Transactions Newsletter

March 1999
Motorola Recommended for Translink Contract

TransLink^(R), a universal ticket for Bay Area public transit systems, advanced a major step on March 24, when MTC's Administration and Oversight Committee issued a Notice of Recommended Award for a 10-year contract to a consortium led by Motorola Inc. to design, implement, operate and maintain the system.

If awarded the contract, Motorola will team with ERG Limited of Australia to develop a "smart fare card" for Bay Area transit riders.

The full Commission is scheduled to make a decision on the contract award at its May 26, 1999, meeting. According to MTC Project Manager Russell Driver, "During the next two months, we will brief commissioners and transit agency officials on detailed technical and financial information in the Motorola proposal."

The capital costs to develop the TransLink^(R) system will be $37 million, including $15 million for the demonstration program. MTC intends to cover these costs through federal, state and local funds that are already committed to the project. If the system goes into full swing, MTC estimates the annual operating costs will range from $8 million to $14 million, depending on how many people use the TransLink^(R) card. These additional costs are expected to be offset by savings in existing fare collection costs and fare equipment and maintenance expenses.

MTC staff and employees of six transit operators spent several months evaluating two proposals received for TransLink^(R), one from the Motorola consortium and the other led by IBM. After negotiating with both proposers and reviewing their "best and final offers," the evaluation committee recommended Motorola, based on both the price and superior quality of its proposal.

"In fall 2000," Driver said, "we expect to launch a six-month demonstration on selected routes of seven transit operators -- AC Transit, BART, Caltrain, Golden Gate Transit, San Francisco Muni, Vallejo Baylink Ferry and Valley Transportation Authority -- and to invite approximately 4,500 transit riders to participate."

If the TransLink^(R) demonstration is successful, MTC and the transit operators will decide whether to install the system regionwide. Installation could begin as early as 2001.

TransLink^(R) aims to provide seamless access to all 26 Bay Area public transit systems. Transit riders will purchase a "smart card" -- a plastic card embedded with a computer chip -- that they load with a dollar value, stored rides or monthly passes. When riders flash their TransLink^(R) card in front of an electronic reader on board transit vehicles, at fare gates or in stations, the appropriate fare will be automatically deducted. The "smart card" can handle a host of variables, including different fare structures, routes, distances, time of day, and discounts for students, elderly and disabled riders. The fare value of each ride will be transmitted to a central computer system, which will process all transactions and distribute payments to transit operators.

In addition to benefiting riders, TransLink^(R) will provide transit managers with a comprehensive data source for planning services, marketing and financial accounting. TransLink^(R) also is a major step forward in the region's compliance with state legislation, Senate Bill 1474, which requires transit operators, working with MTC, to consolidate and coordinate certain functions, such as fare cards, to improve their services.

-- Marjorie Blackwell

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