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

MEAD Number: Resolution: Action Information 202117 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 and lower formula grant receipts due to undercounting of ridership Fare evasion on Metrobus has increased from 13% of boardings in Q1 of FY2019 to 16% in Q1 of FY2020 Metrobus fare evasion is increasing while ridership is decreasing Fare evasion laws differ across the region’s jurisdictions

Background and History:

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

Discussion:

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

Fare evasion laws vary across jurisdictions with the act carrying both civil and criminal 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 of Columbia. Metro Transit Police enforce applicable laws and provide training to bus operators to de-escalate fare-related conflicts.

Metro measures fare evasion through several means including automatic and manual passenger counts, electronic gate sensors and fine issuances. Technology on Metrobus and Metrorail will enable better measurement and reporting of fare evasion.

To date, the fare evasion project has deployed 11 electronic gate sensors at Gallery Place Metro Station. In addition, to improve customer service and prevent fare evasion, the design of upgraded faregates is underway to replace 30-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 Project CFO/OMBS Department/Office:

TIMELINE:

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

Anticipated actions Continue quarterly reports to the Board on fare after presentation enforcement efforts, fare evasion and revenue impacts

55 of 106 Fare Evasion Update

Finance and Capital Committee November 7, 2019

56 of 106 1 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Fare Evasion by Mode

Fare Evasion Reduced Revenue by $40M in FY20191

Revenue Loss In millions In thousands Fare Evasion Incidents

1,600 Metrobus Metrorail

1,400

1,200 Metrorail, 1,000 $11 800

600

400 Metrobus, $29 200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2018 FY2019 FY2020

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

57 of 106 2 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Fare Evasion on Metrobus Growing Problem on Metrobus

Paid Bus Trips & Fare Evasion Incident Actuals Manual and 140 120 automated counts 123 114 show Metrobus fare 100 101 evasion is increasing 80 92 while ridership is 60

falling 40 15 20 10 4 7 -

In millions FY2016 FY2017 FY2018 FY2019

Paid Ridership (Farebox) Recorded Evasion (Farebox)

58 of 106 3 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Occurrence By Jurisdiction Metrobus Fare Evasion Rates by Jurisdiction

Q1 FY2019 Q1 FY2020 25% 25%

20% 20% 21% 16% 18% 15% 13% 15% 15%

10% 10% 10%

5% 5% 2% 2%

0% 0% DC MD VA DC MD VA

59 of 106 4 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Bus Fare Evasion by Route

Metrobus Routes with the Highest Fare Evasion Counts

• Top 10 routes for fare FY2019 Fare Evasion Counts by Route 900,000 evasion represent 38% of Metrobus fare evasion 800,000 700,000

• Top 10 routes represent 600,000

3.4% of Metrobus routes 500,000

but 11.5% of Metrobus 400,000 ridership 300,000 Number of Incidents • Nine of the 10 routes are 200,000 located in the District of 100,000 Columbia - W4 92 X2 70 P12 B2 A8 90 A2 V2 DC MD DC

60 of 106 5 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Fare Evasion Laws

Fare Evasion Laws are different across Jurisdictions

District of State of Commonwealth of Columbia Maryland Virginia

▪ Effective May 3, 2019 ▪ Montgomery County ▪ City of Alexandria • Civil • Civil and Criminal • Civil st • <$50 Fine • 1 - $50 if paid; up to 10 • $100 days jail if not paid • No consequences or further ▪ Arlington County • 2nd & subsequent - $75 if proceedings for failure to • Civil and Criminal paid; up to 10 days jail if st pay or attend hearing not paid • 1 - $10 - $50 • 2nd & subsequent - $50 - ▪ Prince George’s County $100 and/or up to 10 • Criminal days jail • 1st - $10 - $50 ▪ Fairfax County nd • 2 & subsequent - $50 - • Criminal $100 if paid; up to 10 days jail if not paid • $100 Fine

61 of 106 6 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Enforcement Policies

District of Columbia Infractions

Consequence for refusal Civil or Infraction Fine to provide true name and Enforcement Criminal address

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 Adjudication 62 of 106 7 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Enforcement Policies (Cont.)

Other Transit Agencies

▪ New York City, NY ▪ San Francisco, CA ▪ Massachusetts Bay, MA ▪ Civil – $100 fine ▪ Civilian inspectors ▪ Civil – ≤ $600 ▪ Criminal – penalties vary ▪ Civil – $55 fine/juveniles - $75 fine/adults ▪ Criminal – ≤ $250

▪ Atlanta, GA ▪ Philadelphia, PA ▪ 12-hour expulsion from system ▪ Issue $25 citation ▪ 14/30/60-day system suspension ▪ Ban from system after 4 citations ▪ Suspension violations ▪ Arrest for misdemeanor trespass • Additional 30-day suspension after 5 citations • Arrest for criminal trespass

63 of 106 8 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Improving Fare Evasion Prevention

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

64 of 106 9 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Improving Fare Evasion Prevention

Transit Policing

▪ 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)

65 of 106 10 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY