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RESOLUTION MODIFYING THE MIAMI-DADE TRANSIT SCHEDULE OF TRANSIT FARES, RATES AND CHARGES WHICH STARTS THE PROCESS OF INTRODUCING THE AUTOMATED FARE COLLECTION SYSTEM (AFCS); REMOVES UNUSED PROVISIONS OF THE SCHEDULE; PHASES OUT THE ACCEPTANCE OF TOKENS; IMPLEMENTS A CHANGE IN THE TRANSFER POLICY; INCLUDES THE DAILY TRANSIT AND DAILY TRANSIT DISCOUNT FARES; CONSOLIDATES AND SIMPLIFIES THE DISCOUNT FARES; CLARIFIES LANGUAGE; AND UPDATES THE FARE SCHEDULE AS MODIFIED BY THE BOARD ON SEPTEMBER 2, 2008

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference; and
WHEREAS, a Public Hearing was held at Committee; and
WHEREAS, Miami-Dade Transit is transitioning into an automated fare collection �smartcard� system,

NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby approves the changes to the Miami-Dade Transit Schedule of Transit Fares, Rates and Charges.

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Date:


To: Honorable Chairman Dennis C. Moss
and Members, Board of County Commissioners


From: George M. Burgess
County Manager


Subject: Recommendations for Changes to the Miami-Dade Transit Schedule of Transit Fares, Rates and Charges

STAFF RECOMMENDATION

It is recommended that the Board of County Commissioners (Board) approve changes to the Miami-Dade Transit (MDT) Schedule of Transit Fares, Rates and Charges that will start the process of introducing the Automated Fare Collection System (AFCS); removes unused provisions of the Schedule; phases out the acceptance of tokens; implements change in the transfer policy; includes the daily transit and daily discount pass fare; consolidates and simplifies the discount fare schedule; clarifies language; and updates the Fare Schedule.

The changes are detailed below and are shown on Attachment 1 (Schedule of Transit Fares, Rates and Charges) in the standard strikeout (delete) and underscore (add) format. Per the Code of Miami-Dade County, Chapter 2, Article XIX, Section 2-150, these fare changes can be approved only after a public hearing is held at the Transit, Infrastructure & Roads Committee.

SCOPE

These recommended transit fares, rates and changes will have a Countywide impact.

FISCAL IMPACT

The fiscal impact of implementing the AFCS, attached Fares, Rates and Charges are anticipated to result in increased annual revenue to MDT due to the reduction of fare evasion on the system.

TRACK RECORD/MONITOR

The staff responsible for this agenda item is David Clodfelter, Chief, Budget, Auditing & Reporting.

DELEGATED AUTHORITY

In accordance with Section 2-8.3 of the Miami-Dade County Code related to identifying delegation of Board authority, there are no authorities beyond that specified in the resolution.

MANAGER'S BACKGROUND

On September 2, 2008, the Board modified the MDT Schedule of Transit Fares, Rates and Charges to increase cash fares, transit passes and parking fees and schedule automatic three-year fare, rate and charge increases tied to the Consumer Price Index (Resolution No. R-924-08). That Schedule should be updated to: reflect the needs of introducing the AFCS to patrons; remove unused provisions of the Schedule; phase out the acceptance of tokens; implement change in the transfer policy; include the fare for a daily transit and daily discount pass; consolidate and simplify the discount fares; and clarify and update the Fare Schedule as modified by the Board on September 2, 2008.

Automatic Fare Collection System Introduction
At the May 6, 2008 Board meeting, approval was granted to award Cubic Transportation Systems, Inc. (Cubic) a contract for the County�s AFCS through Resolution No. R-498-08. This system is intended to be a future regional fare vending and collection system which can ultimately provide residents and visitors to the South Florida region (Miami-Dade, Broward and Palm Beach) the ability to use a credit-card sized contact-less smart card (CSC) as the single fare media on public transportation. The South Florida Regional Transportation Authority (SFRTA) approved their fare collection procurement in December 2008 and will present an interagency agreement to Miami-Dade County requesting that MDT be the clearinghouse for their new fare collection system. Broward County recently approved a sole source contract with Cubic to procure a new fare collection system for Broward County Transit. The target date for their implementation is December 2009. Palm Beach County has indicated that funding is not currently available for a new fare collection system. Other transit properties nationwide, such as, WMATA in Washington D.C., MARTA in Atlanta, MBTA in Massachusetts and PATH of New York and New Jersey, have already implemented similar automated fare collection systems.

Installation of the AFCS new fare equipment began in July 2008 and is expected to be fully implemented by the summer of 2009. The AFCS will include the following: 22 automatic passenger counter systems for all Metromover stations; 249 faregates for all Metrorail stations; new station barriers for the Metrorail stations; over 1,000 Metrobus fareboxes; 1,000 automatic passenger counter systems for Metrobus; three new bus garage revenue collection systems; and 62 full service (cash, credit and debit) and 34 cashless Ticket Vending Machines (TVM) for the Metrorail stations. As indicated at the May 6, 2008 Board meeting, the AFCS implementation is taking place in phases. The Metrobus fleet equipment installation began in July 2008 and was completed in January 2009. The Metrorail station equipment installation will begin in March 2009 and is scheduled to conclude by the summer of 2009. The implementation of the AFCS will allow MDT to collect and provide accurate real-time data on rider�s ingress and egress into the system�which will, in turn, allow for more accurate service planning and scheduling; accurate financial and statistical reporting; provide information for a possible future distance-based fare system; reduce fraud and fare evasion; and improve overall customer convenience. For example, MDT will be able to determine ridership trends on a particular route to more accurately make efficiency adjustments during scheduled service changes. Also, ridership reports, which currently take several weeks to complete, will be available sooner.

As detailed on Attachment 2, the AFCS will introduce two new fare media types: Extended Use Contactless Smart Cards and Limited Use Contactless Smart Cards (CSCs). These two will replace the twelve (12) currently used fare media. The Extended Use CSC has been branded by MDT as the �EASY Card.� It is a plastic card similar to a debit card and contains a microchip which is capable of storing multiple fare products (i.e., single trip, weekly transit pass, daily pass, or monthly pass) plus stored value and can be programmed for automatic reloads up to a maximum value of $150.00. The EASY Card technology is commonly referred to as a �smart card� because the AFCS software has the capability to recognize the rider class stored on the card (monthly pass, discount pass, etc) and automatically deducts the appropriate amount of funds stored on the EASY Card for that fare product. The card could be thought of as a debit card -the customer selects the amount of money they would like to load onto the card ($5, $10, $15 or more) and the fare is deducted each time they ride. It simplifies the fare process; Customers simply tap the card on the card reader, enter the bus or Metrorail fare gate and go. There will also be convenient reloading locations at ticket vending machines at 22 Metrorail stations, select sales outlets throughout Miami-Dade County, the Transit Service Center on the second level of the Government Center Metrorail Station or patrons can call the EASY Card Center or reload via the internet. The EASY Card also offers increased security �customers can register their card and the remaining balance will be protected if loss or stolen.

When a patron purchases a monthly pass at the aforementioned locations, the monthly pass will come embedded with a microchip which, when presented to the card reader, the card is recognized as having unlimited trips for that month. For monthly corporate pass holders, there will be no need to mail these cards as currently practiced �corporate pass holders will be auto loaded with unlimited trips for the month once MDT receives their check for the allotment of passes for their company. There are other EASY Cards that will be programmed with unlimited trips, such as Golden and Patriot Passport EASY Cards.

The EASY Card has an initial one-time cost of $2.00 and can be used for up to three (3) years. However, as part of the EASY Card public outreach campaign, approximately 500,000 EASY Cards will be provided to the public free-of-charge to promote and encourage the transition from cash to the EASY card. MDT will distribute the free cards at all major transit hubs. There will be targeted distribution at MDT�s busiest bus terminals and on its busiest bus routes, such as routes that serve the Golden Glades Park and Ride facility, Miami Beach, Central Business District (CBD) in downtown Miami, the Omni and at Government Center. The free cards will also be distributed at MDT�s most frequented Metrorail stations (Dadeland North/South; Government Center; Civic Center; Brickell; Palmetto, etc.) until all free cards are exhausted. Additionally, the Mayor and each County Commission Office will receive a supply of free cards for distribution to their constituents. All MDT current and future sales outlets will receive free cards for distribution.

Similarly, there will be available a Limited Use Contact-less Smart Card (CSC) that has been branded by MDT as the �EASY Ticket,� which is paper-based. The EASY Ticket is designed for the occasional rider � it�s low cost, but has limited functionality. The EASY Ticket cannot carry as many fare products as the EASY card � patrons can load either stored value or a pass product up to a maximum value of $40. The EASY Ticket will be free-of-charge and can be used for up to sixty (60) days. Both EASY Cards and EASY Tickets can also be purchased and reloaded at any Metrorail Station Ticket Vending Machine (TVM), the Transit Service Center in Government Center, via the EASY Card website or at select retail sales outlets. MDT is working to augment its existing network of 25 Metropass Sales Outlets to accommodate the additional demand for fare products resulting from the introduction of the EASY Card. MDT has approached several large retail chains such as CVS, Walgreens, Publix, Winn-Dixie and Sedanos. MDT is currently negotiating with corporate representatives for Sedanos and Winn Dixie stores.

The conversion for current Golden and Patriot Passport holders from the existing fare media to the plastic smart card will begin next month and is expected to be completed April 2009. Golden Passport holders who are 65 years or older will be mailed a new EASY Card with detailed instructions on use. These cards will be reissued every three (3) years. MDT is working closely with the Bureau of Vital Statistics to purge data for current Golden Passport Holders prior to the mailing. Golden Passport recipients under 65 years of age (i.e., those that receive Social Security benefits) require annual renewal and recertification as their benefit status may have changed with the Social Security Administration. This Golden Passport population will be invited to come to Government Center to complete their recertification. There will be a number of opportunities scheduled for holders to get recertified and MDT staff will be prepared to recertify and issue the new Golden Passport EASY Cards the same day. In addition to contacting Patriot Passport Holders to issue the new EASY Card, MDT is working with the Veteran�s Administration to contact those qualified veterans that have been historically difficult to contact by mail. They too will have to attend a series of scheduled recertification events at Government Center to obtain the new EASY Card. Since the conversion will commence prior to the complete implementation of the fare system, Golden and Patriot Passport holders will need to show their EASY Card/ Ticket to security and fare collection personnel at Metrorail stations where the new fare gates have not been fully implemented.

A version of the EASY Card system is planned for implementation on Special Transportation Services (STS) in 2010, which will be included in the solicitation for the new STS contract with Miami-Dade County. However, in the interim, STS clients that currently use public transportation will receive an EASY Card with their photo to ride the fixed route system. As you are aware, all STS clients are eligible to ride Metrobus and Metrorail free to encourage more use of the fixed route system to offset the significant costs associated with door-to-door transportation services. STS clients that currently use public transportation will be mailed the EASY Cards between February and March 2009.

Since the AFCS is evolving the County�s current manual fare collection system to that of an electronic-based, contact-less technology, the MDT Schedule of Transit Fares, Rates and Charges should be updated to reflect the deletion of tokens (Section III) as an accepted fare media. The introduction of the AFCS will eliminate the need for all of the laborious activities associated with the acceptance and collection of tokens, i.e., daily collection from the entry gates and fareboxes; processing through sorters; wrapping and replenishment; re-packaging; and monthly delivery to and from participating outlets. At the time of full implementation, all patrons will have an opportunity to apply the value of their tokens onto the EASY Card/EASY Ticket. The elimination of tokens is consistent with other transit properties (WMATA, Houston and New York) which have also moved to the smart card system. Attachment 1 to this memorandum deletes all references to tokens. If approved, tokens will be phased out with the implementation of the AFCS. Recognizing that the discontinuation of tokens will eliminate the nominal discount that is currently available to riders who are otherwise not eligible for other discounts, the new fare collection system will have the flexibility to include loyalty rewards programs and frequent rider discounts. MDT�s research of other transit properties with smart card technology revealed that after the first several months of operation, many transit properties added frequent rider discount options to their fare schedule. Such programs can easily be implemented with the new fare collection system. Once this data is analyzed, a structure for the program will be developed and loyalty reward and frequent rider discount options programs will be brought to the board for its consideration. This is anticipated to occur within six to eight months after full implementation.

Additionally, all activities associated with paper transfers will no longer be required, as transfers will be embedded on EASY Cards/EASY Tickets. As such, activities currently required for the use of transfers, i.e., procurement of paper transfers, distribution to bus operators, on-board sale of paper transfers to patrons by bus operators and disposal of unused or damaged paper transfers, will no longer be needed. For transfers between modes, the Easy Card/ Ticket will automatically determine transfer eligibility and the appropriate current transfer fare will be deducted from the Easy Card/ Ticket. There will be a three-hour limit in which to use the transfer. The transfer transaction will be seamless and will free the patron from the need to search for money or use of current paper transfers. Cash-paying patrons who require a transfer, will be required to pay full transit fare at each boarding. However, the distribution of 500,000 EASY Cards is expected to minimize the impact of the change in this fare policy.

Last year, MDT began an outreach program to inform the public about the new features of the AFCS�including the pending non-acceptance of pennies beginning October 1, 2008. Since that time, customers have adapted to this new policy and MDT has collected a very small amount of pennies system-wide. One of the main purposes to evolve to a smart card fare collection based system is to streamline fare media and cash accepted on the system. Accepting pennies on the system is cumbersome and negatively affects the on-time performance of Metrobus. The new fare equipment validates each coin inserted in the farebox, increasing the dwell times at stops.

In addition to the above, the following changes are also recommended at this time.

Section IV. Prepaid Passes

Monthly Group Discount up to 4 passes
The category of Monthly Group Discount for 1 to 4 passes, Section IV., C. on the attached Schedule, is also recommended to be removed as this provision previously allowed a person to declare himself or herself a group of 1 and purchase a Monthly pass at a discount. The attached schedule has been corrected to offer group discount passes to groups of 4 or more.

Monthly College/Adult Education Pass
MDT entered into a promotional College Discount demonstration program with several local educational institutions with the introduction of a discounted-fare monthly transit pass to encourage the use of public transit�$37.50 when the pilot began and $42.50 as approved on September 2, 2008. Participating schools agreed to promote the program to their student bodies through display tables, campus websites, e-mails, student newspapers, on-campus outreach events, student orientations and sign-up with MDT staff. As a result of the pilot, MDT saw a marked increase in the number of pass sales and increased student ridership. This adjustment from $42.50 to $50.00 was inadvertently omitted from the September 2, 2008 fare Schedule. This change will bring uniformity between the Monthly College/Adult Education and regular Monthly Discount pass. Currently, there are 23 institutions of higher learning and 6,650 students currently enrolled in the Monthly College/Adult Metropass Program. This includes Colleges, Universities, Adult Education Centers and Technical Schools. MDT will coordinate with each institution to issue the new EASY Card to their respective students.

Several groups of patrons are eligible to ride at a discounted rate. The fare schedule interchangeably describes discount eligible riders as either "reduced" or "discount". For consistency and clarity, the term "reduced" has been replaced with "discount". To implement these changes, the following updates are made to Attachment 1: the term �reduced� fare is replaced by �discount� fare; and the charge for the Monthly College/Adult Education Pass is changed to be the same as the Discount Transit Pass (Section IV, F.).

Daily Transit Pass
The Schedule, as modified by the Board, included an item for a Daily Transit Pass but did not specify a fare (Section IV, J. and K.). It is recommended that the Daily Transit Pass be priced at $5.00, which is the price of a round trip including one transfer in each direction. The reduced fare for the Discount Daily Transit Pass will be $2.50. This pricing level is in line with other transit properties which offer a daily pass. Specifically, recent research shows the following daily pass rates: Greater New York/New Jersey, $6.00; New York City, $7.50; Atlanta, $8.00; Boston, $9.00; Broward, $3.00; Tri-Rail, $4.00; and Palm Tran, $3.50.

Sections VI and VII.

Special Event Fares/Charter Fares
The Schedule, as modified on September 2, 2008, contained provisions for Special Events and Charter fares which are now prohibited by the Federal Transit Administration (FTA). Under FTA Ruling 49 CFR 604.6, which became effective on April 30, 2008, transit properties can no longer provide shuttle/charter service to any local events. Therefore, the Special Events and Charter fares Section VI. and VII. in the Fare Schedule is not necessary.

Footnotes

Finally, there are several non-substantive changes made in this section using the standard strikethrough (delete) format. Additionally, footnote 3 has been revised and footnotes 9, 10 and 11 have been completely stricken from this section for the following reasons:

Footnote 3 has been revised to reduce the replacement fee if Golden Passport holders lose their Passport. It is recommended that the current tiered fee of $5 for the first replacement; $10 for the second replacement; and $50 for the third replacement be reduced to a flat $10 replacement fee per incident. The current tiered fee schedule was implemented to discourage fraud. However, since the new fare equipment will allow MDT to disable a card immediately when reported lost, it is recommended that the tiered fee be replaced with a $10 flat fee, which covers the costs of issuing another Golden Passport with photo. Replacement fees will continue to be waived if a police report listing the Golden Passport as stolen is provided by the holder.

Footnote 9, has been stricken as this was a promotional effort in collaboration with the hotel industry. Previously, hotels received $3 for each weekly pass ($1.50 for the discount weekly pass) sold. This promotional program will be terminated with the implementation of the AFCS and all vendors/hotels will receive the same commission as any other outlets. Footnote 10, which reflects that grade-school students can purchase a Daily Transit Pass for $1.50, has been stricken. Since the Daily Transit Pass is now being established at $5.00, and that students through grade 12 are an eligible category for the discounted fare as reflected in Footnote 2, therefore, the Discount Daily Transit Pass for students up to grade 12 is $2.50. Footnote 11, which mentions Medicare recipients, people with disabilities and youth through Grade 12, has been stricken due to redundancy with Footnote 2 which defines all eligible discount patrons.




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Assistant County Manager