Metropofin Transportation Authority One Gateway Plaza 213.922. , CA 90012-2952 metr0.n

SYSTEMS SAFETY AND OPERATIONS COMMITTEE FEBRUARY 16,2012

SUBJECT: TAP PROGRAM

ACTION: RECEIVE AND FILE REPORT ON CLIPPER PASS, TAP CARD AND VALIDATOR COMPARISONS

RECOMMENDATION

Receive and file comparative analysis of and validator system.

ISSUE

In December 201 1, the Metro Board approved a Motion introduced by Director Najarian to review the smart card validators used in the Bay area. The motion asked staff to review the Clipper card program and the validatorslreaders used on the transit system. Staff took the opportunity to compare TAP to the Clipper smart card system, as well as the Compass program to identify best practices and opportunities for improvement. These three programs (Clipper, TAP and Compass) comprise fare payment smart card systems in California (San Francisco Bay Area, Los Angeles County and San Diego County).

DISCUSSION

The motion requested a specific evaluation of the stand-beside validator used by Clipper, as a possible alternative for smaller local operators in Los Angeles County. Staff reviewed and documented smart card and validator operations. These validators are functional smart card readers located inside bus and rail vehicles as "add-on1'un- integrated components to a local agency's farebox or rail system (BART and SF Muni).

The original validators used by Clipper were installed in 2001 as part of the original predecessor smartcard program, TransLink. The Clipper card today is undergoing technical refinement and policy adoption with newer participants. The validators are located inside bus and rail vehicles of participating transit operators. Local Clipper participants include Muni, BART, AC Transit, caltrain, SamTrans, VTA and Golden Gate. While some operators are just beginning to load pre-paid fare products such as recurring passes onto the Clipper system, most transactions between operators are conducted through the loading and decrementing of cash stored value on the cards. Regional fare reconciliation, reimbursement and fare distribution processes are managed by the Metropolitan Transportation Commission (MTC) through a long term contract with Cubic Transportation Systems, Inc.

The success of the Clipper card is attributed to strong regional policy mandating regional participation (enacting state legislation) and a regional transfer policy utilizing the Clipper card. The original Translink program languished for nearly ten years with little use or regional cooperation. In 2009, MTC enacted state legislation that threatened to withhold operating funds if entities refused to participate. Revising the transfer policy to collect transfers on the second boarding also paved the way for operating in a stored value environment. A third action that solidified this effort was CUBIC acquiring the predecessor ERG contract and managing the regional smart card program from end-to- end. The maligned TransLink program was reintroduced as Clipper in 201 0. The program continues to grow and expand its interoperability with more participant agencies who carry common riders.

Metro's TAP system is very similar to Clipper and the Compass Card program (used in San Diego). The equipment and functionality are nearly identical with the exception of the aged validators used by Clipper. In November of this year, LADOT entered into an agreement to install light validators (similar to the ones used by Clipper) to be placed on their buses in 201 2. These validators will enable LADOT to utilize their existing fare boxes and interact with TAP fare products. This approach is a viable option for other local operators and regional LTSS funds were set aside to be available for implementation through a Board action taken in 2002.

Absent a regional mandate for participation in the TAP program (similar to MTC and Clipper), participation is at the discretion of individual transit operators. While reimbursement MOUs have been distributed to local TAP participants, regional clearing and settling of fares has been taking place for nearly two years with little or no dispute of fare reconciliation and revenue disbursements. This clearing and settling functionality is also in place with more than 600 retail vendors in our TAP sales network and overcomes the 30 day latency in pass reconciliation and revenue disbursement in the former paper pass processing.

The decision point on several light validator options is the level of functionality relative to cost. If regional fare and transfer policies can be established in advance, a lower-cost, more limited-use validator could be implemented as a prerequisite for interagency transfers in the region, much like Clipper. The 650 fare products loaded on the current TAP system coupled with a complex transfer environment currently requires a higher- functioning, validator unit. As in other transit systems that change obsolete tariff rules to take full advantage of new technology, the TAP system can accommodate and replace complex paper transfers, local transfers and EZ Transit passes that will provide conveniences to customers and relieve bus operators from having to account for a myriad of paper ticket sold aboard bus vehicles. NEXT STEPS

Staff will continue to work with local operators to identify applications for TAP implementation. In Los Angeles County, fare policies that address transition and coordination of interagency transfers and regional EZ Transit Passes can be accommodated by light validators to accept smart cards. This would be done in order to ease use and interoperability among operators who are currently not-TAP participants. Staff will continue to work with the local and municipal operators through the Local Transit Systems Subcommittee (LTSS), the Municipal Operator General Managers Group, the EZ Pass Working Group and other affected Metro departments. Periodic reports to the Bus Operation Subcommittee will also be presented.

Prepared by: Matthew Raymond, Chief Communication Officer -- Matthew ~bymond Chief Communications Officer

Arthur T. Leahy L' Chief Executive Officer