translink

TO: Operations Committee DATE: July 6, 2007
FR: Deputy Executive Director, Operations
RE: 2c) Contract Amendment – TransLink® Contract Change Order #98 – BART Network Equipment, Installation and Operation: Motorola, Inc. (Capital: $635,000; Annual Operating: $103,200)
2d) Funding Agreement Amendment – TransLink® Marketing: AC Transit ($350,000)

Background
TransLink® is the Bay Area’s regional smart card for transit. The first phase of region wide deployment includes AC Transit and the Golden Gate Bridge and Highway Transportation District (GGBHTD). The second phase includes BART, San Francisco Municipal Transportation Agency (SFMTA) and Caltrain. Additional phases, scheduled through 2010, will bring TransLink® to the remaining Bay Area transit systems.

Contract Approval Items

Contract Amendment – TransLink® Contract Change Order #98 – BART Network Equipment and Installation: Motorola, Inc. (Capital: $635,000; Annual Operating: $103,200)
Change Order #98 implements the needed functionality to create network connections between BART and the TransLink® back end system through the installation and management of network equipment at BART stations. This change order permits the Contractor to purchase, install, test and manage the network equipment to ensure that data are correctly transmitted over the TransLink® network.

The final negotiated price for Change Order #98 is $635,000 for the capital costs and $103,200 for ongoing annual operating costs that are detailed below.
Capital
Description Total
Equipment for Network Installation and Operation $528,000
Labor for Development, Testing and Program Management $107,000
TOTAL $635,000

Operating
Description Pricing Total
Monthly Maintenance $4,400/Month $ 52,800
Cisco SmartNet Agreement – On Site 8x5xNBD Service $4,200/Month $ 50,400
TOTAL $103,200

Implementation of the BART Network is required to achieve Revenue Ready status on the BART system for TransLink® Phase 2.3 currently scheduled for December 2007. Work will begin directly upon execution of this Change Order.

Staff recommends that the Operations Committee authorize the Executive Director or his designee to negotiate and enter into Change Order #98 in the amount of $635,000 for capital expenses and $103,200 for annual operating expenses for the BART Network Equipment and Installation.

Funding Agreement Amendment –TransLink® Marketing: AC Transit ($350,000)

MTC currently has an agreement with AC Transit to market the availability of TransLink® to AC Transit riders in accordance with a marketing plan developed by AC Transit and approved by the TransLink® Consortium. AC Transit’s marketing plan includes on-board, bus shelter, cable television and radio advertising, promotional events at key transit locations and distribution of a limited number of free TransLink® cards.

At the June 2007 Programming and Allocations Committee meeting, an initial $1.2M in Regional Measure-2 (RM-2) funds were allocated for marketing of RM-2 capital and operating projects in FY 2007-08. Of this amount, $350,000 is intended for AC Transit’s TransLink® fare incentive to be offered at the time of the public launch of the TransLink® system on AC Transit’s fleet. The fare incentive offer will be an important component of AC Transit’s TransLink® marketing activities in the coming year.

The planned fare incentive will run for a number of months and will provide discounts for both cash fare customers on a per-ride basis as well as monthly pass customers. Promotional incentives that discount the price of new fare payment systems have significantly increased the market for these systems in other cities such as Chicago and New York, and in the Bay Area with FasTrak®.

Staff recommends that the Operations Committee authorize the Executive Director or his designee to negotiate and enter into an amendment to the previously described agreement with AC Transit to include an additional $350,000.




Ann Flemer

AF:BG
J:\COMMITTE\Operations\2007 Operations Comm Packet\July 2007\TransLink Contracts_BART Network_ACT Marketing.doc

REQUEST FOR COMMITTEE APPROVAL

Summary of Proposed Change Order

Work Item No.: 310-2707, 105-1221
Contractor: Motorola, Inc.
Schaumburg, IL
Project Title: BART Network Equipment and Installation
Purpose of Project: Implementation of TransLink® network at BART
Brief Scope of Work: Purchase, installation, configuration and testing of network equipment.
Project Cost Not to Exceed: Capital: $635,000
Annual Operating: $103,200
Funding Source: FTA Section 5307, STP/CMAQ, STP Exchange, STIP, STA, Regional Measure 2
Fiscal Impact: Funding to come from previously programmed state, federal and regional funds for the TransLink® program.
Motion by Committee: That the Executive Director or his designee is authorized to negotiate and enter into a Change Order for the BART Network Equipment and Installation and Management and the Chief Financial Officer is authorized to set aside funds up to $635,000 for capital expenses and $103,200 for annual operating expenses for such a Change Order.

Operations
Committee:
Sue Lempert, Chair
Approved: Date: July 13, 2007



REQUEST FOR COMMITTEE APPROVAL

Summary of Proposed Funding Agreement

Work Item No.: 105-1221
Agency: Alameda-Contra Costa Transit District, Oakland, CA
Project Title: RM-2 Marketing Program: TransLink Marketing
Purpose of Project: Reimbursement for TransLink® fare incentive for AC Transit’s customers.
Brief Scope of Work: Execution of TransLink® fare incentive for AC Transit’s customers.
Project Cost Not to Exceed: $350,000
Funding Source: Regional Measure 2 (RM-2)
Fiscal Impact: Funding to come from the RM-2 FY 2007/2008 operating budget.
Motion by Committee: That the Executive Director or his designee is authorized to negotiate and enter into an amendment to the funding agreement as described herein and the Chief Financial Officer is authorized to set aside funds up to $350,000 for such amendment.

Operations
Committee:
Sue Lempert, Chair
Approved: Date: July 13, 2007