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HomeMy WebLinkAboutStaff Report 3.D 10/16/2017DATE: TO: 3011,00M Agenda Item #3.D October 16, 2017 Honorable Mayor and Members of the City Council through City Manager Dan St. John, RASCE — Director, Public Works and Utilities Emily Betts — Senior Transit Specialist, Transit Division SUBJECT: Resolution Approving Amendment #1 to the Amended Metropolitan Transportation Commission (MTC) Clipper® Card Memorandum of Understanding (MOU) Modifying Business Rules and Governance Structure of the Clipper® Fare Card Program RECOMMENDATION It is recommended that City Council adopt the Resolution Approving Amendment #1 to the Amended Metropolitan Transportation Commission (MTC) Clipper® Card Memorandum of Understanding (MOU) Modifying Business Rules and Governance Structure of the Clipper® Fare Card Program. BACKGROUND Clipper® is a regional fare collection program that uses a single smart-card to allow patrons of most of the Bay Area transit agencies to pay for all fares and many passes for all participating transit operators. In partnership with Bay Area transit agencies, MTC manages the Clipper® program and oversees a contract with Cubic Transportation Systems for its implementation. City Council approved the adoption of the original Clipper® MOU in 2014 and the Amended and Restated Clipper MOU in 2015, allowing Petaluma Transit to join the Clipper® Program and implement it in Petaluma in February, 2016. The execution of the subject amendment to the Amended and Restated Clipper MOU is required for Petaluma Transit to continue to participate in the Clipper® fare system. Participation in the Clipper® program is mandatory per MTC Resolution 3866 (2011) which prescribes punitive reductions in MTC - controlled funding to any transit system found out of compliance. DISCUSSION This amendment was drafted collaboratively by the Clipper. Executive Board and supported by the MTC membership. The amendment was approved at the April 2017 Board meeting and will revise the voting and attendance requirements for Board Members, clean up several procedural issues, and add a statement recognizing the parties Common Interest. The Common Interest statement allows parties with mutual legal interests to communicate through counsel without waiving the attorney client privileges. The MOU Amendment, with an effective date of April 17, 2017, through the modification of the business rules and governance structure and establishment of a Common Interest Doctrine, will support the development and release the Next Generation Clipper System (C2) Integrator Request for Proposals (RFP) as was unanimously approved by the Clipper Executive Board in August 2017. The Clipper Executive Board is comprised of nine members: six of the Big 7 transit operators plus MTC and two seats for small operators, such as Petaluma Transit. At this time, Petaluma is not represented on this board, as the Small Operators are represented by County Connection and the Water Emergency Transportation Authority (WETA). They meet regularly to guide the program, approve budgets, and direct changes in the program, including the C2 Integrator upgrades. The release of the C2 System Integrator RFP is a significant milestone because it will expand the capabilities of the Clipper Fare Card System, which is valuable to riders who regularly use more than one transit system. A very small percentage of transit riders in Petaluma use a second transit system. regularly so the impact will not be significant for the City. Petaluma Transit uses paper transfer agreements with Golden Gate and Sonoma County Transit Authorities and tracks a modest rate of transfer activity between the three systems. Most of Petaluma Transit's 1,550 average daily rides do not involve transferring to a regional system. Use of Clipper® in Petaluma is certain to increase now that SMART has initiated service in late August 2017 because SMART utilized Clipper® exclusively as the only fare media accepted. All SMART passengers that utilize Petaluma Transit to connect with the trains will likely be paying for bus fares using Clipper®. SMART projects no more than 200 initial daily train boardings from the Petaluma Downtown Station. Assuming that Petaluma Transit carries a quarter of those riders and generates 50 daily weekday Clipper® tags, the annual Clipper transactional cost for Petaluma would be approximately $3,000. The Transit Advisory Committee voted to recommend approval of this item at their September 7, 2017 meeting. It is recommended that the Council approve the amendment to allow continued use of the regional system and access to MTC funding. FINANCIAL IMPACTS The proposed action is required to assure continuation of the fare service and will result in a service charge for Clipper® that is included in the existing budget. Clipper fees in FYI were approximately $1,000; FYI budgeted amount is $3,000 to account for a possible increase in usage due to SMART. ATTACHMENTS 1. Resolution 2. Amendment #1 to the Amended 2015 Memorandum of Understanding regarding Operations and Maintenance of Clipper®° Fare Collection System 0) Attachment 1 RESOLUTION APPROVING AMENDMENT NUMBER 1 TO THE AMENDED METROPOLITAN TRANSPORTATION COMMISSION (MTC) CLIPPERO CARD MEMORANDUM OF UNDERSTANDING (MOU) MODIFYING BUSINESS RULES AND GOVERNANCE STRUCTURE OF THE CLIPPERO FARE CARD PROGRAM 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 Clipper0 Contract ", with Cubic Transportation Systems, Inc. ( "Clipper0 Contractor ") to operate and maintain ClipperO through November 2, 2019; and WHEREAS, MTC, Alameda- Contra Costa Transit District; Golden Gate Bridge Highway and Transportation District; the San Francisco Bay Area Rapid Transit District; the City and County of San Francisco, acting by and through its Municipal Transportation Agency; the San Mateo County Transit District; the Santa Clara Valley Transportation Authority; the Peninsula Corridor Joint Powers Board; the Water Emergency Transportation Authority; and collectively known as the Clipper0 Operators, have entered into the Clipper0 Memorandum of Understanding (MOU) to identify their obligations relative to the implementation, operation, maintenance of the Clipper0 program, including payment of operating fees due the Clipper0 Contractor; and WHEREAS, the aforementioned transit operators and MTC have completed a process to modernize the business rules and create a new, more responsive governance structure for managing the Clipper0 program going forward, and have all participating transit agencies adopted the 2015 Amended and Restated Clipper0 MOU which now requires amending; and WHEREAS, City of Petaluma wishes to continue to participate in the Clipper0 program and understands that agreement to abide by the terms and conditions of the 2015 Amended and Restated MOU and execution of Amendment #1 to said 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 Amendment #1 to the 2015 Amended and Restated Clipper0 Memorandum of Understanding, agreeing to be bound by the terms and conditions of the MOU, a copy of which is attached to this Resolution and incorporated in full. 3 Attachment 2 - Exhibit A to Resolution AMENDMENT NO. 1 to AMENDED AND RESTATED CLIPPER® MEMORANDUM OF UNDERSTANDING This is Amendment No. 1 C "Amendment "), effective as of April 17, 2017 ( "Amendment No. I Effective Date ") to the Amended and Restated Clipper® Memorandum of Understanding (the "MOU ") dated February 19, 2016, by and among the Metropolitan Transportation Commission ( "MTCs ") and the following transit operators participating in the Clippe& program (referred to herein individually as an "Operator" or collectively as the "Operators "): 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 ( "SFMTA "); the San Mateo County Transit District ( "SamTrans "); the Santa Clara Valley Transportation Authority ( "VTA "); the Peninsula Corridor Joint Powers Board ( "Caltrain "); Central Contra Costa Transit Authority; City of Fairfield, as the operator of Fairfield and Suisun Transit; City of Petaluma; Eastern Contra Costa Transit Authority; Livennore /Amador Valley Transit Authority; Marin County Transit District; Napa Valley Transportation Authority; Solano County Transit; Sonoma County Transit; Sonoma -Maria Area Rail Transit; Vacaville City.Coach; Western Contra Costa Transit Authority; San Francisco Bay Area Water Emergency Transportation Authority; City of Santa Rosa; and City of Union City; and any other transit operators that implement Clipper® and execute a Supplemental Agreement to the MOU. MTC and the Operators are referred to herein collectively as the "Parties" or individually as a "Party ". The Parties hereto agree to amend the MOU as follows: Article IV, Clipper® Executive Board, is amended in part as follows: a. Subarticles H, Board Chair; Committees, and I, Delegates, are amended to read: H. Board Chair: Committees. The Executive Board shall bi- annually elect a Chair and Vice Chair from its members. The Chair shall provide administrative staff support to the Executive Board, as needed as determined by the Chair and the Clipper® Executive Director. The Chair may appoint advisory committees or working groups for specified projects of limited duration. The Executive Board may establish standing committees from time to time. Delegates. Executive Board members may appoint, in writing, delegates to vote on their behalf in the event of a member's absence from any Executive Board meeting, for up to four (4) meetings per calendar year. No voting rights are accorded to delegates, nor do delegates count toward a quonun of the Executive Board, when they are representing an Executive Board mernber for meetings after four (4) missed meetings in a calendar year. Amendment No. 1 Amended/ Restated Clipper® Memorandum of Understanding Page 2 A new Article XH, Common Interest, is added to the MOU, as follows: ARTICLE XII Common Interest The Parties recognize a mutuality of interest, and a need for joint cooperation in legal matters relating to Clipper®. In furtherance of this common interest, any connmmications among Parties and counsel for any of the Parties shall be confidential and protected from disclosure to any third party by each and every privilege — including, but not limited to, the attomey- client privilege, the attorney work product privilege, and the pooled information privilege — notwithstanding the dissemination of the communications and work product among Parties by the counsel that made the information available in the first instance. If information covered by the privileges is requested by a third party pursuant to a subpoena or other discovery request, then counsel receiving the request shall notify in a timely fashion the counsel who disclosed the information so that the privileges against disclosure may be asserted. Should any Party withdraw from or otherwise terminate its participation in the Clipper® program, such withdrawal or termination shall not impair the privileges that protect any information that has been shared prior to such action. Any Party that withdraws or terminates its participation in the Clipper® program shall promptly return all privileged materials that the Party has received. All other terms of the MOU not amended herein shall remain in Rill force and effect. SIGNATURES ON SUBSEQUENT PAGES J: \CONTRACT\Contracts- New \Con Clipper\MOUs \Clipper MOU\Ainended and Restated MOMAinendment RAmendment No 1 to Amended Restated MOU 08242017 final.docx 2