocard.ca is a confirmed, convenient and practical option for a large number and variety of customers. The experiences and mitigation approaches identified will allow for prestocard.ca to be an important and major component of future card distributions. The Community Outreach distribution for Next-On PRESTO focused on ‘in-person’ card distribution and registration for seniors and community pass holders at the Good Companions Centre and the Canadian Mental Health Association during a number of two hour sessions on January 29 and January 30, 2013. A team of staff verified card eligibility, assisted with on-line registration, provided instructional material and answered questions during the process. A total of 139 PRESTO cards were distributed. Community Outreach would benefit from consistent involvement of a ‘designated agency staff member’ to assist with age determination for seniors, and confirmation of eligibility for Community Pass users. In order to ensure that Community Outreach customer experience is successful, clearer communication will be used, with emphasis on the importance of customers having the form completed in advance and appropriate identification with them on card distribution day. 18

19 There are additional outreach processes being developed with groups such as CAWI (City for All Women Initiative) to ensure there is continuous improvement and understanding of the needs of various transit users who may require additional support in this transition. It was learned that in-person distribution requires additional stringent line-management tactics to ensure that customer wait times are minimal and that distribution is carried out efficiently with minimal confusion. The longest wait time for customers who wanted to load a product at Sales and Information Centres was approximately 35 minutes on January 18. Customers could also choose to receive a card and leave, thereby reducing their wait time to approximately ten minutes. These customers were directed to load their cards online. Approximately 51% of customers who left with a card, loaded product online or returned at a later date to load in-person. Wait times were reduced to approximately 5 minutes at Baseline and Fallowfield stations through modification of the distribution process. Conducting staff briefing sessions on distribution processes also improves the process. Marketing and Information - Key Learning: Customers are engaged and ready to adopt the system and providing simple and targeted materials enables continued success. The marketing strategy for the PRESTO Next-On program distribution in January 2013 was to build demand for a quick distribution, and provide a simple and convenient opportunity for riders to use PRESTO instead of their legacy (paper) fare media. Although marketing and communications plans for the PRESTO Next-On program were similar to the June 2012 approach by first creating awareness and then providing instruction, there were two substantial changes from the original plan. These were: • Communication materials and channels were reduced in scope and number. The scale of the Next-On program was only a small fraction (5%) of the original June 2012 plan; and, • Instructional materials were revised to provide a more customized ‘welcome kit’ of materials, aligned with discreet user groups such as seniors, students and Community Pass holders. Separate materials were created, in multiple languages, for student, senior, child, and adult customers, as well as for those using on-line, telephone, or in-person points of contact. During Next-On, both octranspo.com and prestocard.ca provided important educational and support services for customers. Staff worked closely with PRESTO to coordinate messaging and to provide clarification and support on unfamiliar components of the PRESTO system.

19

20 On January 18, both websites received a combined 25,000 visits with the Next-On portion of octranspo.com receiving over 14,000 visits and prestocard.ca receiving over 11,000 visits. As the distribution phase concluded, customers began to migrate to prestocard.ca where they are able to access a number of PRESTO services and manage their PRESTO account independently. However, customers continued to visit the PRESTO portion of octranspo.com for information on product loading and other general PRESTO card information. Social media was also used extensively during Next-On. Proactive tweets regarding card distribution dates and locations were sent out regularly to customers and followers. Customers and local media cross-promoted the information contained in these tweets and assisted in providing up to date information to wider customer audiences. Staff have learned that a strong demand for PRESTO already exists and does not need to be created. Price increases planned for July 1, 2013 are expected to create additional demand, as PRESTO will be even cheaper for customers who “pay-per-ride” over those who pay with cash or tickets. PRESTO concepts and usage-requirements are generally understood by most customers and do not require extensive or detailed explanation. There are customers who require more explanation and that is provided in person at sales offices, over the telephone by the PRESTO call centre or through the web or print materials that have been developed to respond to most customer concerns and inquiries. However, some of the more specialized requirements such as card “activation” will require new instructional material to overcome some of the confusion around these concepts. These materials have been identified and are in development for future marketing and information. Both websites and social media will be featured heavily in any future marketing. This will include live and ongoing Twitter presence during heavy distribution days and events. The confirmed learning is that most cards will be easily distributed at existing points-ofcontact, without requiring customers to do anything special beyond ‘getting a card.’ Proven distribution channels have been tested with the Next-On program and are the web, OC Transpo Sales Centres and direct outreach at Transitway stations. Marketing efforts will be required for customers to convert cards into active use especially by adult customers who “pay-per-month” (pass users). No price incentive and continued availability of legacy fare media appear to discourage some of these customers from following through to use their new PRESTO card. Communications - Key Learning/Experience:

20

21 The ability to provide timely and accurate internal and external communications requires significant resources and is hampered when delayed. Both internal and external communications remain a key component to PRESTO implementation. Formal Change Management and internal communication strategies were used throughout the planning and launch of Next-On to take the pulse of the organization’s readiness for the change to PRESTO, to promote awareness, understanding and buy-in among employees, and to sustain the successful integration of PRESTO business processes into the operation. These strategies were integral to PRESTO training and internal communications. To continue with creating general awareness prior to Next-On, a set of FAQ’s were posted on OC Transpo intranet for the bus operators based on questions they posed during their training and e-mails received. To ensure that the information needs of the various staff groups, including bus operators, Customer Service and Transit Fare Enforcement Officers (TFEO) were met, a Change Management practitioner worked collaboratively with the various areas to create bulletins, internal newsletter articles, General Manager e-mails, FAQ’s, handouts, and posters to support classroom training. Focus groups were also held with bus operators prior to training to help validate approach and content. The PRESTO Guidelines were revised for Customer Service, Sales and Information staff, and included in the Next-On training. Management and the Labour Relations of the City of Ottawa have communicated with union representatives and staff about the deployment of the PRESTO card. These communications pertain to the hiring practices, staff participation as required, as well as the transformation of business processes and job responsibilities that will result from the adoption to the PRESTO card. The OC Transpo Fare Committee is an employee engagement group that involves stakeholders from OC Transpo management and unions (CUPE 5500, ATU 1760 and ATU 279) who have staff dealing with fares, customers and consistent application of fare related issues. Throughout the various stages of organizing for the introduction of the PRESTO system, the Fare Committee has been regularly apprised of PRESTO card developments and issues and has provided valuable insight into the functionality of PRESTO related matters. Feedback provided by the Fare Committee as well as through focus groups that were held with operators, has resulted in an improved display of information to the operators about PRESTO/STO card use and concession fares.

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22 Recognizing the importance of the Next-On program for Transit Commissioners, staff undertook a proactive communications approach to address any issues arising from Next-On. This included memos to Council and Transit Commission, FAQs, and monthly updates to Transit Commission. Staff also recognized the need to respond to and educate customers as they underwent the transition to the new PRESTO system. In addition to the comprehensive promotional marketing strategy, three Public Service Announcements were issued on January 16, 18 and 22, 2013 with information on the card distribution status and important information for new PRESTO card holders. Social media was also used extensively during the Next-On program both to engage and respond to customers. The January approach to external communications worked well; however, the full PRESTO launch will need more targeted tactics for card holder groups. Public service announcements designed for widespread distribution through the media do not appear to be the most effective tactic and further specific targeting to the specific audiences during the full card rollout will be necessary. However, comprehensive, plain language FAQs and customer specific information on octranspo.com appears to be a valuable resource. Training - Key Learning: Employees in all part of the organization require training and education on the PRESTO system and successful training is accomplished through in-person opportunities over written or virtual. Over 1,700 OC Transpo employees were trained in preparation for the Next-On program between December 17 and February 25, 2013. An accelerated planning and content development approach was taken to meet the January 18 Next-On program launch date. Providing just-in-time training with up to date material is critical for operator buy-in and successful implementation of new technology and business practices. As business rules are altered or new rules are implemented, current information must be imparted as soon as possible. Communicating with a large, mobile workforce is challenging and strategies must be in place to ensure timely and successful communications. Seeking and applying feedback is an important component of continuous learning and improvement. Training in a stable technical environment offers the best outcome; training while changes are on-going is challenging for both instructors and trainees and can often lead to confusion. Additional supports were provided to staff to promote learning while system upgrades were underway, including focus groups, garage campaigns, and FAQ’s. Transit instructors conducted post-training ‘ride-alongs’ to gauge operator buy-in and to answer questions.

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23 Evaluations from bus operator training indicate a high level of understanding and buy in for PRESTO implementation. Support to operators continues by collecting and analyzing information and making adjustments to support responses given in training evaluation surveys and information received through ride check surveys, operator focus groups and regular meetings with Transit Operations managers. As with the introduction of any large-scale business and technological change, we anticipate that some operators may experience occasional challenges with PRESTO. As such, ongoing communication is essential to successful implementation and is being provided through regular bulletins, radio announcements, and garage campaigns with trainers available to operators. Monitoring and Reporting - Key Learning: The collection and analysis of metrics is labour intensive however produces significant benefits for future decision-making. Next-On provided the opportunity to gather important information on the PRESTO customer experience, including distribution best practises and customer preferences. Staff identified numerous metrics for daily, weekly and monthly reporting to inform NextOn operations and any future PRESTO implementations. During the Next-On period, staff met to monitor, report and addressed customer experiences in the PRESTO Control Centre. All appropriate OC Transpo and PRESTO branches were represented at these meetings, providing important information from the multiple operational and customer channels. Participation included staff from PRESTO/Metrolinx. These meetings allowed for customer and operational issues to be identified, with the appropriate staff able implement the relevant measures (e.g. communications, training updates, policy clarification, and employee management). Staff identified numerous metrics for daily, weekly and monthly reporting to inform OC Transpo and PRESTO operations during Next-On and any future PRESTO implementations. These metrics captured numerous components of PRESTO distribution and customer preferences including: • Marketing and Information; • News and Social Media; • Customer Service; • Training; and, • Distribution. 23

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SEVEN SUCCESS CRITERIA At the meeting of November 21, 2012 the Transit Commission directed staff to provide the results of seven technical criteria “success factors”, agreed upon by OC Transpo and Metrolinx in April 2013, to measure the success of PRESTO and to receive approval for continued deployment. The following section provides the results of the seven “success factors”: Success Criterion Status Achievements • All criteria met in general Comments • Occasional reports of exceptions • Confusion between Ottawa and GTHA sites • Occasional reports of exceptions • Working with PRESTO to provide STO with concession information in the card shared sector. • Occasional reports of exceptions. • PRESTO is working on resolving the outstanding reporting issue and providing a work around solution for the interim S1 Customer Convenience & GREEN Remote Features S2 Pass Products S3 STO Interoperability GREEN

• All criteria met in general • All criteria met in general • Averaging 4,500 taps daily • All criteria met in general • One financial reporting requirement remains outstanding

GREEN

S4 Robust Back Office GREEN

S5 Fare Inspection Functionality

GREEN

• With the latest maintenance release, the HCR is now operational. • Legal agreement is • All PCI requirements complete have been met. • Attestation of Compliance certificate was received on March 31, 2013 • All criteria met in general • Overall performance is meeting Service Level Agreement (SLA) standards • SLA standards are measured by the monthly target and not measured on daily performance metrics 24

S6 Payment Card Industry (PCI) Compliance

GREEN

S7 Ongoing Support to Respond to Customer Needs

GREEN

25 Stable devices GREEN • All criteria met in general • Third-party testing confirmed reliability • High daily connectivity of devices including SFTPs • Occasional connectivity outages not affecting device interaction with Customer

Success Criteria Details S1 Customer Convenience & Remote Features • Uptime of the website meets or exceeds PRESTO standards • Customer convenience features are functional and available • Card purchase, loading/re-loading, Autoload, Auto-renew, Registration and Transaction History available via PRESTO website • Card purchase and initial load, and Ad-hoc loading (when contracts exist) available via PRESTO Call Centre • Transit Usage Reports available by end-February for both e-purse and period pass purchases from previous year S2 Pass Products • Pass products are available and fully functional for sale and use: • Website and SPOS – sales • BFTP and SFTP – use • No new or existing defects preventing the use of the product as a valid fare S3 STO Interoperability • PRESTO customers using e-purse, and who begin their trip on an OC Transpo bus are able to have their PRESTO transfer validated by an STO bus as a valid fare • PRESTO customers using OC Transpo period passes are able to have their period pass validated by an STO bus as a valid fare • STO customers using e-purse and who begin their trip on a STO bus are able to have their STO transfer validated by an OC Transpo BFTP as a valid fare • STO customers using STO period passes are able to have their period pass validated by an OC Transpo BFTP as a valid fare • The hotlist from each system must be provided to each SP in a useable format, on a daily basis, and be configured to reject any cards that appear on the hotlist S4 Robust Back Office • Financial reconciliation of SPOS and Web sales, and BFTP and SFTP payments for both e-purse and Period Passes • Reporting and transaction information sufficient to automate the reconciliation of sales to funds received using OC Transpo SAP processes • Completion of Change Notices CN436 – Multiple Forms of Payment on SPOS, CN502 – Station Point of Sales (SPOS) Enhancements, and CN503 – OC Transpo Operation Sales Reports (OSR) Enhancements 25

26 S5 Fare Inspection Functionality • Successful testing and deployment of the Handheld Card Readers (HCR) • All known defects are remedied and HCR operating as expected S6 Payment Card Industry (PCI) Compliance • PRESTO division of Metrolinx must achieve assessment of PCI compliance for Release 2.0 no later than March 31, 2013 in accordance with the agreement reached between the parties. S7 Ongoing Support to Respond to Customer Needs • Timely and accurate attention provided to customers contacting PRESTO Call Centre • Resolution within 24 hours for incidents preventing customer from accessing services (i.e. invalid product, period pass disappears) In addition to the seven success factors, Metrolinx and OC Transpo developed the following scorecard. Results are included below: Service Readiness Test Metrics Scorecard Categories and Areas of Focus PRESTO Areas of Focus Devices and Infrastructure Program Stability (End to End and Operations) Operational Readiness PRESTO Customer Care OC Transpo Areas of Focus

PA

OA

Communications / Marketing

PB

OB

OC Transpo Customer Care

PC

OC

Customer Readiness

PD

Devices and Infrastructure (PA) ID PA-1 Description Device availability for online devices SPOS and Target Value 99.0% total availability (monthly average) Comments Excludes network and OC Transpo service interruptions Results to Date January: 99% February: 99%

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27 SFTP PA-2 Incident Resolution Time Performance 85% of P1-P3 incidents resolved per: - P1 resolved in 3 hours - P2 resolved in 1 business day - P3 resolved in 5 business days (excluding device monitoring and tickets) 90% of reported incidents responded to within 1 hour (excluding First Line Maintenance items) < 0.1% BFTP transactions are incomplete (transaction was not complete after customer initiates tapping sequence). A transaction is counted as incomplete after 3 or more unsuccessful tries. As per PRESTO Call Centre standard January: 97% February: 98%

PA-3

Incident Response Time Resolution Incomplete Customer Transactions

As per PRESTO Call Centre standard

January: 100% February: 100%

PA-4

Data to support this metric from CSS. This metric will be affected by human behaviour from customers and operators and training might be required.

7 incomplete transactions out of 6,590 for January 0.10% 13 incomplete transactions out of 230,427 for February 0.01%

Program Stability (End to End and Operations) (PB) ID PB-1 Description Target Value Comments As per PRESTO standard February 25th: Due to a TELUS network issue the website was unavailable to customers for a period of time. Results to Date January: 100% February: 100%

% Website 99.8% availability availability (average per month) based on web server availability (excluding planned maintenance)

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28 PB-2 % cards mailed out by G&D within sufficient timelines to allow approximately 7 days delivery from time of order Daily financial sales reconciliation (ability to complete reconciliation) > 90% of cards ordered remotely are mailed out within 5 business days of order Does not include Canada Post delivery time Current G&D card mail out capacity is 1,250 cards per day January: 100% February: NA

PB-3

Daily sales are 100% reconciled within 1 business day of transaction being uploaded to the back end system, using PRESTO supplied reports and data Within 2 business days from completing reconciliation Does not include any issues originating with the bank process that is not under PRESTO control

Confirmation from Finance that there has been no issues with daily financial sales reconciliation. The Daily Settlement Report and the data in the 2.0 environment was investigated and there are no indications that settlement occurs beyond 2 business days PRESTO generates the Daily Settlement Agreement Report (DSR) on a daily basis and has met the target 100% of the time

PB-4

Bank Settlement

PB-5

Payment files generated daily with Settlement ID

All reports provided within two business days with all agreed information fields populated appropriately.

Data extract payment files

28

29 PRESTO Customer Care (PC) ID PC-1 Description Speed to Answer Target Value 80% of calls answered within 30 seconds (monthly average) 95% of calls answered within 120 seconds (monthly average) Comments As per PRESTO Call Centre standard Daily statistics will be monitored to provide direction during test period. Results to Date January: 86% of calls within 30 seconds 96% of calls answered within 120 seconds February: 80% of calls within 30 seconds 94% of calls within 120 seconds January: 2% February: 2% January: 96% (Escalations within 24 hours) 100 % cases resolved in 5 business days February: 96% (Escalations within 24 hours) 100 % cases resolved in 5 business days

PC-2

Call < 5% of calls dropped Abandonment before answered Rate (monthly average) Customer Inquiry Resolution 95% of all cases resolved within 24 hours of receiving inquiry when related to customer’s inability to use bus service (i.e. paid product not working) 95% of all cases resolved within 5 business days of receiving inquiry when related to other customer issues

As per PRESTO Call Centre standard Objective is to get customer whole again as quickly as possible. Time is measured from initiation of the inquiry to the execution of an action plan to resolve the issue. It does not include the time it takes customer to complete their portion of the action.

PC-3

Operational Readiness (PD) ID PD-1 Description % transactions that are correctly reconciled by type (agent Target Value 100% of agent sales transactions correctly reconciled against system sales data 100% of period passes Comments To ensure data reported on Operator Sales Reports matches system reports Results to Date January: 100% transactions reconciled February: One minor incidence occurred 29

30 Operational Readiness (PD) ID Description sales, period passes purchased remotely, epurse transactions of BFTP/ SFTPs) Target Value purchased remotely correctly reconciled against system data 100% of e-purse transactions on BFTP/SFTP’s correctly reconciled against system data % of service impacting incidents raised to PRESTO Service Desk versus total number of devices in use (monthly average) • < 10% (or no more than 2) SPOS devices experiencing impacting incidents • < 10% of BFTP/SFTP/HCR’s experiencing impacting incidents Comments To ensure web sales matches system reports Results to Date

To ensure device fare payment transactions match system reports The objective of this metric is to measure the prevalence of equipment issues. The objective is not to measure the efficiency of OCT staff at logging equipment issues. Multiple tickets for the same device incident are to be treated as one incident January: 0 SPOS 0%; 24 BFTP/SFTP/HCR ’s 1.3% PRESTO Service Desk January: 1 SPOS 6% 0 BFTP/SFTP 0%

PD-2

Number of reported equipment issues as logged in appropriate tracking systems (M5 and other reporting tools – i.e. PRESTO Remedy )

February: 1 SPOS 6% 0 BFTP/SFTP 0% January – 95% February – 96%

PD-3

OSR Generation

OSR generates within 10 minutes of closing last sales shift – excluding non-PRESTO related events.

Events unrelated to PRESTO include communications outages, power failures, etc.

Communications / Marketing (OA) ID OA-1 Description % calls logged (at Target Value < 5% calls per number of cards distributed in Comments To measure effectiveness of Results to Date PRESTO Call Centre 30

31 Communications / Marketing (OA) ID Description Target Value OC Transpo person, website or Call Centre PRESTO Call Centre and PRESTO Call Centre) related to difficulties in obtaining cards through any channel (in person, website, PRESTO Call Centre) % inquiries logged (at OC Transpo Call Centre and PRESTO Call Centre) by all sources seeking clarity on information included in distribution materials % calls logged (at OC Transpo Call Centre and PRESTO Call Centre) related to difficulties in using the PRESTO website to purchase, register, load, and activate PRESTO card < 5% of inquiries per cards distributed seeking clarity on information included in distribution materials Comments rollout program and make necessary modifications beyond the 10,000 card rollout Results to Date January: 1% February: 0% OC Transpo January: <1% February: <1%

OA-2

To measure effectiveness of rollout program and make necessary modifications beyond the 10,000 card rollout

PRESTO Call Centre January: 1% February: 1% OC Transpo January: 4% February: <1%

OA-3

< 5% calls per number of cards distributed in person, website or PRESTO Call Centre

To measure effectiveness of web based functions and suggest modifications to the web beyond the 10,000 card rollout

PRESTO Call Centre January: 1% February: 2% OC Transpo January: <1% February: <1%

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32 OC Transpo Customer Care (OB) ID OB-1 Description Speed to Answer (OC Transpo Call Centre) Target Value 90% of calls answered within 120 seconds Comments Current OC Transpo performance standard is to measure Average Time to Answer, which is calculated through the Symposium Call Management Software Results to Date January (18-31) Average Time to Answer: 36 seconds February* Average Time to Answer: 33 seconds *February 19 & 27 removed due to significant service disruptions January: 9% February: 7% *February 19 & 27 removed due to significant service disruptions. OC Transpo tested this proposed service level during the Service Readiness test. The existing OCT Customer Relations tools to measure this target needed to be adapted to extract this information. This process will be improved further after the PRESTO roll out is 32

OB-2

Call Abandonment Rate (OC Transpo Call Centre)

< 10% of calls dropped before answered

Current OC Transpo performance standard

OB-3

Customer Inquiry Responsiveness (OC Transpo Call Centre)

95% of all cases will be referred to PRESTO or responded back to customer within 24 hours of receiving inquiry related to customer unable to use existing product (i.e. no access to service) 95% of all other cases will be referred to PRESTO or responded back to customer within 5 business

To ensure clear delineation between PRESTO and OC Transpo responsibilities between call centres. The objective is for OC Transpo to transfer appropriate customer service issues to PRESTO in an efficient and effective manner.

33 OC Transpo Customer Care (OB) ID Description Target Value days of receiving inquiry Comments Results to Date complete. All customer contacting OC Transpo Customer Information received immediate support or referral. All customers contacting or referred to OC Transpo Customer Relations had their case document. In collaboration with PRESTO, Customer Relations investigated and resolved each of these cases. Customer Readiness (OC) ID OC1 Description Target Value Comments To understand effectiveness of marketing campaign and make necessary modifications beyond the 10,000 card rollout Results to Date Next On card distributed: 13,357 Unique card used: 6,753 Percentage : 51%

% distributed cards > 50% of used at least once distributed cards during test period used at least once during test period

> 95% of all January: 95.6% interactions are February: successful upon 96.6%/>99%* first tap during test period *Note: Metrolinx and OC Transpo reviewed tap rates. When customers were instructed to re-tap due to customer error, and they followed through, tap rates exceeded 99%. 33

OC2

% of successful first tap on-bus interactions

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PRESTO Full System Roll Out – Recommended Strategy PRESTO Next-On provided important insights into customer behaviour as well as successful strategies for effective marketing, training, communication, distribution, and customer support and education. The knowledge gained from the Next-On experience has been applied to all facets of the next phase of PRESTO implementation. The objectives of the next phase of PRESTO implementation are: a) To successfully get PRESTO cards into the hands of transit users in an effective and efficient manner that is convenient for our customers and results in their use; b) To support customers by providing education and information they need to make their experience with the PRESTO card a positive one. Distribution Contingent upon the approval of Transit Commission to proceed with full PRESTO implementation, the PRESTO Distribution Plan will be a staged and measured distribution based on target customer groups. The distribution methods will be a combination of in-person, online and PRESTO Call Centre orders and will commence with targeted distribution to U-Pass holders on April 18. The July 1, 2013 fare changes will provide added incentive for customers who use tickets or pay cash to transition to the PRESTO card to obtain discounted e-Purse fares. The strategy outlined below was developed to support easy access for different customer groups to PRESTO cards in advance of the July 1 fare adjustments. In-person distribution by OC Transpo staff will be supplemented by temporary staff and summer students in the role of Ambassadors. These Ambassadors will be fully trained in the PRESTO card distribution at Sales and Information Centres, City Client Services Centres, Transitway stations, ECOPASS card exchanges, and university and college distribution. The distribution plan outlined below summarizes how the remainder of the 200,000 nofee PRESTO cards will be distributed to our customers. It is important to remember that it is the $6 issuance fee that is currently waived and that no passes or money are loaded on the card. Prior to using the card, a customer must load a monthly pass or money (e-Purse) on the PRESTO card. It is also important to note that there is a replacement fee that is charged for replacement cards when a customer loses or damages a card. In these cases, the $6 fee is charged along with the PRESTO requirement for loading a minimum $10 purchase on the card.

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35 Fares The approved 2013 Budget includes a scheduled fare increase for July 1, 2013 and deferral of increases to the following fare categories until the new launch date of PRESTO: Seniors Cash Fare; Tickets; and, ECOPASS. The costs of the delay in these fare categories are being recovered from Metrolinx. OC Transpo customers who pay their fares with cash or tickets will have a financial advantage beginning July 1st from using a PRESTO card. The proposed distribution plan for no-fee PRESTO cards is designed to ensure anyone who would like to obtain a card prior to the July 1st fare adjustments will have every opportunity. The major in-person distributions locations will include 35 days at the four OC Transpo Sales and Information Centres, 25 days at various Transitway locations and three City of Ottawa Client Service Centres. This will be complemented by the PRESTO website and call centre distribution as well. Distribution to Target Customer Bases A staged and measured distribution approach based on target customer groups will be undertaken. Methods of distribution will be a combination of online and in person. Marketing to our customers will focus on dates where they can obtain cards from designated distribution channels. The distribution plan is focussing on the most convenient channels for customers as demonstrated during the Next-On program. Distribution to the General Public: Approximately 118,500 cards The distribution experience to date has demonstrated that a measured and phased release of the no-fee PRESTO cards is the most customer friendly approach. The release of cards to the general public is therefore designed to open up channels in a planned and measured way. The first channel to be opened will be the PRESTO web site along with the PRESTO call centre and then the OC Transpo Sales and Information offices, City of Ottawa Client Services Centres and finally through in person distribution at Transitway stations across the city and through select City of Ottawa public library locations. Once again, it is important to note that when ordering a card online or through the PRESTO call centre, a minimum of a $10 load is required. The first general release cards will be made available online to the general public starting on May 18. This date has been chosen as it is the first day in May that customers can purchase a June pass. Monthly pass sales begin fourteen (14) days prior to end of the month and end on the fourteenth (14th) day of the month 35

36 (i.e. June passes are available for sale from May 18 to June 14, 2013). Subsequent channels will be opened to customers who will have the choice of ordering cards and loading product through the PRESTO website, PRESTO Call Centre or at OC Transpo Sales and Information Centres. No-fee cards will be made available through City Client Services Centres (City Hall, Ben Franklin Place and Kanata) and through scheduled distribution at Transitway stations. In order to provide cards to as many customers as possible during PRESTO distribution, customers may request more than one card but will be limited to one additional card for a family member or someone for whom they act as an advocate. In these circumstances they will fill out a second acknowledgement of receipt form. A person can obtain an unlimited number of cards if they place either a pass or e-purse minimum load on each card. OC Transpo recognizes that customers who do not have access to the internet or telephone will have to visit one of the four Sales and Information Centres or City Client Service Centre to load their card. Staff will continue to investigate ways in which this inconvenience can be addressed, either through pre-loaded cards or Self-Serve kiosks. Online Distribution via PRESTOcard.ca: May 18 No-fee PRESTO cards will be available to the public through the PRESTO web site. This is the most popular distribution channel based on the January Next-On program and has been chosen as the first general distribution channel for this reason. Starting May 18, customers will be able to order PRESTO cards, and load e-purse and the June monthly pass online. Sales and Information Centres: May 27 The Sales and Information Centres at the Rideau Centre, Lincoln Fields, St. Laurent and Place d’Orléans Transitway stations will be open for PRESTO card distribution and product loading for the general public on May 27, in addition to continuing to provide paper monthly passes and tickets. The approach to card distribution and customer line management has been improved based on the NextOn experience, and staffing levels will be monitored and supplemented as the need arises. Transitway Stations: May 27 Starting May 27, customers will be able to obtain PRESTO cards at designated Transitway stations across the city. The initial card distribution will concentrate on Transitway stations in outlying areas that are not well serviced by Client Service Centres or Sales and Information Centres. Scheduled Transitway distribution locations will be announced in May and will be widely advertised and promoted to transit riders in advance, with status updates provided regularly via Twitter to notify customers of card availability. Promotion of dates will include flyer distribution the day before at designated stations and through “take one” pamphlets on buses in the system. The final decision on designated stations will be confirmed and scheduled based on uptake and distribution volumes. 36

37 Client Services Centres: May 27 Cards will be available at three City Client Services Centres: City Hall, Ben Franklin Place and Kanata. Customers will be able to obtain cards and load monthly passes or e-purse, however, if customers need to have a concession set on the card, they will be required to visit a Sales and Information Centre or have the opportunity to attend a scheduled Community Outreach sessions for seniors or Community Pass users. It is planned to have PRESTO cards with pre-set concessions available at Client Service Centres to provide full service to customers during the distribution period. The ability to set concessions in the future at CSC’s will be determined through discussions with appropriate union representatives. Select City Library Locations: June 3 In order to ensure convenience for customers living in rural areas, or areas not located close to Sales and Information Centres, Client Service Centres, or Transitway locations, cards will be made available for customers at select City libraries as of June 3. Library staff will be responsible for distribution of cards. Monitoring of Card Distribution to the General Public There will be close monitoring of all planned no-fee PRESTO card distribution channels and approaches will be adjusted to support customer requirements and to achieve the objectives of the distribution plan. One of the core principles of card distribution will be to provide everyone with reasonable access to no-fee PRESTO cards while they are available. Based on the Next-On experience, on-line card ordering was the most popular channel used by customers on January 18, 2013. The distribution plan will ensure that as long as there are no-fee free cards available from the general public distribution inventory, they will also be available on the web. Once the on-line inventory of 26,325 no-fee cards has been depleted, there is no mechanism to transfer cards from the OC Transpo inventory of 200,000 activated cards that have already been purchased back to the company that oversees web distribution. Staff will therefore need to purchase new cards if the remainder are depleted and cover this cost through sale of already purchased cards. This will be as close to revenue neutral as possible. The goal is to ensure that customers will continue to have access to cards via the web at no cost while quantities of no-fee cards are still available to the general public at OC Transpo Sales and Information Centres, City Client Service Centres and Transitway stations and select libraries. In order to continue to provide customers access to all channels during the General Public distribution, and to avoid ending the distribution of no-fee cards before the all cards have been distributed, OC Transpo will assume the cost of additional cards ordered through the web until all 118,500 no-fee cards allotted for public distribution have been depleted. 37

38 An equivalent number of cards will be set aside from the OC Transpo general public inventory, and the cost of the additional web cards will be recovered through sales to customers once the remainder of no-fee cards have been distributed. The number of cards allotted for targeted distribution (College, ECOPASS, Community Outreach and School Boards) will continue to be reserved for distribution commitments that may take place after the public no-fee card distribution is complete. The closing down strategy for no-fee cards could be challenging to communicate and manage customer expectations. As free general distribution channels are closed, and the $6 card fee is implemented, the organization will still be providing no-fee cards for certain customer groups who have been asked to wait. This will be explained in the targeted marketing information. Distribution strategies have been developed to meet the specific needs of key customer groups. These customer groups are based on the original roll out plan developed in 2012 but updated to reflect the learnings from the June 2012 release and the Next-On program in January 2013. Specific customer groups have been allocated set numbers of the existing no-fee PRESTO 200,000 card inventory. ECOPASS: 23,000 cards At the June 20, 2012 meeting staff were directed by Transit Commission to extend individual employer ECOPASS agreements for one year until PRESTO was fully in place. The strategy to migrate ECOPASS users to PRESTO will be to provide convenient on-site exchanges of ECOPASS cards for PRESTO cards for the three designated customer groups participating in the program. “Classic” Companies: ECOPASS expires August 31, 2013. 6,300 PRESTO cards will be reserved for ECOPASS users in private companies. Distribution staff will visit 85 private companies, between July 19 and August 28, to exchange ECOPASS for PRESTO cards that are pre-loaded with the appropriate Adult pass so that customers can continue to use transit until the expiry date. City of Ottawa: ECOPASS expires September 30, 2013. On-site exchanges will take place in early September at multiple City of Ottawa locations. A list of all scheduled exchange sessions will be posted on the City’s intranet sites, and will be publicized as part of the marketing and communications efforts. Federal Government: ECOPASS expires October 31, 2013. It is planned to use established distribution methods for the 93 federal departments that have programs. OC Transpo will have on-site exchange sessions from September 18 to October 28. PRESTO cards will be pre-loaded with the appropriate Adult pass for the current month during which the exchange is made as individuals will be required to surrender their ECOPASS card.

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39 Park and Ride Pass Holders: May 17-18: 500 cards OC Transpo has 500 Park and Ride Gold and Regular Parking permit holders with whom we have direct contact through Canada Post. Some of these customers also receive their paper monthly pass through the same channel. These transit customers will receive PRESTO cards with the mail-out of their June paper monthly passes and parking permits along with information on activation, registration and product loading. This group of customers is receiving this distribution channel as they are already established users and have regular and direct contact with the department. University Students (U-Pass Customers): April – June; 10,000 cards Approximately 52,000 university students at three Ottawa institutions pay for a UPass as part of their tuition fees. Once the 2012-2013 U-Pass cards expire on April 30 at the end of the school year it is estimated that approximately 20% of these students (10,000) will continue to use public transit over the summer months before resuming use of the 2013-2014 U-Pass when they return to school in September. The first step of PRESTO implementation is designed to focus on a limited but identifiable group of transit users. This includes capitalizing on the opportunity to offer PRESTO cards to university students prior to the expiry of their U-Pass cards. If the implementation plan is approved by Commission, OC Transpo staff will be ready on April 18 to begin in-person PRESTO card distribution for all three universities. U-Pass holders will also be able to get a PRESTO card at all Sales and Information Centres. PRESTO cards will be available for university students who present their U-Pass card and/or appropriate student identification to confirm eligibility for student concessions (for university students 19 years of age and under). Promotion of the university distribution would start immediately subject to Transit Commission approval, via the OC Transpo and PRESTO web sites and Twitter and Facebook. At in-person distribution sessions, university students 19 years of age and under will be offered a Student PRESTO card with a pre-set expiry date of August 31, upon presentation of proof of age and full-time status. The assumption will be that these students will be returning to their studies in September, when they will use the U-Pass for the school year. Adult students (20 years of age and older) will be offered a PRESTO card without a concession. Adult students may elect to continue using Adult paper passes in conjunction with their U-Pass as a Photo ID. Students under the age of 20 are strongly encouraged to use a PRESTO card with a student concession. For those who do not wish use a PRESTO card and prefer a Student paper pass will be required to have the correct OC Transpo photo identification for which there is a fee of $6.25. All students will be able to load a pass or e-purse product either at a Sales and Information Centre or on-line.

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40 College Students: August 26 to September 6: 10,000 cards PRESTO cards will be made available at the Algonquin College and La Cité Collégiale campuses during the last two weeks of August leading up to the new school year. Approximately 50% of full-time college students are under 19 years old. PRESTO cards with pre-set student concessions will be available to eligible students during campus distribution events. School Transportation Authority Students (OSTA and CTSO): August/September; 10,000 cards The Ottawa Student Transportation Authority (OSTA) and the Consortium de transport scolaire d’Ottawa (CTSO) manage the distribution of bus passes to high school students under their jurisdiction. Work is currently underway to conduct a test of 1,000 PRESTO cards starting April 22, 2013 for the balance of the school year (subject to approval of this report by Transit Commission). This test will confirm the new business processes for finance, reporting and card tracking. Upon successful completion of the test, the roll out plan is for the School Transportation Authorities to distribute 9,000 school board PRESTO cards to students in August and early September. Students who do not receive their bus pass from their school board will be able to obtain their PRESTO card through the PRESTO website, PRESTO Call Centre, at a Sales and Information Centre or at one the in-person distribution points. Once a student has obtained a PRESTO card they must visit a Sales and Information Centre in order to have a student concession set on the card. Community Outreach: 12,000 cards The Community Outreach distribution will commence on May 18, 2013, the same day as the general distribution to the public. There will be a number of groups that will receive additional opportunities throughout the summer distribution period. This includes seniors, community pass holders and other communities identified in previous planning. The Next-On release allowed the Community Outreach team to test approaches with these specific groups and audiences. Based on these consultations and outreach efforts, an appropriate distribution plan has now been developed. There will be additional testing conducted with the City for All Women Initiative to refine the approach further. The results from this are not available for inclusion in this report. Upon approval of this report, OC Transpo staff will reach out directly to representative groups to confirm elements contained in the plan. In keeping with our lessons learned and focusing on a controlled and staged release of cards, the recommended plan for the city-wide Community Outreach card distribution follows.

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41 May 18 - 31: Selected Groups A few selected groups will be in the first round of card distribution. These include Ottawa Carleton Association for Persons with Developmental Disabilities (OCAPDD), Ottawa SALUS Corporation and Youth Services Bureau (YSB) and the four Social Services district offices. OCAPDD and SALUS have been selected as the first Community Outreach distribution sites as they are smaller organizations, with staff that are willing to help facilitate the card distribution, organize sessions and provide transportation to their clients. This strategy will allow persons living with disabilities to conveniently obtain a PRESTO card at accessible locations without the added challenge of dealing with customer volume at other community outreach sites. The youth from the YSB have been selected as part of the first wave of Community Outreach, as they are a smaller group to work with and can be instrumental in helping and educating other youth with the transition to PRESTO. June: Seniors’ Month - Outreach through Senior Centres The targeted distribution of PRESTO cards in June to seniors will coincide with Seniors’ Month. The Community Outreach distribution team will be in most Senior Centres across the city of Ottawa. Once scheduled, a list of all distribution sites will be posted on OC Transpo web site as well as in the Senior Citizens’ Council monthly newsletter. Seniors’ Centres will be offered half day and/or full day sessions, and may require repeat visits. Centres will be provided with posters in advance to advertise the distribution dates and instructional brochures will be handed out with the cards. Seniors will receive their no-fee PRESTO card and have the card pre-set to a Senior concession and get assistance with ‘on-line’ registration. This will mean that seniors receiving their card in this way will not have to visit an OC Transpo Sales and Information Centre to get their card set with the senior concession. Information will be provided to direct seniors to visit a Sales and Information Centre or to the PRESTO web site to purchase and load a monthly pass or e-purse fare product. July: Community Pass via Community Health Resource Centres July Community Outreach will focus on Community Pass users and the Community Outreach distribution team will be in all/most Community Health Resource Centres (CHRCs) across the city. Once scheduled, a list of all distribution sites will be posted on OC Transpo web site. A scheduled distribution will also take place at the Royal Ottawa Hospital, as currently a large number of ‘paper passes’ are sold at that location. The CHRCs will also be offered half day and/or full day sessions (depending on need), and may require more than one visit. Centres will be provided with posters in advance to advertise the distribution dates and instructional brochures will be handed out with the cards. Community Pass holders will receive their no-fee PRESTO card have the card pre-set to a Community Pass concession and get assistance with ‘on-line’ registration. 41

42 Information will be provided to direct Community Pass holders to Sales and Information Centres or to the PRESTO web site to purchase and load a monthly pass or e-purse fare product. August - October: New Canadians, Select Community Organizations and Third Party Agencies The same Community Outreach approach will be taken for new Canadians, selected community organizations and third party agencies. The Community Outreach distribution team will be available to the following groups: OCISO (Ottawa Community Immigrant Services Organization), CCI (Catholic Centre for Immigrants), Wabano, Odawa, Canadian Hearing Society, CNIB (Canadian National Institute for the Blind), CAWI (City For All Women Initiative), AIDS Committee of Ottawa, CMHA (Canadian Mental Health Association), CAYFO (Child and Youth Friendly Ottawa), YSB, Family Services Ottawa, Jewish Family Services, Group Homes, Ottawa Hospital Rehab Centre, March of Dimes, Options By-Town, Ottawa Community Housing, ODSP (Ontario Disability Support Program), Ontario Works – Social Services, La Cité Collégiale Social Planning Council, Somali Centre for Family Services, The Well, and YMCA/YWCA. Many Seniors and Community Pass users frequent these organizations and may in fact receive their cards in June or July, but for those who may not have on-site distributions will also be offered to these groups. The presence and visibility of the Outreach team from August to October, throughout these locations will also allow for additional public awareness and education. Organizational Impacts with the Roll-out: Finance: The PRESTO introduction has involved significant changes to how fare revenue is captured, recorded and paid for. New processes have been developed and work duties are being revised as a further result. There will be a transition as the system is rolled out and more transit riders adopt PRESTO. In order to operate effectively Finance required a number of financial reports and corresponding transaction data files which are currently being provided from PRESTO. The Finance Service Unit uses data files to automatically upload transactions into the City’s SAP system in regards to sales and bank transactions and further automation will be implemented by the end of May. This assists staff in reconciling PRESTO fare settlements and bank transactions on a daily basis. Further modifications such as to the PRESTO point of sales system have been implemented to properly capture payment transactions and strengthen internal controls. A good working relationship has been established between the Metrolinx and City’s Finance groups that will allow them to resolve any unexpected issues encountered and to possibly make improvements as more experience is gained and as higher volumes flow through the system. 42

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Technology: At this point, all the technology required by the fare card system has been deployed and is fully operational to serve the public. The remaining issues will be dealt as part of normal and regular updates to the system to correct minor defects and continuously improve functionality. As part of the PRESTO program, new features will be introduced that will enhance the system and customer experience. OC Transpo sits on various PRESTO committees where enhancement will be discussed and acted upon. OC Transpo Operations: Transit Operations: As new groups of customers’ transition to PRESTO, transit operators and customer service staff will be focused on supporting and educating customers. Operators will be supported by the OC Transpo PRESTO team and will continue to report PRESTO card issues and fare disputes through existing business practices. On-going communication between all branches represents an important component of supporting customers and employees during the PRESTO implementation. Fleet Maintenance: The Fleet Maintenance Branch will continue to report and maintain all PRESTO card reader issues using existing business practices. A formal maintenance strategy is being developed in consultation with all relevant stakeholders. Transit Service Design and Reporting: Transit Service Design and Reporting will work very closely with the Transit Information Technology Group to build a reliable and easy to use database platform. As new types of information are collected in our database, we will develop measures that will be included in current reports. The PRESTO system will generate a large volume of data, much of which will be very valuable in the planning and analysis of transit service. More accurate details on ridership trends and patterns for groups of customers will give staff the ability to more precisely design and project future transit service to different customer groups. As examples, staff will be able to know with greater precision how ridership levels fluctuate by the day of the week, how many times on average customers with monthly passes travel each month, how many buses customers use to complete their trips, and how single fares break down between different fare types (regular, express, senior, child, etc.). Staff will be developing an analytics strategy to determine how best to manage the data stream from PRESTO and how to integrate it with other data that are already collected from existing systems. The ability to better communicate more accurate and meaningful patterns in the data will provide improved understanding of customer travel behaviour and enhance future service strategy development. Transit Fare Enforcement: 43

44 Electronic Fare Collection and verification is a dynamic shift away from visual to electronic evidence. This includes the boarding of buses where operators are the first step in fare collection or verification to any subsequent enforcement done by Transit Law through Transit Fare Enforcement Officers (TFEO) or Special Constables. Electronic Inspection using the Handheld Card Readers (HCR) will shift inspection away from physical evidence to electronic records. The TFEO’s will shift emphasis from visual cues to using the inspection device. The inspections and evidence of infractions will also depend on the reliability of data and reports available from PRESTO. PRESTO should also remove any ambiguity regarding the status of fare payment. The electronic media is expected to be a completely objective environment. The electronic payment system will simplify the verifications of some fare types. The introduction of product transferability between members of the same fare concessions allows the Fare Inspector to concentrate on verifying payment, not comparing card photo to customer likeness. As is currently in place, confirmation of eligibility to a fare price concession will be difficult to substantiate. On bus inspections will rely on other agency issued documentations to confirm concession. The Transit By-law has been amended to include definitions for PRESTO, electronic tapping expectations, and electronic fare verifications. PRESTO smartcards and fare collection on the Confederation Line The service plans and the stations for the Confederation Line have been designed to take advantage of the use of PRESTO smartcards by customers. OC Transpo staff are working this year to validate the fare control strategy that has been selected for the Confederation Line, and will be reporting to the Commission in Q4 2013. Based on the current fare control concept, entry into all Confederation Line stations would be controlled at lines of fare gates at every entrance. These would be a modern equivalent to the turnstiles that are familiar in the Montréal Métro and the subway in Toronto. Customers who are using a PRESTO card either as a monthly pass or as a pay-per-ride e-purse would tap the card on a reader on the fare gate, and the fare gate would let that one customer through. Customers who pay a single cash fare to start their trip at the station would be issued a machine-readable receipt which would also be validated at the fare gate to let that customer through. Customers who pay a single cash fare on a bus would receive a machine-readable transfer which they would validate at the fare gate of a Confederation Line station when transferring to a train. At the busiest bus-train transfer stations – Tunney’s Pasture, Hurdman, and Blair – the passageways between the train platforms and the bus platforms are being configured so that customers will not have to pass through fare gates when they transfer. This will speed up transferring and will allow buses to receive customers and move off more quickly than if customers needed to queue up to revalidate their fares. Customers who 44

45 are walking into these fare-paid areas from outside the station will tap their PRESTO card or validate their receipt at the fare gate to enter. At other stations, customers transferring from buses would tap their smart card or validate their transfer to enter the station, and customers transferring to buses would tap their smart card on the bus or show the bus operator their receipt issued at the station where they started their trip. Every station entrance would have a machine to accept cash fares and issue receipts for the fare gates. Audio-video help points would be at all station entrances, linking customers with a central customer service office, to help with fare or service questions or to help if customers have difficulty tapping their PRESTO card or validating their receipt or transfer. At busy entrances to stations, there could also be machines installed that would allow PRESTO smartcards to be replenished. RURAL IMPLICATIONS There are no recommendations in this report that affect rural areas. CONSULTATION The underlying principle and outcome of the Next-On service readiness test was to engage transit users who participated in a consultation process. The feedback from customers through direct conversation, email, phone calls and data collection and analysis provided significant input into further direction, decisions and recommendations. LEGAL IMPLICATIONS On November 21, 2013, The Transit Commission agreed with Metrolinx on the seven Success Criteria that were to measure the success of PRESTO. On February 15th, 2013, Metrolinx and the City of Ottawa entered into a revised PCI Compliance Agreement (i.e. PCI compliance being one of the seven Success Criteria). Subsequently, the City Treasurer has advised that on March 31st, 2013, Metrolinx became PCI Compliant, therefore, satisfying one of the seven Success Criteria and meeting the objective of the legal agreement. In February 2013, Legal Services undertook with Metrolinx to negotiate the terms of the PRESTO Legal Agreement (“Agreement”), which seeks to incorporate the remaining Success Factors into a legally binding contract as well as including the specific compensation amounts that Metrolinx has committed to the City of Ottawa. Discussions have been ongoing since that date and the Agreement continues to be negotiated by the Parties at the time of this report’s publication. Legal Services anticipates that this Agreement would be executed on or before the Transit Commission meeting date of April 17th, 2013.

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46 Legal Services will provide an update to the Transit Commission prior to, or at the next meeting, as soon as it has further information on this outstanding matter. RISK MANAGEMENT IMPLICATIONS There are no risks associated with receiving this report. FINANCIAL IMPLICATIONS At the June 13, 2012 Transit Commission meeting the City was directed to enter into discussion with Metrolinx regarding recovering net additional costs incurred and fare revenue foregone, as a result of the delay in the implementation of the PRESTO Smartcard. The original estimated cost was $5 - $7 million with a targeted roll out date of February 2013. As of the end of March OC Transpo had incurred $3M in foregone revenue and net additional costs. The details around the $3M have been provided to PRESTO for their review as per the agreement. Additional incremental costs and fare revenue foregone will continue to be captured for recovery until the PRESTO distribution plan is completely rolled out. The PRESTO Capital project was established for $32.8M. Based on a subsequent amended agreement, with the Ministry of Transportation in 2011, additional budget authority of up to $1.5M is still expected. The adjusted budget is now $34.2M. This project is ancillary to the Smartbus capital project which captures more general capital costs related to the implementation of technology on buses, of which smartcards are one element. As a result of the delay in the implementation of the PRESTO system, Metrolinx agreed to compensate the City in the amount of $3M against it capital investment. To date the City has actual expenditures of $14.9 M against the project and has commitments and forecasted spending of $16.4 M leaving a balance of $3 M. The remaining portion of the project budget may be required to deal with a number of unknown issues at this time, including the Para Transpo Solution and Change Notices not billed to date. Updates on the status of the capital account will be provided as part of regular financial updates. Any operating financial implications associated with the implementation of PRESTO will be part of the 2014 Budget process. ACCESSIBILITY IMPACTS The implementation of PRESTO on Para Transpo is not currently within the project scope. Staff are investigating options for a similar fare solution that could provide the benefits of PRESTO while providing the flexibility required to meet the unique needs of Para Transpo services. A report will be forthcoming to Commission outlining the consultation results with stakeholders as this solution is developed.

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47 In addition, the PRESTO/Metrolinx project and funding of such, was to include Para Transpo however, after several meetings with representatives of transit providers within Ontario, PRESTO announced it was not able to offer a solution agreeable to all Para transit service providers within the province because there was no universal acceptance by all parties. Therefore, PRESTO had no solution to offer for Para services. PRESTO has still not provided any Ontario Para Transit services with a Para smartcard solution and so OC Transpo has undertaken a project to develop an electronic fare solution which will offer similar benefits to our Para customers as the PRESTO smartcard solution offers. This was announced to the Commission by the General Manager of Transit Services. One of the most significant challenges to providing PRESTO as a Para fare payment solution is the agency use of third-party transportation through taxis. OC Transpo remains committed to finding a fare payment system that is consistent with customer service and available technologies. As such, there will be continued work done in this area that will include extensive consultation with Para Transpo customers and riders to ensure their various needs are understood. TECHNOLOGY IMPLICATIONS There are no direct technical implications associated with this report. TERM OF COUNCIL PRIORITIES This report directly and indirectly supports the following objectives of the Transportation Master Plan and previous Council strategic directions: TM1 – Ensure sustainable transit services TM4 – Provide alternative mobility choices SE1 – Ensure a positive experience for every client interaction SE2 – Improve operational performance SUPPORTING DOCUMENTATION Appendix A: Customer Experiences DISPOSITION Staff will undertake any further direction from the Transit Commission.

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