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
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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.
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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
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