Finance and Capital Committee

Information Item IV-A

November 7, 2019

Fare Evasion Quarterly Update

53 of 106

Washington Metropolitan Area Transit Authority

Board Action/Information Summary

Action Information MEAD Number:202117

Resolution: Yes No

TITLE:

Fare Evasion - Quarterly Update, Q2 FY2020

PRESENTATION SUMMARY:

Management will present an update on the implications of fare evasion to the Board of Directors.

PURPOSE:

The Finance and Capital Committee will be provided information on the financial and operational impacts of fare evasion to Metro.

DESCRIPTION:

Key Highlights:

Metro estimates a conservative $40 million revenue loss in FY2019 andlower formula grant receipts due to undercounting of ridershipFare evasion on Metrobus has increased from 13% of boardings in Q1 ofFY2019 to 16% in Q1 of FY2020Metrobus fare evasion is increasing while ridership is decreasingFare evasion laws differ across the region’s jurisdictions

Background and History:

Fare evasion is a long-standing issue imposing an increasing risk to WMATA’soperating budget. The climbing number of fare evasions skews ridershipmetrics thereby reducing potential federal grant funding.

Discussion:

Metro’s operating budget continues to be stifled by fare revenue loss on bothMetrobus and Metrorail. The combined revenue loss attributed to fare evasionfor both modes of transportation in FY2019 was a conservative $40M.

Fare evasion laws vary across jurisdictions with the act carrying both civil andcriminal penalties in the state of Maryland and the Commonwealth of Virginia.

54 of 106

Fare evasion is no longer considered a criminal offense in the District ofColumbia. Metro Transit Police enforce applicable laws and provide training tobus operators to de-escalate fare-related conflicts.

Metro measures fare evasion through several means including automatic andmanual passenger counts, electronic gate sensors and fine issuances.Technology on Metrobus and Metrorail will enable better measurement andreporting of fare evasion. To date, the fare evasion project has deployed 11 electronic gate sensors atGallery Place Metro Station. In addition, to improve customer service andprevent fare evasion, the design of upgraded faregates is underway to replace30-year-old faregates systemwide.

Next Steps:

Management will provide quarterly reports to the Board on fare evasion,revenue impacts and enforcement initiatives.

FUNDING IMPACT:

This is an information item with no immediate impact on funding. Project Manager: Dennis Anosike

ProjectDepartment/Office: CFO/OMBS

TIMELINE:

Previous Actions July 2019 – Fare evasion quarterly update, Q1 of FY2020

Anticipated actionsafter presentation

Continue quarterly reports to the Board on fareenforcement efforts, fare evasion and revenue impacts

55 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY1

Fare Evasion Update

Finance and Capital CommitteeNovember 7, 2019

56 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY2

Fare Evasion Reduced Revenue by $40M in FY2019

Fare Evasion by Mode

200

400

600

800

1,000

1,200

1,400

1,600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Fare Evasion Incidents

Metrobus Metrorail

In thousands

FY2

01

8

FY2

02

0

FY2

01

9

1. Eliminating fare evasion on Metrobus would increase Metrobus farebox recovery from 23% to 27%

Metrorail, $11

Metrobus, $29

Revenue Loss In millions

1

57 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY3

Manual and automated counts show Metrobus fare evasion is increasing while ridership is falling

Growing Problem on Metrobus

Fare Evasion on Metrobus

123 114

101 92

4 7 10 15

-

20

40

60

80

100

120

140

FY2016 FY2017 FY2018 FY2019In millions

Paid Bus Trips & Fare Evasion Incident Actuals

Paid Ridership (Farebox) Recorded Evasion (Farebox)58 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY4

Occurrence By Jurisdiction

Metrobus Fare Evasion Rates by Jurisdiction

18%

10%

2%

0%

5%

10%

15%

20%

25%

Q1 FY2019

13%

21%

15%

2%

0%

5%

10%

15%

20%

25%

Q1 FY2020

16%

DC MD VA DC MD VA

59 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY5

Metrobus Routes with the Highest Fare Evasion Counts

Bus Fare Evasion by Route

• Top 10 routes for fare evasion represent 38% of Metrobus fare evasion

• Top 10 routes represent 3.4% of Metrobus routes but 11.5% of Metrobus ridership

• Nine of the 10 routes are located in the District of Columbia -

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

W4 92 X2 70 P12 B2 A8 90 A2 V2

Nu

mb

er

of

Inc

ide

nts

FY2019 Fare Evasion Counts by Route

DC DCMD

60 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY6

▪ Effective May 3, 2019

• Civil

• <$50 Fine

• No consequences or further

proceedings for failure to

pay or attend hearing

▪ Montgomery County

• Civil and Criminal

• 1st - $50 if paid; up to 10 days jail if not paid

• 2nd & subsequent - $75 if paid; up to 10 days jail if not paid

▪ Prince George’s County

• Criminal

• 1st - $10 - $50

• 2nd & subsequent - $50 -$100 if paid; up to 10 days jail if not paid

▪ City of Alexandria

• Civil

• $100

▪ Arlington County

• Civil and Criminal

• 1st - $10 - $50

• 2nd & subsequent - $50 -$100 and/or up to 10 days jail

▪ Fairfax County

• Criminal

• $100 Fine

District of

Columbia

State of

Maryland

Commonwealth of

Virginia

Fare Evasion Laws are different across Jurisdictions

Fare Evasion Laws

61 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY7

District of Columbia Infractions

Enforcement Policies

InfractionCivil or

CriminalFine

Consequence for refusal

to provide true name and

address

Enforcement

Possession of Marijuana Civil $25 $100 upon conviction OAH

Jaywalking Civil $20 $100-$250 upon conviction BTA

Fare Evasion Civil ≤$50 No OAH

OAH – Office of Administrative Hearings

BTA – Bureau of Traffic Adjudication62 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY8

▪ Atlanta, GA▪ 12-hour expulsion from system

▪ 14/30/60-day system suspension

▪ Suspension violations

• Additional 30-day suspension

• Arrest for criminal trespass

▪ Philadelphia, PA▪ Issue $25 citation

▪ Ban from system after 4 citations

▪ Arrest for misdemeanor trespass

after 5 citations

▪ New York City, NY

▪ Civil – $100 fine

▪ Criminal – penalties vary

▪ San Francisco, CA▪ Civilian inspectors

▪ Civil – $55 fine/juveniles - $75 fine/adults

▪ Criminal – ≤ $250

Other Transit Agencies

Enforcement Policies (Cont.)

▪ Massachusetts Bay, MA

▪ Civil – ≤ $600

63 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY9

Measuring Fare Evasion

▪Electronic gate sensors

• 13 mini-mezzanine areas by January 2020

• Remainder installed by June 2020

▪Next Steps

• Data analysis per location

• Dashboard development by May 2020

• Targeted allocation based on MTPD

recommendation

Improving Fare Evasion Prevention

64 of 106

WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY10

▪ Maintain safety and security commitment to passengers and employees

• Increased policing on station platforms and trains

• Strategic deployment of after school details and High Intensity Targeted

Enforcement (HITE)

▪ Continue de-escalation training for bus operators

▪ Started Station Manager Assault Reduction Training (SMART)

Transit Policing

Improving Fare Evasion Prevention

65 of 106