HomeMy WebLinkAboutStaff Report 3.H 10/06/2014DATE: October 6, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE — Director, Public Works & Utilities
Joseph Rye — Transit Division Manager
SUBJECT: Resolution Authorizing the City Manager to Execute Metropolitan Transportation
Commission's Supplemental Agreement to Clipper 43) Memorandum of
Understanding, Adding City of Petaluma to the Clipper`' Fare Collection System
RECOMMENDATION
It is recommended that the City Council adopt the Resolution Authorizing the City Manager to
Execute the Metropolitan Transportation Commission's (MTC) Supplemental Agreement to the
Clipper Memorandum of Understanding (MOU), Adding the City of Petaluma to the Clipper'
Fare Collection System.
BACKGROUND
Clipper is a regional fare collection program that uses a smart card -based fare payment to allow
patrons of the seven largest Bay Area transit operations to use a single card to transfer between
and pay for use of all participating transit operations. MTC initiated the Clipper Card to reduce
the perceived barrier to greater regional transit usage caused by needing exact change when
transferring between transit operators such as from AC Transit to MUNI. In partnership with
Bay Area transit operators, the MTC manages the Clipper program and oversees a contract with
Cubic Transportation Systems for implementation of the ClipperL' program. Participation in
Clipper is mandatory per MTC Resolution 3866 to continue receiving the array of transit
funding controlled by MTC.
Clipper' is currently accepted by SF Muni, BART, AC Transit, Caltrain, Golden Gate Transit,
SamTrans, Santa Clara VTA, and the San Francisco Bay Area Water Emergency Transportation
Authority (WETA). In the North Bay, Santa Rosa CityBus, Sonoma County Transit, Napa
County Transportation and Planning Agency, Marin Transit, SMART and Petaluma Transit are
all currently working towards Clipper implementation.
This agreement will allow the Clipper system to be used for Petaluma Transit in the same
timeframe as proposed by the other Sonoma County operators. Implementation would ideally
coincide with the 2016 initiation of SMART rail operations.
Petaluma Transit is required to execute the MTC MOU to accept Clipper'" fare media in the
future. Capital costs for equipment and installation are covered by MTC.
The City's ongoing operating costs for using Clipper's fare media is a function of market
penetration. Each time a Clipper° user "tags" onto a Petaluma Transit bus, the City will be
charged a few cents per transaction. The exact costs are derived through a complex formula
based on number of tags and fares involved. If few Petaluma Transit passengers migrate to the
Clipper CR) card, the annual costs to Petaluma Transit would be under $20,000. Should a concerted
and successful effort lead to widespread Clipper usage, such as if Petaluma Transit induced
significant Clipper° usage in its large student market, Clipperi� costs could reach up to $50,000
per year or more, which is a significant expense for an agency the size of Petaluma Transit.
Clipper° primary value is to riders who regularly use more than one transit system. In Petaluma
only a very small percentage of existing Petaluma Transit riders use a second system. Currently,
Petaluma Transit has transfer agreements in place with Golden Gate and Sonoma County Transit
Authorities and tracks a modest rate of transfer activity between the three adjoining systems. Use
of transfers is expected to increase once SMART initiates service in 2 to 3 years.
Staff projects low Clipper'' usage within Petaluma, estimated at fewer than 100 riders per day,
equivalent to 5 to 6% of total ridership, because of the low number of current riders transferring
between systems. Most of Petaluma Transit's 1,750 daily rides on a school day do not involve
transferring to a regional system. Therefore, staff does not believe that Clipper would offer the
typical Petaluma Transit customer, consisting predominately of local transit dependent students
and the low income riders, real added value over the printed passes used today. Each Clipper(t)
transaction increases the cost of operation for Petaluma Transit.
It is recommended that Petaluma approach Clipper`s participation as a way to offer the
convenience of the smart card for those transit users in Petaluma who will benefit from the
simplicity of having a single fare card usable on multiple transit systems. Petaluma would
cooperate in the marketing and distribution of the Clipper"' cards as mandated by MTC but, in
order to minimize operating cost increases to Petaluma Transit, would not promote the smart
card to existing local transit dependent riders where it does not add value to their experience.
FINANCIAL IMPACTS
The financial impacts are directly related to the extent that the Clipper Card is adopted by
Petaluma Transit riders. The main value of the Clipper Card is to transit riders who regularly
use more than one transit provider. The market segment that uses multiple transit agencies in
Petaluma is small, and unless Petaluma Transit chooses to aggressively promote Clipper'to its
main student and low-income markets, the annual operating cost is projected to be under
$20,000.
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ATTACHMENTS
1. Resolution
2. MTC Clipper Memorandum of Understanding (MOU) Supplemental Agreement
® Items listed below are large in volume and are not attached to this report, but may be viewed
in the City Clerk's office.
3. Memorandum of Understanding regarding Operations and Maintenance of Clipper° Fare
Collection System
Attachment 2
RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE MTC'S SUPPLEMENTAL AGREEMENT TO CLH'PER°
MEMORANDUM OF UNDERSTANDING, ADDING CITY OF PETALUMA TO THE
CLIPPER FARE COLLECTION SYSTEM
WHEREAS, Clipper`` is an automated fare payment system for intra- and inter-
operator transit trips in the San Francisco Bay Area that has been implemented and is currently
being operated on various Bay Area transit systems; and
WHEREAS, the Metropolitan Transportation Commission (MTC) has entered into a
contract ("the Clipper' Contract") with Cubic Transportation Systems, Inc. ("Clipper`s
Contractor") to operate and maintain Clipper° through November 2, 2019; and
WHEREAS, MTC, Alameda -Contra Costa Transit District ("AC Transit"); Golden
Gate Bridge Highway and Transportation District ("GGBHTD"); the San Francisco Bay Area
Rapid Transit District (`BART"); the City and County of San Francisco, acting by and through
its Municipal Transportation Agency ("MTA"); the San Mateo County Transit District
("SamTrans"); the Santa Clara Valley Transportation Authority ('TTA"); the Peninsula
Corridor Joint Powers Board ("Caltrain"); and the Water Emergency Transportation Authority
("WETA") (collectively, the "Clipper Operators") have entered into the Clipper °'
Memorandum of Understanding ("MOU") to identify their obligations relative to the
implementation, operation, maintenance of the Clipper program, including payment of
operating fees due the Clipper`s Contractor; and
WHEREAS, Article III of the MOU permits MTC to accept additional Bay Area
transit operators into the Clipper program by means of a supplemental agreement with MTC,
on behalf of itself and the Clipper*' Operators, provided that MTC has issued a Change Notice
to the Clipper°� Contractor covering the work required to accept such operator into the system;
and
WHEREAS, MTC has issued such Change Notice to the Clipper° Contractor for the
City of Petaluma; and
WHEREAS, City of Petaluma wishes to participate in the Clipper`s program and
understands that agreement to abide by the terms and conditions of the MOU is a condition of
such participation.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma
hereby authorizes the City Manager to execute the Supplemental Agreement to the Clipper9'
Memorandum of Understanding, agreeing to be bound by the terms and conditions of the MOU,
a copy of which is attached to this Agreement and incorporated in full.
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Exhibit A
SUPPLEMENTAL AGREEMENT to
CLIPPER'S MEMORANDUM OF UNDERSTANDING
This Supplemental Agreement to the Clipper" Memorandum of Understanding ("MOU"), dated November 20,
2011, as amended December 1, 2011 and June 30, 2013, is made and entered into by and between the City of
Petaluma ("New Clipper" Operator") and the Metropolitan Transportation Commission ("MTC"). The
following transit operators participating in the Clipper" program (referred to herein as "Operator" or
"Operators") are parties to the MOU:
Alameda -Contra Costa Transit District ("AC Transit"); Golden Gate Bridge Highway and Transportation
District ("GGBHTD"); the San Francisco Bay Area Rapid Transit District (`BART"); the City and County of
San Francisco, acting by and through its Municipal Transportation Agency ("MTA"); the San Mateo County
Transit District ("SamTrans"); the Santa Clara Valley Transportation Authority ("VTA"); the Peninsula
Corridor Joint Powers Board ("Caltrain"); the San Francisco Bay Area Water Emergency Transportation
Authority ("WETA" ); and any other transit operators that enter into a Supplemental Agreement to the MOU for
the purposes of implementing Clipper.
The "Effective Date" shall be the date signed by both MTC and the New Clipper" Operator.
Recitals
Clipper1' is an automated fare payment system for intra- and inter -operator transit trips in the San
Francisco Bay Area that has been implemented and is currently being operated on Operators' transit
systems; and
2. MTC has entered into a contract (the "Clipper"' Contract") with Cubic Transportation Systems, Inc.
("Clipper' Contractor") to operate and maintain Clippee'through November 2, 2019; and
3. MTC and the Operators have entered into the MOU to identify their obligations relative to the
implementation, operation, maintenance of the Clipper' program, including payment of operating fees
due the Clipper"' Contractor; and
4. Article III of the MOU permits MTC to accept additional Bay Area transit operators into the Clipper"
program by means of a supplemental agreement with MTC, provided that MTC has issued a Change
Notice to the Clipper" Contractor covering the work required to accept such operator into the system;
and
5. MTC has issued such Change Notice in relation to the New Clipper19 Operator; and
6. The New Clipper" Operator wishes to participate in the Clipper' program and understands that
agreement to abide by the terms and conditions of the MOU, as it may be amended from time to time
by MTC and the Operators, is a condition of such participation;
NOW THEREFORE, the parties agree as follows:
The New Clipper" Operator agrees to be bound by the terms and conditions of the MOU, a copy of
which is attached to this Agreement and incorporated in full, including without limitation the cost and
revenue allocation agreement set forth in Appendix B.
2. MTC hereby enters into this Supplemental Agreement with the New Clipper"' Operator as a condition of
the New Clipper41 Operator's participation in the Clipper"" program.
3. The New Clipper" Operator understands that MTC and the Operators may amend the MOU from time to
time, and its agreement to abide by the terms and conditions of such amendment is a condition of its
participation in the Clipper" program. MTC agrees to provide the New Clipper's Operator with copies of
any such amendments, which shall be incorporated into this Supplemental Agreement by amendment.
IN WITNESS WHEREOF, the parties have signed the Supplemental Agreement.
CITY OF PETALUMA
By: John Brown, City Manager
METROPOLITAN TRANSPORTATION
COMMISSION
By Steve Heminger, Executive Director
Approved as to Form:
Legal Counsel
Approved as to Form:
Adrienne D. Weil
S:Uransit\CC Agenda Bills\Clipper Card\Atmeh Z COP Supplemental Agmt Iinal.doe